DOE awards $82.7M IT support contract to Energy Enterprise Solutions via full and open competition
Contract Overview
Contract Amount: $82,673,029 ($82.7M)
Contractor: Energy Enterprise Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2006-06-01
End Date: 2012-06-30
Contract Duration: 2,221 days
Daily Burn Rate: $37.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: T&M TASK ORDER FOR SYSTEMS DEVELOPMENT AND ENGINEERING/INFORMATION TECHNOLOGY SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $82.7 million to ENERGY ENTERPRISE SOLUTIONS, LLC for work described as: T&M TASK ORDER FOR SYSTEMS DEVELOPMENT AND ENGINEERING/INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Significant contract value for IT support services. 2. Full and open competition was utilized. 3. Potential for cost overruns with Time and Materials contract type. 4. Services fall under 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure, while common for development, carries inherent risk for cost escalation. Benchmarking against similar T&M IT support contracts is crucial to assess if the $82.7M award represents fair value over its 6-year duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. However, the T&M contract type can limit price certainty for the government, potentially leading to higher costs than fixed-price alternatives if not managed closely.
Taxpayer Impact: Taxpayers benefit from competitive bidding, but the T&M structure requires diligent oversight to prevent excessive spending and ensure value for money.
Public Impact
Ensures continued IT infrastructure and systems development for the Department of Energy. Supports critical energy sector operations through technology. The long duration (6 years) indicates a need for sustained IT support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type increases cost risk.
- Long contract duration (6 years) requires sustained oversight.
- No small business participation noted.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a single entity, potentially indicating specialized capabilities.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar government IT support contracts vary widely based on scope and duration, but $82.7M over six years suggests a substantial, long-term engagement.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the requirement may have been for specialized services or that opportunities for small business subcontracting were not explicitly pursued or mandated.
Oversight & Accountability
The long duration and T&M nature of this contract necessitate robust oversight from the Department of Energy to ensure performance standards are met and costs remain within reasonable bounds. Regular reviews and audits would be critical.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Time and Materials contract type.
- Long contract duration.
- No small business participation.
- Potential for cost overruns.
- Lack of specific task details.
Tags
other-computer-related-services, department-of-energy, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $82.7 million to ENERGY ENTERPRISE SOLUTIONS, LLC. T&M TASK ORDER FOR SYSTEMS DEVELOPMENT AND ENGINEERING/INFORMATION TECHNOLOGY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ENERGY ENTERPRISE SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $82.7 million.
What is the period of performance?
Start: 2006-06-01. End: 2012-06-30.
What specific systems development and engineering tasks were included in this $82.7M contract, and how do they align with the Department of Energy's strategic IT goals?
The contract encompassed 'Systems Development and Engineering/Information Technology Support Services'. While the specific tasks are not detailed, such services typically include software development, system integration, network management, cybersecurity, and technical support. Alignment with strategic goals would depend on DOE's current IT modernization efforts, data management initiatives, and cybersecurity posture.
Given the Time and Materials structure, what mechanisms were in place to control costs and prevent scope creep over the 6-year period?
Time and Materials contracts inherently carry a higher risk of cost escalation. Effective control mechanisms would typically include strict labor hour tracking, defined ceiling prices for labor categories, detailed reporting requirements, and robust contract officer representative (COR) oversight to validate work performed and prevent unauthorized changes or inefficiencies.
How did the 'full and open competition' process ensure the best value was achieved for these IT support services, considering the T&M pricing model?
Full and open competition theoretically maximizes the pool of potential bidders, driving down prices through market forces. However, with a T&M model, the 'best value' determination likely weighed technical approach, past performance, and proposed labor rates against price. The government would need to ensure the selected vendor's rates and projected hours represented a fair estimate for the anticipated work.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-AT01-04IM00054
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 656 QUINCE ORCHARD STE 500, GAITHERSBURG, MD, 20878
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $108,477,312
Exercised Options: $108,477,312
Current Obligation: $82,673,029
Parent Contract
Parent Award PIID: DEAM0106IM00054
IDV Type: IDC
Timeline
Start Date: 2006-06-01
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2015-06-01
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