DOE's $38.8M IGF Systems Contract with Edgewater Federal Solutions Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $38,797,199 ($38.8M)
Contractor: Edgewater Federal Solutions, Inc.
Awarding Agency: Department of Energy
Start Date: 2017-03-22
End Date: 2022-07-18
Contract Duration: 1,944 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF SYSTEMS DEVELOPMENT, MAINTENANCE, AND TECHNICAL SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $38.8 million to EDGEWATER FEDERAL SOLUTIONS, INC. for work described as: IGF::OT::IGF SYSTEMS DEVELOPMENT, MAINTENANCE, AND TECHNICAL SUPPORT Key points: 1. The contract awarded to Edgewater Federal Solutions, Inc. for IGF systems development, maintenance, and technical support is valued at $38.8 million. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of true competition. 3. The sector is IT, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 4. Potential risks include the effectiveness of the competition method in ensuring optimal pricing and value for taxpayers.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar IT support contracts is difficult without more detailed cost breakdowns, but the duration and value suggest a need for careful cost oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The award was made under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method, while allowing for some competition, inherently limits the pool of potential bidders compared to unrestricted full and open competition, potentially impacting price discovery and overall value.
Taxpayer Impact: The limited competition may have resulted in higher costs than a truly unrestricted competition could have achieved, impacting taxpayer value.
Public Impact
Taxpayers may be paying more than necessary due to limited competition in the procurement process. The Department of Energy's reliance on a single vendor for critical IT systems development and support raises concerns about vendor lock-in and future flexibility. The effectiveness of the chosen procurement strategy in securing the best value for essential IT services warrants further investigation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Cost Plus Fixed Fee contract type
- Potential for vendor lock-in
Positive Signals
- Contract awarded to a specific company
- Defined period of performance
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is critical for government operations, and benchmarks often focus on efficiency and cost-effectiveness of service delivery compared to commercial equivalents.
Small Business Impact
There is no explicit indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific justification for limiting the competitive pool. Oversight should focus on whether this justification was sound and if adequate controls were in place to manage costs and performance.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition may have inflated costs.
- Cost Plus Fixed Fee contract type carries inherent cost risk for the government.
- Lack of transparency on small business participation.
- Potential for vendor lock-in due to specialized IT services.
Tags
computing-infrastructure-providers-data-, department-of-energy, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $38.8 million to EDGEWATER FEDERAL SOLUTIONS, INC.. IGF::OT::IGF SYSTEMS DEVELOPMENT, MAINTENANCE, AND TECHNICAL SUPPORT
Who is the contractor on this award?
The obligated recipient is EDGEWATER FEDERAL SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $38.8 million.
What is the period of performance?
Start: 2017-03-22. End: 2022-07-18.
What was the specific justification for excluding other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and did it truly maximize competitive advantage?
The justification for excluding other sources is critical. If the exclusion was based on specific technical requirements or unique capabilities, it might be valid. However, if it was less stringent, it could indicate a missed opportunity to secure better pricing and innovation through broader competition. A thorough review of the justification documentation is needed to assess its validity and impact on taxpayer value.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness and risk of this contract for the Department of Energy?
Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to control costs to maximize their fixed fee. However, they also shift some cost risk to the government, as the final price is based on actual costs incurred. Effective oversight is crucial to ensure costs are reasonable and allocable, preventing potential overruns and ensuring the government receives good value for its investment in IT services.
What measures are in place to ensure the ongoing effectiveness and value of the IGF systems development, maintenance, and technical support provided by Edgewater Federal Solutions?
Ensuring ongoing effectiveness requires robust performance metrics, regular reviews, and clear communication channels. The Department of Energy should have mechanisms to track service delivery against agreed-upon standards, assess the contractor's responsiveness to evolving needs, and periodically benchmark performance and costs against industry standards to confirm continued value.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0010644
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3280 URBANA PIKE SUITE 207, IJAMSVILLE, MD, 21754
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,134,822
Exercised Options: $41,134,822
Current Obligation: $38,797,199
Actual Outlays: $16,870,060
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DEEI0002954
IDV Type: IDC
Timeline
Start Date: 2017-03-22
Current End Date: 2022-07-18
Potential End Date: 2022-07-18 00:00:00
Last Modified: 2022-08-17
More Contracts from Edgewater Federal Solutions, Inc.
- Professional Support Operations Support Tasks — $65.5M (Department of Health and Human Services)
- Provide Applications Infrastructure and Cyber Security Support for the DOE — $51.9M (Department of Energy)
- Office of Scientific and Technical Information Mission Support Services — $35.7M (Department of Energy)
- U.S. Energy Information Administration (EIA), Office of Resources & Technology Management (ortm) EOP IV Follow-On Task Order for Systems Development, Maintenance, and Technical Support — $33.0M (Department of Energy)
- Engineering Support Services for FBI Itid — $23.6M (Department of Justice)
View all Edgewater Federal Solutions, Inc. federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)