DOE awarded $14.7M for ADP Facility Management to Data Tree, Inc. over 8 years
Contract Overview
Contract Amount: $14,737,115 ($14.7M)
Contractor: Data Tree, Inc. of Virginia
Awarding Agency: Department of Energy
Start Date: 2000-01-15
End Date: 2008-10-31
Contract Duration: 3,212 days
Daily Burn Rate: $4.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADP FACILITY MANAGEMENT
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $14.7 million to DATA TREE, INC. OF VIRGINIA for work described as: ADP FACILITY MANAGEMENT Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics for this contract are crucial for assessing value for money. 3. Performance history and contractor's track record are key risk indicators. 4. The duration of the contract provides context for long-term IT needs. 5. This contract falls within the broader IT services sector for the federal government.
Value Assessment
Rating: fair
Benchmarking the $14.7 million contract value against similar ADP facility management contracts is challenging without more specific service details. However, the average annual spend of approximately $1.84 million suggests a substantial operational scale. The firm fixed-price structure provides cost certainty, but the ultimate value depends on the efficiency and effectiveness of the services delivered by Data Tree, Inc. Further analysis would require comparing the specific deliverables and performance metrics to industry standards and other government contracts for comparable services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The number of bidders is not specified, but the competitive nature suggests multiple entities vied for this award. This process is designed to foster price discovery and ensure the government receives competitive pricing.
Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified vendors to participate, leading to potentially better service at a lower price.
Public Impact
The Department of Energy benefits from managed IT facilities, ensuring operational continuity. Services likely include maintenance, support, and management of data processing facilities. The contract's impact is primarily within the Department of Energy's operational infrastructure. Workforce implications may include IT specialists and facility management personnel, potentially both government and contractor staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 8 years could lead to vendor lock-in if not managed carefully.
- Scope creep is a potential risk in long-term IT facility management contracts.
- Dependence on a single contractor for critical IT infrastructure poses operational risks.
- Ensuring continued cost-effectiveness over the contract's lifespan requires ongoing performance monitoring.
Positive Signals
- Firm fixed-price contract provides budget certainty for the Department of Energy.
- Competitive award process suggests a potentially favorable price point was achieved.
- Long-term contract allows for stable planning and execution of IT facility management.
- Contractor's performance over the 8-year period will be a key indicator of success.
Sector Analysis
The federal IT services market is vast, with significant spending allocated to data center operations, facility management, and related support services. This contract fits within the 'Other Computer Related Services' NAICS code (541519), which encompasses a range of IT support functions not classified elsewhere. Comparable spending benchmarks would involve analyzing other large-scale IT infrastructure support contracts awarded by various federal agencies, considering factors like contract type, duration, and specific service requirements.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. This suggests the contract was likely awarded based on best value or lowest price technically acceptable criteria to a larger prime contractor. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business IT sector.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- IT Infrastructure Support Services
- Data Center Operations
- Information Technology Services
- ADP Equipment Maintenance
- Cloud Computing Services (if applicable)
- Cybersecurity Services (if applicable)
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Potential for vendor lock-in over the 8-year period.
- Dependence on a single contractor for critical infrastructure.
- Need for continuous performance monitoring to ensure value.
Tags
it-services, facility-management, data-processing, department-of-energy, firm-fixed-price, competitive-award, delivery-order, mid-atlantic, maryland, it-infrastructure, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14.7 million to DATA TREE, INC. OF VIRGINIA. ADP FACILITY MANAGEMENT
Who is the contractor on this award?
The obligated recipient is DATA TREE, INC. OF VIRGINIA.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2000-01-15. End: 2008-10-31.
What specific IT facility management services were included in this $14.7 million contract?
The provided data indicates the contract was for 'ADP FACILITY MANAGEMENT' under NAICS code 541519 (Other Computer Related Services). While the exact scope is not detailed, typical services under such a contract could include the operation, maintenance, and management of data processing facilities, including hardware, software, environmental controls (power, cooling), physical security, and potentially network infrastructure within those facilities. The firm fixed-price nature suggests a defined set of deliverables was agreed upon. Without the full contract statement of work, specific services like server maintenance, data storage management, system monitoring, and help desk support for facility-related issues remain inferred.
How does the $1.84 million average annual cost compare to similar federal ADP facility management contracts?
Directly comparing the $1.84 million average annual cost requires access to a benchmark database of similar federal contracts, including their scope, duration, and specific services. However, for a large agency like the Department of Energy, managing critical data processing facilities, this annual expenditure could be considered moderate to significant, depending on the scale and complexity of the facilities managed. Contracts for smaller agencies or less critical infrastructure might range from hundreds of thousands to a few million annually. Larger, more complex data centers supporting high-performance computing or extensive agency-wide operations could easily exceed this figure. The firm fixed-price nature suggests the government sought predictable costs, but value is determined by performance against those costs.
What is the track record of Data Tree, Inc. in managing federal ADP facilities?
Assessing Data Tree, Inc.'s track record requires examining their past performance on federal contracts, particularly those involving ADP facility management. Information on contract performance ratings, any past disputes, or successful project completions would be crucial. As this contract was awarded competitively, it implies Data Tree, Inc. met the technical and past performance requirements set forth by the Department of Energy. However, a deeper dive into their history, including client references and any documented performance issues on previous government contracts, would provide a more comprehensive understanding of their capabilities and reliability in this specific domain.
What are the primary risks associated with a long-term (8+ year) contract for ADP facility management?
Long-term contracts for critical IT functions like ADP facility management present several risks. Firstly, there's the risk of technological obsolescence; the technology landscape can change dramatically over eight years, potentially making the contracted services or infrastructure outdated. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers if performance declines or better solutions emerge. Thirdly, maintaining cost-effectiveness over such a long period can be challenging, as market rates may fluctuate, and initial pricing might become uncompetitive. Finally, there's the operational risk of over-reliance on a single contractor for essential services; any disruption to the contractor's operations could significantly impact the agency's ability to function.
How does the 'COMPETITIVE DELIVERY ORDER' award type influence price discovery and taxpayer value?
A 'COMPETITIVE DELIVERY ORDER' signifies that the contract was awarded through a process that allowed multiple qualified vendors to compete. This competitive environment is fundamental to achieving fair market prices and maximizing taxpayer value. By soliciting bids from several potential providers, the Department of Energy could leverage market forces to negotiate favorable terms and pricing. The competition inherently drives vendors to offer their best possible prices and service levels to win the contract. This contrasts with sole-source awards, where the absence of competition can lead to higher costs and potentially less innovation, thus diminishing taxpayer value.
What are the potential implications of this contract on the broader IT services market for the federal government?
This $14.7 million contract awarded to Data Tree, Inc. contributes to the overall federal spending in the IT services sector, specifically within computer-related services. Its significance lies in demonstrating a sustained government need for ADP facility management. For other IT service providers, it signals opportunities within this niche, potentially encouraging them to develop similar capabilities. The competitive nature of the award suggests a healthy market for these services. However, the long duration might also indicate fewer large-scale contract opportunities emerging frequently, impacting the market dynamics for vendors seeking long-term federal engagements.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 13 FIRSTFIELD RD STE 110, GAITHERSBURG, MD, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $14,737,115
Exercised Options: $14,737,115
Current Obligation: $14,737,115
Parent Contract
Parent Award PIID: GS35F0302J
IDV Type: FSS
Timeline
Start Date: 2000-01-15
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2009-07-28
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