Department of Energy awards $10.2M contract for IT support to RHINOCORPS LTD. CO

Contract Overview

Contract Amount: $10,185,829 ($10.2M)

Contractor: Rhinocorps Ltd. CO.

Awarding Agency: Department of Energy

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TECHNICAL AND COMPUTER SIMULATION SUPPORT FOR THE OFFICE OF SECURITY OPERATIONS & PROGRAMMATIC PLANNING (NA-71).

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 $10.2 million to RHINOCORPS LTD. CO. for work described as: TECHNICAL AND COMPUTER SIMULATION SUPPORT FOR THE OFFICE OF SECURITY OPERATIONS & PROGRAMMATIC PLANNING (NA-71). Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 5 years suggests a long-term need for these services. 3. Focus on security operations and programmatic planning indicates critical support. 4. The contract is for labor hours, which can be subject to scope creep. 5. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $10.2 million over five years for IT support services appears within a reasonable range for specialized technical assistance. However, without a competitive bidding process, it is difficult to definitively benchmark the value for money. The pricing structure based on labor hours necessitates careful monitoring to ensure efficiency and prevent cost overruns. Comparing this to similar IT support contracts within the Department of Energy or other federal agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited. The justification for a sole-source award would need to be robust to ensure fair pricing and prevent potential waste.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This could result in a higher overall expenditure for these essential IT support services.

Public Impact

The Office of Security Operations & Programmatic Planning (NA-71) within the Department of Energy will benefit from dedicated IT support. Services include technical and computer simulation support, crucial for operational planning and security. The contract's impact is primarily within the Department of Energy's headquarters in Washington D.C. Workforce implications are likely to involve specialized IT professionals employed by RHINOCORPS LTD. CO.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Sole-source award limits competitive pressure on pricing.
• Labor hour contract type can lead to cost uncertainty if not managed closely.
• Lack of small business participation may limit opportunities for smaller firms.

Positive Signals

• Contract addresses critical IT support needs for security operations.
• Long-term contract duration (5 years) suggests stability and continuity of services.
• RHINOCORPS LTD. CO. is the awarded contractor, implying they meet specific requirements.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and technical support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for the Department of Energy's security operations aligns with the broader trend of agencies outsourcing specialized IT functions to private sector vendors to ensure operational efficiency and access to expertise. Comparable spending benchmarks for similar IT support contracts within federal agencies can vary widely based on scope and complexity.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in this specific procurement are limited. The absence of a small business focus in this sole-source award could impact the broader small business ecosystem that relies on federal contracting opportunities, particularly in specialized IT fields.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures will be tied to the performance work statement and delivery of services as outlined in the contract. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

• Department of Energy IT Services
• Federal Computer Programming Services
• Office of Security Operations Support
• Programmatic Planning IT Support

Risk Flags

• Sole-source award
• Labor hour contract type
• Lack of small business participation

Tags

it-services, department-of-energy, custom-computer-programming, sole-source, definitive-contract, labor-hours, national-security, programmatic-planning, washington-dc, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $10.2 million to RHINOCORPS LTD. CO.. TECHNICAL AND COMPUTER SIMULATION SUPPORT FOR THE OFFICE OF SECURITY OPERATIONS & PROGRAMMATIC PLANNING (NA-71).

Who is the contractor on this award?

The obligated recipient is RHINOCORPS LTD. CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the track record of RHINOCORPS LTD. CO. in performing similar IT support services for federal agencies?

Assessing the track record of RHINOCORPS LTD. CO. requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations, and any reported issues or successes. Information on their experience with custom computer programming, technical support, and simulation services, particularly within the national security or energy sectors, would be crucial. A positive track record with similar agencies or for comparable services would increase confidence in their ability to meet the Department of Energy's needs. Conversely, a history of performance issues or contract disputes would raise concerns about their suitability for this sole-source award.

How does the awarded price compare to market rates for similar custom computer programming services?

Benchmarking the awarded price of $10.2 million against market rates for similar custom computer programming services is challenging without a competitive bidding process. The contract is for labor hours, making direct price comparisons difficult as rates can vary significantly based on skill sets, experience levels, and geographic location. To assess value, one would need to analyze the average hourly rates for the types of technical and simulation support personnel RHINOCORPS LTD. CO. is expected to provide. Comparing these rates to industry surveys or data from other federal contracts for similar services, where available, could offer insights. However, the sole-source nature of this award limits the ability to definitively determine if the price represents optimal value for the government.

What are the primary risks associated with a sole-source IT support contract of this magnitude?

The primary risks associated with a sole-source IT support contract of this magnitude include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a higher risk of vendor lock-in. Without competitive pressure, RHINOCORPS LTD. CO. may have less motivation to offer the most cost-effective solutions or to proactively identify areas for improvement. Furthermore, if the contractor's performance falters or their capabilities become outdated, the Department of Energy may face significant challenges and costs in transitioning to a new vendor due to the specialized nature of the services and the long-term relationship established. The absence of multiple bidders also means less opportunity to discover alternative technical approaches or solutions.

How effective is the Department of Energy's oversight likely to be for this labor-hour contract?

The effectiveness of the Department of Energy's oversight for this labor-hour contract hinges on the robustness of their contract management practices. Key to effective oversight will be the clarity and specificity of the Performance Work Statement (PWS), the diligence of the Contracting Officer's Representative (COR) in monitoring contractor performance, and the rigor of invoice review processes. For labor-hour contracts, it is crucial to track the hours expended against the scope of work to ensure that the effort aligns with the contract's objectives and that costs remain within budget. Regular performance reviews, milestone tracking, and open communication channels with RHINOCORPS LTD. CO. are essential to identify and address any potential issues proactively and ensure the services delivered meet the agency's needs for security operations and programmatic planning.

What are the historical spending patterns for IT support services within the Department of Energy's Office of Security Operations?

Analyzing historical spending patterns for IT support services within the Department of Energy's Office of Security Operations (NA-71) would provide valuable context for this $10.2 million contract. This involves examining previous contract awards for similar services, including their values, durations, and the contractors involved. Understanding whether this award represents an increase or decrease in spending, and whether it aligns with previous trends, can indicate shifts in agency priorities or resource allocation. If historical data shows a pattern of sole-source awards for these types of services, it might suggest a consistent reliance on specific vendors or a perceived lack of market competition. Conversely, a history of competitive bidding would make this sole-source award more noteworthy and warrant closer scrutiny.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 89233119RNA000057

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1128 PENNSYLVANIA ST NE STE 100, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,985,061

Exercised Options: $10,985,061

Current Obligation: $10,185,829

Actual Outlays: $7,425,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-10-01

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-03-06

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