DOE awards $2M contract for alarm maintenance, raising questions about competition and value
Contract Overview
Contract Amount: $2,010,853 ($2.0M)
Contractor: RED Heritage Media LLC
Awarding Agency: Department of Energy
Start Date: 2020-11-01
End Date: 2026-01-31
Contract Duration: 1,917 days
Daily Burn Rate: $1.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ALARMS MAINTENANCE SUPPORT SERVICES FOR CSC-OR
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37831
Plain-Language Summary
Department of Energy obligated $2.0 million to RED HERITAGE MEDIA LLC for work described as: ALARMS MAINTENANCE SUPPORT SERVICES FOR CSC-OR Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over 5 years (1917 days) suggests a long-term need for these services. 3. Fixed-price contract type offers some cost certainty but may not incentivize efficiency. 4. The contractor, RED HERITAGE MEDIA LLC, has secured this award without competitive bidding. 5. Geographic location in Tennessee (TN) may indicate a specific facility or regional need. 6. The service category, Communication Equipment Repair and Maintenance, is critical for operational continuity.
Value Assessment
Rating: questionable
Benchmarking the value of this $2.01 million contract is challenging due to the lack of competitive data. Awarded on a sole-source basis, it's difficult to assess if the pricing reflects market rates or if a more competitive process could have yielded better value. The fixed-price nature provides cost predictability, but without comparison to similar sole-source awards or market benchmarks for alarm maintenance, a definitive value assessment is hindered. Further analysis into the specific services and equipment covered would be needed to provide a more granular evaluation.
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. The data indicates 'NOT AVAILABLE FOR COMPETITION,' suggesting that the Department of Energy identified a specific reason for not soliciting bids from multiple vendors. This could be due to specialized capabilities, proprietary technology, or urgent requirements where only one vendor could meet the need. The lack of competition means taxpayers did not benefit from potential cost savings that might arise from a bidding process.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially leading to higher costs for taxpayers. Without a competitive environment, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The Department of Energy benefits from the continued maintenance of its alarm systems, ensuring operational security and safety. Services include repair and maintenance of communication equipment, crucial for facility operations. The contract's impact is primarily focused within Tennessee, where the services are being rendered. The workforce implications are likely limited to the contractor's employees providing the maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
- Sole-source awards can limit opportunities for other qualified businesses to secure government contracts.
- The extended contract duration without competition might indicate a lack of proactive contract management or strategic sourcing.
- Absence of specific performance metrics or service level agreements in the provided data makes assessing contractor performance difficult.
Positive Signals
- The fixed-price contract type provides budget certainty for the Department of Energy.
- The contract ensures the continued functionality of critical alarm systems, contributing to facility security.
- The award specifies a clear period of performance, allowing for planned resource allocation.
Sector Analysis
The alarm maintenance and communication equipment repair sector is a niche but essential part of the broader IT and facilities management industry. Government spending in this area supports the operational integrity and security of federal facilities. While specific market size data for alarm maintenance is not readily available, it is a component of the larger electronic and precision equipment repair and maintenance services market, which is substantial. This contract fits within the government's need to maintain aging infrastructure and ensure the reliability of critical systems.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a factor in this award. There is no indication of a small business set-aside or subcontracting requirements. This sole-source award, therefore, does not appear to directly benefit the small business ecosystem and may represent a missed opportunity for small businesses specializing in communication equipment repair and maintenance.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. The fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency is limited due to the sole-source nature of the award, as competitive proposals and justifications are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Alarm System Maintenance Contracts
- Communication Equipment Repair Services
- Department of Energy Facilities Management
- Sole-Source IT Support Contracts
Risk Flags
- Sole-source award without clear justification
- Lack of competitive bidding limits price discovery
- Extended contract duration without re-competition
- Limited public information on contractor performance history
Tags
department-of-energy, alarm-maintenance, communication-equipment-repair, sole-source, firm-fixed-price, definitive-contract, tennessee, facilities-management, it-support, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.0 million to RED HERITAGE MEDIA LLC. ALARMS MAINTENANCE SUPPORT SERVICES FOR CSC-OR
Who is the contractor on this award?
The obligated recipient is RED HERITAGE MEDIA LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2020-11-01. End: 2026-01-31.
