Energy Enterprise Solutions LLC won a $1 billion contract from the Energy Department to provide consolidated information technology services, one of the largest federal IT services contracts ever awarded to a small business.
The contract also appears to be the first ever billion-dollar award made to a joint venture of two minority-owned firms, said Rodney P. Hunt, president and chief executive of RS Information Systems Inc. of McLean, one of the contract partners. The other is 1 Source Consulting Inc. of Seabrook.
The award is also significant because the joint venture's team includes the Energy Department's information technology unit. The department teamed with industry to win the contract under the government's "A-76" process for determining whether to outsource government jobs or to keep them in-house.
RSIS and 1 Source formed their joint venture in the summer of 2004 to pursue the contract. RSIS, a federal systems integrator, also serves as a mentor to the smaller 1 Source, which specializes in management and technical consulting. William Teel Jr., president and chief executive of 1 Source Consulting, is chairman of the joint venture.
Under the contract, Energy Enterprise Solution's services will include enterprise architecture and capital investment planning, cyber-security, applications and Web design, and engineering for the Energy Department's corporate systems. The company also will provide technical support for the department's information technology infrastructure and operations, including telecommunications, network engineering and operations, applications hosting, desktop management, and user support services.
Other contractors on the EES-Energy Department team are ASRC Airfield and Range Services Corp., Booz Allen Hamilton Inc., CNSI Inc., Computer Sciences Corp., DSD Laboratories Inc., e-Management Inc., Highland Technology Services Inc., International Business Machines Corp., Project Performance Corp., Qwest Communications International Inc.'s federal systems division, Science Applications International Corp., and Verizon Communications Inc.'s federal network systems division.
The President's Management Agenda directs federal agencies to compete for activities that are not inherently governmental with private-sector contractors. The goal is to make the buying of government services more like the commercial marketplace.
The award could save the Energy Department about 35 percent on its information technology expenditures throughout the life of the contract, Teel said. Under the team arrangement, about 30 employees will work in the joint venture's management office, overseeing a staff of 500, he said.
RSIS has nearly 2,000 employees nationwide and posted 2004 revenue of $320 million, Hunt said. He expects the company's 2005 revenue to be about $400 million. About 115 workers are employed at 1 Source, which had 2004 revenue of $5.9 million, Teel said. He expects 2005 revenue of about $20 million.
Roseanne Gerin is a staff writer with Washington Technology. For more details on this and other technology contracts, go to www.washingtontechnology.com.