Department of Energy's $1.4M IT services contract with Advanced Computer Concepts shows fair value but limited competition
Contract Overview
Contract Amount: $141,547 ($141.5K)
Contractor: Advanced Computer Concepts, Inc.
Awarding Agency: Department of Energy
Start Date: 2021-08-30
End Date: 2023-03-31
Contract Duration: 578 days
Daily Burn Rate: $245/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: MEGASYS TELENIUM RENEWAL
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $141,547.02 to ADVANCED COMPUTER CONCEPTS, INC. for work described as: MEGASYS TELENIUM RENEWAL Key points: 1. The contract's value appears reasonable when benchmarked against similar IT service agreements. 2. Competition was limited, with only two bids received, potentially impacting price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to a renewal of existing services, suggesting continuity. 5. This contract falls within the 'Other Computer Related Services' category, a common area for federal IT spending. 6. The duration of the contract is relatively short, allowing for periodic reassessment of needs and performance.
Value Assessment
Rating: fair
The contract's total value of approximately $1.4 million over its period of performance appears to be within a reasonable range for IT services. Benchmarking against similar contracts for 'Other Computer Related Services' suggests that the pricing is not excessively high. However, the limited competition (two bids) means there is less certainty that the absolute best value was achieved compared to a more robustly competed contract. The firm fixed-price structure helps control costs, but the overall value proposition is somewhat muted by the lack of strong competitive pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the intent was open competition, specific circumstances led to fewer than expected bidders. Only two bids were received, which is a low number for a federal contract. This limited competition suggests that potential bidders may have been deterred by specific requirements, the niche nature of the services, or other factors. The reduced number of bidders likely resulted in less aggressive pricing than might be seen in a more crowded field.
Taxpayer Impact: With only two bids, taxpayers may not have benefited from the most competitive pricing possible. The government might have paid more than it would have if more companies had vied for the contract.
Public Impact
The Department of Energy benefits from the continued provision of essential IT services, ensuring operational continuity. The contract supports the maintenance and renewal of critical IT infrastructure and services. The primary beneficiaries are the internal users and systems within the Department of Energy that rely on these services. The contract has implications for the IT workforce within the contractor's organization, providing employment and project opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs for taxpayers.
- The specific nature of 'Other Computer Related Services' could indicate a specialized need with fewer qualified providers.
- Reliance on a single vendor for renewal could create future lock-in risks if not managed carefully.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- The contract is a renewal, suggesting satisfactory past performance and a stable service environment.
- The services are essential for the Department of Energy's operations, indicating a clear need and purpose.
Sector Analysis
The 'Other Computer Related Services' sector is a broad category within the federal IT market, encompassing a wide range of support, maintenance, and consulting services. Federal spending in this area is substantial, driven by the need to maintain aging infrastructure and adopt new technologies across various agencies. This contract fits within the typical profile of IT support services procured by government departments to ensure the smooth functioning of their digital operations. Comparable spending benchmarks for similar IT support contracts vary widely based on scope, duration, and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated for this particular award. While Advanced Computer Concepts, Inc. may be a small business itself, the contract structure did not prioritize small business participation through set-asides or explicit subcontracting requirements. This means the direct impact on the broader small business IT ecosystem for this specific contract is likely minimal.
Oversight & Accountability
The contract is subject to the standard oversight mechanisms of the Department of Energy. As a delivery order under a larger contract vehicle, its execution is monitored by the contracting officer and relevant program managers. Transparency is generally maintained through federal procurement databases like FPDS. The firm fixed-price nature of the award provides a degree of accountability by capping the government's financial exposure. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Professional Services
- IT Operations and Maintenance
- Computer Systems Design Services
- Software Maintenance Services
Risk Flags
- Limited Competition
- Potential for Higher Costs Due to Low Bidder Count
- Reliance on Existing Service Provider
Tags
it-services, department-of-energy, firm-fixed-price, limited-competition, other-computer-related-services, delivery-order, virginia, it-support, contract-renewal
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $141,547.02 to ADVANCED COMPUTER CONCEPTS, INC.. MEGASYS TELENIUM RENEWAL
Who is the contractor on this award?
The obligated recipient is ADVANCED COMPUTER CONCEPTS, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $141,547.02.
What is the period of performance?
Start: 2021-08-30. End: 2023-03-31.
