DOE awards $7M for IT quality assurance, with a significant portion for IT services
Contract Overview
Contract Amount: $7,063,466 ($7.1M)
Contractor: Acato Information Management, LLC
Awarding Agency: Department of Energy
Start Date: 2024-09-27
End Date: 2026-04-30
Contract Duration: 580 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CONTRACT FOR QUALITY ASSURANCE SERVICES FIRM FIXED PRICE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $7.1 million to ACATO INFORMATION MANAGEMENT, LLC for work described as: CONTRACT FOR QUALITY ASSURANCE SERVICES FIRM FIXED PRICE Key points: 1. The contract value of $7.06 million for IT quality assurance services appears reasonable for the scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of approximately 1.8 years indicates a medium-term engagement. 4. The primary service category is Computer Systems Design, aligning with IT support needs. 5. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, ACATO INFORMATION MANAGEMENT, LLC, is a single awardee for this specific order.
Value Assessment
Rating: good
The contract value of $7.06 million for IT quality assurance services over 580 days (approximately 1.8 years) seems aligned with industry standards for specialized IT support. Benchmarking against similar IT services contracts within the federal government suggests this price point is competitive, especially given the fixed-price nature of the award. The specific services required for quality assurance in IT systems can be complex and require specialized expertise, justifying the investment.
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 bids. The use of this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. While the number of bidders is not specified, the open competition suggests that multiple firms likely vied for this opportunity, providing the Department of Energy with a range of options.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring the government receives the best value for its investment.
Public Impact
The Department of Energy benefits from enhanced quality assurance for its IT systems, ensuring reliability and security. The contract supports the delivery of critical IT services, contributing to the agency's operational efficiency. The primary geographic impact is within the District of Columbia, where the contractor is located. The contract supports specialized IT roles, potentially impacting the local IT workforce in the DC area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if quality assurance requirements are not clearly defined and managed.
- Dependence on a single contractor for critical IT quality assurance functions.
- Risk of vendor lock-in if transition to a new vendor is required.
- Performance variability based on the specific expertise of the assigned personnel.
Positive Signals
- Fixed-price contract structure incentivizes cost control and predictable spending.
- Full and open competition suggests a robust selection process and potential for high-quality service.
- Clear delivery order mechanism within a potential IDIQ provides flexibility for the agency.
- Contract duration allows for focused execution of quality assurance tasks.
Sector Analysis
The IT services sector is a vast and dynamic market within the federal government, encompassing a wide range of support, development, and maintenance activities. Contracts for IT quality assurance are crucial for ensuring the integrity, security, and performance of government IT systems. Spending in this area is consistently high across various agencies, reflecting the increasing reliance on technology. This contract fits within the broader category of IT professional services, where competition can be intense but specialized expertise is highly valued.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of IT quality assurance services, which often require specialized expertise and certifications, it is common for larger, more established firms to compete for these types of contracts. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- IT Professional Services
- Computer Systems Design Services
- Quality Assurance Services
- Department of Energy IT Modernization Efforts
Risk Flags
- Potential for performance issues if contractor expertise is insufficient.
- Risk of cost overruns if contract is not managed tightly.
- Dependency on a single vendor for critical IT assurance functions.
Tags
it-services, quality-assurance, computer-systems-design, department-of-energy, district-of-columbia, fixed-price, delivery-order, full-and-open-competition, medium-contract-value, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.1 million to ACATO INFORMATION MANAGEMENT, LLC. CONTRACT FOR QUALITY ASSURANCE SERVICES FIRM FIXED PRICE
Who is the contractor on this award?
The obligated recipient is ACATO INFORMATION MANAGEMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $7.1 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-04-30.
What is the track record of ACATO INFORMATION MANAGEMENT, LLC with the Department of Energy and other federal agencies?
A review of federal procurement data indicates that ACATO INFORMATION MANAGEMENT, LLC has a history of receiving federal contracts, primarily within the IT services domain. Their awards span various agencies, suggesting a capacity to serve different government entities. Specific details on past performance metrics, such as on-time delivery, quality of work, and customer satisfaction, would require a deeper dive into contract performance reports and agency evaluations. Understanding their past performance with the Department of Energy specifically would provide the most relevant context for assessing their suitability for this current contract.
How does the awarded amount compare to similar IT quality assurance contracts within the federal government?
The awarded amount of approximately $7.06 million for IT quality assurance services over a period of roughly 1.8 years positions this contract as a mid-sized engagement within the federal IT landscape. Benchmarking against similar contracts requires careful consideration of the specific services, scope, and duration. However, preliminary analysis suggests that this value is within a reasonable range for specialized IT support and quality assurance functions. Contracts of this nature often range from a few million to tens of millions of dollars, depending on the complexity and criticality of the systems being supported.
What are the key performance indicators (KPIs) that will be used to measure the success of this contract?
While specific KPIs are not detailed in the provided data, typical performance indicators for IT quality assurance contracts include metrics related to defect detection rates, accuracy of test results, timeliness of reporting, adherence to quality standards, and overall contribution to system stability and security. The contract likely outlines specific deliverables and acceptance criteria that serve as measurable benchmarks. The Department of Energy's program office would be responsible for monitoring these KPIs and ensuring the contractor meets the agreed-upon performance standards throughout the contract period.
What is the potential impact of this contract on the Department of Energy's IT modernization efforts?
This contract for quality assurance services is likely to play a supportive role in the Department of Energy's IT modernization efforts. By ensuring the quality and reliability of existing and newly implemented IT systems, the contractor helps to mitigate risks associated with technological transitions. Effective quality assurance can lead to smoother deployments, reduced post-implementation issues, and greater confidence in the performance of modernized systems. This, in turn, can accelerate the adoption of new technologies and improve the overall efficiency and effectiveness of the agency's IT infrastructure.
What is the historical spending trend for IT quality assurance services at the Department of Energy?
Historical spending on IT quality assurance services at the Department of Energy can vary significantly year over year, influenced by agency priorities, project lifecycles, and the overall IT budget. While this specific contract represents a $7.06 million award, understanding the broader trend would involve analyzing aggregate spending data over several fiscal years. Agencies often allocate consistent funding for quality assurance as a critical component of IT governance and risk management. Fluctuations may occur due to major system upgrades, new IT initiatives, or shifts in contracting strategies, such as moving towards more centralized or decentralized QA functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Acato Information Management LLC
Address: 173 MITCHELL RD, OAK RIDGE, TN, 37830
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $7,063,466
Exercised Options: $7,063,466
Current Obligation: $7,063,466
Actual Outlays: $6,245,552
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCA21D00CX
IDV Type: FSS
Timeline
Start Date: 2024-09-27
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-26
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