DOE's $123M IT Contract Awarded to IT CORP Under Full and Open Competition
Contract Overview
Contract Amount: $123,099,571 ($123.1M)
Contractor: IT Corp
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2004-09-30
Contract Duration: 1,812 days
Daily Burn Rate: $67.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Place of Performance
Location: THE LAKES, CLARK County, NEVADA, 88901
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $123.1 million to IT CORP for work described as: Key points: 1. Significant contract value of $123 million over 5 years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns. 4. The sector is Information Technology, a critical area for government operations.
Value Assessment
Rating: fair
The contract value of $123 million over 5 years is substantial. Benchmarking against similar IT contracts is difficult without more specific service details, but the CPFF structure warrants scrutiny for potential cost inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the CPFF structure can mitigate some of these benefits.
Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for value. However, the CPFF contract type introduces risk of costs exceeding initial estimates.
Public Impact
Ensures IT infrastructure and services for the Department of Energy. Supports government operations through technology solutions. Potential for innovation and efficiency gains in IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
- No specific small business participation noted
Positive Signals
- Full and open competition utilized
- Significant investment in critical IT infrastructure
Sector Analysis
This contract falls within the Information Technology sector, which is crucial for modern government functions. IT spending benchmarks vary widely based on service type, but a $123 million award over five years suggests a comprehensive IT support or development initiative.
Small Business Impact
The data indicates that small business participation was not a specific set-aside or requirement for this contract. This means opportunities for small businesses may have been limited unless they were subcontractors to the prime awardee.
Oversight & Accountability
Oversight would focus on ensuring IT CORP meets performance requirements and manages costs effectively under the CPFF structure. The Department of Energy's contracting office is responsible for monitoring contract execution and compliance.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific small business participation.
- Long contract duration may reduce flexibility.
- Limited detail on specific services and performance metrics.
Tags
department-of-energy, nv, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $123.1 million to IT CORP. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is IT CORP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $123.1 million.
What is the period of performance?
Start: 1999-10-15. End: 2004-09-30.
What specific IT services were procured under this contract, and how do they align with the Department of Energy's strategic goals?
The provided data does not specify the exact IT services. However, a contract of this magnitude likely covers a broad range of needs, potentially including infrastructure management, software development, cybersecurity, or IT support. Understanding the specific services is crucial to assess their alignment with DOE's mission and technological modernization efforts.
What were the key performance indicators (KPIs) and how was performance measured to ensure value for money with the CPFF structure?
While the contract type is CPFF, effective oversight should include clearly defined KPIs and performance metrics. The Department of Energy would need to rigorously track IT CORP's progress against these metrics, ensuring deliverables are met on time and within scope. Any deviations or cost increases would require thorough justification and approval.
How did the competitive bidding process under 'full and open competition' influence the final negotiated price and terms for this significant IT contract?
Full and open competition typically drives down prices as multiple vendors vie for the contract. However, the CPFF structure allows for costs to fluctuate. The final price reflects the negotiated fixed fee on top of allowable costs. The competitive aspect likely ensured a reasonable fixed fee and that IT CORP's proposed costs were scrutinized.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 1999-10-15
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2013-09-27
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)