DOE's $4.8M IT contract for computing infrastructure awarded to IMG - Crown Energy Services Joint Venture, LLC

Contract Overview

Contract Amount: $4,842,539 ($4.8M)

Contractor: IMG - Crown Energy Services Joint Venture, LLC

Awarding Agency: Department of Energy

Start Date: 2023-10-01

End Date: 2026-04-30

Contract Duration: 942 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RESIDENTIAL ENERGY CONSUMPTION SURVEY 2024

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 $4.8 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC for work described as: RESIDENTIAL ENERGY CONSUMPTION SURVEY 2024 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of 942 days (approximately 2.5 years) indicates a medium-term need for services. 4. The base award amount is $514,100, with a potential ceiling that could significantly increase the total value. 5. The contract is for computing infrastructure, data processing, and related services, a critical area for agency operations. 6. The contractor, IMG - Crown Energy Services Joint Venture, LLC, is a key provider for this service.

Value Assessment

Rating: fair

The base award of $514,100 for computing infrastructure services appears reasonable for an initial period. However, the contract's Time and Materials (T&M) pricing structure necessitates careful monitoring to prevent cost overruns. Without knowing the total ceiling value and actual spending, a comprehensive value assessment is difficult. Benchmarking against similar T&M contracts for IT infrastructure services would be necessary to determine if the hourly rates and material markups are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing. The Department of Energy likely sought to leverage the market to obtain the best value for these critical IT services.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The Department of Energy benefits from enhanced computing infrastructure and data processing capabilities. Services delivered include essential IT support for agency operations and data management. The contract's impact is primarily within the District of Columbia, where the agency is located. Workforce implications may include the need for specialized IT personnel to manage and utilize the new infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector is characterized by rapid technological advancements and high demand for specialized expertise. Federal agencies like the Department of Energy rely heavily on computing infrastructure, data processing, and web hosting to manage vast amounts of information and support operations. The market for these services is competitive, with numerous large and small providers. Comparable spending benchmarks would typically involve analyzing IT infrastructure contracts across various federal agencies, looking at factors like data center services, cloud computing, and network management.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, IMG - Crown Energy Services Joint Venture, LLC, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Risk Flags

Tags

it-services, computing-infrastructure, data-processing, web-hosting, department-of-energy, district-of-columbia, time-and-materials, full-and-open-competition, delivery-order, medium-value-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $4.8 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC. RESIDENTIAL ENERGY CONSUMPTION SURVEY 2024

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 $4.8 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-04-30.

What is the total potential value of this contract, including all options and task orders?

The provided data indicates a base award amount of $514,100 and a total contract value of $4,842,538.64. The difference suggests that the contract includes options or potential for task orders that could significantly increase the total spending over its duration. Without a detailed breakdown of these options or a defined ceiling for all potential task orders, the full financial commitment for the government remains somewhat undefined. Further analysis would require examining the contract's statement of work and any associated modifications or option periods to understand the complete scope of potential expenditure.

How does the hourly rate for labor under this Time and Materials contract compare to market rates for similar IT services?

The provided data does not include specific hourly labor rates or material costs, making a direct comparison to market rates impossible. Time and Materials (T&M) contracts are inherently variable, and their value is highly dependent on the specific skill sets required, the geographic location, and the prevailing market conditions at the time of bidding. To assess the competitiveness of the pricing, one would need to obtain the contract's detailed pricing structure and benchmark it against industry surveys for IT professionals (e.g., system administrators, network engineers, data analysts) with comparable experience and certifications in the Washington D.C. metropolitan area. The Department of Energy's procurement office would have conducted such analysis during the solicitation process.

What specific IT infrastructure and data processing services are covered under this contract?

The contract falls under the North American Industry Classification System (NAICS) code 518210, which covers Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. This broadly indicates that the services procured likely include the provision, maintenance, and management of computing hardware (servers, storage), software infrastructure, data storage and retrieval, potentially cloud hosting solutions, and related technical support. The specific details would be elaborated in the contract's Statement of Work (SOW), outlining deliverables such as server uptime guarantees, data backup and recovery procedures, network security measures, and user support protocols.

What is the track record of IMG - Crown Energy Services Joint Venture, LLC in delivering similar IT services to federal agencies?

Information regarding the specific track record of IMG - Crown Energy Services Joint Venture, LLC in delivering similar IT services to federal agencies is not detailed in the provided data. As a joint venture, its performance history may be a composite of its constituent members' experiences or specific to projects undertaken under this entity. A thorough assessment would require reviewing past performance evaluations, contract awards, and project outcomes associated with this specific joint venture or its principal partners on federal IT infrastructure and data processing contracts. Federal procurement databases and past performance questionnaires are typically used to gather this information.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a Time and Materials contract for IT services, common KPIs often revolve around service availability (uptime), response times for technical support, data security compliance, project completion milestones (if applicable), and adherence to budget. The Department of Energy's contracting officer and program managers would have established specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's Statement of Work to ensure the contractor meets performance expectations and delivers the required value.

How does the $4.84 million total contract value compare to historical IT spending by the Department of Energy in this category?

The total contract value of $4.84 million represents a specific investment in computing infrastructure and data processing services for the Department of Energy. To contextualize this amount, it would be necessary to analyze the Department's historical spending patterns for similar IT services over the past several fiscal years. This comparison would involve identifying previous contracts for data center operations, cloud services, or IT infrastructure support, and aggregating their values. Understanding whether this contract represents an increase, decrease, or stable level of spending in this category would provide insight into the agency's strategic IT priorities and budget allocation trends.

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: 89303023REI000097

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $7,031,844

Exercised Options: $4,842,539

Current Obligation: $4,842,539

Actual Outlays: $4,053,189

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: 2023-10-01

Current End Date: 2026-04-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-03-17

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