EDI VAN Service

This contract involves a sole source award for the renewal of an electronic data interchange (EDI) value-added network (VAN) service, which facilitates the electronic exchange of invoice and payment information with commercial motor, rail, and air carriers. The VAN supports the Defense Transportation Reporting System (DTRS) and is critical for ongoing operations. The renewal period covers one year, from October 1, 2009, to September 30, 2010, with an option for an additional year. The contract is managed by the Defense Finance and Accounting Service, based in Columbus, Ohio, with the place of performance in Indianapolis, Indiana. The decision to continue with the current VAN provider is largely influenced by the high estimated cost of approximately $779,640 that could arise if the system were to be shut down and transitioned to a new service provider. Market research indicates that switching to a new provider is highly unlikely due to these significant costs exceeding the benefits of changing vendors. The contract specialist overseeing this agreement is Michael S. Raynack, who can be contacted for further information. This contract supports critical financial and transportation functions within the Department of Defense.