DOE's $11.5M Contract for IT Support Services Awarded to Wyandotte Net Tel, Lacking Competition
Contract Overview
Contract Amount: $11,543,396 ($11.5M)
Contractor: Wyandotte NET TEL
Awarding Agency: Department of Energy
Start Date: 2003-12-01
End Date: 2009-06-11
Contract Duration: 2,019 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: SUPPORT SERVICES CONTRACT FOR MISCELLANEOUS AREAS OF WORK WITHIN SOUTHWESTERN POWER ADMIN
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74103
State: Oklahoma Government Spending
Plain-Language Summary
Department of Energy obligated $11.5 million to WYANDOTTE NET TEL for work described as: SUPPORT SERVICES CONTRACT FOR MISCELLANEOUS AREAS OF WORK WITHIN SOUTHWESTERN POWER ADMIN Key points: 1. The contract, valued at $11.5 million, was awarded for computer facilities management services. 2. Wyandotte Net Tel is the sole awardee, indicating a lack of competition. 3. The contract duration is significant, spanning from 2003 to 2009. 4. The absence of competition raises concerns about potential overpricing and value for taxpayer money.
Value Assessment
Rating: questionable
The contract value of $11.5 million for IT support services is difficult to assess without specific deliverables and market benchmarks. The lack of competition suggests potential for inflated pricing compared to what might be achieved in a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid more than necessary due to the absence of competitive pressure to lower prices.
Public Impact
Taxpayers may have overpaid for IT support services due to the lack of competitive bidding. The long contract duration could mean sustained higher costs if pricing was not optimized. Limited transparency into the specific services rendered makes it hard to gauge full value. Government reliance on a single vendor for critical IT functions can pose risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for overpricing
Positive Signals
- Contract awarded
- Services provided
Sector Analysis
This contract falls under IT services, specifically computer facilities management. Benchmarks for such services vary widely based on scope, but competitive procurement typically drives better value.
Small Business Impact
The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded or had no opportunity to compete.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should ensure the necessity and fairness of such awards.
Related Government Programs
- Computer Facilities Management Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency on service specifics.
- Long contract duration without clear competitive review.
- No indication of small business participation.
Tags
computer-facilities-management-services, department-of-energy, ok, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $11.5 million to WYANDOTTE NET TEL. SUPPORT SERVICES CONTRACT FOR MISCELLANEOUS AREAS OF WORK WITHIN SOUTHWESTERN POWER ADMIN
Who is the contractor on this award?
The obligated recipient is WYANDOTTE NET TEL.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2003-12-01. End: 2009-06-11.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. However, the specific reasons are not detailed. Typically, sole-source awards are justified by factors like urgent need, unique capabilities, or lack of market availability. Without further documentation, it's unclear if these criteria were met or if alternative competitive approaches were thoroughly explored.
How does the per-unit cost of these services compare to industry benchmarks for similar IT support contracts, especially considering the lack of competition?
Direct comparison is challenging without detailed service breakdowns and specific deliverables. However, sole-source contracts inherently lack the price discovery mechanism of competition. This often leads to higher costs than competitively bid contracts. The 'br' value of 5717 might represent a benchmark or budget, but its context is missing. A thorough review would involve comparing actual service costs against market rates for comparable government or commercial contracts.
What was the overall effectiveness of Wyandotte Net Tel in delivering the contracted IT support services over the contract period?
The provided data includes a 'st' (status) of 'OK,' suggesting the contract was generally fulfilled. However, 'OK' is a broad indicator and doesn't detail performance quality, efficiency, or user satisfaction. A comprehensive assessment of effectiveness would require reviewing performance reports, user feedback, and any documented issues or successes during the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Contractor Details
Address: 305 NORTH MAIN, WYANDOTTE, OK, 02
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,690,301
Exercised Options: $11,543,396
Current Obligation: $11,543,396
Timeline
Start Date: 2003-12-01
Current End Date: 2009-06-11
Potential End Date: 2009-06-11 00:00:00
Last Modified: 2009-12-12
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)