DOE's $32.3M Project Cerberus ESN 2.0 Services Contract Awarded to ALVAREZ LLC
Contract Overview
Contract Amount: $32,335,947 ($32.3M)
Contractor: Alvarez LLC
Awarding Agency: Department of Energy
Start Date: 2019-04-29
End Date: 2022-12-31
Contract Duration: 1,342 days
Daily Burn Rate: $24.1K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: NASA SEWP CONTRACT NNG07DA46B PROJECT CERBERUS ESN 2.0 SERVICES
Place of Performance
Location: LIVERMORE, ALAMEDA County, CALIFORNIA, 94551
Plain-Language Summary
Department of Energy obligated $32.3 million to ALVAREZ LLC for work described as: NASA SEWP CONTRACT NNG07DA46B PROJECT CERBERUS ESN 2.0 SERVICES Key points: 1. The contract, valued at $32.3 million, was awarded to ALVAREZ LLC for ESN 2.0 Services. 2. The primary agency is the Department of Energy (DOE), with NASA SEWP as the contract vehicle. 3. The NAICS code 541519 suggests services related to computer systems design and related services. 4. The contract was competed under SAP (Simplified Acquisition Procedures), indicating a focus on smaller procurements.
Value Assessment
Rating: fair
The contract value of $32.3M over approximately 3 years is moderate. Benchmarking against similar IT services contracts under NASA SEWP would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Competed under SAP, this suggests a limited competition approach, likely targeting small businesses or specific set-asides. The price discovery may be less robust than full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for IT services supporting DOE initiatives. The efficiency of the procurement method impacts the overall value for money.
Public Impact
Supports critical IT infrastructure and services for the Department of Energy. The contract's duration and value indicate a significant investment in technology. Potential impact on energy sector operations and research through enhanced IT capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Lack of detailed performance metrics in provided data
Positive Signals
- Awarded under a recognized contract vehicle (NASA SEWP)
- Specific project focus (ESN 2.0 Services)
Sector Analysis
The IT services sector is highly dynamic. Spending benchmarks for IT services vary widely based on scope, complexity, and agency needs. DOE's investment aligns with the general trend of federal agencies modernizing their IT infrastructure.
Small Business Impact
While competed under SAP, it's unclear if this was specifically set aside for small businesses. The contract's value might exceed typical small business thresholds, but SAP can include various set-aside types.
Oversight & Accountability
Oversight would typically be managed by the Department of Energy's contracting officers and program managers. NASA SEWP provides a framework, but agency-specific oversight is crucial for performance and accountability.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost creep due to labor hour pricing.
- Limited visibility into specific performance metrics.
- Uncertainty regarding the extent of competition.
- Dependence on a single contractor for critical services.
Tags
other-computer-related-services, department-of-energy, ca, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $32.3 million to ALVAREZ LLC. NASA SEWP CONTRACT NNG07DA46B PROJECT CERBERUS ESN 2.0 SERVICES
Who is the contractor on this award?
The obligated recipient is ALVAREZ LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $32.3 million.
What is the period of performance?
Start: 2019-04-29. End: 2022-12-31.
What specific IT services does ESN 2.0 entail, and how do they align with DOE's strategic objectives?
ESN 2.0 likely refers to an evolution of Energy Sciences Network services, crucial for high-performance computing, data transfer, and collaborative research within the DOE. These services are fundamental to advancing scientific discovery and operational efficiency across DOE laboratories and facilities, supporting objectives like advanced scientific computing and secure data management.
What are the key performance indicators (KPIs) for this contract, and how is ALVAREZ LLC's performance being measured?
Key performance indicators would typically include service availability, response times for issue resolution, network uptime, data transfer speeds, and cybersecurity compliance. Performance is likely measured through regular reporting, user feedback, and adherence to service level agreements (SLAs) defined in the contract's statement of work.
How does the pricing structure (labor hours) compare to industry benchmarks for similar IT services, considering the limited competition?
Labor hour contracts can be efficient for evolving requirements but risk cost overruns if not managed tightly. Without specific labor categories and rates, direct benchmarking is difficult. However, the limited competition under SAP might result in prices that are not as aggressively negotiated as in a full and open competition, potentially impacting overall value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 8251 GREENSBORO DR STE 230, TYSONS CORNER, VA, 22102
Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $32,335,947
Exercised Options: $32,335,947
Current Obligation: $32,335,947
Actual Outlays: $14,973,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: DEIM0000759
IDV Type: BPA
Timeline
Start Date: 2019-04-29
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2023-12-07
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