Department of Energy's IT support contract awarded to Energy Enterprise Solutions, LLC for over $32.8 million
Contract Overview
Contract Amount: $32,850,709 ($32.9M)
Contractor: Energy Enterprise Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2009-06-05
End Date: 2012-06-30
Contract Duration: 1,121 days
Daily Burn Rate: $29.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT SERVICES FOR INFORMATION TECHNOLOGY DEPARTMENT - SC-ITD.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $32.9 million to ENERGY ENTERPRISE SOLUTIONS, LLC for work described as: INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT SERVICES FOR INFORMATION TECHNOLOGY DEPARTMENT - SC-ITD. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 3. The contract duration of 1121 days (approx. 3 years) indicates a significant, long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was awarded to a single vendor, Energy Enterprise Solutions, LLC. 6. The base award amount is over $29.3 million, with a total potential value exceeding $32.8 million.
Value Assessment
Rating: fair
The Time and Materials contract type, while flexible, requires diligent oversight to prevent cost overruns. Benchmarking the per-unit cost against similar IT support contracts would be necessary for a definitive value assessment. Without specific labor categories and rates, a precise comparison is difficult, but the overall value of $32.8 million for approximately three years of IT support services for a federal agency warrants careful scrutiny of deliverables and performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment at the outset. However, the data only shows one award, and further details on the number of bids received would be needed to fully assess the level of competition and its impact on price discovery.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
The primary beneficiary is the Department of Energy's IT department, which receives essential support services. Services delivered likely include IT infrastructure management, cybersecurity, software support, and potentially help desk functions. The geographic impact is primarily within New Mexico, where the contract was awarded. The contract supports the IT workforce within the Department of Energy and potentially the contractor's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to uncontrolled cost escalation if not closely monitored.
- Lack of specific details on the number of bidders limits the assessment of true competition.
- The broad NAICS code may obscure the specific nature and cost-effectiveness of the services provided.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent initial process.
- The contract duration indicates a stable, long-term need for these critical IT services.
- The contract is managed by the Department of Energy, a major federal agency with established procurement processes.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on computer-related services. The IT services market is vast and highly competitive, with numerous vendors offering a wide range of solutions. Federal agencies are significant consumers of IT services, with spending often concentrated on areas like infrastructure, cybersecurity, software development, and cloud computing. Benchmarking this contract's value against similar IT support services for federal agencies would provide context on its market competitiveness.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus of this contract appears to be on larger, established IT service providers capable of meeting the Department of Energy's extensive requirements.
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 contract's performance work statement and deliverables. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Support Services
- Information Technology Department Services
- Computer Related Services
- Federal IT Procurement
- Department of Energy Contracts
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Limited Competition Data Provided
Tags
it-services, department-of-energy, information-technology, time-and-materials, full-and-open-competition, new-mexico, computer-related-services, it-support, federal-contract, energy-enterprise-solutions-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $32.9 million to ENERGY ENTERPRISE SOLUTIONS, LLC. INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT SERVICES FOR INFORMATION TECHNOLOGY DEPARTMENT - SC-ITD.
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 $32.9 million.
What is the period of performance?
Start: 2009-06-05. End: 2012-06-30.
What is the track record of Energy Enterprise Solutions, LLC with federal contracts, particularly with the Department of Energy?
A comprehensive review of Energy Enterprise Solutions, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance on similar IT support contracts, including their ability to meet deadlines, stay within budget, and deliver quality services. Specifically, looking at their performance on previous Department of Energy contracts, if any, would provide direct insight into their experience with this agency's specific needs and operational environment. Analyzing past performance evaluations and any documented issues or successes would offer a clearer picture of their reliability and capability as a federal contractor.
How does the awarded amount of over $32.8 million compare to similar IT support contracts for federal agencies of similar size and scope?
To benchmark the $32.8 million award, one would need to compare it against IT support contracts awarded to other federal agencies for comparable services. Key comparison points include the contract duration (approximately 3 years), the scope of services (broad IT support), and the agency's size and complexity. For instance, comparing it to IT support contracts for other large cabinet-level departments or agencies with significant IT infrastructure needs would be relevant. Factors such as the labor mix (e.g., number of senior vs. junior IT professionals), the specific technologies supported, and the service level agreements (SLAs) would also influence cost. Without these granular details, a precise comparison is challenging, but the overall figure suggests a substantial investment in IT services.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude for IT services?
The primary risk with a Time and Materials (T&M) contract, especially one valued at over $32.8 million, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours and materials used, plus a fee. If not managed rigorously, this structure can incentivize longer task durations or the use of more expensive resources than strictly necessary, leading to costs exceeding initial estimates. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value. The Department of Energy would need robust project management and financial controls in place.
How effective is the 'Full and Open Competition' process in ensuring competitive pricing for IT services in the federal government?
Full and Open Competition is designed to maximize the pool of potential bidders, thereby fostering a competitive environment that ideally leads to better pricing and innovation. By allowing all responsible sources to participate, it prevents market exclusion and encourages vendors to offer their best terms. However, the effectiveness in ensuring competitive pricing can vary. Factors such as the complexity of the requirement, the number of qualified bidders that actually submit proposals, and the specific evaluation criteria used by the agency play a significant role. While the process itself is a strong mechanism for competition, the ultimate outcome depends on the market dynamics and the agency's procurement strategy.
What are the historical spending patterns for IT support services within the Department of Energy?
Analyzing historical spending patterns for IT support services within the Department of Energy (DOE) would involve reviewing past contract awards for similar services over several fiscal years. This would reveal trends in contract values, types of services procured, primary contractors, and the overall budget allocated to IT support. Understanding these patterns can help determine if the current $32.8 million contract is consistent with historical investments, represents an increase or decrease in spending, and whether there's a trend towards consolidating or decentralizing IT support functions. It also helps in identifying potential areas for cost savings or efficiency improvements based on past performance.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 656 QUINCE ORCHARD STE 500, GAITHERSBURG, MD, 90
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $32,850,709
Exercised Options: $32,850,709
Current Obligation: $32,850,709
Parent Contract
Parent Award PIID: DEAM0106IM00054
IDV Type: IDC
Timeline
Start Date: 2009-06-05
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2013-10-24
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