DOE's $14.9M IT Support Contract for Oak Ridge Office Awarded to Rede, Inc
Contract Overview
Contract Amount: $14,933,754 ($14.9M)
Contractor: Rede, Inc.
Awarding Agency: Department of Energy
Start Date: 2007-04-01
End Date: 2013-06-12
Contract Duration: 2,264 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 18
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE OAK RIDGE OFFICE
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $14.9 million to REDE, INC. for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE OAK RIDGE OFFICE Key points: 1. Contract awarded to Rede, Inc. for IT support services. 2. The contract value is $14.9 million over its duration. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The sector is Information Technology. 5. The contract duration was 2264 days.
Value Assessment
Rating: fair
The contract was awarded using a Time and Materials pricing structure. Without specific benchmarks for similar IT support services in the Oak Ridge area, it's difficult to definitively assess if the pricing was optimal. The total award value of $14.9M over nearly 6 years suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized 'Full and Open Competition After Exclusion of Sources', indicating a competitive process was intended. However, the specific exclusion of sources might limit the breadth of competition. The Time and Materials pricing could lead to cost overruns if not closely managed.
Taxpayer Impact: The competitive nature of the award aims to secure reasonable pricing for taxpayers. However, the T&M structure necessitates vigilant oversight to prevent excessive spending.
Public Impact
Ensures continued IT operations at the Oak Ridge Office. Supports critical government functions through technology. Potential for cost efficiencies through competitive bidding. Impact on local IT service providers not directly involved.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Potential for limited competition due to source exclusion.
- Long contract duration (nearly 6 years) may reduce flexibility.
Positive Signals
- Full and open competition was utilized.
- Contract supports essential IT infrastructure.
- Awarded by a major federal agency (DOE).
Sector Analysis
This contract falls within the Information Technology sector, specifically IT support services. Federal spending on IT services is substantial, with benchmarks varying widely based on service type, location, and contract structure. This $14.9M contract over 6 years represents a significant investment in maintaining operational capabilities.
Small Business Impact
The data does not indicate if small businesses were involved in bidding or subcontracting. Federal IT contracts can offer opportunities for small businesses, but the specific details of this award are not provided.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Given the Time and Materials structure and the long duration, robust oversight is crucial to ensure cost control and performance standards are met.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition due to source exclusion.
- Long contract duration may not reflect current market needs.
- Lack of transparency on small business participation.
- Insufficient data on performance metrics and oversight effectiveness.
Tags
other-computer-related-services, department-of-energy, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14.9 million to REDE, INC.. INFORMATION TECHNOLOGY SUPPORT SERVICES FOR THE OAK RIDGE OFFICE
Who is the contractor on this award?
The obligated recipient is REDE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14.9 million.
What is the period of performance?
Start: 2007-04-01. End: 2013-06-12.
What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and did this exclusion impact the final price?
The rationale for excluding specific sources would typically relate to unique capabilities, prior performance, or specific technical requirements that only a limited number of vendors could meet. Understanding this rationale is key to assessing if the exclusion was justified or if it unnecessarily limited competition, potentially leading to a higher price than a truly open bid might have achieved.
How does the per-unit cost or hourly rate for these IT support services compare to industry benchmarks for similar services in the Oak Ridge, TN area?
Without specific hourly rates or detailed service breakdowns, a direct comparison is challenging. However, the total contract value of $14.9M over approximately 6 years suggests an average annual spend of around $2.5M. Benchmarking this against similar government or private sector IT support contracts in the region would reveal if the pricing was competitive or potentially inflated.
What performance metrics were established for Rede, Inc., and how effectively were these metrics monitored and enforced by the Department of Energy to ensure value for taxpayer money?
The provided data does not detail performance metrics or their enforcement. Effective oversight would involve tracking service level agreements (SLAs), response times, issue resolution rates, and user satisfaction. Regular performance reviews and adherence to these metrics are critical for ensuring the contractor delivers the expected value and justifies the expenditure.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 18
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 3525 CAUSEWAY BLVD 609, METAIRIE, LA, 70002
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $19,706,481
Exercised Options: $16,659,712
Current Obligation: $14,933,754
Actual Outlays: $4,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2007-04-01
Current End Date: 2013-06-12
Potential End Date: 2013-06-12 00:00:00
Last Modified: 2024-07-29
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