Department of Energy awards $50M contract for IT program management and integration support to CRI ADVANTAGE INC
Contract Overview
Contract Amount: $50,092,935 ($50.1M)
Contractor: CRI Advantage Inc
Awarding Agency: Department of Energy
Start Date: 2011-03-07
End Date: 2017-06-04
Contract Duration: 2,281 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IMANAGE PROGRAM MANAGEMENT AND INTEGRATION SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK, ATTACHMENT 2 HEREOF. (PROPOSAL REQUIREMENTS ARE SET FORTH IN THE ATTACHMENTS HERETO.)
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $50.1 million to CRI ADVANTAGE INC for work described as: IMANAGE PROGRAM MANAGEMENT AND INTEGRATION SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK, ATTACHMENT 2 HEREOF. (PROPOSAL REQUIREMENTS ARE SET FORTH IN THE ATTACHMENTS HERETO.) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2281 days (over 6 years) indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was awarded to a single vendor, CRI ADVANTAGE INC.
Value Assessment
Rating: fair
Benchmarking the value of this $50 million contract over more than six years is challenging without specific performance metrics or comparable contract data. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not closely monitored for scope creep or inefficient labor utilization. The absence of a fixed price or cost-plus-fixed-fee structure suggests a higher degree of risk for the government in terms of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 9 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.
Public Impact
The Department of Energy benefits from integrated program management and IT support services. This contract supports the operational efficiency and effectiveness of the agency's IT infrastructure and programs. The geographic impact is primarily within the Department of Energy's operational areas, likely concentrated in Maryland where the vendor is located. Workforce implications include the potential for employment opportunities within CRI ADVANTAGE INC. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- Long contract duration increases the risk of technology obsolescence or changing requirements.
- Lack of specific performance metrics makes it difficult to assess the true value for money.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Multiple bidders (9) suggest a competitive market for these services.
- The contract supports critical IT program management functions for the Department of Energy.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on program management and integration. The IT services market is vast and highly competitive, with significant government spending allocated to support agency operations and modernization efforts. Comparable spending benchmarks would typically involve other large-scale IT support contracts awarded to federal agencies for similar management and integration services.
Small Business Impact
The data indicates that small business participation was not a primary set-aside consideration for this specific award, as the 'sb' field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor, CRI ADVANTAGE INC., may be a larger entity, and the impact on the small business ecosystem would depend on their subcontracting practices, which are not detailed here.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of Energy's contracting officers, program managers, and potentially an Inspector General's office. Accountability measures are usually embedded in the contract's statement of work, performance standards, and payment terms. Transparency is facilitated through contract award databases, but detailed operational oversight information is generally not publicly available.
Related Government Programs
- IT Program Management Support
- IT Integration Services
- Department of Energy IT Contracts
- Federal IT Services
- Time and Materials Contracts
Risk Flags
- Time and Materials Pricing
- Long Contract Duration
- Broad NAICS Code Scope
Tags
it-services, program-management, integration-support, department-of-energy, full-and-open-competition, delivery-order, time-and-materials, maryland, naics-541519, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $50.1 million to CRI ADVANTAGE INC. IMANAGE PROGRAM MANAGEMENT AND INTEGRATION SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK, ATTACHMENT 2 HEREOF. (PROPOSAL REQUIREMENTS ARE SET FORTH IN THE ATTACHMENTS HERETO.)
Who is the contractor on this award?
The obligated recipient is CRI ADVANTAGE INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $50.1 million.
What is the period of performance?
Start: 2011-03-07. End: 2017-06-04.
What is the track record of CRI ADVANTAGE INC. in performing similar IT program management and integration services for the federal government?
Assessing CRI ADVANTAGE INC.'s track record requires a review of their past performance on federal contracts, particularly those involving IT program management and integration. Information on past performance, including client satisfaction, adherence to schedule and budget, and quality of deliverables, is typically available through sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting tools. A detailed analysis would involve examining the scope, value, and duration of their previous government contracts, as well as any reported issues or commendations. Without specific past performance data for this contractor readily available in the provided snippet, a comprehensive assessment cannot be made. However, the award of a significant contract like this by the Department of Energy suggests they met certain pre-qualification criteria and demonstrated capability.
How does the awarded amount of $50 million compare to similar IT program management contracts awarded by the Department of Energy or other federal agencies?
The $50 million award over approximately six years for IT program management and integration services represents a substantial investment. To benchmark this value, one would compare it against other large-scale IT support contracts awarded by agencies like the Department of Energy, Department of Defense, or GSA. Factors such as contract duration, scope of services (e.g., cybersecurity, cloud migration, data analytics), labor categories, and geographic location influence pricing. For instance, contracts with similar durations and service complexities could range from tens to hundreds of millions of dollars. The Time and Materials (T&M) nature of this contract also means the final cost could fluctuate, making direct comparisons to fixed-price contracts less precise. A thorough benchmark would involve analyzing the average hourly rates for key personnel and the estimated total labor hours against market data for comparable IT services.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?
The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($50 million over 6+ years) revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, meaning the government pays for the actual labor hours and materials used. This can lead to cost overruns if the contractor is inefficient, if the scope of work expands without proper oversight, or if labor rates are higher than anticipated. For the government, managing a T&M contract requires rigorous oversight to ensure that all hours billed are necessary, reasonable, and allocable to the contract's objectives. The long duration also increases the risk of the technology or requirements becoming outdated, necessitating contract modifications that could further impact costs.
How effective is the 'full and open competition' process in ensuring competitive pricing for IT services like these?
The 'full and open competition' process is generally considered the most effective method for ensuring competitive pricing for IT services. By allowing all responsible sources to submit proposals, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving multiple, competitive offers. This competitive pressure incentivizes contractors to offer their best pricing and innovative solutions to win the contract. The fact that nine bidders participated in this specific procurement suggests a robust competitive environment. However, the effectiveness can be influenced by factors such as the clarity of the solicitation, the complexity of the requirements, and the overall market dynamics for the specific IT services being procured. A well-executed full and open competition typically leads to better value for taxpayer dollars compared to less competitive procurement methods.
What are the implications of the NAICS code 541519 ('Other Computer Related Services') for the scope and potential cost of this contract?
The NAICS code 541519, 'Other Computer Related Services,' indicates a broad scope for this contract, encompassing a wide array of IT services beyond standard software development or hardware maintenance. This could include IT consulting, systems integration, data processing, disaster recovery, IT support, and program management. The breadth of this code means the specific services delivered could vary significantly, impacting the overall cost. For a $50 million contract over six years, this code suggests the Department of Energy requires comprehensive IT support that may involve complex integration projects, strategic planning, and ongoing operational assistance. The 'other' category implies that the services might be specialized or a combination of various IT functions, requiring careful definition in the Statement of Work (SOW) to manage costs and ensure the contractor delivers the intended value.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0002060
Offers Received: 9
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 13125 W PERSIMMON LN STE 100, BOISE, ID, 83713
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,971,354
Exercised Options: $59,971,354
Current Obligation: $50,092,935
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0478N
IDV Type: FSS
Timeline
Start Date: 2011-03-07
Current End Date: 2017-06-04
Potential End Date: 2017-08-17 00:00:00
Last Modified: 2018-11-08
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