VA's $12.6M EMC hardware and software contract awarded to Fedstore Corporation for email infrastructure

Contract Overview

Contract Amount: $12,656,330 ($12.7M)

Contractor: Fedstore Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-09-27

End Date: 2013-09-30

Contract Duration: 2,195 days

Daily Burn Rate: $5.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EMC HARDWARE, SOFTWARE, INSTALLATION, VALIDATION AND TESTING. A MICROSOFT EXCHANGE, EMAIL INFRASTUCTURE SOLUTION FOR VISNS 1-5 AND VACO

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19123

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.7 million to FEDSTORE CORPORATION for work described as: EMC HARDWARE, SOFTWARE, INSTALLATION, VALIDATION AND TESTING. A MICROSOFT EXCHANGE, EMAIL INFRASTUCTURE SOLUTION FOR VISNS 1-5 AND VACO Key points: 1. Contract focused on essential IT infrastructure for email services. 2. Awarded via a competitive delivery order, suggesting multiple bids. 3. Long duration (2195 days) indicates a significant, ongoing need. 4. Firm Fixed Price contract type helps manage cost certainty. 5. Small business participation was not a stated requirement. 6. Performance period spanned from 2007 to 2013.

Value Assessment

Rating: fair

The contract value of $12.6 million over approximately six years for IT hardware, software, and services appears moderate for a large federal agency like the VA. Benchmarking against similar large-scale IT infrastructure procurements would be necessary for a precise value-for-money assessment. The firm fixed price structure suggests an attempt to control costs, but the total expenditure is substantial for email infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, likely Fedstore's Federal Supply Schedule (FSS) contract. The presence of 'competitive' in the award type indicates that multiple vendors were likely solicited, and Fedstore was selected based on best value or lowest price. The number of bids received is not specified, but the competitive nature is a positive sign for price discovery.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers compared to sole-source procurements, as it encourages vendors to offer their most competitive terms.

Public Impact

Benefits VA employees and potentially veterans through improved email communication systems. Delivers essential IT infrastructure supporting daily operations. Geographic impact is nationwide, supporting VA facilities across the US. Workforce implications include IT support staff for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in or outdated technology if not managed proactively.
Reliance on a single vendor for core infrastructure components may pose risks.
Lack of specific small business set-aside information could mean limited opportunities for smaller IT firms.

Positive Signals

Competitive award process suggests potential for good value.
Firm Fixed Price contract provides cost predictability.
Focus on core IT infrastructure is critical for agency operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure and services. The market for enterprise email solutions and associated hardware/software is large and competitive, with numerous vendors offering cloud-based and on-premise solutions. The VA's spending on IT infrastructure is substantial, reflecting the agency's size and the critical nature of its digital services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While awarded competitively, the lack of a small business set-aside means that larger prime contractors like Fedstore were likely the primary participants. Subcontracting opportunities for small businesses are not detailed in this award data, but are a possibility in such large IT procurements.

Oversight & Accountability

As a competitive delivery order, oversight would typically involve the contracting officer's representative (COR) monitoring performance and deliverables. The Department of Veterans Affairs has an Office of Inspector General (OIG) that conducts audits and investigations into VA programs and contracts, providing an additional layer of oversight. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

VA IT Infrastructure Modernization Programs
Enterprise Email Solutions
Federal Supply Schedule (FSS) IT Contracts
Department of Veterans Affairs IT Services

Risk Flags

Long contract duration may indicate potential for technology obsolescence.
Reliance on specific vendor hardware/software could limit future flexibility.
Lack of explicit small business focus might reduce opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.7 million to FEDSTORE CORPORATION. EMC HARDWARE, SOFTWARE, INSTALLATION, VALIDATION AND TESTING. A MICROSOFT EXCHANGE, EMAIL INFRASTUCTURE SOLUTION FOR VISNS 1-5 AND VACO

Who is the contractor on this award?

The obligated recipient is FEDSTORE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2007-09-27. End: 2013-09-30.

What was the specific nature of the EMC hardware and software provided, and how did it compare to contemporary market offerings?

The contract specified 'EMC HARDWARE, SOFTWARE, INSTALLATION, VALIDATION AND TESTING' for a 'MICROSOFT EXCHANGE, EMAIL INFRASTRUCTURE SOLUTION'. This suggests the procurement involved storage hardware (likely from EMC, a major storage vendor at the time), related software licenses, and professional services for implementation and testing. Microsoft Exchange was the dominant enterprise email platform during the contract's performance period (2007-2013). Contemporary market offerings included various versions of Exchange, competing solutions from companies like IBM (Lotus Notes), and emerging cloud-based options. Without specific product details, a direct comparison is difficult, but the VA was likely acquiring on-premise infrastructure to support its large user base.

How did the $12.6 million total contract value compare to other similar IT infrastructure procurements by the VA or other large federal agencies during that period?

The $12.6 million total contract value over approximately six years represents an average annual spend of roughly $2.1 million. For a large federal agency like the Department of Veterans Affairs, managing a nationwide email infrastructure, this figure is considered moderate. Large-scale IT infrastructure projects, including enterprise resource planning (ERP) systems, network upgrades, or data center consolidations, often run into tens or hundreds of millions of dollars. This specific contract focused on a critical but singular component (email infrastructure), making its value reasonable in that context. Agencies like the Department of Defense or HHS might have comparable or larger expenditures on similar foundational IT services.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was Fedstore Corporation's performance measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for an email infrastructure solution, typical SLAs would likely focus on system uptime (e.g., 99.9% availability), response times for critical issues, data backup and recovery capabilities, and security compliance. Performance measurement would be handled by the Contracting Officer's Representative (COR) through regular progress reports, system monitoring tools, and potentially user feedback. Adherence to these metrics would determine Fedstore's overall performance rating and eligibility for future task orders or contract renewals.

Were there any identified risks or challenges during the contract's performance period, and how were they mitigated?

Potential risks inherent in a contract of this nature and duration include technology obsolescence, integration issues with other VA systems, cybersecurity threats, and vendor performance issues. Given the contract spanned from 2007 to 2013, the transition from older Exchange versions to newer ones, or the potential shift towards cloud email solutions (like Microsoft 365, which gained traction later), could have presented challenges. Mitigation strategies would typically involve proactive technology refresh planning, robust cybersecurity protocols, regular performance reviews with the contractor, and contingency planning for system failures or security breaches. Specific documented risks and mitigations for this particular contract are not available in the provided data.

How does this contract fit into the broader IT modernization strategy of the Department of Veterans Affairs, both during its performance period and in retrospect?

During its performance period (2007-2013), this contract represented a crucial investment in maintaining and upgrading the VA's core communication infrastructure. Reliable email is fundamental to agency operations. In retrospect, this contract highlights the VA's reliance on established vendors and on-premise solutions for critical IT functions during that era. As the VA, like other federal agencies, has moved towards cloud adoption and more agile IT strategies in recent years, this contract serves as a benchmark of past infrastructure spending. It underscores the evolution from managing physical hardware and software to leveraging cloud services for scalability and potentially lower long-term costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 200-199-07

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 RESEARCH COURT, SUITE 450, ROCKVILLE, MD, 08

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,656,330

Exercised Options: $12,656,330

Current Obligation: $12,656,330

Parent Contract

Parent Award PIID: NNG07DA43B

IDV Type: GWAC

Timeline