DOE's ITES contract awarded to Platinum Solutions, Inc. for $22.3M over 5 years
Contract Overview
Contract Amount: $22,307,570 ($22.3M)
Contractor: Platinum Solutions, Inc.
Awarding Agency: Department of Energy
Start Date: 2010-04-01
End Date: 2015-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: AWARD DE-FE0004005; INFORMATION TECHNOLOGY AND ENGINEERING SUPPORT SERVICES (ITES) AT THE NATIONAL ENERGY TECHNOLOGY LABORATORY
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $22.3 million to PLATINUM SOLUTIONS, INC. for work described as: AWARD DE-FE0004005; INFORMATION TECHNOLOGY AND ENGINEERING SUPPORT SERVICES (ITES) AT THE NATIONAL ENERGY TECHNOLOGY LABORATORY Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful oversight to ensure value. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract duration of five years provides stability but necessitates monitoring for potential cost overruns or scope creep. 4. Performance context is key, as award fees are tied to achieving specific objectives. 5. This ITES contract positions the National Energy Technology Laboratory to leverage external expertise for critical infrastructure support. 6. The award value of $22.3 million over five years averages approximately $4.46 million annually.
Value Assessment
Rating: good
The contract's total value of $22.3 million over five years averages to approximately $4.46 million annually. While specific benchmarks for ITES at NETL are not readily available, the cost-plus-award-fee (CPAF) structure allows for performance-based incentives. This structure, when managed effectively, can lead to good value by aligning contractor efforts with government objectives. However, CPAF contracts inherently carry a risk of higher costs compared to fixed-price contracts if performance targets are not rigorously defined and monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. The presence of 6 bidders (no=6) suggests a healthy level of competition for these ITES services. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple vendors.
Public Impact
The National Energy Technology Laboratory (NETL) benefits from enhanced IT and engineering support services. Services delivered include computer facilities management, contributing to the operational efficiency of NETL. The geographic impact is primarily focused on West Virginia, where NETL facilities are located. Workforce implications include the potential for specialized IT and engineering jobs to be supported by this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee (CPAF) contracts if performance metrics are not strictly managed.
- The five-year duration could lead to vendor lock-in or reduced agility if market needs shift significantly.
- Reliance on a single contractor for critical IT infrastructure management requires robust oversight to ensure continuity and security.
Positive Signals
- Full and open competition indicates a healthy market and potential for competitive pricing.
- The award fee structure incentivizes high performance and alignment with government objectives.
- The contract supports critical IT infrastructure at the National Energy Technology Laboratory, ensuring operational continuity.
Sector Analysis
This contract falls within the Information Technology and Engineering Support Services sector, specifically focusing on Computer Facilities Management Services. The IT services market is vast and highly competitive, with government contracts often representing a significant portion of spending. Benchmarking this contract's value against similar IT support services for federal laboratories or research institutions would provide further context on its cost-effectiveness.
Small Business Impact
The data indicates that small business participation (sb=false) was not a specific set-aside for this contract, nor is there explicit information on subcontracting goals for small businesses. This suggests that the primary award was made to a large business, and the impact on the small business ecosystem would depend on whether the prime contractor actively engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract would likely involve the Department of Energy's contracting officers and program managers. Accountability measures are built into the award fee structure, which ties a portion of the contractor's profit to performance metrics. Transparency is generally facilitated through contract award databases, though detailed performance reviews may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Information Technology and Engineering Support Services (ITES)
- Computer Facilities Management Services
- National Energy Technology Laboratory Contracts
- Department of Energy IT Services
Risk Flags
- Cost Plus Award Fee (CPAF) contract type requires diligent oversight to manage costs and ensure value.
- Potential for scope creep over the five-year duration.
- Reliance on a single contractor for critical IT infrastructure.
