DOE's $16.4M contract for Notes Network support shows long-term IT infrastructure reliance
Contract Overview
Contract Amount: $16,408,661 ($16.4M)
Contractor: Asrc Federal Highland Technology, Inc
Awarding Agency: Department of Energy
Start Date: 2006-01-02
End Date: 2012-06-30
Contract Duration: 2,371 days
Daily Burn Rate: $6.9K/day
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PROVIDE THE U.S. DEPARTMENT OF ENERGY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT RESOURCES TO MAINTAIN THE NOTES NETWORK AND APPLICATION INFRASTRUCTURE SUPPORTING THE HEADQUARTERS LOTUS NOTES CONSORTIUM. THIS REQUIREMENT INCLUDES SOFTWARE MAINTENANCE SERVICES FOR APPLICATIONS DEVELOPED, SERVER AND WORKSTATION ADMINISTRATION SERVICES, AND CUSTOMER SUPPORT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $16.4 million to ASRC FEDERAL HIGHLAND TECHNOLOGY, INC for work described as: PROVIDE THE U.S. DEPARTMENT OF ENERGY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT RESOURCES TO MAINTAIN THE NOTES NETWORK AND APPLICATION INFRASTRUCTURE SUPPORTING THE HEADQUARTERS LOTUS NOTES CONSORTIUM. THIS REQUIREMENT INCLUDES SOFTWARE MAINTENANCE SERVICES FOR APPLICATIONS DEVE… Key points: 1. Contract provides essential IT infrastructure support, indicating a sustained need for legacy system maintenance. 2. The duration of the contract suggests a stable, long-term requirement for these specialized services. 3. Focus on software maintenance and administration highlights the ongoing costs associated with supporting established applications. 4. The contract's value, while significant, needs to be assessed against the criticality of the supported infrastructure. 5. Limited competition potential for such specialized, long-term support is a common characteristic in government IT. 6. Performance context is crucial to understand if the services delivered met the evolving needs of the Notes Network.
Value Assessment
Rating: fair
The total award of $16.4 million over approximately 6.5 years averages to about $2.5 million annually. This figure needs to be benchmarked against similar IT infrastructure support contracts within the federal government to determine value for money. Without specific performance metrics or comparisons to market rates for similar services, a definitive assessment of cost-effectiveness is challenging. The Time and Materials (T&M) contract type can sometimes lead to higher costs if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The provided data does not specify the competition level for this contract. Understanding whether it was competed fully and openly, or if it was sole-source or limited, is critical. If it was competed, the number of bidders would indicate the level of market interest and potential for competitive pricing. A lack of robust competition could suggest a niche service or a long-standing relationship with the incumbent.
Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices, ensuring that federal funds are used more efficiently. Limited competition may result in higher costs for the government.
Public Impact
Benefits the U.S. Department of Energy by ensuring the continued operation and maintenance of its critical Notes Network and application infrastructure. Delivers essential IT services including software maintenance, server and workstation administration, and customer support. Primarily impacts the headquarters' IT environment within the Department of Energy. Supports the workforce by providing the necessary technological infrastructure for daily operations and communication.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials contract type if not managed stringently.
- Risk of vendor lock-in given the specialized nature of supporting legacy systems like Lotus Notes.
- Dependence on a single contractor for critical infrastructure support could pose operational risks.
- Aging technology (Lotus Notes) may present challenges in finding skilled personnel and maintaining security.
Positive Signals
- Contract ensures continuity of essential IT services for a critical government function.
- Long contract duration suggests a stable and reliable service delivery over an extended period.
- Focus on comprehensive support (software, administration, customer service) indicates a well-defined scope.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on custom computer programming and IT infrastructure support. The market for such services is vast, but contracts for maintaining legacy systems like Lotus Notes are becoming more specialized as organizations migrate to newer platforms. The annual spending for this contract, averaging around $2.5 million, is moderate within the broader federal IT spending landscape, which often involves multi-billion dollar procurements for large-scale IT modernization or cloud migration projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a result, large businesses likely competed for or were awarded this contract. There is no direct information on subcontracting plans or their impact on the small business ecosystem. However, large prime contractors often utilize small businesses for subcontracting, which could provide opportunities, but this is not guaranteed without specific set-aside requirements or stated subcontracting goals.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures would be defined in the contract's performance work statement (PWS) and monitored through regular reporting and performance reviews. Transparency is generally facilitated through contract databases like FPDS, which provide public access to contract awards, though detailed operational oversight specifics are internal.
Related Government Programs
- Department of Energy IT Support Services
- Federal Civilian Agency IT Infrastructure Contracts
- Legacy System Maintenance Contracts
- Custom Computer Programming Services
Risk Flags
- Potential for vendor lock-in due to specialized legacy system support.
- Security risks associated with maintaining an aging technology platform.
- Cost management challenges inherent in Time and Materials contracts.
