DOE awards $258K for Nokia maintenance, highlighting IT support needs in New Jersey
Contract Overview
Contract Amount: $258,587 ($258.6K)
Contractor: 3chief LLC
Awarding Agency: Department of Energy
Start Date: 2023-03-30
End Date: 2023-05-25
Contract Duration: 56 days
Daily Burn Rate: $4.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NOKIA MAINTENANCE SUPPORT
Place of Performance
Location: NEW PROVIDENCE, UNION County, NEW JERSEY, 07974
Plain-Language Summary
Department of Energy obligated $258,587.31 to 3CHIEF LLC for work described as: NOKIA MAINTENANCE SUPPORT Key points: 1. Contract value appears modest, suggesting a focused scope for IT maintenance. 2. Competition was open, indicating potential for fair pricing and vendor selection. 3. Short performance period may limit long-term risk but requires timely execution. 4. The service category points to essential IT infrastructure support. 5. Geographic focus on New Jersey aligns with specific operational needs. 6. Fixed-price contract structure shifts performance risk to the contractor.
Value Assessment
Rating: good
The contract value of approximately $258,587 for Nokia maintenance support is relatively small, making direct comparison to larger IT service contracts difficult. However, given the short duration of 56 days, the per-day cost is substantial, suggesting potentially high-value or specialized support. The firm fixed-price nature of the contract implies that the contractor is responsible for managing costs to deliver the agreed-upon services within the set price, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The presence of two bidders suggests a moderate level of competition. A more robust competition with a higher number of bidders could potentially drive prices lower and offer a wider range of technical solutions.
Taxpayer Impact: The open competition, even with a limited number of bidders, provides a baseline for fair market pricing and ensures that taxpayer funds are likely being used efficiently. It prevents sole-source situations where prices could be inflated.
Public Impact
The Department of Energy benefits from uninterrupted IT services crucial for its operations. Nokia maintenance support ensures the reliability of specific IT systems. The primary geographic impact is within New Jersey, supporting local DOE facilities. The contract likely supports IT professionals, potentially including those in New Jersey.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short performance duration (56 days) may lead to rushed execution or potential gaps if not managed carefully.
- Limited competition (2 bidders) could mean less price pressure than a more crowded field.
- The specific nature of 'Nokia Maintenance Support' is not detailed, raising questions about the criticality and potential impact of service disruptions.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor, protecting the government from cost overruns.
- Full and Open competition, even with few bidders, suggests an effort to achieve fair market value.
- The contract is for essential IT maintenance, supporting core government functions.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on maintenance and support for telecommunications equipment (Nokia). The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Benchmarking this specific contract is challenging due to its niche focus and short duration, but it represents a small fraction of overall federal IT spending.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of Nokia maintenance, it is possible that specialized technical expertise is required, which may or may not be readily available within the small business sector for this particular task.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm fixed-price structure provides a degree of accountability by tying payment to performance. Transparency is facilitated by the public nature of contract awards. The Department of Energy's Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this award.
Related Government Programs
- Federal IT Infrastructure Support Contracts
- Telecommunications Equipment Maintenance
- Department of Energy IT Services
Risk Flags
- Short contract duration may limit comprehensive service delivery.
- Limited number of bidders could impact price competitiveness.
- Specificity of services and equipment not detailed.
Tags
it-services, maintenance-support, nokia, department-of-energy, firm-fixed-price, full-and-open-competition, delivery-order, new-jersey, computer-related-services, telecommunications
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $258,587.31 to 3CHIEF LLC. NOKIA MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is 3CHIEF LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $258,587.31.
What is the period of performance?
Start: 2023-03-30. End: 2023-05-25.
What specific Nokia systems or equipment are covered under this maintenance contract?
The provided data does not specify the exact Nokia systems or equipment covered by this maintenance contract. The description 'NOKIA MAINTENANCE SUPPORT' is general. To understand the full scope and criticality, further details on the specific hardware, software, or network components requiring maintenance would be necessary. This information is crucial for assessing potential risks associated with service disruptions and for benchmarking the value of the support provided against industry standards for similar equipment.
How does the pricing of this contract compare to similar Nokia maintenance agreements in the federal or commercial sector?
Direct price comparison is difficult without knowing the specific Nokia equipment and service levels. However, the contract value of $258,587.31 over approximately two months (56 days) suggests a significant daily rate. To benchmark effectively, one would need to identify comparable federal or commercial contracts for the same or similar Nokia products and support tiers. Factors like response times, included parts, and software updates heavily influence pricing. The firm fixed-price nature, however, aims to ensure the government pays a set amount regardless of the contractor's internal costs.
What is the track record of 3CHIEF LLC in providing IT maintenance and support services, particularly for telecommunications equipment?
Information on 3CHIEF LLC's specific track record for Nokia maintenance is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including customer satisfaction ratings, any past performance issues, and their experience with telecommunications equipment maintenance. Understanding their history with the Department of Energy or other agencies would provide further insight into their reliability and capability to fulfill this contract's requirements effectively.
What are the potential risks associated with the short 56-day performance period for this maintenance contract?
The primary risk of a short 56-day performance period is the potential for insufficient time to fully address maintenance needs or for unexpected issues to arise that cannot be resolved within the timeframe. This could lead to service gaps or require a rapid, potentially more expensive, follow-on contract. For the contractor, it necessitates efficient resource allocation and rapid response. From a government perspective, it requires diligent oversight to ensure all critical maintenance is completed and that there are no service interruptions upon contract expiration.
Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation, what might have been the reasons for excluding certain sources, and how does this impact price discovery?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically means that the solicitation was broadly advertised, but specific sources were initially excluded based on predefined criteria (e.g., security, capability, past performance). After these exclusions, the remaining pool of potential offerors competed. While this aims for broad competition, the initial exclusion might limit the number of bidders, potentially reducing the intensity of price competition compared to a scenario with no exclusions. The impact on price discovery depends on the number and competitiveness of the remaining bidders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 215 DEPOT CT SE STE 247, LEESBURG, VA, 20175
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $369,176
Exercised Options: $369,176
Current Obligation: $258,587
Actual Outlays: $258,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD25B
IDV Type: GWAC
Timeline
Start Date: 2023-03-30
Current End Date: 2023-05-25
Potential End Date: 2023-05-25 00:00:00
Last Modified: 2026-04-07
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