DOE's $19M IT Contract for RMR Facilities Management Awarded to WESTECH INTERNATIONAL, INC
Contract Overview
Contract Amount: $19,002,988 ($19.0M)
Contractor: Westech International, Inc.
Awarding Agency: Department of Energy
Start Date: 2001-11-06
End Date: 2007-05-05
Contract Duration: 2,006 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY, ADMINISTRATIVE & TECHNICAL SUPPORT SERVICES FOR RMR.
Place of Performance
Location: LOVELAND, LARIMER County, COLORADO, 80539
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $19.0 million to WESTECH INTERNATIONAL, INC. for work described as: INFORMATION TECHNOLOGY, ADMINISTRATIVE & TECHNICAL SUPPORT SERVICES FOR RMR. Key points: 1. Contract value of $19M for IT and administrative support. 2. Awarded via full and open competition, indicating broad market engagement. 3. Risk is moderate due to the Cost Plus Award Fee (CPAF) structure. 4. Sector is Information Technology, specifically Computer Facilities Management Services.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee (CPAF) structure allows for cost reimbursement plus an award based on performance. This can incentivize good performance but may lead to higher costs than fixed-price contracts if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continuity of essential IT and administrative support services for the Department of Energy's RMR operations. The use of CPAF aims to balance cost control with performance incentives for the contractor. The contract duration spans over five years, providing stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF structure can lead to cost overruns if performance incentives are not tightly managed.
- Contract duration is lengthy, potentially leading to vendor lock-in or outdated technology if not reviewed.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract aims to ensure critical IT and administrative support.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer facilities management. Spending benchmarks for similar IT support services can vary widely based on scope and complexity, but this $19M award over five years suggests a significant operational requirement.
Small Business Impact
The contract was awarded via full and open competition and the data indicates the awardee (WESTECH INTERNATIONAL, INC.) is not a small business. There is no specific indication of small business subcontracting goals or participation in the provided data.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) structure implies performance metrics and oversight are in place to determine award fees. Further review of contract performance reports and audits would be necessary to assess the effectiveness of oversight.
Related Government Programs
- Computer Facilities Management Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Long contract duration may lead to outdated technology or vendor lock-in.
- Lack of specific small business participation data.
- Performance metrics and oversight effectiveness require further investigation.
Tags
computer-facilities-management-services, department-of-energy, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.0 million to WESTECH INTERNATIONAL, INC.. INFORMATION TECHNOLOGY, ADMINISTRATIVE & TECHNICAL SUPPORT SERVICES FOR RMR.
Who is the contractor on this award?
The obligated recipient is WESTECH INTERNATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $19.0 million.
What is the period of performance?
Start: 2001-11-06. End: 2007-05-05.
What specific IT and administrative support functions are included under 'RMR' and how do they align with DOE's mission objectives?
The provided data specifies 'Administrative & Technical Support Services for RMR' under the Information Technology sector (NAICS 541513). RMR likely refers to a specific facility or operational area within the Department of Energy. These services typically encompass IT infrastructure management, help desk support, network administration, and potentially cybersecurity measures crucial for maintaining the operational integrity and security of DOE's RMR-related functions.
How effectively did the Cost Plus Award Fee (CPAF) structure incentivize performance and manage costs for WESTECH INTERNATIONAL, INC.?
The effectiveness of the CPAF structure hinges on clearly defined performance metrics and objective evaluation criteria. While CPAF aims to balance cost control with performance, it carries inherent risks of cost escalation if not rigorously overseen. Assessing its success would require examining performance reviews, award fee determinations, and comparing the final cost against initial estimates and industry benchmarks for similar services.
What was the competitive landscape for this contract, and did full and open competition result in optimal value for the taxpayer?
Awarding the contract through 'full and open competition' suggests that multiple vendors had the opportunity to bid, fostering a competitive environment. This process is generally expected to yield favorable pricing and service terms for the government. Analyzing the number of bids received and the final negotiated price against independent cost estimates would provide a clearer picture of the value achieved for taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: DERP6501WJ02069
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 2500 LA BLVD NE STE 325, ALBUQUERQUE, NM, 01
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $26,197,702
Exercised Options: $26,197,702
Current Obligation: $19,002,988
Timeline
Start Date: 2001-11-06
Current End Date: 2007-05-05
Potential End Date: 2007-05-05 00:00:00
Last Modified: 2013-01-09
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