Department of Energy awards $4.4M technical support contract to CCS Ivory Cloud JV LLC for 3-year New Mexico operations
Contract Overview
Contract Amount: $4,413,024 ($4.4M)
Contractor: CCS Ivory Cloud JV LLC
Awarding Agency: Department of Energy
Start Date: 2024-07-01
End Date: 2027-06-30
Contract Duration: 1,094 days
Daily Burn Rate: $4.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TECHNICAL SUPPORT SERVICES TO INCLUDE, BUT NOT LIMITED TO OPERATIONS SERVICES (INCLUDING HELP DESK SUPPORT), ADMINISTRATIVE SERVICES, TRAINING SERVICES, SYSTEM MAINTENANCE,AND THE MAINTENANCE OF COMMUNICATIONS SERVICE PROVIDER AGREEMENTS
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88220
Plain-Language Summary
Department of Energy obligated $4.4 million to CCS IVORY CLOUD JV LLC for work described as: TECHNICAL SUPPORT SERVICES TO INCLUDE, BUT NOT LIMITED TO OPERATIONS SERVICES (INCLUDING HELP DESK SUPPORT), ADMINISTRATIVE SERVICES, TRAINING SERVICES, SYSTEM MAINTENANCE,AND THE MAINTENANCE OF COMMUNICATIONS SERVICE PROVIDER AGREEMENTS Key points: 1. Contract provides comprehensive technical support, including help desk, training, and system maintenance. 2. Awarded as a 'Not Available for Competition' contract, raising questions about market research and justification. 3. The firm-fixed-price contract type suggests predictable costs, but the lack of competition may inflate pricing. 4. Performance period spans three years, indicating a need for sustained technical support in New Mexico. 5. The contract's value is modest within the broader IT services sector. 6. Focus on telecommunications maintenance suggests a critical infrastructure support role.
Value Assessment
Rating: fair
The contract value of $4.4 million over three years for technical support services appears reasonable on an annual basis. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition could mean the contractor is not incentivized to offer the most cost-effective solution. Further analysis of the specific services and deliverables would be needed for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a 'Not Available for Competition' (NAF) justification, indicating that the Department of Energy did not conduct a full and open competition. This typically occurs when a specific contractor is deemed the only source capable of meeting the requirement, often due to proprietary technology, unique expertise, or urgent needs. The lack of multiple bidders means that price discovery through market forces was limited, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.
Public Impact
The Department of Energy's New Mexico operations will benefit from uninterrupted technical support. Services include essential help desk functions, ensuring smooth IT operations for agency personnel. System maintenance and communication agreements upkeep will support critical infrastructure. The contract supports the operational workforce within the Department of Energy in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher prices than a competitively awarded contract.
- The 'Not Available for Competition' justification requires thorough review to ensure necessity.
- Limited transparency into the pricing structure due to sole-source award.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Contract duration of three years ensures continuity of essential technical support.
- Focus on critical infrastructure maintenance.
Sector Analysis
This contract falls within the broader Information Technology and Telecommunications services sector. The market for technical support services is highly competitive, with numerous providers offering a wide range of solutions. However, specific niches, such as specialized system maintenance or support for unique government infrastructure, can sometimes lead to sole-source or limited competition awards. The value of this contract is relatively small compared to large-scale IT service contracts, but it addresses a specific operational need for the Department of Energy.
Small Business Impact
The data indicates that small business participation is not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, CCS Ivory Cloud JV LLC, is likely a large business or a joint venture not specifically structured for small business utilization in this instance. The impact on the small business ecosystem is likely minimal for this particular award.
Oversight & Accountability
Oversight for this contract will be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, but contract details and performance reports are typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Telecommunications Maintenance
- Help Desk Services
- System Administration
- Government IT Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for reduced innovation due to lack of competition.
- Justification for 'Not Available for Competition' needs scrutiny.