Tags
it-services, computer-facilities-management, department-of-energy, national-energy-technology-laboratory, definitive-contract, cost-plus-award-fee, full-and-open-competition, west-virginia, large-business, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $22.3 million to PLATINUM SOLUTIONS, INC.. AWARD DE-FE0004005; INFORMATION TECHNOLOGY AND ENGINEERING SUPPORT SERVICES (ITES) AT THE NATIONAL ENERGY TECHNOLOGY LABORATORY
Who is the contractor on this award?
The obligated recipient is PLATINUM SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $22.3 million.
What is the period of performance?
Start: 2010-04-01. End: 2015-03-31.
What is the track record of Platinum Solutions, Inc. in performing similar ITES contracts for the federal government?
A review of federal procurement data indicates that Platinum Solutions, Inc. has been awarded various IT and professional services contracts across different agencies. For instance, they have held contracts related to IT support, cybersecurity, and program management. Analyzing their past performance ratings, any past performance issues or commendations, and the scale of previous similar contracts would provide a clearer picture of their capabilities and reliability in executing the ITES contract at NETL. Specific details on past performance metrics for this particular contract (AWARD DE-FE0004005) would require access to internal government performance evaluations.
How does the average annual cost of this contract compare to similar ITES contracts at other federal research laboratories?
The average annual cost for this contract is approximately $4.46 million ($22.3M / 5 years). Benchmarking this against similar ITES contracts at other federal research laboratories requires access to a comprehensive database of government contracts with detailed service descriptions and pricing. Factors such as the specific scope of services (e.g., network management, cybersecurity, help desk support, specialized engineering IT), the size and complexity of the laboratory's infrastructure, and the geographic location can significantly influence costs. Without direct comparable data, it's challenging to definitively state if this represents a high, low, or average cost. However, the full and open competition suggests a market-driven price.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT services, and how are they mitigated?
The primary risks with CPAF contracts for IT services include potential cost overruns if the base cost is not well-defined or if the scope expands without adequate controls. There's also a risk that the award fee criteria might be too easily met, leading to higher-than-expected contractor profits without commensurate value, or conversely, being too stringent, demotivating the contractor. Mitigation strategies involve rigorous definition of the base contract scope, clear and objective performance metrics for the award fee, robust government oversight to monitor costs and performance, and regular communication with the contractor to ensure alignment. The Department of Energy's contracting officer and program managers are responsible for actively managing these risks throughout the contract lifecycle.
What is the historical spending pattern for ITES at the National Energy Technology Laboratory (NETL) prior to this contract?
To assess historical spending patterns for ITES at NETL, one would need to examine procurement data for the years preceding the award of DE-FE0004005 (April 1, 2010). This would involve searching for previous contracts awarded to support NETL's IT and engineering needs, identifying the types of services procured, the contractors involved, and the total amounts obligated. Understanding past spending levels, the number of competitive solicitations, and the average duration and value of prior contracts would help establish a baseline and identify any significant changes or trends in how NETL procures these essential services.
How does the exclusion of sources in the 'full and open competition after exclusion of sources' award type impact potential competition and pricing?
The phrase 'full and open competition after exclusion of sources' typically implies that the contract was initially intended for full and open competition, but certain sources were excluded for specific, documented reasons (e.g., national security, proprietary technology, or prior performance issues). While it still aims for broad competition among the remaining eligible sources, the exclusion of specific entities could potentially limit the number of bidders and the diversity of approaches. The impact on pricing depends on how many qualified bidders remain; if the exclusion significantly narrows the field, it could potentially lead to less aggressive pricing compared to a scenario with no exclusions. However, if the exclusions were justified and the remaining pool was still robust, competitive pricing could still be achieved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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
Solicitation ID: DE-SO26-08000537
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sterling Parent Inc.
Address: 11700 PLAZA AMERICA DR STE 810, RESTON, VA, 20190
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other 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: $25,036,463
Exercised Options: $25,036,463
Current Obligation: $22,307,570
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-01
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2025-06-09
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