- Dependence on a single contractor for critical IT infrastructure.
Tags
it-services, department-of-energy, district-of-columbia, time-and-materials, large-contract, legacy-systems, infrastructure-support, custom-computer-programming, federal-agency, it-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.4 million to ASRC FEDERAL HIGHLAND TECHNOLOGY, INC. PROVIDE THE U.S. DEPARTMENT OF ENERGY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT RESOURCES TO MAINTAIN THE NOTES NETWORK AND APPLICATION INFRASTRUCTURE SUPPORTING THE HEADQUARTERS LOTUS NOTES CONSORTIUM. THIS REQUIREMENT INCLUDES SOFTWARE MAINTENANCE SERVICES FOR APPLICATIONS DEVELOPED, SERVER AND WORKSTATION ADMINISTRATION SERVICES, AND CUSTOMER SUPPORT.
Who is the contractor on this award?
The obligated recipient is ASRC FEDERAL HIGHLAND TECHNOLOGY, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.4 million.
What is the period of performance?
Start: 2006-01-02. End: 2012-06-30.
What was the specific justification for using a Time and Materials (T&M) contract type for this service, and what controls were in place to manage costs?
Time and Materials (T&M) contracts are typically used when the level of effort or the specific tasks cannot be precisely defined at the outset, often in research and development or when requirements are expected to evolve. For this Department of Energy contract, the T&M structure likely allowed flexibility in addressing the evolving needs of the Notes Network and application infrastructure. However, T&M contracts carry a higher risk of cost overruns. Effective cost management would rely on stringent oversight, including detailed tracking of labor hours and material costs, regular reviews of invoices, and potentially establishing ceiling prices or labor hour limitations within the contract to prevent uncontrolled spending. Without specific contract clauses or documented oversight procedures, it's difficult to assess the adequacy of these controls.
How does the annual cost of this contract compare to industry benchmarks for similar IT infrastructure support services?
Benchmarking the annual cost of approximately $2.5 million for this contract requires detailed comparison with industry data for similar IT infrastructure support, specifically for legacy systems like Lotus Notes. Factors influencing benchmarks include the scope of services (software maintenance, administration, support), the number of users or endpoints supported, geographic location, and the specific Service Level Agreements (SLAs). General IT support benchmarks vary widely, but for specialized legacy system maintenance, costs can be higher due to limited vendor pools and specialized skill requirements. A comprehensive analysis would involve comparing the contractor's hourly rates, overhead, and profit margins against industry standards for comparable tasks and service levels, considering the Department of Energy's specific operational environment.
What is the contractor's track record with the Department of Energy and other federal agencies for similar IT support services?
ASRC Federal Highland Technology, Inc. has a history of performing IT and technical support services for various government agencies. Assessing their track record for this specific contract would involve reviewing past performance evaluations, any contract disputes or awards, and the successful delivery of services under previous task orders or contracts. Information on their performance on similar IT infrastructure maintenance and support contracts, particularly those involving legacy systems, would be crucial. Examining their history with the Department of Energy specifically would reveal their established relationship and performance within that agency. Publicly available contract databases and past performance information repositories can provide insights into their reliability and quality of service.
What are the risks associated with maintaining a legacy system like Lotus Notes for such an extended period, and how were these risks mitigated?
Maintaining legacy systems like Lotus Notes for an extended period presents several risks. These include increasing security vulnerabilities as newer threats emerge and patches become scarce, difficulty in finding personnel with expertise in outdated technologies, potential integration issues with modern systems, and higher operational costs due to lack of vendor support or inefficient architecture. For this contract, risks might have been mitigated through robust security protocols, dedicated training programs for staff, phased modernization efforts, or by ensuring comprehensive support agreements with the vendor (if available). The contract's focus on software maintenance and administration suggests an effort to keep the system functional and secure, but the inherent risks of relying on aging technology remain a concern.
How has spending on Notes Network support evolved over the contract's lifecycle, and does it indicate a trend towards modernization or continued reliance?
The provided data shows a total award of $16.4 million over the contract's duration (2006-2012), indicating consistent spending to maintain the Notes Network. To understand the evolution, one would need to examine the annual spending patterns. If spending remained relatively stable or increased steadily, it might suggest continued reliance on the existing infrastructure. Conversely, if spending decreased significantly in later years, it could indicate a transition towards modernization or system retirement. Without granular data on yearly expenditures, it's difficult to definitively determine the trend. However, the substantial total award over six years implies a significant, ongoing investment in this specific IT infrastructure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Address: 16220 S FREDERICK AVE, GAITHERSBURG, MD, 20877
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $28,764,512
Exercised Options: $19,238,223
Current Obligation: $16,408,661
Parent Contract
Parent Award PIID: GS35F0440J
IDV Type: FSS
Timeline
Start Date: 2006-01-02
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2015-05-22
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