DOE Awards $9.97M Cost Plus Fixed Fee Contract to Itsolutions NET Government Services, Inc
Contract Overview
Contract Amount: $9,965,788 ($10.0M)
Contractor: Itsolutions NET Government Services, Inc.
Awarding Agency: Department of Energy
Start Date: 1999-11-15
End Date: 2003-06-30
Contract Duration: 1,323 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: MARYLAND
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $10.0 million to ITSOLUTIONS NET GOVERNMENT SERVICES, INC. for work described as: Key points: 1. Contract awarded to ITSOLUTIONS NET GOVERNMENT SERVICES, INC. for $9.97M. 2. Contract type is Cost Plus Fixed Fee. 3. Contract duration is 1323 days. 4. Awarded by the Department of Energy. 5. No small business set-aside noted.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary, impacting taxpayer funds.
Public Impact
Taxpayers may have paid a premium due to the sole-source nature of the award. The long duration of the contract raises questions about the initial justification for a non-competitive award. Lack of transparency in the procurement process limits public understanding of the value received.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- No small business participation
Positive Signals
- Awarded to a specific company for a defined period.
Sector Analysis
This contract falls under general government services, likely IT or administrative support, within the Department of Energy. Benchmarking is difficult without specific service details, but non-competed contracts often carry higher price risks.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no specific mention of small business participation. This suggests that opportunities for small businesses may have been missed.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government received fair value and that the justification for non-competition was sound.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competition.
- Cost Plus Fixed Fee can incentivize higher spending.
- Long contract duration may indicate poor initial planning or lack of alternatives.
- No small business participation noted.
- Specific services and value justification are unclear.
Tags
department-of-energy, md, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.0 million to ITSOLUTIONS NET GOVERNMENT SERVICES, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ITSOLUTIONS NET GOVERNMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 1999-11-15. End: 2003-06-30.
What specific services were procured under this sole-source contract, and what was the justification for not competing the award?
The provided data does not specify the exact services procured. However, the contract type (Cost Plus Fixed Fee) and the awarding agency (Department of Energy) suggest it could be for IT, administrative, or specialized support. The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability, which would need to be documented by the agency.
What was the total cost to the government, considering the fixed fee and the actual costs incurred over the contract's life?
The award amount is listed as $9,965,787.8. As a Cost Plus Fixed Fee contract, this represents the estimated total cost, including the fixed fee. The actual total cost would be the sum of all allowable costs incurred by the contractor plus the predetermined fixed fee. Without detailed expenditure reports, the final actual cost is unknown, but the award amount provides a ceiling.
How does the $9.97M award compare to similar IT or support service contracts awarded by the Department of Energy during that period?
Direct comparison is challenging without knowing the specific services. However, for a contract spanning over three years (1323 days), $9.97M is a significant amount. The lack of competition and the Cost Plus Fixed Fee structure suggest potential for higher costs than a competitively bid fixed-price contract for similar services.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Itsolutions NET, Inc. (UEI: 075377395)
Address: 4403 FORBES BLVD, LANHAM, MD, 04
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $-646,928
Exercised Options: $-646,928
Current Obligation: $9,965,788
Timeline
Start Date: 1999-11-15
Current End Date: 2003-06-30
Potential End Date: 2003-06-30 00:00:00
Last Modified: 2007-12-13
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