Department of Energy awards $1.85M for Cisco IT services, highlighting a 2-year renewal for network support
Contract Overview
Contract Amount: $1,849,586 ($1.8M)
Contractor: August Schell Enterprises, Inc.
Awarding Agency: Department of Energy
Start Date: 2025-07-24
End Date: 2027-07-26
Contract Duration: 732 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO SMARTNET AND CISCO MULTI-SUITE RENEWAL
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $1.8 million to AUGUST SCHELL ENTERPRISES, INC. for work described as: CISCO SMARTNET AND CISCO MULTI-SUITE RENEWAL Key points: 1. The contract value of $1.85 million over two years suggests a moderate annual expenditure for IT network maintenance. 2. Full and open competition was utilized, indicating a broad market solicitation for these Cisco services. 3. The contract's fixed-price nature provides cost certainty for the Department of Energy. 4. This renewal signifies ongoing reliance on Cisco technology and the services supporting it. 5. The duration of 732 days aligns with typical IT support contract lengths. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.
Value Assessment
Rating: good
The annual value of approximately $925,000 for Cisco SmartNet and multi-suite renewal appears reasonable given the scope of supporting a federal agency's network infrastructure. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges, especially considering the criticality of network uptime and the specialized nature of Cisco support. The firm fixed-price contract type helps manage cost fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating that the Department of Energy actively sought bids from all qualified vendors. While the specific number of bidders (8) is provided, further analysis would be needed to determine if this represents robust competition or if certain specialized vendors were excluded. The presence of multiple bidders generally supports competitive pricing.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
Federal employees within the Department of Energy will benefit from reliable and supported IT network infrastructure. The services delivered ensure the continued operation and maintenance of Cisco network devices and software suites. The geographic impact is primarily within the Department of Energy's operational locations, likely nationwide. The contract supports the IT workforce responsible for managing and maintaining the agency's network.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if alternative solutions are not explored in future procurements.
- Reliance on a single vendor's ecosystem (Cisco) may limit flexibility and innovation.
- The renewal nature of the contract could indicate a lack of proactive technology refresh or strategic sourcing.
Positive Signals
- The use of full and open competition suggests an effort to maximize vendor participation and potentially achieve better value.
- The firm fixed-price contract provides budget predictability for the agency.
- The renewal indicates a stable and ongoing need for these critical IT support services.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on network maintenance and support for Cisco hardware and software. The IT services market is highly competitive, with numerous providers offering specialized support. Federal spending in this area is substantial, driven by the need to maintain complex and critical infrastructure across various agencies. Comparable spending benchmarks would involve analyzing other federal contracts for similar Cisco support or managed network services, which often represent significant annual investments.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. August Schell Enterprises, Inc. is likely a large business. Future procurements could explore opportunities for small business participation, either through direct set-asides or by encouraging prime contractors to engage small business subcontractors for specific components of the service.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services by the performance end date. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- Federal Network Infrastructure Support
- Cisco IT Services Contracts
- IT Maintenance and Operations
- Department of Energy IT Spending
- Computer Network Support Services
Risk Flags
- Potential vendor lock-in with Cisco technology.
- Reliance on a single contractor for critical network support.
- Need for ongoing market research to ensure competitive pricing in future renewals.
Tags
it-services, network-support, cisco, department-of-energy, firm-fixed-price, full-and-open-competition, it-maintenance, federal-contract, august-schell-enterprises, colorado, renewal
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.8 million to AUGUST SCHELL ENTERPRISES, INC.. CISCO SMARTNET AND CISCO MULTI-SUITE RENEWAL
Who is the contractor on this award?
The obligated recipient is AUGUST SCHELL ENTERPRISES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $1.8 million.
What is the period of performance?
Start: 2025-07-24. End: 2027-07-26.
What is the track record of August Schell Enterprises, Inc. in performing similar federal IT support contracts?
August Schell Enterprises, Inc. has a history of performing federal IT support contracts. A review of federal procurement data would reveal the specific types of services they have provided, the agencies they have served, and their performance ratings on past contracts. Understanding their experience with Cisco products and large-scale network support is crucial. Positive past performance indicators, such as high ratings and successful completion of similar-sized contracts, would suggest a lower risk for this current award. Conversely, any history of performance issues or contract disputes would warrant closer scrutiny.
How does the per-unit cost or annual cost of this contract compare to similar Cisco support contracts awarded by other federal agencies?
Benchmarking this contract's annual cost of approximately $925,000 against similar Cisco SmartNet and multi-suite renewal contracts awarded by other federal agencies is essential for value assessment. Factors such as the number of devices supported, the specific Cisco product suites covered, the level of support (e.g., 24/7 vs. business hours), and the contract duration influence pricing. If this contract's cost per device or per suite is significantly higher than comparable contracts, it could indicate potential overpricing or a less competitive award. Conversely, if it aligns with or is lower than benchmarks, it suggests good value for money.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?
The key performance indicators (KPIs) and service level agreements (SLAs) for this contract would define the expected performance standards for Cisco network support. These typically include metrics such as response times for technical issues, resolution times, network uptime guarantees, and availability of support personnel. Monitoring these KPIs is crucial for ensuring the contractor, August Schell Enterprises, Inc., meets its obligations. The Department of Energy's contracting officer's representative (COR) or a designated technical point of contact would be responsible for tracking performance against these SLAs and initiating corrective actions if necessary.
What is the historical spending trend for Cisco network support services within the Department of Energy over the past five years?
Analyzing the historical spending trend for Cisco network support services within the Department of Energy over the past five years provides context for the current $1.85 million award. This trend would reveal whether spending has been consistent, increasing, or decreasing. A consistent or slightly increasing trend might indicate stable needs and effective contract management. A significant increase could signal growing network complexity, increased hardware deployment, or potentially less competitive pricing in prior years. Conversely, a decrease might suggest consolidation, technology shifts, or successful cost-saving initiatives.
Are there any identified risks associated with relying on August Schell Enterprises, Inc. for critical Cisco network support, such as financial stability or cybersecurity posture?
Assessing risks associated with August Schell Enterprises, Inc. is vital. This includes evaluating their financial stability to ensure they can sustain operations throughout the contract period. Their cybersecurity posture is also critical, as they will have access to sensitive network information. Federal agencies typically conduct due diligence, which may include reviewing past performance, financial health assessments, and cybersecurity certifications. Any identified weaknesses in these areas could pose a risk to the Department of Energy's network integrity and operational continuity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1700 ROCKVILLE PIKE STE 405, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,577,458
Exercised Options: $1,849,586
Current Obligation: $1,849,586
Actual Outlays: $1,606,962
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD80B
IDV Type: GWAC
Timeline
Start Date: 2025-07-24
Current End Date: 2027-07-26
Potential End Date: 2030-07-26 00:00:00
Last Modified: 2026-04-10
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