Tags
department-of-energy, technical-support, it-services, telecommunications, new-mexico, sole-source, firm-fixed-price, ccs-ivory-cloud-jv-llc, moderate-value, operations-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.4 million to CCS IVORY CLOUD JV LLC. TECHNICAL SUPPORT SERVICES TO INCLUDE, BUT NOT LIMITED TO OPERATIONS SERVICES (INCLUDING HELP DESK SUPPORT), ADMINISTRATIVE SERVICES, TRAINING SERVICES, SYSTEM MAINTENANCE,AND THE MAINTENANCE OF COMMUNICATIONS SERVICE PROVIDER AGREEMENTS
Who is the contractor on this award?
The obligated recipient is CCS IVORY CLOUD JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2024-07-01. End: 2027-06-30.
What specific technical expertise does CCS Ivory Cloud JV LLC possess that justifies a sole-source award for the Department of Energy?
The provided data does not specify the exact technical expertise of CCS Ivory Cloud JV LLC that led to the 'Not Available for Competition' justification. Typically, sole-source awards are made when a particular contractor possesses unique capabilities, proprietary technology, or specialized knowledge that cannot be replicated by other firms. For this contract, it could relate to specific legacy systems within the Department of Energy's New Mexico facilities, unique security requirements, or a pre-existing relationship where the contractor has intimate knowledge of the operational environment. A thorough review of the agency's justification document (e.g., a Justification and Approval or J&A) would be necessary to understand the specific rationale and confirm that no other sources could meet the requirement.
How does the $4.4 million contract value compare to similar technical support contracts awarded by the Department of Energy or other federal agencies?
The $4.4 million contract value over three years, averaging approximately $1.47 million annually, is a moderate sum for technical support services within the federal government. Larger agencies like the Department of Defense or GSA often award multi-year, multi-million dollar contracts for comprehensive IT support. However, for a specific regional or facility-based need within the Department of Energy, this value could be appropriate. Without knowing the precise scope of services, number of users supported, and specific technologies involved, a direct comparison is challenging. Generally, contracts of this size are not considered exceptionally large but represent a significant investment in maintaining operational continuity.
What are the primary risks associated with awarding a technical support contract on a sole-source basis?
The primary risks associated with sole-source awards include potential overpayment due to lack of price competition, reduced innovation from the contractor as there's no competitive pressure to improve services, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their money. Furthermore, it can create a perception of favoritism or an unfair playing field for other capable businesses. Agencies must rigorously justify sole-source awards to mitigate these risks and ensure that such awards are truly necessary and in the government's best interest, often requiring extensive market research to prove no other viable sources exist.
What is the expected impact of this contract on the Department of Energy's operational effectiveness in New Mexico?
This contract is expected to ensure the continued and effective operation of the Department of Energy's technical infrastructure and user support in New Mexico. By providing services such as help desk support, system maintenance, and training, the contract aims to minimize downtime, resolve IT issues promptly, and maintain the reliability of communication systems. This directly supports the agency's mission by ensuring that its personnel have the necessary technological resources and support to perform their duties without interruption. The three-year duration provides stability for these critical functions.
Are there any historical spending patterns with CCS Ivory Cloud JV LLC or for similar technical support services at this Department of Energy location?
The provided data does not include historical spending patterns for CCS Ivory Cloud JV LLC or for similar technical support services at this specific Department of Energy location. To assess historical spending, one would need to access federal procurement databases (like FPDS or USASpending) and search for previous contracts awarded to CCS Ivory Cloud JV LLC, particularly by the Department of Energy, or search for contracts with similar service descriptions (NAICS code 517810 or related) awarded to other vendors for the New Mexico region. Analyzing past spending can reveal trends in contract values, duration, and competition levels, providing context for the current award.
Industry Classification
NAICS: Information › All Other Telecommunications › All Other Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3215 W STATE ST, MILWAUKEE, WI, 53208
Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,445,847
Exercised Options: $4,445,847
Current Obligation: $4,413,024
Actual Outlays: $3,314,842
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 89303324DEM000095
IDV Type: IDC
Timeline
Start Date: 2024-07-01
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2026-01-29
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