Department of Energy's $47.2M IT support contract awarded to 22nd Century Technologies, Inc. shows fair value
Contract Overview
Contract Amount: $47,205,073 ($47.2M)
Contractor: 22ND Century Technologies, Inc.
Awarding Agency: Department of Energy
Start Date: 2014-09-30
End Date: 2020-10-09
Contract Duration: 2,201 days
Daily Burn Rate: $21.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE. IGF::OT::IGF
Place of Performance
Location: LEMONT, COOK County, ILLINOIS, 60439
State: Illinois Government Spending
Plain-Language Summary
Department of Energy obligated $47.2 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE. IGF::OT::IGF Key points: 1. The contract demonstrates a reasonable value for IT support services, aligning with industry benchmarks. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and fixed-price nature indicate manageable cost risks. 4. Performance was rated 'satisfactory' (ST), providing context for the contractor's delivery. 5. This contract falls within the broader IT services sector, supporting scientific research operations.
Value Assessment
Rating: fair
The total award amount of $47.2 million over approximately six years suggests a moderate annual spend for comprehensive IT support. Benchmarking against similar IT support contracts for federal agencies of comparable size and scope indicates that the pricing was within an acceptable range. While specific cost breakdowns are not available, the firm fixed-price structure generally promotes cost control for the government. The 'satisfactory' performance rating further supports the assessment of fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 8 bidders suggests a healthy level of competition for this requirement. A competitive bidding process typically leads to more favorable pricing and better quality services as contractors vie for the award. The number of bidders implies that the government had a good selection of qualified vendors to choose from.
Taxpayer Impact: The robust competition for this contract likely resulted in taxpayer savings by driving down prices and encouraging efficient service delivery from the winning bidder.
Public Impact
The Office of Science within the Department of Energy benefits from enhanced IT infrastructure and support. Essential IT services, including technical, professional, and information management support, are delivered. The contract's impact is primarily within the federal government's scientific research operations. Workforce implications include the provision of IT expertise to support the agency's mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 6 years may present risks related to technology obsolescence.
- Performance rating of 'satisfactory' suggests room for improvement in service delivery.
- Limited public information on specific performance metrics makes a deeper assessment challenging.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Firm fixed-price contract type helps control costs.
- Contractor has a track record of performance with the agency.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and management. The IT services market for the federal government is substantial, with agencies relying heavily on contractors for specialized expertise and operational support. This contract's value of approximately $47.2 million over its period is moderate within the context of large federal IT procurements. Comparable spending benchmarks for similar IT support services across agencies like the Department of Energy often range from tens to hundreds of millions of dollars, depending on the scope and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (SB is false) and there is no indication of significant subcontracting opportunities for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting, which is not explicitly detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to the contract were initiated.
Related Government Programs
- IT Professional Services
- Information Technology Support
- Computer Related Services
- Management and Technical Support
- Federal IT Contracts
Risk Flags
- Performance rating of 'satisfactory' may indicate potential for service improvement.
- Long contract duration could lead to technology obsolescence risks.
- Limited public data on specific performance metrics hinders deeper analysis.
Tags
it-services, department-of-energy, office-of-science, full-and-open-competition, firm-fixed-price, it-support, professional-services, illinois, contract-delivery-order, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $47.2 million to 22ND CENTURY TECHNOLOGIES, INC.. TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is 22ND CENTURY TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $47.2 million.
What is the period of performance?
Start: 2014-09-30. End: 2020-10-09.
What is the track record of 22nd Century Technologies, Inc. with the Department of Energy?
22nd Century Technologies, Inc. has a history of receiving contracts from the Department of Energy. This specific contract, valued at approximately $47.2 million, was awarded in 2014 and completed in 2020. The performance rating was 'satisfactory' (ST). While this indicates a working relationship and successful completion of the contract's term, further analysis of past performance reviews, any contract modifications, or disputes would provide a more comprehensive understanding of their track record with the agency. Examining other contracts awarded to this vendor by the DOE could reveal patterns in pricing, performance, and overall value.
How does the value of this contract compare to similar IT support contracts within the federal government?
The $47.2 million award over approximately six years for IT support services to the Office of Science is a moderate-sized federal contract. When compared to the vast landscape of federal IT procurements, contracts for similar services can range significantly. Larger agencies or those with more complex IT infrastructures often award contracts in the hundreds of millions or even billions of dollars. However, for a specific office like the Office of Science, this value appears reasonable, especially considering it was awarded through full and open competition. Benchmarking against contracts for IT management and technical support at agencies like the National Science Foundation or other research-focused entities would provide a more precise comparison.
What are the primary risks associated with a contract of this duration and scope?
A contract spanning over six years, like this one (2014-2020), carries inherent risks. Technological advancements can rapidly outpace the services defined in the original contract, potentially leading to outdated solutions or the need for costly modifications. Contractor performance can degrade over time, making the 'satisfactory' rating a point of vigilance rather than assurance. Furthermore, long-term reliance on a single contractor can reduce flexibility and potentially lead to complacency. Economic fluctuations or changes in agency priorities could also impact the contract's continued relevance or funding. The firm fixed-price nature mitigates some financial risk but doesn't eliminate risks related to scope creep or performance deficiencies.
How effective was the competition in ensuring value for taxpayers?
The contract was awarded under 'full and open competition' with 8 bidders, which is a strong indicator of effective competition. This level of competition generally forces bidders to offer competitive pricing and demonstrate strong capabilities to win the contract. For taxpayers, this means the government likely secured services at a price closer to the market rate than it might have under a sole-source or limited competition scenario. The presence of multiple bidders allows the government to select the offer that provides the best overall value, considering both price and technical merit. Without direct cost data comparisons, the competitive process itself is the primary mechanism ensuring taxpayer value here.
What does the 'satisfactory' performance rating imply about the contract's success?
A 'satisfactory' performance rating (ST) suggests that the contractor, 22nd Century Technologies, Inc., met the minimum requirements and objectives outlined in the contract. It implies that the services were delivered as specified, but perhaps without exceeding expectations or demonstrating exceptional performance. For taxpayers, this rating indicates that the government received the services it paid for, but it also suggests there might not have been significant cost savings or efficiency gains beyond what was contractually obligated. It warrants continued monitoring to ensure performance doesn't slip and to identify opportunities for improvement in future procurements.
What is the significance of the 'Other Computer Related Services' NAICS code (541519)?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT services not classified under more specific codes. This includes services like computer facilities management, computer disaster recovery services, and IT support services. For this Department of Energy contract, it signifies that the scope of work likely involved a comprehensive suite of IT support functions, potentially including network management, system administration, help desk support, and IT consulting, tailored to the needs of the Office of Science. This broad classification allows for flexibility in the types of IT services provided under the contract.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0005409
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: 22ND Century Technologies Inc.
Address: 8251 GREENSBORO DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,049,748
Exercised Options: $48,049,748
Current Obligation: $47,205,073
Actual Outlays: $9,610,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0579T
IDV Type: FSS
Timeline
Start Date: 2014-09-30
Current End Date: 2020-10-09
Potential End Date: 2024-08-20 00:00:00
Last Modified: 2024-08-19
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