Doe's $35M IGF Survey Operations Support Contract Awarded to IMG - Crown Energy Services Joint Venture, LLC

Contract Overview

Contract Amount: $35,176,209 ($35.2M)

Contractor: IMG - Crown Energy Services Joint Venture, LLC

Awarding Agency: Department of Energy

Start Date: 2017-09-13

End Date: 2020-11-12

Contract Duration: 1,156 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF SURVEY OPERATIONS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $35.2 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC for work described as: IGF::OT::IGF SURVEY OPERATIONS SUPPORT Key points: 1. The contract value of $35.2 million over approximately 3.8 years suggests a significant investment in survey operations support. 2. The award was made under full and open competition, indicating a potentially competitive pricing environment. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risk if not managed closely. 4. The duration of 1156 days (over 3 years) allows for sustained support but requires careful performance monitoring. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on computing infrastructure and data processing services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or framework.

Value Assessment

Rating: fair

Benchmarking the value of this $35.2 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can lead to cost overruns if not managed diligently. While the fixed fee provides some cost certainty for the contractor's profit, the overall cost to the government is variable. Comparing this to similar survey operations support contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit offers. This typically leads to a more robust selection process and potentially better pricing due to market forces. The presence of two bids (no: 2) indicates some level of competition, though a higher number of bidders would generally be preferred to ensure maximum price discovery and contractor selection.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially driving down costs. However, with only two bidders, the extent of cost savings compared to a more crowded field is uncertain.

Public Impact

The primary beneficiaries are likely the Department of Energy (DOE) and its various survey operations, which receive essential support services. The services delivered are related to computing infrastructure, data processing, web hosting, and similar IT support, crucial for modern survey execution. The contract's geographic impact is noted as 'DC' (District of Columbia), suggesting a concentration of operations or administrative functions in that area. Workforce implications could include the creation or maintenance of jobs within the contractor's organization, particularly in IT and data management fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize contractors to incur costs, as their fee is fixed regardless of the total cost incurred, potentially leading to higher overall spending if not tightly managed.
Limited competition (only 2 bidders) may have reduced the pressure on the contractor to offer the most aggressive pricing.
The specific nature of 'survey operations support' could be broad, requiring careful scope management to prevent scope creep and associated cost increases.

Positive Signals

Awarded under full and open competition, which generally promotes a competitive marketplace and better value.
The fixed fee component of the CPFF contract provides a defined profit margin for the contractor, which can align incentives if managed correctly.
The contract duration allows for stability and continuity of essential support services for the DOE.

Sector Analysis

The Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting (NAICS 518210), is a critical area for government operations. The market for these services is large and competitive, with numerous providers ranging from large corporations to specialized firms. This contract fits within the government's broader strategy to modernize IT infrastructure and leverage cloud-based solutions for efficiency and scalability. Comparable spending benchmarks would involve analyzing other government contracts for similar IT support services, considering factors like scope, duration, and service level agreements.

Small Business Impact

There is no indication that this contract included a small business set-aside (sb: false). The contractor, IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC, is a joint venture, which can sometimes be structured to include small businesses. However, without further information on the joint venture's composition, its direct impact on the small business ecosystem is unclear. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the survey operations support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous oversight of incurred costs to ensure allowability, allocability, and reasonableness. Transparency is typically managed through contract reporting requirements and performance reviews. The Inspector General's office for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Support Services
Data Processing and Hosting Contracts
Government IT Modernization Programs
Energy Sector IT Services
Cloud Computing Services for Government

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Limited number of bidders (2) may reduce competitive pressure on pricing.
Potential for scope creep in 'survey operations support' if not clearly defined.
Joint venture structure requires understanding of partner capabilities and responsibilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $35.2 million to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC. IGF::OT::IGF SURVEY OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $35.2 million.

What is the period of performance?

Start: 2017-09-13. End: 2020-11-12.

What is the track record of IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC with the Department of Energy and other federal agencies?

Assessing the track record of IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC requires a review of their past performance on federal contracts. This includes examining contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. A joint venture's track record can be complex, as it may reflect the combined experience of its partners or the performance of the venture itself. Understanding their history with the Department of Energy specifically would be crucial, given this award. Without access to detailed performance data, it's difficult to definitively assess their reliability and capability for this specific contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to other IT support contracts of similar scope and duration?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex projects where costs are difficult to estimate upfront, but it carries inherent risks for the government. Unlike fixed-price contracts, the total cost is not capped, although the contractor's profit (the 'fee') is fixed. This means the government bears the risk of cost overruns. Compared to fixed-price contracts, CPFF can be more expensive for the government if costs escalate. However, it may be more appropriate than fixed-price for services involving significant uncertainty or evolving requirements. Benchmarking requires comparing the total costs (costs + fee) of similar CPFF contracts against fixed-price or other cost-reimbursement contracts for comparable IT support services, considering the level of risk and complexity involved.

What are the key performance indicators (KPIs) used to measure the success of this survey operations support contract?

Key Performance Indicators (KPIs) for a contract like 'IGF::OT::IGF SURVEY OPERATIONS SUPPORT' would typically focus on the reliability, availability, and performance of the computing infrastructure and data processing services provided. Examples could include system uptime percentages, data processing speed and accuracy, response times for IT support requests, adherence to security protocols, and successful completion of data collection and analysis milestones. The effectiveness of these KPIs is crucial for ensuring the contractor meets the Department of Energy's operational needs and that taxpayer funds are used efficiently. Regular performance reviews against these KPIs would be essential for contract oversight.

What is the historical spending trend for survey operations support within the Department of Energy?

Analyzing historical spending trends for survey operations support within the Department of Energy (DOE) would provide context for the $35.2 million awarded to IMG - CROWN ENERGY SERVICES JOINT VENTURE, LLC. This involves examining past contracts for similar services, their values, durations, and the number of competitors. Significant increases or decreases in spending over time could indicate shifts in program priorities, technological advancements, or changes in contracting strategies. Understanding these trends helps in assessing whether the current contract represents a typical investment, an expansion, or a reduction in this area of support. It also aids in identifying potential areas for cost savings or efficiency improvements in future procurements.

How does the geographic concentration in 'DC' impact the overall cost-effectiveness and reach of the survey operations support?

The designation 'DC' for the contract's service location suggests a significant operational or administrative focus within the District of Columbia. This concentration can sometimes lead to cost efficiencies if it allows for centralized management and resource allocation. However, it might also imply higher overhead costs associated with operating in a high-cost-of-living area. The impact on cost-effectiveness depends on whether the services provided truly require this geographic focus or if a distributed model could be more economical. Furthermore, if the surveys themselves are national in scope, a DC-centric support structure needs to be robust enough to effectively manage operations across wider geographic areas, potentially incurring additional communication and coordination costs.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: DE-SOL-0010935

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5418 SEMINARY RD, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,303,174

Exercised Options: $37,303,174

Current Obligation: $35,176,209

Actual Outlays: $10,720,231

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DEEI0002951

IDV Type: IDC

Timeline