DOE's FERC Awards $58M for Application Layer Modernization to Procentrix, LLC
Contract Overview
Contract Amount: $57,952,945 ($58.0M)
Contractor: Procentrix, LLC
Awarding Agency: Department of Energy
Start Date: 2021-08-31
End Date: 2026-07-31
Contract Duration: 1,795 days
Daily Burn Rate: $32.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: APPLICATION LAYER MODERNIZATION (ALM)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $58.0 million to PROCENTRIX, LLC for work described as: APPLICATION LAYER MODERNIZATION (ALM) Key points: 1. The contract is for Application Layer Modernization (ALM). 2. Procentrix, LLC is the awardee. 3. The Department of Energy's Federal Energy Regulatory Commission is the agency. 4. The contract has a duration of 1795 days. 5. The total award value is $57.95 million.
Value Assessment
Rating: fair
The award value of $57.95 million over nearly five years suggests a moderate per-year spend. Benchmarking against similar IT modernization contracts would be necessary to fully assess pricing, but the Time and Materials (T&M) contract type can sometimes lead to cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing. The BPA Call award mechanism suggests it was a call against an existing Blanket Purchase Agreement.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT modernization services.
Public Impact
Modernizing application layers is crucial for government efficiency and security. This contract supports the Federal Energy Regulatory Commission's operational capabilities. The duration suggests a long-term commitment to application development and maintenance. The use of Time and Materials pricing requires diligent oversight to control costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Lack of specific PSC code
- No small business participation indicated
Positive Signals
- Full and open competition
- Significant investment in IT modernization
- Long contract duration
Sector Analysis
The IT services sector is characterized by rapid technological advancements and a constant need for modernization. Federal spending in this area is substantial, focusing on enhancing cybersecurity, improving data management, and streamlining operations. This contract aligns with the government's broader push to update legacy systems.
Small Business Impact
The data indicates that neither small business nor socioeconomic status was a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a large business without specific set-aside provisions, potentially limiting opportunities for small businesses in this specific procurement.
Oversight & Accountability
The Time and Materials (T&M) contract type necessitates robust oversight from the Federal Energy Regulatory Commission to monitor labor hours, material costs, and overall project scope to prevent cost creep and ensure value for taxpayer money.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Federal Energy Regulatory Commission Programs
Risk Flags
- Time and Materials contract type poses cost control risks.
- No indication of small business participation.
- Lack of specific Public Service Code (PSC) for detailed analysis.
- Long contract duration requires sustained oversight.
Tags
other-computer-related-services, department-of-energy, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $58.0 million to PROCENTRIX, LLC. APPLICATION LAYER MODERNIZATION (ALM)
Who is the contractor on this award?
The obligated recipient is PROCENTRIX, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $58.0 million.
What is the period of performance?
Start: 2021-08-31. End: 2026-07-31.
What specific applications are being modernized under this contract, and what are the expected performance improvements?
The provided data does not specify the exact applications targeted for modernization. However, Application Layer Modernization (ALM) typically involves updating or replacing the software layer that provides services to user applications. Expected improvements often include enhanced performance, better scalability, improved security, and easier integration with other systems, ultimately leading to more efficient government operations.
How will the Federal Energy Regulatory Commission manage the Time and Materials aspect of this contract to ensure cost control and prevent scope creep?
Effective management of T&M contracts requires stringent oversight. The FERC will likely implement detailed monitoring of labor hours, require detailed invoicing, establish clear milestones and deliverables, and conduct regular performance reviews. Defining and enforcing a ceiling price or using CLINs (Contract Line Item Numbers) with specific not-to-exceed amounts can also help control costs and prevent unauthorized expansion of the project's scope.
Given the full and open competition, what was the competitive landscape like, and how did Procentrix, LLC's proposal stand out?
While the data confirms full and open competition, it does not detail the number of bidders or the specifics of Procentrix, LLC's winning proposal. Typically, in such scenarios, the winning offeror demonstrates a strong understanding of the agency's needs, presents a technically sound approach, offers competitive pricing, and possesses relevant past performance. The agency likely evaluated proposals based on a combination of these factors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2551 DULLES VIEW DR STE 600, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,571,491
Exercised Options: $61,571,491
Current Obligation: $57,952,945
Actual Outlays: $49,191,647
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89603021A0003
IDV Type: BPA
Timeline
Start Date: 2021-08-31
Current End Date: 2026-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2026-02-26
More Contracts from Procentrix, LLC
- SEC Enterprise-Wide Enterprise Sharepoint Support Services — $91.3M (Securities and Exchange Commission)
- THE Purpose of This Labor Hour BPA Order IS to Obtain Platform Management Support Services (pmss) for the Office of the Comptroller of the Currency — $59.1M (Department of the Treasury)
- Automated Management Systems Support (amss) Services — $42.9M (Department of Homeland Security)
- THE Purpose of This Contract (task Order) IS to Provide Management and Collaboration Support (MCS) Services for the Office of the Comptroller of the Currency (OCC) — $31.6M (Department of the Treasury)
- Collaborative Services for the Enterprise Platform Services Branch (epsb) Projects to Include Opla Case Management System (ocms), Student and Exchange Visitor Program Automated Management System (sevpams), ICE Correspondence and Task Tracking System — $27.5M (Department of Homeland Security)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)