DoD's $17.9M E-On-Site Lab contract to TLI Solutions shows fair competition and potential value concerns

Contract Overview

Contract Amount: $17,899,621 ($17.9M)

Contractor: TLI Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-08

End Date: 2017-09-30

Contract Duration: 3,309 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: E-ON-SITE LAB, PHASE I

Place of Performance

Location: PUEBLO, PUEBLO County, COLORADO, 81001

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to TLI SOLUTIONS, INC. for work described as: E-ON-SITE LAB, PHASE I Key points: 1. The contract was awarded under full and open competition after exclusion of sources, indicating a deliberate decision to limit initial bidders. 2. With a duration of 3309 days, the contract spans nearly a decade, raising questions about long-term needs and adaptability. 3. The firm-fixed-price contract type suggests predictable costs, but the extended duration could mask potential inefficiencies. 4. The contract's focus on remediation services aligns with environmental cleanup needs within the Department of the Army. 5. The award to TLI Solutions, Inc. warrants a review of their past performance and capacity for such a long-term engagement. 6. The contract's value, while significant, needs benchmarking against similar environmental remediation projects to assess value for money.

Value Assessment

Rating: fair

The contract's total value of approximately $17.9 million over nearly nine years averages to about $2 million per year. Without specific details on the scope of 'E-On-Site Lab, Phase I' and the remediation services provided, it is difficult to benchmark against similar contracts. However, the long duration for a 'Phase I' project might suggest a scope that could have been broken down into smaller, more manageable, and potentially more cost-effective contracts. The firm-fixed-price nature provides cost certainty, but the extended timeline could obscure potential inefficiencies or the need for adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, specific sources were excluded, leading to a limited pool of bidders. The presence of two bidders suggests some level of competition, but the exclusion of other potential offerors raises questions about whether the most competitive pricing and innovative solutions were secured.

Taxpayer Impact: The limited competition, despite being 'full and open' after exclusions, may have resulted in a higher price for taxpayers than if a broader range of contractors had been allowed to bid. This approach can reduce the government's leverage in price negotiations.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Department of the Army, receiving environmental remediation services for their facilities. The services delivered are related to 'E-On-Site Lab, Phase I' and remediation, crucial for environmental compliance and safety. The geographic impact is centered in Colorado, where the contract is being performed. Workforce implications include employment opportunities for personnel involved in environmental remediation and laboratory services, likely skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method limits the potential for broader market engagement and potentially better pricing.
The extended contract duration of nearly nine years for a 'Phase I' project raises concerns about scope creep or inefficient project management.
Lack of detailed performance metrics or specific deliverables makes it challenging to assess the true value and effectiveness of the remediation services.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the government.
The contract was competed, indicating an effort to solicit offers rather than a sole-source award.
The existence of two bidders suggests some level of market interest and capability in this specialized remediation area.

Sector Analysis

The contract falls within the Environmental Remediation Services sector, a critical component of government operations, particularly for agencies managing large land holdings like the Department of Defense. This sector involves assessing, cleaning up, and managing hazardous substances and contaminated sites. The market size for environmental remediation services is substantial, driven by regulatory requirements and the need to address legacy contamination. This contract represents a specific instance of federal spending within this broader industry, focusing on on-site laboratory capabilities for remediation phases.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the nature of the contract and the contractor (TLI Solutions, Inc.), it is unclear if small businesses were specifically targeted for participation. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses or if the prime contractor has a history of engaging with the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures would be tied to the firm-fixed-price contract terms and performance requirements. Transparency assessment would depend on the public availability of contract performance reports and any associated Inspector General audits. The Inspector General of the Department of Defense would likely have jurisdiction over audits and investigations related to this contract.

Related Government Programs

Environmental Remediation Services
Department of Defense Facilities Management
Army Environmental Programs
On-Site Laboratory Services
Hazardous Waste Management

Risk Flags

Extended duration for Phase I project
Limited competition due to source exclusion
Potential for cost overruns or inefficiencies in long-term FFP contract
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to TLI SOLUTIONS, INC.. E-ON-SITE LAB, PHASE I

Who is the contractor on this award?

The obligated recipient is TLI SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2008-09-08. End: 2017-09-30.

What is the specific nature and scope of the 'E-On-Site Lab, Phase I' remediation services, and how does it justify the nearly nine-year duration?

