WYLE INFORMATION SYSTEMS, LLC awarded $11.2M contract for IT services by Department of Energy
Contract Overview
Contract Amount: $11,253,054 ($11.3M)
Contractor: Wyle Information Systems, LLC
Awarding Agency: Department of Energy
Start Date: 2001-07-15
End Date: 2006-07-31
Contract Duration: 1,842 days
Daily Burn Rate: $6.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 16
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $11.3 million to WYLE INFORMATION SYSTEMS, LLC for work described as: Key points: 1. Contract awarded on a Cost Plus Award Fee basis, allowing for performance-based incentives. 2. The contract duration of 1842 days suggests a long-term need for these services. 3. Awarded by the Department of Energy, indicating a focus on energy sector IT infrastructure. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was not competitively procured, raising questions about potential cost efficiencies. 6. The award was made in 2001, suggesting it may be an older contract with potentially outdated pricing benchmarks.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and the 'Cost Plus Award Fee' structure, which can lead to variable costs based on performance. Without specific performance metrics and comparable contract data from the early 2000s, it's difficult to definitively assess if the $11.2 million represents excellent value. The lack of competition further complicates a direct price comparison. However, the duration suggests a sustained need, which could imply satisfactory service delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one vendor, WYLE INFORMATION SYSTEMS, LLC, was considered for the award. The reasons for this sole-source determination are not provided, but it typically occurs when a unique capability or urgent need exists that only one contractor can fulfill. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong oversight to ensure fair pricing.
Public Impact
The Department of Energy benefits from specialized IT services to support its operations. This contract likely supports critical IT infrastructure and systems within the energy sector. The geographic impact is primarily within Virginia, where the contract was administered. Workforce implications may include the employment of IT professionals by WYLE INFORMATION SYSTEMS, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have resulted in suboptimal pricing.
- The 'Cost Plus Award Fee' structure requires careful monitoring to ensure cost control.
- Contract awarded in 2001, potentially leading to outdated technology or service delivery models.
Positive Signals
- Long contract duration (1842 days) suggests sustained service delivery and potential contractor reliability.
- Award fee structure incentivizes contractor performance, potentially leading to higher quality services.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and constantly evolving. Contracts like this are crucial for government agencies to maintain and upgrade their technological infrastructure. Comparable spending benchmarks for IT services vary widely based on the specific services, duration, and agency. Given the contract's age, direct comparison to current market rates would require significant adjustments for inflation and technological advancements.
Small Business Impact
Information regarding small business set-asides or subcontracting is not available for this contract. As a sole-source award, it is less likely to have included specific small business participation goals unless mandated by broader agency policies. Further investigation would be needed to determine if WYLE INFORMATION SYSTEMS, LLC utilized small business subcontractors.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of Energy. The 'Cost Plus Award Fee' structure necessitates robust oversight to validate performance metrics and justify award fees. Transparency is dependent on the agency's reporting practices for sole-source contracts and performance-based awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy IT Modernization Programs
- Federal Civilian Agency IT Services Contracts
- Cost-Plus-Award-Fee Contracts
- Sole-Source IT Procurements
Risk Flags
- Sole-source award limits price competition.
- Contract awarded over 20 years ago, potentially outdated benchmarks.
- Cost Plus Award Fee requires diligent oversight.
Tags
it-services, department-of-energy, cost-plus-award-fee, sole-source, computer-related-services, virginia, wyle-information-systems-llc, historical-contract, federal-contract, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $11.3 million to WYLE INFORMATION SYSTEMS, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $11.3 million.
What is the period of performance?
Start: 2001-07-15. End: 2006-07-31.
What specific IT services were provided under this contract?
The contract's NAICS code, 541519 (Other Computer Related Services), suggests a broad scope of IT services. This could include areas such as IT consulting, systems integration, custom software development, IT support, and network management. Without the specific contract statement of work, the precise services rendered remain undefined. However, given the awarding agency (Department of Energy), these services likely supported the agency's mission-critical IT infrastructure, data management, or operational systems.
How does the $11.2 million total award compare to similar IT contracts from the early 2000s?
Comparing the $11.2 million award to similar IT contracts from the early 2000s is challenging due to the passage of time, inflation, and the evolution of IT services and pricing models. Contracts from that era often had different cost structures and service expectations. Furthermore, the 'Cost Plus Award Fee' (CPAF) nature of this contract means the final cost could vary based on performance, making a direct comparison to fixed-price contracts difficult. To provide a meaningful comparison, one would need access to a database of contemporaneous CPAF IT contracts with similar scopes and durations, adjusted for inflation and technological advancements.
What were the specific performance metrics used to determine award fees for WYLE INFORMATION SYSTEMS, LLC?
The specific performance metrics used to determine award fees for WYLE INFORMATION SYSTEMS, LLC under this Cost Plus Award Fee (CPAF) contract are not publicly detailed in the provided data. CPAF contracts typically outline key performance areas (KPAs) and objective or subjective criteria against which the contractor's performance is measured. These metrics are usually defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without access to the full contract documentation, it is impossible to ascertain the exact metrics that influenced the award fee determination.
What is the typical risk associated with sole-source IT contracts awarded by the Department of Energy?
Sole-source IT contracts, regardless of the agency, carry inherent risks primarily related to cost and competition. For the Department of Energy, sole-source awards for IT services can pose risks if the chosen contractor does not possess the most innovative or cost-effective solutions available in the market. There's a reduced incentive for the contractor to aggressively control costs compared to a competitive environment. Additionally, reliance on a single vendor can create vendor lock-in and potential vulnerabilities if the vendor's performance falters or their business circumstances change. Robust government oversight and clear performance expectations are critical to mitigate these risks.
How has the Department of Energy's IT spending evolved since this contract was awarded in 2001?
The Department of Energy's IT spending has likely evolved significantly since 2001, driven by technological advancements, cybersecurity imperatives, and shifts towards cloud computing and data analytics. Early 2000s spending would have focused more on on-premise infrastructure, legacy systems, and traditional IT support. Current spending patterns are more likely to emphasize agile development, cybersecurity solutions, data center consolidation, cloud migration (SaaS, PaaS, IaaS), and advanced analytics to support energy research, grid modernization, and national security missions. The total IT budget has also likely increased substantially over two decades.
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: NOT AVAILABLE FOR COMPETITION
Offers Received: 16
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Wyle Services Corporation (UEI: 963281881)
Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 90
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,923,430
Exercised Options: $29,455,784
Current Obligation: $11,253,054
Timeline
Start Date: 2001-07-15
Current End Date: 2006-07-31
Potential End Date: 2006-07-31 00:00:00
Last Modified: 2014-08-19
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