DOE Awards $20.19M for IT Capital Planning and Cybersecurity to DNI Emerging Technologies

Contract Overview

Contract Amount: $20,180,191 ($20.2M)

Contractor: DNI Emerging Technologies, LLC

Awarding Agency: Department of Energy

Start Date: 2023-12-14

End Date: 2026-12-13

Contract Duration: 1,095 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACT LINE ITEM 0001 ENTERPRISE SYSTEM MANAGEMENT, SERVICE CENTER, INFORMATION TECHNOLOGY (IT) CAPITAL PLANNING CONTRACT LINE ITEM 0002 CYBER SECURITY SUPPORT SERVICES CONTRACT LINE ITEM 0003 OTHER DIRECT COSTS (ODCS)

Place of Performance

Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802

State: South Carolina Government Spending

Plain-Language Summary

Department of Energy obligated $20.2 million to DNI EMERGING TECHNOLOGIES, LLC for work described as: CONTRACT LINE ITEM 0001 ENTERPRISE SYSTEM MANAGEMENT, SERVICE CENTER, INFORMATION TECHNOLOGY (IT) CAPITAL PLANNING CONTRACT LINE ITEM 0002 CYBER SECURITY SUPPORT SERVICES CONTRACT LINE ITEM 0003 OTHER DIRECT COSTS (ODCS) Key points: 1. The contract focuses on critical IT infrastructure and cybersecurity, essential for government operations. 2. Competition is limited, raising questions about potential price overruns and value for money. 3. The IT capital planning and cybersecurity sector is experiencing significant growth and demand. 4. Small business participation is not indicated, suggesting a missed opportunity for economic inclusion.

Value Assessment

Rating: questionable

The contract's pricing is not benchmarked against similar services due to limited competition. Without competitive bids, it's difficult to assess if the $20.19 million is a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, specifically a delivery order. This method restricts the pool of potential bidders, potentially impacting price discovery and leading to higher costs for taxpayers.

Taxpayer Impact: Limited competition may result in taxpayers paying more than necessary for these essential IT and cybersecurity services.

Public Impact

Ensures continued operation and security of Department of Energy's IT systems. Supports critical infrastructure protection against cyber threats. Potential for increased costs due to limited competition impacts taxpayer funds. Lack of small business involvement limits economic opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Lack of small business participation
  • Potential for overpricing

Positive Signals

  • Essential IT and cybersecurity services
  • Long-term contract duration

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government agencies, driven by increasing reliance on digital infrastructure and evolving cyber threats.

Small Business Impact

The contract data indicates that small business participation is not a factor ('sb': false). This suggests that the award did not prioritize or include opportunities for small businesses, potentially missing out on innovation and economic benefits.

Oversight & Accountability

As a delivery order under a larger contract, oversight may be embedded within the parent contract's framework. However, the limited competition aspect warrants closer scrutiny to ensure fair pricing and effective service delivery.

Related Government Programs

  • Computer Facilities Management Services
  • Department of Energy Contracting
  • Department of Energy Programs

Risk Flags

  • Limited competition may lead to inflated costs.
  • Lack of small business participation.
  • Potential for reduced innovation and vendor lock-in.
  • Oversight needed to ensure value for money.

Tags

computer-facilities-management-services, department-of-energy, sc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $20.2 million to DNI EMERGING TECHNOLOGIES, LLC. CONTRACT LINE ITEM 0001 ENTERPRISE SYSTEM MANAGEMENT, SERVICE CENTER, INFORMATION TECHNOLOGY (IT) CAPITAL PLANNING CONTRACT LINE ITEM 0002 CYBER SECURITY SUPPORT SERVICES CONTRACT LINE ITEM 0003 OTHER DIRECT COSTS (ODCS)

Who is the contractor on this award?

The obligated recipient is DNI EMERGING TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2023-12-14. End: 2026-12-13.

What was the justification for limiting competition for these critical IT and cybersecurity services?

The justification for limited competition is not provided in the data. Typically, agencies may limit competition due to specific technical requirements, existing infrastructure compatibility, or urgent needs. However, without explicit justification, it raises concerns about whether a more competitive process could have yielded better value.

What is the risk of vendor lock-in or reduced innovation with a limited competition award?

Limited competition significantly increases the risk of vendor lock-in, as the agency may become dependent on a single provider's technology and services. This can stifle innovation, as the vendor may have less incentive to improve offerings. It also reduces the agency's leverage in future negotiations, potentially leading to higher costs over time.

How does the $20.19 million expenditure align with benchmarks for similar IT capital planning and cybersecurity services?

Without competitive bidding data or access to specific service level agreements and deliverables, it is challenging to establish a precise benchmark. However, the lack of competition suggests a potential for the price to be higher than if multiple vendors had competed, making direct alignment with benchmarks difficult without further analysis.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 89303723REM000038

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1650, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, 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: $24,416,147

Exercised Options: $24,416,147

Current Obligation: $20,180,191

Actual Outlays: $17,032,375

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303724DEM000013

IDV Type: IDC

Timeline

Start Date: 2023-12-14

Current End Date: 2026-12-13

Potential End Date: 2026-12-13 00:00:00

Last Modified: 2026-04-01

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