Department of Energy's $61.4M IT Operations Contract Awarded to Alliant Enterprise JV LLC
Contract Overview
Contract Amount: $61,395,213 ($61.4M)
Contractor: Alliant Enterprise JV LLC
Awarding Agency: Department of Energy
Start Date: 2012-07-26
End Date: 2018-01-31
Contract Duration: 2,015 days
Daily Burn Rate: $30.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ''IGF::OT::IGF'' NEW TASK ORDER FOR INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $61.4 million to ALLIANT ENTERPRISE JV LLC for work described as: ''IGF::OT::IGF'' NEW TASK ORDER FOR INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a robust bidding process. 2. Task order for IT operations and maintenance support services indicates a need for ongoing technical infrastructure management. 3. The contract's duration and value suggest a significant investment in maintaining critical IT systems. 4. Awarded to a joint venture, potentially indicating a strategy to leverage specialized capabilities. 5. The cost-plus award fee structure incentivizes performance but requires careful oversight to manage costs. 6. The contract was awarded in 2012 and completed in 2018, providing a historical data point for IT support spending.
Value Assessment
Rating: good
The contract value of $61.4 million over its period of performance appears reasonable for comprehensive IT operations and maintenance support. Benchmarking against similar large-scale IT support contracts within federal agencies would provide a more precise value-for-money assessment. The cost-plus award fee structure, while common for complex services, necessitates diligent monitoring of costs against performance metrics to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and encouraging innovation, ensuring that government funds are used efficiently for essential IT services.
Public Impact
The Department of Energy benefits from sustained IT operations and maintenance, ensuring the reliability of its technological infrastructure. Federal employees and contractors within the Department of Energy likely benefit from stable and functional IT systems necessary for their work. The contract supports IT infrastructure, which underpins various energy sector initiatives and research conducted by the DOE. The contract's performance likely contributed to the operational continuity of critical energy information systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can lead to cost overruns if not managed stringently.
- The joint venture structure may introduce complexities in accountability and performance management.
- Reliance on a single task order for comprehensive IT support could pose risks if the contractor underperforms.
Positive Signals
- Awarded through full and open competition, indicating a potentially strong pool of qualified bidders.
- The contract's successful completion suggests the contractor met performance expectations.
- The task order structure implies a defined scope of work for IT operations and maintenance.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The federal IT market is substantial, with agencies consistently investing in operations and maintenance to support critical functions. This contract represents a portion of the government's broader spending on maintaining and modernizing its IT infrastructure, which is essential for national security, economic functions, and public services.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity or joint venture, and the impact on the small business ecosystem would depend on any subcontracting opportunities that may have arisen, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. The cost-plus award fee structure implies performance metrics that would be monitored to determine award fees. Transparency would be enhanced through contract award databases and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- IT Operations and Maintenance Support Services
- Computer Systems Design Services
- Alliant Government Services Contracts
- Department of Energy IT Modernization Efforts
Risk Flags
- Cost-plus award fee contracts require diligent oversight to prevent cost overruns.
- Potential for vendor lock-in if transition planning is inadequate.
- Cybersecurity risks inherent in IT operations and maintenance.
Tags
it-operations-and-maintenance, computer-systems-design-services, department-of-energy, alliant-enterprise-jv-llc, cost-plus-award-fee, full-and-open-competition, delivery-order, west-virginia, it-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $61.4 million to ALLIANT ENTERPRISE JV LLC. ''IGF::OT::IGF'' NEW TASK ORDER FOR INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ALLIANT ENTERPRISE JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $61.4 million.
What is the period of performance?
Start: 2012-07-26. End: 2018-01-31.
What was the specific performance history of Alliant Enterprise JV LLC on this contract?
The provided data does not detail the specific performance history of Alliant Enterprise JV LLC on this particular contract beyond its award and completion dates. However, the contract was a Cost Plus Award Fee (CPAF) type, which means the contractor's performance was evaluated against predefined metrics to determine the award fee. Successful completion of the contract suggests that performance was deemed adequate to meet the requirements. Further investigation into contract performance reports or award fee determinations would be necessary to assess the quality and timeliness of services rendered and the contractor's overall track record on this specific task order.
How does the $61.4 million total value compare to similar IT operations and maintenance contracts at the Department of Energy?
The $61.4 million total value for this IT operations and maintenance support services contract, awarded in 2012 and completed in 2018, represents a significant but not extraordinary investment for a multi-year federal IT support task order. To benchmark effectively, one would need to compare it against other similar-sized task orders or contracts for IT operations and maintenance within the Department of Energy or comparable agencies during that timeframe. Factors such as the scope of services (e.g., number of users supported, systems managed, geographic locations), the specific technologies involved, and the contract type (e.g., fixed-price, cost-plus) would influence comparability. Without direct comparative data, it appears to be a substantial contract reflecting a comprehensive support requirement.
What were the primary risks associated with this contract, and how were they mitigated?
Key risks for a contract of this nature, involving IT operations and maintenance, typically include technical failures, cybersecurity threats, cost overruns (especially with CPAF), and contractor performance issues. Given it was a Cost Plus Award Fee contract, the primary risk of cost escalation was intended to be managed by incentivizing performance through award fees tied to specific metrics. Mitigation strategies would have involved robust oversight by the Contracting Officer's Representative (COR), regular performance reviews, adherence to security protocols, and contingency planning for system outages. The full and open competition likely mitigated the risk of relying on a single, potentially underperforming vendor.
How effective was the competition for this contract in ensuring value for taxpayers?
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' with 6 bidders participating. This level of competition is generally considered healthy and suggests that multiple capable vendors were interested and able to bid. Healthy competition typically drives down prices, encourages innovation, and leads to better service quality, all of which benefit taxpayers. The fact that it was 'after exclusion of sources' might imply specific circumstances or requirements that narrowed the initial pool, but the subsequent open competition with multiple bidders indicates a strong effort to achieve value. A detailed analysis of the bid prices and the final award price would further confirm the extent of value realized.
What is the historical spending trend for IT operations and maintenance at the Department of Energy, and how does this contract fit in?
This contract, valued at approximately $61.4 million from 2012 to 2018, represents a specific investment in IT operations and maintenance. To understand the historical trend, one would need to examine the Department of Energy's total IT spending over several years, breaking it down by category, including operations and maintenance. This contract likely formed part of a larger strategy to ensure the stability and functionality of the DOE's IT infrastructure during that period. Analyzing spending patterns before and after this contract's period, as well as other similar contracts awarded by the DOE, would reveal whether this represented a typical level of investment, an increase, or a decrease in spending for these services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0003719
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 8000 TOWERS CRESCENT DR 13TH FL, VIENNA, VA, 22182
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,842,428
Exercised Options: $65,842,428
Current Obligation: $61,395,213
Actual Outlays: $871,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS06F0599Z
IDV Type: GWAC
Timeline
Start Date: 2012-07-26
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2023-08-29
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