DOE awards $132.9M IT support contract to Pacific Western Technologies, Ltd
Contract Overview
Contract Amount: $13,292,962 ($13.3M)
Contractor: Pacific Western Technologies, Ltd.
Awarding Agency: Department of Energy
Start Date: 2004-08-13
End Date: 2009-08-13
Contract Duration: 1,826 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES
Place of Performance
Location: DENVER, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $13.3 million to PACIFIC WESTERN TECHNOLOGIES, LTD. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract awarded for Computer Facilities Management Services. 2. Pacific Western Technologies, Ltd. is the contractor. 3. The contract spans 5 years with a value of $132.9 million. 4. This falls under the IT sector, specifically IT Support Services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. The total award value is substantial, but without specific performance metrics or benchmarks, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Award Fee structure need further examination to ensure optimal price.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns and ensure value for money.
Public Impact
Ensures continued IT support for Department of Energy facilities. Supports critical infrastructure management for a major federal agency. Potential for job creation within the IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize cost increases.
- Long contract duration (5 years) may limit flexibility.
- Lack of specific per-unit cost benchmarks makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential IT infrastructure.
- Contractor has a history of performance (implied by award).
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services. IT support services are crucial for government operations, and spending in this area is consistently high across agencies.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from the Department of Energy to ensure contractor performance aligns with award criteria and to control costs effectively.
Related Government Programs
- Computer Facilities Management Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Long contract duration may limit agency's ability to adapt.
- Lack of clear per-unit cost benchmarks for value assessment.
- Need for strong government oversight to manage performance and costs.
Tags
computer-facilities-management-services, department-of-energy, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.3 million to PACIFIC WESTERN TECHNOLOGIES, LTD.. INFORMATION TECHNOLOGY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is PACIFIC WESTERN TECHNOLOGIES, LTD..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2004-08-13. End: 2009-08-13.
How does the award fee structure incentivize efficient cost management for the Department of Energy?
The award fee structure is designed to incentivize performance by allowing the contractor to earn additional fees based on meeting or exceeding specific performance objectives. For the Department of Energy, effective oversight is crucial to ensure these objectives are clearly defined, measurable, and directly tied to cost efficiency and value. Without this, the 'award' component could inadvertently lead to higher overall costs rather than savings.
What are the primary risks associated with a 5-year Cost Plus Award Fee contract for IT support?
The primary risks include potential cost overruns if performance metrics are not tightly controlled, leading to higher-than-expected expenditures. There's also a risk of scope creep and a lack of incentive for the contractor to find the most cost-effective solutions if the award fee is not structured to reward efficiency. Furthermore, a long duration can reduce agency flexibility to adapt to changing technological needs or market conditions.
How does this contract's value compare to similar IT support contracts within the federal government?
Without specific details on the scope of services and performance metrics, a direct comparison is challenging. However, $132.9 million over five years for comprehensive IT support services for a major agency like the Department of Energy is within the expected range for large-scale federal IT contracts. Benchmarking would require detailed analysis of similar contracts' pricing models, service levels, and contractor performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 19
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 605 PARFET STREET, SUITE 200, LAKEWOOD, CO, 07
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,292,962
Exercised Options: $13,292,962
Current Obligation: $13,292,962
Timeline
Start Date: 2004-08-13
Current End Date: 2009-08-13
Potential End Date: 2009-08-13 00:00:00
Last Modified: 2010-10-18
More Contracts from Pacific Western Technologies, Ltd.
- Professional Architect/Engineer, Technical and Management Services to Support Remedial Response, Enforcement Oversight and Non-Time Critical Removal Activities to Help Address And/Or Mitigate Endangerment to the Public Helath, Welfare or Environment, and to Support States and Communities in Preparing for Responses to Releases or Hazardous Substances, AS Well AS Counter Terrorism — $62.3M (Environmental Protection Agency)
- Federal Contract — $10.1M (Department of Energy)
- Road Inventory Program Data Collection, Database Administration/Quality Control, GIS Support, and Report Quality Control — $5.2M (Department of Transportation)
View all Pacific Western Technologies, Ltd. 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)