Energy Department's $131M IT support contract awarded to Energy Enterprise Solutions, LLC
Contract Overview
Contract Amount: $131,278,941 ($131.3M)
Contractor: Energy Enterprise Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2006-02-01
End Date: 2012-06-30
Contract Duration: 2,341 days
Daily Burn Rate: $56.1K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: T&M TASK ORDER FOR CYBER SECURITY; 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 $131.3 million to ENERGY ENTERPRISE SOLUTIONS, LLC for work described as: T&M TASK ORDER FOR CYBER SECURITY; INFORMATION TECHNOLOGY SUPPORT SERVICES. Key points: 1. Contract provides IT support services, including cybersecurity, for the Department of Energy. 2. The contract was awarded as a Time and Materials (T&M) task order. 3. Duration of the contract was over 6 years, indicating a long-term need for services. 4. The contract was awarded to a single vendor, raising questions about competition. 5. The total value of the contract was over $131 million. 6. The contract was not set aside for small businesses.
Value Assessment
Rating: fair
The contract's value of over $131 million for IT support services over six years suggests a significant investment. Without specific performance metrics or comparisons to similar T&M contracts for IT support, it is difficult to definitively assess value for money. The T&M pricing structure can sometimes lead to cost overruns if not closely managed, which warrants careful oversight. Benchmarking this against industry standards for similar IT support services would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source task order, meaning it was not competed among multiple vendors. While the data does not specify the justification for the sole-source award, it implies a lack of broader market solicitation. This approach limits the opportunity for price discovery and potentially higher competition that could drive down costs. The absence of a competitive bidding process means the government did not benefit from proposals from various companies vying for the contract.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competition is not leveraged to secure the best possible pricing. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.
Public Impact
The primary beneficiary of this contract is the Department of Energy, which receives essential IT support and cybersecurity services. These services are crucial for the operational continuity and security of the department's information systems. The contract supports the department's mission-critical functions by ensuring reliable IT infrastructure. The geographic impact is primarily within the District of Columbia, where the contract was administered. The contract likely supported a workforce involved in IT services and cybersecurity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition due to sole-source award may have resulted in higher costs.
- Time and Materials (T&M) contract type can pose risks of cost escalation if not managed stringently.
- Limited transparency into the specific services rendered and their effectiveness without detailed performance reports.
Positive Signals
- Provided essential IT support and cybersecurity services to a critical government agency.
- Long contract duration suggests a stable and consistent service delivery over an extended period.
- Awarded to a specific company, potentially indicating specialized capabilities required by the agency.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services. The IT services market is vast and highly competitive, encompassing a wide range of support, development, and cybersecurity solutions. Government spending in this area is substantial, driven by the increasing reliance on digital infrastructure and the need for robust cybersecurity measures. Comparable spending benchmarks for IT support services can vary widely based on scope, duration, and complexity, but a contract of this magnitude indicates a significant and ongoing requirement.
Small Business Impact
This contract was not set aside for small businesses, as indicated by the 'sb' field being false. Consequently, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, Energy Enterprise Solutions, LLC, is likely a larger entity. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract as prime contractors were not pursued.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the Time and Materials task order, including service level agreements and reporting requirements. Transparency is often limited in sole-source T&M contracts unless specific reporting mandates are included. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse were raised.
Related Government Programs
- Department of Energy IT Services Contracts
- Federal Cybersecurity Contracts
- Information Technology Support Services
- Time and Materials Contracts
- Sole Source IT Procurements
Risk Flags
- Sole-source award limits competition.
- T&M contract type carries cost escalation risk.
- Lack of detailed performance data hinders value assessment.
Tags
it-services, cybersecurity, department-of-energy, energy-enterprise-solutions-llc, time-and-materials, sole-source, district-of-columbia, information-technology-support, large-contract, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $131.3 million to ENERGY ENTERPRISE SOLUTIONS, LLC. T&M TASK ORDER FOR CYBER SECURITY; 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 $131.3 million.
What is the period of performance?
Start: 2006-02-01. End: 2012-06-30.
What specific cybersecurity and IT support services were delivered under this contract?
The contract data indicates 'T&M TASK ORDER FOR CYBER SECURITY; INFORMATION TECHNOLOGY SUPPORT SERVICES.' While the broad categories are clear, specific details regarding the scope of work, such as network security, system administration, help desk support, software maintenance, or hardware provisioning, are not provided in the summary data. A deeper dive into the task order's statement of work (SOW) would be necessary to enumerate the precise services rendered. These services are critical for maintaining the operational integrity and security of the Department of Energy's IT infrastructure, ensuring the protection of sensitive data and the uninterrupted functioning of its systems.
How does the $131 million contract value compare to similar IT support contracts awarded by the Department of Energy or other federal agencies?
Benchmarking the $131 million contract value requires comparing it to similar Time and Materials (T&M) task orders for IT support and cybersecurity services awarded by the Department of Energy (DOE) or other federal agencies over comparable durations (approximately 6 years). Without access to a comprehensive database of such contracts and their specific scopes of work, a precise comparison is challenging. However, for a long-term, comprehensive IT support and cybersecurity engagement, a value exceeding $20 million annually is not uncommon for large federal agencies. The T&M nature of this contract means the final cost is dependent on hours worked and labor rates, making direct comparisons difficult without knowing the actual utilization and specific roles filled.
What were the primary risks associated with this Time and Materials (T&M) contract, and how were they managed?
Time and Materials (T&M) contracts inherently carry a risk of cost escalation if not managed diligently, as the final price is determined by the actual labor hours expended and the cost of materials used. Potential risks include scope creep, inefficient labor utilization, and inflated material costs. To manage these risks, the Department of Energy would typically employ stringent oversight mechanisms. This includes detailed monitoring of labor hours, verification of material costs, and regular reviews of progress against defined objectives. Establishing clear ceilings on labor hours and material costs, along with robust performance metrics and reporting requirements, are crucial for mitigating these risks and ensuring the contract remains within budget and delivers expected value.
What is the track record of Energy Enterprise Solutions, LLC in performing federal IT support and cybersecurity contracts?
Information regarding the specific track record of Energy Enterprise Solutions, LLC in performing federal IT support and cybersecurity contracts is not detailed in the provided summary data. To assess their performance, one would need to review past performance evaluations, contract completion records, and any reported issues or successes on previous government engagements. A thorough review would involve examining contract databases for awards to this vendor, analyzing customer satisfaction surveys, and looking for any debriefings or disputes. Without this specific data, it's difficult to ascertain their reliability and expertise in delivering similar services to federal agencies.
Given the sole-source nature, what was the justification for not competing this significant IT support requirement?
The justification for a sole-source award, especially for a contract valued at over $131 million, typically falls under specific exceptions to full and open competition as defined by federal acquisition regulations. Common justifications include the existence of only one responsible source capable of providing the required services, urgent and compelling needs where competition is not feasible, or when the services are a follow-on to a previously competed contract where the original contractor possesses unique knowledge or capabilities. Without the specific justification documented by the Department of Energy, it is presumed that one of these regulatory exceptions was met, allowing for the direct award to Energy Enterprise Solutions, LLC.
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
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: $132,192,289
Exercised Options: $132,192,289
Current Obligation: $131,278,941
Parent Contract
Parent Award PIID: DEAM0106IM00054
IDV Type: IDC
Timeline
Start Date: 2006-02-01
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2015-05-28
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