DOE's $75M IT Management Support Services Contract Awarded to Energy Enterprise Solutions, LLC
Contract Overview
Contract Amount: $74,892,692 ($74.9M)
Contractor: Energy Enterprise Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2006-03-01
End Date: 2012-06-30
Contract Duration: 2,313 days
Daily Burn Rate: $32.4K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: T&M TASK ORDER FOR INFORMATION TECHNOLOGY MANAGEMENT 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 $74.9 million to ENERGY ENTERPRISE SOLUTIONS, LLC for work described as: T&M TASK ORDER FOR INFORMATION TECHNOLOGY MANAGEMENT SUPPORT SERVICES. Key points: 1. Significant contract value of $74.9M over 6 years. 2. Sole source award to Energy Enterprise Solutions, LLC. 3. Potential for cost overruns due to Time and Materials (T&M) pricing. 4. IT services sector, specifically Other Computer Related Services (NAICS 541519).
Value Assessment
Rating: questionable
The contract utilizes Time and Materials (T&M) pricing, which offers less price certainty compared to fixed-price contracts. Without a ceiling or strong oversight, T&M can lead to higher costs than anticipated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, indicating a lack of competition. This limits the government's ability to discover the lowest possible price through competitive bidding.
Taxpayer Impact: The absence of competition and the T&M pricing structure raise concerns about potential overspending of taxpayer funds.
Public Impact
Citizens may be paying more than necessary for IT management support due to sole-source award and T&M pricing. Lack of competition could stifle innovation and service quality improvements. Long contract duration (over 6 years) means sustained potential for inefficient spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Lack of competition
- No stated contract ceiling
Positive Signals
- Services provided to the Department of Energy
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. IT services spending is a significant portion of federal expenditure, and benchmarks vary widely by service type and complexity.
Small Business Impact
The contract was awarded to Energy Enterprise Solutions, LLC, which is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature and T&M pricing necessitate robust oversight to ensure efficient use of funds and prevent scope creep or unnecessary labor hours.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Time and Materials pricing offers less cost certainty than fixed-price contracts.
- Potential for contractor to inflate hours or rates without strong oversight.
- Long contract duration increases exposure to potential inefficiencies.
- Lack of transparency regarding justification for sole-source award.
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 $74.9 million to ENERGY ENTERPRISE SOLUTIONS, LLC. T&M TASK ORDER FOR INFORMATION TECHNOLOGY MANAGEMENT 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 $74.9 million.
What is the period of performance?
Start: 2006-03-01. End: 2012-06-30.
What was the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award is critical for understanding why competition was bypassed. Without this information, it's difficult to assess if the government received fair value. Exploring alternatives, even if ultimately deemed unsuitable, is a standard practice to ensure competitive pricing and identify potential service providers.
How was the 'fair and reasonable' price determined for this T&M contract without a competitive process?
Determining a fair and reasonable price for a sole-source T&M contract is challenging. Agencies typically rely on historical pricing, commercial price lists, or independent government cost estimates. The absence of a competitive benchmark makes rigorous price validation essential to prevent overpayment and ensure taxpayer dollars are used efficiently.
What mechanisms were in place to control costs and ensure efficient service delivery under this T&M contract?
With T&M contracts, effective cost control relies heavily on strong contract management, clear performance metrics, and regular reviews of labor hours and rates. Without specific details on these oversight mechanisms, it's difficult to ascertain the level of diligence applied to ensure the contractor delivered services efficiently and within reasonable cost parameters.
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: $84,990,622
Exercised Options: $84,990,622
Current Obligation: $74,892,692
Parent Contract
Parent Award PIID: DEAM0106IM00054
IDV Type: IDC
Timeline
Start Date: 2006-03-01
Current End Date: 2012-06-30
Potential End Date: 2015-05-12 00:00:00
Last Modified: 2015-05-13
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