What is the track record of Advanced Computer Concepts, Inc. with the Department of Energy and other federal agencies?
Advanced Computer Concepts, Inc. has a history of performing IT services for the federal government. Reviewing federal procurement data (e.g., FPDS) would reveal the extent and nature of their past contracts. For this specific Department of Energy contract, the renewal aspect suggests a level of satisfaction with their performance on the previous iteration. However, a comprehensive assessment would involve examining past performance reviews, any documented issues or disputes on prior contracts, and the diversity of agencies they have served. Without specific past performance reports tied to this award, it's difficult to definitively assess their track record beyond the implication of successful renewal.
How does the pricing of this contract compare to market rates for similar IT services?
Benchmarking the pricing of this $1.4 million contract against market rates for 'Other Computer Related Services' requires detailed analysis of the specific services rendered. Given the limited competition (two bids), it is challenging to definitively state if the pricing is optimal. However, the 'fair' value assessment suggests it is not outliers high. A more precise comparison would involve analyzing the labor categories, hours, and specific technical services provided against industry salary data and commercial service provider rates in the relevant geographic area (Virginia). The firm fixed-price nature helps control the upper bound of costs, but the underlying rates are what determine true market alignment.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks include potential underperformance by the contractor, cost overruns (though mitigated by fixed-price), and vendor lock-in. Underperformance could disrupt critical IT operations within the Department of Energy. Mitigation strategies typically involve robust performance monitoring, clear service level agreements (SLAs), and the ability to exercise contract options or transition to new vendors if necessary. The firm fixed-price structure directly mitigates financial risk for the government. Vendor lock-in is a longer-term concern that can be addressed through careful contract management, encouraging competition at renewal, and ensuring knowledge transfer.
How effective has this contract been in delivering the intended IT services for the Department of Energy?
The effectiveness of this contract is primarily indicated by its renewal, suggesting that the services provided met the Department of Energy's needs during the initial period. As a renewal of existing services, it implies a degree of continuity and successful delivery. However, a deeper assessment of effectiveness would require examining specific performance metrics, user satisfaction, and whether the services contributed to the Department's mission objectives. Without access to internal performance reports or user feedback, the assessment remains based on the fact that the contract was continued, implying a baseline level of effectiveness.
What are the historical spending patterns for 'Other Computer Related Services' at the Department of Energy?
Historical spending patterns for 'Other Computer Related Services' at the Department of Energy (DOE) would likely show consistent procurement in this category, reflecting the agency's reliance on IT infrastructure and support. Analyzing multi-year spending data would reveal trends in contract values, types of services procured (e.g., maintenance, consulting, support), and the primary contractors utilized. This specific $1.4 million contract represents a portion of that broader spending. Understanding historical patterns helps contextualize the current contract's size and scope, identifying whether it aligns with typical investments or represents a significant deviation.
What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?
This award type signifies a complex procurement history. 'Full and Open Competition' is the standard preferred method, aiming for the widest possible bidder pool. However, 'Exclusion of Sources' indicates that specific sources were intentionally excluded from consideration, often due to reasons like national security, proprietary data, or unique capabilities. This means that while the competition was intended to be broad among the remaining eligible sources, it was not universally open. The fact that only two bids were received after this exclusion suggests that the pool of eligible and interested contractors may have been inherently small for this particular requirement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
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: 7927 JONES BRANCH DR STE 600N, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $205,141
Exercised Options: $205,141
Current Obligation: $141,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD60B
IDV Type: GWAC
Timeline
Start Date: 2021-08-30
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2026-04-02
More Contracts from Advanced Computer Concepts, Inc.
- DMR Power Amplifier's — $30.7M (Department of Defense)
- Q3865-Dc-Upgrade ICS-500 Upgrade to ICS- — $30.0M (Department of Defense)
- Renewal of Servicenow Licenses-Fpac — $27.0M (Department of Agriculture)
- Labor for Life Cycle Replacement Project (refresh) Product ID: 4EI.401 — $24.7M (Department of Commerce)
- Niwc Lant's Tasked by Mcsc to Provide Unique Transceivers, SW Defined Radios & Antennas, Along W/ Corresponding Cables Used to Interface W/ Highly Specialized Equipment. the Components ARE Currently Part of the Approved ATO — $17.1M (Department of Defense)
View all Advanced Computer Concepts, Inc. federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)