DOE awards $2M 8(a) direct labor hour contract to ATI Government Solutions for IT and management consulting

Contract Overview

Contract Amount: $2,006,000 ($2.0M)

Contractor: ATI Government Solutions LLC

Awarding Agency: Department of Energy

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: REQUISITION 23MA000397 WAS ISSUED TO CREATE AN 8A DIRECT LABOR HOUR AWARD TO PROVIDE EXPERT ADVICE, ASSISTANCE, AND COST-EFFECTIVE SOLUTIONS TO THE OFFICE OF CORPORATE BUSINESS OPERATIONS, OFFICE OF MANAGEMENT TO RESPOND RAPIDLY TO CRITICAL IT AND MA

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 $2.0 million to ATI GOVERNMENT SOLUTIONS LLC for work described as: REQUISITION 23MA000397 WAS ISSUED TO CREATE AN 8A DIRECT LABOR HOUR AWARD TO PROVIDE EXPERT ADVICE, ASSISTANCE, AND COST-EFFECTIVE SOLUTIONS TO THE OFFICE OF CORPORATE BUSINESS OPERATIONS, OFFICE OF MANAGEMENT TO RESPOND RAPIDLY TO CRITICAL IT AND MA Key points: 1. Contract awarded via 8(a) direct sole-source mechanism, limiting competition. 2. Focus on IT and management consulting services for the Office of Corporate Business Operations. 3. Potential risk associated with sole-source awards and lack of competitive pricing. 4. Sector is administrative management and general management consulting services.

Value Assessment

Rating: questionable

The contract value of $2,006,000 for 1095 days of labor hours is difficult to benchmark without specific task details or comparable contracts. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of pricing transparency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded directly to ATI Government Solutions LLC under the 8(a) program, meaning it was not competed. This limits price discovery and may not ensure the most cost-effective solution for the government.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition raises concerns about whether the government is receiving the best value for its investment.

Public Impact

Citizens may be concerned about the lack of competition for government contracts, especially when taxpayer money is involved. The 8(a) program aims to help small disadvantaged businesses, but sole-source awards can limit broader economic benefits. Transparency in government contracting is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The administrative management and general management consulting services sector is broad, encompassing a wide range of support functions for government agencies. Benchmarking is challenging without specific service details, but direct sole-source awards often bypass competitive pricing advantages.

Small Business Impact

The contract was awarded through the 8(a) Business Development program, which is designed to help small disadvantaged businesses compete in the federal marketplace. However, this specific award was sole-source, limiting broader opportunities for other small businesses.

Oversight & Accountability

Oversight is crucial for sole-source awards to ensure fair pricing and effective service delivery. The Department of Energy's contracting office is responsible for monitoring this contract's performance and adherence to the 8(a) program guidelines.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-energy, dc, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.0 million to ATI GOVERNMENT SOLUTIONS LLC. REQUISITION 23MA000397 WAS ISSUED TO CREATE AN 8A DIRECT LABOR HOUR AWARD TO PROVIDE EXPERT ADVICE, ASSISTANCE, AND COST-EFFECTIVE SOLUTIONS TO THE OFFICE OF CORPORATE BUSINESS OPERATIONS, OFFICE OF MANAGEMENT TO RESPOND RAPIDLY TO CRITICAL IT AND MA

Who is the contractor on this award?

The obligated recipient is ATI GOVERNMENT SOLUTIONS 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: 2023-10-01. End: 2026-09-30.

What specific IT and management consulting services are being procured, and how do they align with the agency's critical needs?

The contract specifies 'expert advice, assistance, and cost-effective solutions' for the Office of Corporate Business Operations to 'respond rapidly to critical IT and MA'. While the general area is IT and management, the precise nature of the 'critical' needs and the specific services required are not detailed in the provided data. Further information would be needed to assess the alignment and necessity of these services.

What is the justification for awarding this contract sole-source under the 8(a) program, and were alternative competitive approaches considered?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' and awarded directly. Justification for sole-source 8(a) awards typically involves specific criteria, such as unique capabilities or urgent needs that cannot be met competitively within the required timeframe. Without the official justification document, it's unclear if alternatives were explored or why this specific approach was deemed necessary.

How will the government ensure cost-effectiveness and value for money given the absence of a competitive bidding process?

Ensuring cost-effectiveness in a sole-source award relies heavily on robust government oversight, negotiation, and established pricing benchmarks for similar services. The Department of Energy must diligently monitor ATI Government Solutions' performance, labor hours, and rates against industry standards and any available historical data to validate the 'cost-effective solutions' claim and prevent potential overspending.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 47 E SOUTH ST, UNIT 002, FREDERICK, MD, 21701

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,072,000

Exercised Options: $2,193,000

Current Obligation: $2,006,000

Actual Outlays: $1,758,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-10-01

Current End Date: 2026-09-30

Potential End Date: 2028-09-30 00:00:00

Last Modified: 2026-02-27

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