DOE awards $2.7M 8(a) sole-source contract to BLOCS LLC for cloud-based e-discovery
Contract Overview
Contract Amount: $2,704,297 ($2.7M)
Contractor: Blocs LLC
Awarding Agency: Department of Energy
Start Date: 2024-06-26
End Date: 2026-06-11
Contract Duration: 715 days
Daily Burn Rate: $3.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS 8(A) CONTRACT IS TO IMPLEMENT AN E-DISCOVERY SOLUTION IN ORDER TO CONDUCT CLOUD-BASED E-DISCOVERY INVESTIGATIONS FOR THE OFFICE OF INSPECTOR GENERAL (OIG).
Place of Performance
Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $2.7 million to BLOCS LLC for work described as: THE PURPOSE OF THIS 8(A) CONTRACT IS TO IMPLEMENT AN E-DISCOVERY SOLUTION IN ORDER TO CONDUCT CLOUD-BASED E-DISCOVERY INVESTIGATIONS FOR THE OFFICE OF INSPECTOR GENERAL (OIG). Key points: 1. Contract aims to enhance OIG's cloud-based e-discovery capabilities for investigations. 2. Sole-source award to BLOCS LLC under the 8(a) program. 3. Fixed-price contract structure provides cost certainty. 4. Performance period spans over 700 days. 5. Focus on computing infrastructure and data processing services. 6. Contract awarded by the Department of Energy's Office of Inspector General.
Value Assessment
Rating: fair
The contract value of $2.7 million for a definitive contract with a duration of approximately two years appears to be within a reasonable range for specialized e-discovery solutions. However, without specific benchmarks for cloud-based e-discovery implementation for investigative purposes within government agencies, a precise value-for-money assessment is challenging. The fixed-price nature of the contract helps manage cost risks for the government. Further analysis would require comparing this award to similar 8(a) sole-source contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source approach under the 8(a) Business Development program. This program allows agencies to directly contract with small, disadvantaged businesses. While this approach supports small business development goals, it bypasses the competitive bidding process, potentially limiting price discovery and the opportunity for other qualified vendors to offer their services. The rationale for sole-sourcing would typically involve specific capabilities or certifications held by the awarded contractor that are unique or essential for the requirement.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The government relies on the 8(a) program's structure to ensure fair pricing, but direct competition is absent.
Public Impact
The Office of Inspector General (OIG) will benefit from enhanced capabilities for conducting cloud-based e-discovery investigations. Services delivered include implementation of an e-discovery solution for cloud-based investigations. Geographic impact is primarily within the Department of Energy's operational sphere. Workforce implications may involve training or integration of the new solution within the OIG.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs than a fully competed contract.
- Reliance on a single vendor for a critical investigative tool could pose a risk if performance issues arise.
- The specific capabilities of BLOCS LLC for cloud-based e-discovery need to be thoroughly vetted to ensure suitability and effectiveness.
Positive Signals
- Supports the 8(a) program, fostering small business growth and participation in federal contracting.
- Fixed-price contract provides budget certainty for the agency.
- Addresses a specific need for modernizing investigative tools within the OIG.
Sector Analysis
This contract falls within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector (NAICS 518210). This sector is critical for government operations, providing the backbone for data management, cloud services, and digital infrastructure. The market is characterized by a mix of large cloud providers and specialized service firms. Government spending in this area is substantial and growing, driven by the need for secure, scalable, and efficient data handling, particularly for sensitive investigations.
Small Business Impact
This contract is specifically awarded under the 8(a) Business Development program, which is designed to help small disadvantaged businesses compete for and win federal contracts. As an 8(a) sole-source award, it directly supports BLOCS LLC. There is no explicit mention of subcontracting requirements or broader small business set-aside implications beyond the primary awardee's status.
Oversight & Accountability
Oversight will be provided by the Department of Energy, likely through contract officers and program managers within the Office of Inspector General. The Inspector General's office itself is responsible for oversight and auditing, suggesting a high level of internal scrutiny. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing cost reviews would be internal oversight mechanisms.
