Energy Information Administration contract awarded to IMG - Crown Energy Services for $66.9M to provide IT support

Contract Overview

Contract Amount: $66,896,958 ($66.9M)

Contractor: IMG - Crown Energy Services Joint Venture, LLC

Awarding Agency: Department of Energy

Start Date: 2021-01-13

End Date: 2026-07-12

Contract Duration: 2,006 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE TECHNICAL, MANAGERIAL AND PROJECT SUPPORT SERVICES IN SUPPORT FOR THE ENERGY INFORMATION ADMINISTRATION (EIA) FOR EIA OMNIBUS PROCUREMENT IV.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $66.9 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC for work described as: PROVIDE TECHNICAL, MANAGERIAL AND PROJECT SUPPORT SERVICES IN SUPPORT FOR THE ENERGY INFORMATION ADMINISTRATION (EIA) FOR EIA OMNIBUS PROCUREMENT IV. Key points: 1. The contract value of $66.9 million over its period of performance represents a significant investment in IT support for the EIA. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated based on contract type, performance history, and potential for cost overruns. 4. Performance context is established by comparing this contract to similar IT support services procured by federal agencies. 5. The sector positioning of this contract is within the broader IT services market, specifically supporting government data and information dissemination. 6. The contract's duration and total value suggest a long-term need for these specialized services.

Value Assessment

Rating: good

The contract's total value of $66.9 million over approximately five years suggests a substantial but potentially reasonable investment for comprehensive IT support. Benchmarking against similar large-scale IT service contracts for federal agencies indicates that pricing is likely competitive, especially given the full and open competition. The cost-plus-fixed-fee structure, while allowing for flexibility, requires careful monitoring to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for their management and profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders, as suggested by the 'no' field, implies a degree of competition, which is generally favorable for price discovery and achieving value for money. However, a more detailed analysis of the bidding process and the specific qualifications of the bidders would be needed to fully assess the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring that the government is not overpaying for services. It also promotes a wider pool of potential contractors, fostering innovation and potentially leading to better service delivery.

Public Impact

The primary beneficiaries are the employees and operations of the Energy Information Administration (EIA), who will receive enhanced technical, managerial, and project support. The services delivered will ensure the continued functionality and improvement of IT infrastructure critical for data collection, analysis, and dissemination by the EIA. The geographic impact is primarily focused on the District of Columbia, where the EIA is headquartered and where the support services are likely to be managed. Workforce implications include the direct employment of personnel by the contractor to fulfill the support requirements, as well as indirect support to the EIA's federal workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on infrastructure, data processing, and related support. The market for federal IT services is substantial, with agencies increasingly relying on external expertise for managing complex technological environments. The EIA's mission to provide reliable energy statistics necessitates robust IT systems, making this contract a key component of their operational capability. Comparable spending benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. However, the joint venture structure of the prime contractor, IMG - Crown Energy Services Joint Venture, LLC, may involve small business participation through subcontracting or as part of the joint venture itself. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Energy, specifically the contracting officers and program managers responsible for the Energy Information Administration. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the Federal Procurement Data System (FPDS), which records contract awards and details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, department-of-energy, energy-information-administration, cost-plus-fixed-fee, full-and-open-competition, it-support, data-processing, district-of-columbia, large-contract, it-infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $66.9 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC. PROVIDE TECHNICAL, MANAGERIAL AND PROJECT SUPPORT SERVICES IN SUPPORT FOR THE ENERGY INFORMATION ADMINISTRATION (EIA) FOR EIA OMNIBUS PROCUREMENT IV.

Who is the contractor on this award?

The obligated recipient is IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $66.9 million.

What is the period of performance?

Start: 2021-01-13. End: 2026-07-12.

What is the track record of IMG - Crown Energy Services Joint Venture, LLC in performing similar federal IT support contracts?

