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
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
- Sole-source award
- Limited competition
- Lack of pricing benchmark
Positive Signals
- Supports small disadvantaged business (8a program)
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
- Administrative Management and General Management Consulting Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award limits competition and potential cost savings.
- Lack of detailed service description makes value assessment difficult.
- Potential for inflated pricing due to non-competitive nature.
- Reliance on 8(a) program for sole-source awards requires strict justification.
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 Services › Management, Scientific, and Technical Consulting Services › Administrative 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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