WYLE INFORMATION SYSTEMS, LLC awarded $53.8M Time and Materials contract by Department of Energy for IT services
Contract Overview
Contract Amount: $53,841,463 ($53.8M)
Contractor: Wyle Information Systems, LLC
Awarding Agency: Department of Energy
Start Date: 2003-01-15
End Date: 2007-04-20
Contract Duration: 1,556 days
Daily Burn Rate: $34.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $53.8 million to WYLE INFORMATION SYSTEMS, LLC for work described as: Key points: 1. Contract awarded via competitive delivery order, indicating a degree of market vetting. 2. Duration of over 3 years suggests a substantial, ongoing need for services. 3. Time and Materials pricing structure can pose cost control challenges if not closely managed. 4. The contract's value places it within a significant spending bracket for IT services. 5. Performance period spans across multiple fiscal years, requiring sustained budget allocation. 6. Awarded by the Department of Energy, suggesting a focus on energy sector IT infrastructure or support.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure, while flexible, carries inherent risks for cost escalation if not meticulously monitored. Benchmarking T&M contracts is challenging without detailed labor categories and rates, but the overall award value of $53.8 million over approximately 3.5 years suggests a significant investment. Compared to fixed-price contracts for similar IT services, T&M can sometimes lead to higher overall costs if scope creep or inefficiencies are not managed. The number of bids (2) is low, which might indicate less competitive pricing than a more robust bidding process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded as a competitive delivery order, which implies that multiple vendors were considered, but the specific number of bidders (2) is relatively low. A limited competition scenario like this, especially with only two bidders, may not fully leverage market forces to drive down prices. The Department of Energy likely had specific requirements or existing relationships that narrowed the field. The limited number of bids could suggest that the solicitation was not widely disseminated or that only a few contractors possessed the necessary qualifications or capacity.
Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation. This could translate to a higher overall cost for the services rendered.
Public Impact
The Department of Energy benefits from IT services essential for its operations and mission. This contract supports the maintenance and potential enhancement of the department's information technology infrastructure. The geographic impact is likely concentrated around Department of Energy facilities, primarily in Maryland (ST: MD, SN: MARYLAND). Workforce implications include employment for IT professionals and support staff within WYLE INFORMATION SYSTEMS, LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model increases risk of cost overruns without strict oversight.
- Low number of bidders (2) suggests potentially limited competition and suboptimal price discovery.
- Contract duration of over 3 years requires sustained budget commitment and performance monitoring.
Positive Signals
- Awarded through a competitive delivery order, indicating some level of vetting.
- Contract addresses a clear need for IT services within a federal agency.
- Longer contract duration can provide stability for service delivery and contractor planning.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically supporting government IT infrastructure and services. The federal IT services market is substantial, with agencies continually investing in maintaining and upgrading their systems. Comparable spending benchmarks for IT support contracts vary widely based on scope, duration, and complexity. This $53.8 million award over approximately 3.5 years represents a significant, mid-to-large scale IT services engagement within the federal government landscape.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, given the contract's value and the nature of IT services, it's possible that larger prime contractors like WYLE INFORMATION SYSTEMS, LLC may engage small businesses for specialized support, but this is not explicitly stated.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures would be tied to performance metrics outlined in the contract's statement of work and delivery orders. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Department of Energy IT Modernization Programs
- Federal Civilian Agency IT Services
- Time and Materials IT Contracts
- Competitive Delivery Orders
Risk Flags
- Low Competition
- Time and Materials Pricing Risk
- Potential for Cost Overruns
Tags
it-services, department-of-energy, time-and-materials, competitive-delivery-order, mid-size-contract, maryland, wyle-information-systems-llc, federal-contract, it-support, energy-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $53.8 million to WYLE INFORMATION SYSTEMS, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $53.8 million.
What is the period of performance?
Start: 2003-01-15. End: 2007-04-20.
What was the specific scope of work for this $53.8 million contract awarded to WYLE INFORMATION SYSTEMS, LLC?
The provided data indicates this was a Time and Materials (T&M) contract awarded as a Competitive Delivery Order by the Department of Energy. While the exact scope of work is not detailed in the summary data, T&M contracts are typically used for services where the extent or duration of the work cannot be predetermined. This often includes IT support, maintenance, system integration, or project-based work where requirements may evolve. Given the awardee and agency, it likely involved IT services supporting the Department of Energy's mission-critical functions, potentially including infrastructure management, software development/maintenance, or technical support for energy-related systems. The duration of over 3 years suggests a sustained need for these services.
How does the number of bidders (2) impact the value proposition for the Department of Energy and taxpayers?
A low number of bidders, such as the two identified for this contract, generally suggests limited competition. Limited competition can lead to several outcomes that may not be optimal for value. Firstly, it can result in higher prices, as the incumbent or remaining bidders may not feel pressured to offer their most competitive rates. Secondly, it might restrict the range of innovative solutions or technical approaches available. For taxpayers, this means there's a higher probability that the government paid more than it might have if a larger pool of vendors had competed. While the contract was 'competitive,' the low bidder count warrants scrutiny regarding the effectiveness of the competition strategy employed by the Department of Energy.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?
The primary risk with Time and Materials (T&M) contracts, especially one valued at $53.8 million, is cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs incurred, plus a fee. This structure can incentivize longer task durations or less efficient work if not rigorously managed. Scope creep is another significant risk; without clear definitions and controls, the project's cost can escalate rapidly. For the Department of Energy, effective oversight, detailed tracking of hours and expenses, and strong project management are crucial to mitigate these risks and ensure the contract delivers value without exceeding budget expectations.
Can we compare the per-unit cost or overall value of this contract to similar IT service contracts within the federal government?
Directly comparing the per-unit cost or overall value of this $53.8 million contract is challenging without more granular data. Federal IT service contracts vary immensely in scope, complexity, labor categories, geographic location, and contract type (e.g., T&M vs. Fixed Price). While $53.8 million over approximately 3.5 years is a substantial award, its 'value' is relative. To benchmark effectively, one would need to analyze contracts with similar service requirements (e.g., IT infrastructure support, software development), similar labor mixes, and comparable contract vehicles. The limited competition (2 bidders) also complicates value assessment, as it suggests the price may not reflect the full potential of market competition.
What is the track record of WYLE INFORMATION SYSTEMS, LLC in performing federal IT service contracts, particularly with the Department of Energy?
The provided data identifies WYLE INFORMATION SYSTEMS, LLC as the awardee. To assess their track record, one would need to consult historical contract databases (like FPDS) to review their past performance on federal contracts. Key areas to examine would include contract values, types of services rendered, agencies served (especially the Department of Energy), contract duration, and any reported performance issues or awards. A history of successful, on-time, and within-budget performance on similar IT contracts would indicate a lower risk. Conversely, past performance issues or disputes could raise concerns about their ability to successfully execute this current $53.8 million award.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Court Square Capital Partners, L.P. (UEI: 610537735)
Address: 1651 OLD MEADOW RD FL 5, MC LEAN, VA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $77,143,675
Exercised Options: $69,728,140
Current Obligation: $53,841,463
Parent Contract
Parent Award PIID: DC50CMAA900061
IDV Type: IDC
Timeline
Start Date: 2003-01-15
Current End Date: 2007-04-20
Potential End Date: 2007-04-20 00:00:00
Last Modified: 2010-09-20
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