Assessing the track record of IMG - Crown Energy Services Joint Venture, LLC is crucial for understanding their capability to deliver on this $66.9 million contract. While specific details on past performance are not provided in the data, a thorough review would involve examining their history with the Department of Energy and other federal agencies. Key areas to investigate include their success in managing cost-plus-fixed-fee contracts, their performance on IT infrastructure and project support services, and any past performance evaluations or awards. A joint venture's track record can be complex, requiring an understanding of the individual entities comprising the venture and their combined experience. Positive indicators would include a history of on-time, within-budget delivery and positive client feedback, while negative indicators might include contract disputes, performance failures, or significant cost overruns on previous similar engagements.

How does the total contract value of $66.9 million compare to similar IT support contracts for federal agencies of comparable size and mission?

The total contract value of $66.9 million for the EIA's IT support services needs to be benchmarked against similar procurements to assess its value proposition. Federal agencies often award multi-year contracts for comprehensive IT support, with values varying significantly based on the agency's size, complexity of its IT infrastructure, and the scope of services required. For an agency like the EIA, which is responsible for collecting and disseminating vast amounts of energy data, a contract in this range over approximately five years appears to be within the expected spectrum for robust IT support. Comparisons with contracts for agencies like the Bureau of Labor Statistics or other data-intensive federal bodies would provide a more precise context. Factors such as the number of users supported, the criticality of the systems, and the level of specialized technical expertise required all influence the overall cost.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this specific procurement?

The 'Cost Plus Fixed Fee' (CPFF) contract type, while offering flexibility for evolving requirements, introduces specific risks for this EIA IT support procurement. The primary risk is potential cost overruns, as the government agrees to reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's actual costs exceed initial estimates, the government bears the burden, potentially leading to a higher-than-anticipated total expenditure. Effective risk mitigation requires stringent oversight, detailed cost tracking, and robust auditing by the contracting agency to ensure that all claimed costs are reasonable, allocable, and allowable. The fixed fee itself is intended to incentivize contractor efficiency, but the government must ensure the fee is appropriate for the level of risk and effort involved. Without diligent management, the CPFF structure can lead to less price certainty for the government compared to fixed-price contracts.

What is the expected impact of this contract on the Energy Information Administration's ability to fulfill its mission of providing reliable energy data?

This contract is directly linked to the EIA's core mission of providing reliable energy information. By securing technical, managerial, and project support services, the EIA ensures the stability, security, and efficiency of its critical IT infrastructure. This includes the systems used for data collection from various sources, the databases where this information is stored and processed, and the platforms through which the data is disseminated to the public, policymakers, and industry stakeholders. Reliable IT support minimizes downtime, enhances data integrity, and allows the EIA to adapt its technological capabilities to meet evolving data demands and analytical needs. Ultimately, the successful execution of this contract should bolster the EIA's capacity to deliver timely, accurate, and comprehensive energy statistics, which are vital for informed decision-making.

How has federal spending on IT support services for agencies like the EIA evolved over the past five years, and how does this contract fit into that trend?

Federal spending on IT support services has generally seen a consistent upward trend over the past five years, driven by increasing digitalization, cybersecurity needs, and the modernization of legacy systems across government agencies. Agencies like the EIA, which manage large datasets and public-facing information portals, are particularly reliant on robust and evolving IT infrastructure. This $66.9 million contract for the EIA fits within this broader trend, representing a significant but likely necessary investment to maintain and enhance their operational capabilities. The increasing complexity of cyber threats and the demand for data analytics also contribute to higher spending in this area. The trend also shows a move towards cloud computing and agile development, and it would be important to understand if this contract incorporates such modern approaches to ensure long-term value and adaptability.

Industry Classification

NAICS: InformationComputing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesComputing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 89303020QEI000018

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5418 SEMINARY RD, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,036,018

Exercised Options: $70,036,018

Current Obligation: $66,896,958

Actual Outlays: $51,631,726

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DEEI0002951

IDV Type: IDC

Timeline

Start Date: 2021-01-13

Current End Date: 2026-07-12

Potential End Date: 2026-07-12 00:00:00

Last Modified: 2025-12-26

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