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Billion-Dollar Award For Small Business Joint Venture

A small business joint venture teamed with Energy Department employees to win a seven-year, $1 billion contract to provide IT support for the department.

Energy Enterprise Solutions LLC was formed as part of an SBA-certified mentor-protégé agreement between majority-owner 1 Source Consulting Inc., an 8(a) company based in Seabrook, MD, and RS Information Systems of McLean, VA.

The award was the result of a public-private job competition under OMB Circular A-76. An Energy Department official said the department had trouble attracting private-sector interest in the competition, so its in-house team joined forces with EES.

William Teel Jr., board chairman of EES and CEO of 1 Source, said, “This award is a win-win for federal employees and for private industry as it is one of the few times federal employees have teamed with private industry to win a competitive sourcing deal.”

He said it is one of the largest federal IT services contracts ever awarded to a small business, calling it “a defining moment for Team DOE, 1 Source and the small business community.”

The team will consolidate a number of the department’s IT contracts. Teel said the department could cut its current IT costs by as much as 35%.

RS Information Systems, a graduated 8(a) firm headed by CEO Rodney Hunt, is the mentor in the arrangement. RSIS has been one of the nation’s fastest growing technology companies for nine straight years, according to the “Fast 500” ranking by Deloitte & Touche.

Subcontractors on the Energy contract include ASRC Airfield and Range Services Corporation, CNSI, and DSD Laboratories, Science Applications International Corp., Booz Allen Hamilton, Computer Sciences Corp., e-Management, Highland Technology Services Inc., Project Performance Corp., Qwest Federal Systems, Verizon Ferderal Network Systems, and IBM.


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