The provided data offers limited insight into the specific scope of 'E-On-Site Lab, Phase I.' The designation 'Remediation Services' suggests activities aimed at cleaning up contaminated sites. A nearly nine-year duration for a 'Phase I' project is unusually long and typically indicates a complex, multi-stage process or a long-term monitoring requirement. Without further details on the contaminants, the site conditions, the remediation technologies employed, and the specific objectives of Phase I, it is difficult to definitively justify this extended timeline. It could imply a phased approach to a very large or complex cleanup, ongoing monitoring and validation, or potentially a less aggressive remediation strategy. Further analysis of contract performance reports and technical documentation would be necessary to understand the rationale behind this duration and assess its efficiency.

How does TLI Solutions, Inc.'s past performance on similar federal contracts inform the assessment of this award's value and risk?

Assessing TLI Solutions, Inc.'s past performance is crucial for evaluating the value and risk associated with this $17.9 million contract. Information on their track record with the Department of Defense or other federal agencies, particularly on environmental remediation or similar long-term service contracts, would provide key insights. Specifically, one would look for evidence of timely delivery, adherence to budget (even within a fixed-price structure, scope management is key), quality of work, and responsiveness to government requirements. A history of successful, complex remediation projects would suggest lower risk and potentially better value. Conversely, past issues with performance, contract disputes, or cost overruns (if applicable to their previous contracts) would raise red flags regarding the current award's potential success and value for money. Without access to their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), a definitive assessment is challenging.

What are the potential risks associated with a firm-fixed-price contract spanning over nine years for environmental remediation?

A firm-fixed-price (FFP) contract spanning over nine years for environmental remediation presents several potential risks. While FFP aims to provide cost certainty, the extended duration increases the likelihood of unforeseen site conditions, changes in environmental regulations, or the emergence of more effective remediation technologies. If the initial cost estimates did not adequately account for these long-term variables, the contractor might face financial strain, potentially leading to reduced quality or attempts to cut corners. Conversely, if the initial pricing was overly conservative to account for such risks, taxpayers may have overpaid. Furthermore, the government's ability to adapt to new information or requirements may be constrained by the fixed-price nature, potentially leading to costly change orders or disputes. The long timeframe also increases the risk of contractor performance degradation over time or the contractor experiencing financial instability.

How does the 'full and open competition after exclusion of sources' method impact price discovery and overall value for taxpayers compared to unrestricted full and open competition?

The 'full and open competition after exclusion of sources' method, while intended to be competitive, inherently limits the pool of potential bidders compared to unrestricted full and open competition. By excluding certain sources, the government may be foregoing offers from highly capable contractors who could potentially offer more competitive pricing or innovative solutions. This reduction in the number of bidders can diminish the pressure on each offeror to submit their most aggressive bid, potentially leading to less optimal price discovery. For taxpayers, this can translate into higher costs than might have been achieved in a truly unrestricted competition where the widest possible market is engaged. The rationale for excluding sources needs to be clearly justified to ensure it serves a specific, necessary purpose without unduly sacrificing competitive advantage and taxpayer value.

What is the typical annual spending for similar environmental remediation contracts awarded by the Department of the Army, and how does this contract compare?

Benchmarking this contract requires comparing its annual value to similar environmental remediation contracts awarded by the Department of the Army. The average annual value of this contract is approximately $2 million ($17.9 million / 3309 days * 365 days/year). Typical annual spending on Army environmental remediation can vary significantly based on the scope, complexity, and location of the cleanup sites. Smaller, localized projects might range from hundreds of thousands to a few million dollars annually, while large-scale, multi-year Superfund site cleanups can involve tens or even hundreds of millions of dollars per year. Without specific details on the 'E-On-Site Lab, Phase I' scope, it's challenging to place this $2 million annual average precisely. However, it appears to be within a moderate range for a significant, long-term remediation effort, but its efficiency and value depend heavily on the specific deliverables and outcomes achieved over its extended duration.

What are the implications of the contract's 'ST' (Small Business Type) code, if any, for small business participation and subcontracting?

The provided data includes 'st': 'CO', which likely refers to the contract's Small Business Administration (SBA) status or type. However, 'CO' is not a standard SBA small business designation (like SB, WOSB, SDVOSB, HUBZone). It might represent a specific agency code or a non-standard entry. If 'CO' does not indicate a small business set-aside or a specific small business program, then the implications for small business participation are primarily driven by subcontracting opportunities. The contract data indicates 'sb': false, suggesting it was not awarded as a small business set-aside. Therefore, the extent of small business involvement would depend on TLI Solutions, Inc.'s subcontracting strategy and the government's requirements for small business participation in the subcontracting plan, if one exists.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F08R0014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Techlaw Consultants Inc (UEI: 606984573)

Address: 14500 AVION PKWY STE 300, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,412,370

Exercised Options: $18,089,878

Current Obligation: $17,899,621

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F08D0022

IDV Type: IDC

Timeline