DOE awards $258K for Nokia maintenance, highlighting IT support needs in New Jersey

Contract Overview

Contract Amount: $258,587 ($258.6K)

Contractor: 3chief LLC

Awarding Agency: Department of Energy

Start Date: 2023-03-30

End Date: 2023-05-25

Contract Duration: 56 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NOKIA MAINTENANCE SUPPORT

Place of Performance

Location: NEW PROVIDENCE, UNION County, NEW JERSEY, 07974

State: New Jersey Government Spending

Plain-Language Summary

Department of Energy obligated $258,587.31 to 3CHIEF LLC for work described as: NOKIA MAINTENANCE SUPPORT Key points: 1. Contract value appears modest, suggesting a focused scope for IT maintenance. 2. Competition was open, indicating potential for fair pricing and vendor selection. 3. Short performance period may limit long-term risk but requires timely execution. 4. The service category points to essential IT infrastructure support. 5. Geographic focus on New Jersey aligns with specific operational needs. 6. Fixed-price contract structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $258,587 for Nokia maintenance support is relatively small, making direct comparison to larger IT service contracts difficult. However, given the short duration of 56 days, the per-day cost is substantial, suggesting potentially high-value or specialized support. The firm fixed-price nature of the contract implies that the contractor is responsible for managing costs to deliver the agreed-upon services within the set price, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The presence of two bidders suggests a moderate level of competition. A more robust competition with a higher number of bidders could potentially drive prices lower and offer a wider range of technical solutions.

Taxpayer Impact: The open competition, even with a limited number of bidders, provides a baseline for fair market pricing and ensures that taxpayer funds are likely being used efficiently. It prevents sole-source situations where prices could be inflated.

Public Impact

The Department of Energy benefits from uninterrupted IT services crucial for its operations. Nokia maintenance support ensures the reliability of specific IT systems. The primary geographic impact is within New Jersey, supporting local DOE facilities. The contract likely supports IT professionals, potentially including those in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on maintenance and support for telecommunications equipment (Nokia). The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Benchmarking this specific contract is challenging due to its niche focus and short duration, but it represents a small fraction of overall federal IT spending.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of Nokia maintenance, it is possible that specialized technical expertise is required, which may or may not be readily available within the small business sector for this particular task.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price structure provides a degree of accountability by tying payment to performance. Transparency is facilitated by the public nature of contract awards. The Department of Energy's Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this award.

Related Government Programs

Risk Flags

Tags

it-services, maintenance-support, nokia, department-of-energy, firm-fixed-price, full-and-open-competition, delivery-order, new-jersey, computer-related-services, telecommunications

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $258,587.31 to 3CHIEF LLC. NOKIA MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is 3CHIEF LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $258,587.31.

What is the period of performance?

Start: 2023-03-30. End: 2023-05-25.

What specific Nokia systems or equipment are covered under this maintenance contract?

The provided data does not specify the exact Nokia systems or equipment covered by this maintenance contract. The description 'NOKIA MAINTENANCE SUPPORT' is general. To understand the full scope and criticality, further details on the specific hardware, software, or network components requiring maintenance would be necessary. This information is crucial for assessing potential risks associated with service disruptions and for benchmarking the value of the support provided against industry standards for similar equipment.

How does the pricing of this contract compare to similar Nokia maintenance agreements in the federal or commercial sector?

Direct price comparison is difficult without knowing the specific Nokia equipment and service levels. However, the contract value of $258,587.31 over approximately two months (56 days) suggests a significant daily rate. To benchmark effectively, one would need to identify comparable federal or commercial contracts for the same or similar Nokia products and support tiers. Factors like response times, included parts, and software updates heavily influence pricing. The firm fixed-price nature, however, aims to ensure the government pays a set amount regardless of the contractor's internal costs.

What is the track record of 3CHIEF LLC in providing IT maintenance and support services, particularly for telecommunications equipment?

Information on 3CHIEF LLC's specific track record for Nokia maintenance is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including customer satisfaction ratings, any past performance issues, and their experience with telecommunications equipment maintenance. Understanding their history with the Department of Energy or other agencies would provide further insight into their reliability and capability to fulfill this contract's requirements effectively.

What are the potential risks associated with the short 56-day performance period for this maintenance contract?

The primary risk of a short 56-day performance period is the potential for insufficient time to fully address maintenance needs or for unexpected issues to arise that cannot be resolved within the timeframe. This could lead to service gaps or require a rapid, potentially more expensive, follow-on contract. For the contractor, it necessitates efficient resource allocation and rapid response. From a government perspective, it requires diligent oversight to ensure all critical maintenance is completed and that there are no service interruptions upon contract expiration.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation, what might have been the reasons for excluding certain sources, and how does this impact price discovery?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically means that the solicitation was broadly advertised, but specific sources were initially excluded based on predefined criteria (e.g., security, capability, past performance). After these exclusions, the remaining pool of potential offerors competed. While this aims for broad competition, the initial exclusion might limit the number of bidders, potentially reducing the intensity of price competition compared to a scenario with no exclusions. The impact on price discovery depends on the number and competitiveness of the remaining bidders.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 215 DEPOT CT SE STE 247, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $369,176

Exercised Options: $369,176

Current Obligation: $258,587

Actual Outlays: $258,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD25B

IDV Type: GWAC

Timeline

Start Date: 2023-03-30

Current End Date: 2023-05-25

Potential End Date: 2023-05-25 00:00:00

Last Modified: 2026-04-07

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