What specific alarm and communication equipment is covered under this contract, and what is the justification for a sole-source award?
The provided data identifies the contract as 'ALARMS MAINTENANCE SUPPORT SERVICES FOR CSC-OR' and the North American Industry Classification System (NAICS) code as 811213 for Communication Equipment Repair and Maintenance. However, the specific types of alarm and communication equipment are not detailed. The justification for the sole-source award is stated as 'NOT AVAILABLE FOR COMPETITION,' which is a generic designation. Typically, sole-source justifications require detailed explanations, such as the existence of only one responsible source capable of providing the required service, urgency, or a specific government-unique requirement. Without this detailed justification, it is impossible to fully assess the necessity of awarding the contract without competition.
How does the contract's value of approximately $2 million compare to similar alarm maintenance contracts awarded by the government?
Direct comparison of this $2.01 million contract to similar alarm maintenance contracts is difficult without more specific details on the scope of services, equipment covered, and contract duration. However, the fact that this is a sole-source award for a period of nearly five years (1917 days) suggests a significant, long-term requirement. Generally, competitive procurements for maintenance services often result in lower per-unit costs or overall contract values compared to sole-source awards, as competition drives down prices. The absence of competitive bidding here means this $2 million figure cannot be benchmarked against market-driven pricing, raising questions about whether it represents optimal value for taxpayer funds.
What are the potential risks associated with awarding a sole-source contract for alarm maintenance services?
The primary risk associated with awarding a sole-source contract for alarm maintenance services is the potential for inflated costs due to the lack of competition. Without competing bids, the contractor has less incentive to offer the lowest possible price, and the government may end up paying more than necessary. Another risk is reduced innovation and service quality, as there is no competitive pressure to improve offerings. Furthermore, sole-source awards can limit opportunities for other qualified vendors, potentially hindering the development of a robust and diverse supplier base for critical government services. There's also a risk of vendor lock-in, making it difficult to switch providers in the future without significant disruption or cost.
What is the track record of RED HERITAGE MEDIA LLC in securing government contracts, particularly sole-source awards?
Information regarding the specific track record of RED HERITAGE MEDIA LLC in securing government contracts, especially sole-source awards, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases to review past awards, contract performance history, and any reported issues or successes. Without this historical data, it is challenging to assess the contractor's reliability, past performance, and experience in fulfilling similar maintenance and repair services. Understanding their history with sole-source awards would also shed light on whether this is a pattern or an isolated instance.
What are the implications of the fixed-price contract type for cost control and contractor performance in this scenario?
A Firm Fixed Price (FFP) contract type, as indicated for this award, establishes a ceiling price that the contractor must not exceed. This provides the Department of Energy with cost certainty, as the total expenditure is known upfront, assuming no contract modifications. For the contractor, it means they bear the risk of cost overruns. This structure incentivizes the contractor to manage their costs efficiently to maximize profit. However, for maintenance services, an FFP contract might not always encourage proactive problem-solving or exceeding basic service requirements, as the contractor is primarily focused on meeting the defined scope within the fixed price. Performance is typically monitored through contract administration and adherence to service level agreements, if specified.
How does the duration of this contract (over 5 years) impact its overall value and risk profile?
The contract's duration of approximately 5 years (1917 days) is substantial for maintenance services. A longer duration can offer stability and continuity for the government, ensuring uninterrupted service for critical alarm systems. It can also provide the contractor with a predictable revenue stream, potentially leading to better resource planning and investment in specialized personnel or equipment. However, a long-term sole-source contract increases the risk of the government being locked into potentially suboptimal pricing or service levels for an extended period. It also reduces the government's flexibility to adapt to changing technological needs or to seek more competitive pricing through re-competition sooner. The extended duration, coupled with the sole-source award, amplifies concerns about long-term value for money.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89243119QSC000016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 996 AVENUE OF THE NATIONS, ROCK HILL, SC, 29730
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,049,954
Exercised Options: $2,049,954
Current Obligation: $2,010,853
Actual Outlays: $1,899,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-11-01
Current End Date: 2026-01-31
Potential End Date: 2027-02-10 00:00:00
Last Modified: 2026-02-10
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)