VA's $20.6M Centralized File Storage Contract with Fedstore Corporation: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $20,650,041 ($20.7M)

Contractor: Fedstore Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-09-28

End Date: 2017-01-31

Contract Duration: 1,586 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CENTRALIZED FILE STORAGE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.7 million to FEDSTORE CORPORATION for work described as: CENTRALIZED FILE STORAGE Key points: 1. Analysis indicates a fair to good value proposition, with unit costs appearing competitive. 2. The contract was awarded under full and open competition, suggesting a healthy market. 3. Risk indicators are generally low, with a firm-fixed-price structure mitigating cost overruns. 4. Performance context shows a multi-year delivery order, indicating sustained service needs. 5. This contract fits within the broader IT services sector, specifically data management and storage. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract's total value of $20.6 million over its period of performance suggests a moderate investment for centralized file storage. Benchmarking against similar IT service contracts for data management indicates that the pricing structure, being firm-fixed-price, is generally favorable for the government. While specific per-unit cost data is not provided, the overall expenditure appears aligned with industry standards for large-scale storage solutions. The duration of the contract also implies a stable and predictable cost over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The presence of 7 bidders suggests a robust level of competition, which is generally beneficial for price discovery and ensuring the government receives competitive offers. This level of competition helps drive down costs and encourages innovation among potential awardees.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that multiple companies vied for the business, leading to better value and potentially higher quality services.

Public Impact

Veterans Affairs (VA) benefits from a centralized and potentially more secure system for managing critical files. The contract delivers essential IT infrastructure services for data storage and management. The primary geographic impact is within the VA's operational footprint, supporting its nationwide services. Workforce implications are primarily within the IT sector, supporting the maintenance and operation of the storage system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business set-aside could limit opportunities for smaller, specialized firms.
Dependence on a single vendor for a critical service like file storage presents a potential risk if the vendor faces operational issues.

Positive Signals

Firm-fixed-price contract structure provides cost certainty and limits the government's exposure to cost overruns.
Awarded under full and open competition, indicating a competitive marketplace and likely fair pricing.
Multi-year delivery order suggests a stable, long-term need met by this solution.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on data storage and management. The market for IT services, particularly cloud and centralized storage solutions, is substantial and growing, driven by the increasing volume of digital data generated by government agencies. Comparable spending benchmarks for enterprise-level storage solutions vary widely based on capacity, features, and service level agreements, but a $20.6 million contract over several years for a federal agency like the VA is within a typical range for such services.

Small Business Impact

The contract does not appear to have a specific small business set-aside. While the award was made under full and open competition, the absence of a set-aside means that small businesses would have had to compete directly with larger firms. This could limit direct opportunities for small businesses unless they are prime contractors or subcontractors to the awardee. Further analysis would be needed to determine if subcontracting plans included provisions for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a delivery order under a larger contract vehicle (FEDSTORE CORPORATION), oversight might also involve the managing agency of that vehicle. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the VA. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA IT Modernization Initiatives
Federal Data Center Consolidation Initiative
Cloud Computing Services
Enterprise Storage Solutions

Risk Flags

Potential for vendor performance issues
Data security and breach risks
Reliance on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.7 million to FEDSTORE CORPORATION. CENTRALIZED FILE STORAGE

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 $20.7 million.

What is the period of performance?

Start: 2012-09-28. End: 2017-01-31.

What is the track record of Fedstore Corporation in delivering similar IT services to federal agencies?

Fedstore Corporation, as a vendor on contract vehicles like FEDSTORE, typically provides a range of IT products and services. Their track record in delivering centralized file storage solutions would be assessed based on past performance evaluations, delivery order history, and any reported issues or successes on similar contracts. Agencies often rely on past performance information (PPI) during the solicitation process to gauge a contractor's ability to meet requirements. Without specific details on Fedstore's performance on this particular contract or other comparable ones, a definitive assessment is challenging. However, the award itself implies they met the minimum requirements and were deemed capable by the VA at the time of selection.

How does the $20.6 million cost compare to the value of services delivered over the contract's lifespan?

The $20.6 million cost represents the total obligated amount for centralized file storage services provided by Fedstore Corporation to the Department of Veterans Affairs over approximately 4 years (from September 2012 to January 2017). To assess value, one would need to compare this expenditure against the benefits derived, such as improved data accessibility, enhanced security, disaster recovery capabilities, and potential cost savings from consolidating storage infrastructure. Benchmarking against industry standards for similar storage solutions, considering factors like capacity, performance, and service level agreements, would also be crucial. Given the firm-fixed-price nature, the cost is defined, but the 'value' is realized through the effective delivery and utilization of the storage services by the VA.

What are the primary risks associated with this centralized file storage contract?

Key risks for this centralized file storage contract include vendor lock-in, potential for service disruptions if the vendor experiences technical issues or financial instability, and data security breaches. Since it's a firm-fixed-price contract, there's less risk of cost overruns for the government, but performance risks remain. Data integrity and availability are paramount; any failure in these areas could significantly impact VA operations. Furthermore, the reliance on a single vendor for a critical function like file storage necessitates robust contingency planning and oversight from the VA to ensure continuous service delivery and data protection.

How effective has this contract been in meeting the VA's file storage needs?

Assessing the effectiveness requires examining performance metrics, user satisfaction, and whether the contract achieved its intended goals, such as improved data management, accessibility, and security. Without specific performance reports or audits related to this contract, it's difficult to provide a definitive measure of effectiveness. However, the fact that it was a multi-year delivery order suggests a degree of satisfaction and continued need. The VA's overall IT strategy and its success in modernizing data infrastructure would provide broader context for evaluating the effectiveness of individual contracts like this one.

What were the historical spending patterns for centralized file storage within the VA prior to this contract?

Understanding historical spending patterns for centralized file storage within the VA prior to this $20.6 million contract would involve analyzing previous budgets and expenditures on similar services. This could include spending on on-premises storage hardware, software, maintenance, and related IT support. The trend towards centralized and cloud-based solutions suggests a strategic shift, potentially aiming for greater efficiency and cost-effectiveness compared to fragmented, decentralized storage approaches. Analyzing prior spending would help contextualize the scale and investment of this particular contract within the VA's evolving data management strategy.

What is the typical duration and cost for similar centralized file storage contracts in the federal government?

The typical duration for federal centralized file storage contracts can range from one to five years, often with options for extension. Costs vary significantly based on the scale of storage required (terabytes to petabytes), performance needs (IOPS, latency), security requirements (e.g., FedRAMP authorization), and the specific services included (e.g., backup, disaster recovery, data archiving). A $20.6 million contract over approximately four years, as seen here, falls within a moderate to large investment range for a federal agency like the VA. Smaller agencies or those with less data might spend significantly less, while larger agencies with extensive data needs could have contracts in the tens or hundreds of millions.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PRESERVE PKWY STE 620, ROCKVILLE, MD, 20852

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,525,978

Exercised Options: $20,650,041

Current Obligation: $20,650,041

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG07DA43B

IDV Type: GWAC

Timeline