Department of Energy's $12.9M contract for financial system IT support awarded to SOLERITY INC
Contract Overview
Contract Amount: $12,906,073 ($12.9M)
Contractor: Solerity Inc
Awarding Agency: Department of Energy
Start Date: 2006-01-20
End Date: 2011-07-31
Contract Duration: 2,018 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: IT
Official Description: MANAGEMENT SUPPORT AND TECHNOLOGY MAINTENANCE FOR HARDWARE AND SOFTWARE FOR FINANCIAL MANAGEMENT SYSTEM
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $12.9 million to SOLERITY INC for work described as: MANAGEMENT SUPPORT AND TECHNOLOGY MAINTENANCE FOR HARDWARE AND SOFTWARE FOR FINANCIAL MANAGEMENT SYSTEM Key points: 1. Contract provides essential IT management and maintenance for the Federal Energy Regulatory Commission's financial systems. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. SOLERITY INC. has been awarded this contract, indicating their capability in providing IT support services. 4. The duration of the contract spans over five years, ensuring continuity of critical financial system operations. 5. The contract's value of $12.9 million over its term suggests a significant investment in maintaining financial infrastructure. 6. The North American Industry Classification System (NAICS) code 541513 points to specialized computer facilities management services.
Value Assessment
Rating: good
The contract value of $12.9 million over approximately five years averages to about $2.58 million annually. Without specific benchmarks for similar financial system IT maintenance contracts within the federal government, a precise value-for-money assessment is challenging. However, the duration and scope suggest a reasonable allocation of resources for maintaining critical financial infrastructure. Further analysis would require comparison with industry standards for comparable IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition for this requirement. While not an exceptionally high number of bidders, it suggests that the market was engaged and that price discovery occurred through the competitive process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.
Public Impact
The Federal Energy Regulatory Commission (FERC) benefits from uninterrupted and efficient financial management operations. Employees within FERC will have access to reliable hardware and software for financial system management. The contract supports the operational continuity of a key federal agency's financial functions. The IT services provided ensure the integrity and security of financial data within the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single contractor for critical financial system maintenance could pose a risk if the contractor faces performance issues or financial instability.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- Contract duration suggests a stable and predictable environment for IT support.
- The contract supports essential government functions, contributing to fiscal responsibility.
Sector Analysis
This contract falls within the Information Technology services sector, specifically focusing on computer facilities management. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for financial system maintenance is a common requirement across many government entities, ensuring the smooth operation of critical financial operations. Comparable spending benchmarks would typically involve analyzing IT support contracts for financial systems at agencies of similar size and complexity.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to SOLERITY INC., a presumably larger entity given the contract value, suggests that small businesses were either not primary bidders or did not meet the specific requirements for this particular IT support service. Further investigation into subcontracting plans would be needed to assess any indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically reside with the Department of Energy's contracting officers and the Federal Energy Regulatory Commission's program managers. Accountability measures are embedded in the contract terms and conditions, including performance standards and payment schedules. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Financial Management Systems IT Support
- Federal IT Infrastructure Maintenance
- Computer Facilities Management Services
- Department of Energy IT Contracts
- Federal Energy Regulatory Commission Operations
Risk Flags
- Potential for performance issues impacting critical financial operations.
- Cybersecurity risks associated with managing sensitive financial data.
- Dependency on a single contractor for essential IT services.
Tags
it-services, financial-management-systems, computer-facilities-management, solerity-inc, department-of-energy, federal-energy-regulatory-commission, full-and-open-competition, district-of-columbia, large-contract, it-maintenance, software-support, hardware-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.9 million to SOLERITY INC. MANAGEMENT SUPPORT AND TECHNOLOGY MAINTENANCE FOR HARDWARE AND SOFTWARE FOR FINANCIAL MANAGEMENT SYSTEM
Who is the contractor on this award?
The obligated recipient is SOLERITY INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2006-01-20. End: 2011-07-31.
What is SOLERITY INC.'s track record with federal IT contracts, particularly in financial system maintenance?
SOLERITY INC. has a history of receiving federal contracts, including those related to IT services. While specific details on their performance for financial system maintenance within the Department of Energy require deeper analysis of past performance reviews and contract modifications, their award for this significant contract suggests they possess the necessary qualifications and experience. Examining their contract history for similar services, client agencies, and any reported performance issues or commendations would provide a more comprehensive understanding of their track record. Federal procurement data can offer insights into the types and values of contracts they have previously held, as well as their performance ratings if publicly available.
How does the $12.9 million contract value compare to similar IT support contracts for financial management systems in other federal agencies?
Benchmarking the $12.9 million contract value requires comparing it against IT support contracts for financial management systems of similar scope, duration, and complexity across federal agencies. Without access to a comprehensive database of such specific comparisons, a precise valuation is difficult. However, for a contract spanning over five years and covering hardware and software maintenance for a financial system, this value appears within a reasonable range for federal IT services. Factors influencing cost include the number of users, the criticality of the system, the specific technologies involved, and the level of service required (e.g., 24/7 support). A detailed comparison would involve analyzing contracts with similar NAICS codes (e.g., 541513) and service descriptions from agencies of comparable size to the Department of Energy.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks associated with this contract include potential performance failures by SOLERITY INC., leading to disruptions in financial operations; cybersecurity vulnerabilities within the managed systems; and the risk of cost overruns if not managed effectively. Mitigation strategies typically involve robust contract oversight, clearly defined performance metrics and service level agreements (SLAs), regular performance reviews, and strong cybersecurity protocols mandated by the contract. The Department of Energy would likely have contingency plans in place for critical system failures and would monitor the contractor's adherence to security standards. The competitive nature of the initial award also serves as a form of risk mitigation, as it implies a selection of a capable vendor.
How effective is the Federal Energy Regulatory Commission's financial management system, and how does this contract contribute to its effectiveness?
The effectiveness of the Federal Energy Regulatory Commission's financial management system is directly supported by the IT maintenance and management services provided under this contract. By ensuring the hardware and software are up-to-date, secure, and operational, the contract contributes to the system's reliability, accuracy, and efficiency. This, in turn, enables FERC to perform its core functions, such as budget management, financial reporting, and transaction processing, without interruption. The contract's role is foundational; it ensures the underlying technological infrastructure is sound, thereby facilitating the effective use of the financial management system for its intended purposes.
What has been the historical spending pattern for financial management system IT support at the Department of Energy or FERC?
Analyzing historical spending patterns for financial management system IT support at the Department of Energy or FERC would involve reviewing past contract awards for similar services. This contract, awarded in 2006 and ending in 2011, represents a specific period of spending. To understand broader trends, one would need to examine contracts preceding and following this award, looking at the total amount spent annually on IT support for financial systems, the number of contracts awarded, and the primary contractors involved. This historical data can reveal patterns of increasing or decreasing investment, shifts in contracting strategies (e.g., from sole-source to competitive), and the evolution of technology requirements over time.
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
Solicitation Procedures: SEALED BID
Solicitation ID: FERC06RFP60057
Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Address: 3040 WILLIAMS DR STE 505, FAIRFAX, VA, 22031
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,187,606
Exercised Options: $12,941,091
Current Obligation: $12,906,073
Timeline
Start Date: 2006-01-20
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2017-02-24
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