DOE's $43.8M IT Services Contract with Rolling Bay LLC Lacked Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $43,793,219 ($43.8M)
Contractor: Rolling BAY Limited Liability Company
Awarding Agency: Department of Energy
Start Date: 2007-08-27
End Date: 2015-02-28
Contract Duration: 2,742 days
Daily Burn Rate: $16.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: MISSION SPECIFIC INFORMATION TECHNOLOGY (IT) SERVICES
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $43.8 million to ROLLING BAY LIMITED LIABILITY COMPANY for work described as: MISSION SPECIFIC INFORMATION TECHNOLOGY (IT) SERVICES Key points: 1. Significant spending on IT services over 7 years. 2. Sole-source award limits competitive pricing. 3. Potential for inflated costs due to lack of competition. 4. IT sector spending benchmarks suggest this is a substantial contract.
Value Assessment
Rating: questionable
The contract type (Cost Plus Award Fee) can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the $43.8M price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in higher prices than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract without re-competition raises questions about ongoing necessity and value. Lack of transparency in the sole-source award process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Contract awarded to a specific entity for mission-critical IT services.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. IT spending is a significant portion of federal budgets, and competitive procurement is crucial for cost efficiency.
Small Business Impact
The contract was not awarded to a small business, indicating a missed opportunity to support small business participation in federal contracting.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the Department of Energy is receiving fair value and that the services remain essential.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Risk of contractor inefficiency under a cost-plus award fee structure.
- Limited transparency in the procurement process.
- Missed opportunity for small business engagement.
Tags
other-computer-related-services, department-of-energy, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $43.8 million to ROLLING BAY LIMITED LIABILITY COMPANY. MISSION SPECIFIC INFORMATION TECHNOLOGY (IT) SERVICES
Who is the contractor on this award?
The obligated recipient is ROLLING BAY LIMITED LIABILITY COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $43.8 million.
What is the period of performance?
Start: 2007-08-27. End: 2015-02-28.
What was the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further documentation, it's unclear if Rolling Bay LLC possessed such unique qualifications or if alternative vendors were considered. Exploring alternatives is crucial to ensure fair pricing and access to innovation.
How was the 'award fee' component structured and monitored to ensure performance and cost control?
Cost Plus Award Fee contracts require robust performance metrics and oversight to manage costs effectively. The structure of the award fee and the agency's monitoring process are critical to prevent cost overruns and ensure the contractor is incentivized for efficiency and value, not just completion.
What is the estimated cost difference compared to a competitively procured contract for similar IT services?
Estimating the precise cost difference is challenging without a competitive benchmark. However, studies consistently show that sole-source contracts, especially those with cost-plus structures, can be significantly more expensive than competitively awarded fixed-price contracts, potentially by 10-30% or more.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2702 DENALI ST STE 100, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $47,251,441
Exercised Options: $47,251,441
Current Obligation: $43,793,219
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-08-27
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2025-05-19
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