Related Government Programs
- Department of Energy Office of Inspector General Investigations
- Federal E-Discovery Solutions
- Cloud Computing Services for Government
- 8(a) Small Business Contracting Program
Risk Flags
- Sole-source award bypasses competition.
- Potential for higher costs due to lack of competition.
- Dependence on a single vendor for critical functionality.
Tags
department-of-energy, office-of-inspector-general, e-discovery, cloud-computing, it-services, 8a-contract, sole-source, definitive-contract, firm-fixed-price, small-business, investigative-technology, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.7 million to BLOCS LLC. THE PURPOSE OF THIS 8(A) CONTRACT IS TO IMPLEMENT AN E-DISCOVERY SOLUTION IN ORDER TO CONDUCT CLOUD-BASED E-DISCOVERY INVESTIGATIONS FOR THE OFFICE OF INSPECTOR GENERAL (OIG).
Who is the contractor on this award?
The obligated recipient is BLOCS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2024-06-26. End: 2026-06-11.
What is the track record of BLOCS LLC in providing e-discovery solutions, particularly cloud-based ones, to federal agencies?
Information regarding the specific track record of BLOCS LLC in providing cloud-based e-discovery solutions to federal agencies is not detailed in the provided data. As a sole-source 8(a) award, the agency has likely conducted due diligence on the contractor's capabilities. However, a comprehensive assessment would require reviewing past performance reports, client testimonials, and any prior government contracts awarded to BLOCS LLC for similar services. Understanding their experience with cloud environments and the specific requirements of investigative e-discovery is crucial for evaluating the success of this contract.
How does the $2.7 million contract value compare to similar cloud-based e-discovery implementations for government investigative bodies?
Benchmarking the $2.7 million contract value requires comparing it against similar procurements for cloud-based e-discovery solutions tailored for investigative purposes within government entities. Without access to a database of comparable contracts, especially those awarded under the 8(a) sole-source authority, a precise comparison is difficult. Factors influencing cost include the scope of services (e.g., data volume, user licenses, analytics capabilities), the specific cloud platform used, and the duration of the contract. The fixed-price nature suggests the agency has a defined scope and budget expectation.
What are the primary risks associated with a sole-source 8(a) award for critical IT infrastructure like e-discovery?
The primary risks associated with a sole-source 8(a) award for critical IT infrastructure include a potential lack of competitive pricing, which could result in the government paying more than necessary. There's also a risk of vendor lock-in and reduced innovation if the chosen contractor does not maintain high performance standards or keep pace with technological advancements. Furthermore, if the contractor fails to deliver as expected, the agency has limited recourse compared to a competitive environment where alternatives exist. The government relies heavily on the 8(a) program's structure and the agency's due diligence to mitigate these risks.
How effective is the chosen e-discovery solution expected to be in enhancing the OIG's investigative capabilities?
The effectiveness of the chosen e-discovery solution hinges on its technical capabilities, user-friendliness, and integration with the OIG's existing workflows. The contract's purpose is to implement a cloud-based solution for investigations, implying a need for scalability, advanced search, and analytical features. The success will be measured by the OIG's ability to conduct investigations more efficiently and thoroughly. The fixed-price contract suggests a defined scope, but the ultimate effectiveness will depend on the solution's performance in real-world investigative scenarios and the training provided to OIG personnel.
What has been the historical spending by the Department of Energy on e-discovery and related IT services?
Historical spending data for the Department of Energy (DOE) on e-discovery and related IT services is not provided in the current data. To assess this contract's context, one would need to analyze past DOE procurements for similar services, including contracts awarded through competitive processes and sole-source mechanisms. Understanding the trend in spending, the types of solutions procured, and the average costs would provide valuable insight into whether this $2.7 million award is consistent with historical patterns or represents a significant shift in investment for the OIG's investigative technology.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7206 BARRBERRY LN, BELTSVILLE, MD, 20705
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $4,398,317
Exercised Options: $2,704,297
Current Obligation: $2,704,297
Actual Outlays: $1,105,950
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-26
Current End Date: 2026-06-11
Potential End Date: 2027-06-11 00:00:00
Last Modified: 2026-02-23
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