Navy awards $11.3M contract for specialized services, highlighting long-term engagement and full competition

Contract Overview

Contract Amount: $11,352,514 ($11.4M)

Contractor: Eri/Hec Efa-Med., LLC.

Awarding Agency: Department of Defense

Start Date: 2006-02-09

End Date: 2020-12-19

Contract Duration: 5,427 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200605!309831!1700!N62473!NAVFAC SOUTHWEST !N4740800D8131 !A!N! !N!0002 !04 !20060209!20201219!101162741!039271064!006953418!N!SELECT ENERGY SERVICES INC !24 PRIME PARK WAY STE 3 !NATICK !MA!01760!00000! !IT! ! !ITALY !-000000851784!N!N!000000000000!S119!OTHER UTILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!S!C! !D!20100929!B! ! !A! !A!Y!J!2!005!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1700!N62995!0001! !

Plain-Language Summary

Department of Defense obligated $11.4 million to ERI/HEC EFA-MED., LLC. for work described as: 200605!309831!1700!N62473!NAVFAC SOUTHWEST !N4740800D8131 !A!N! !N!0002 !04 !20060209!20201219!101162741!039271064!006953418!N!SELECT ENERGY SERVICES INC !24 PRIME PARK WAY STE 3 !NATICK !MA!01760!00000! !IT! ! … Key points: 1. Contract demonstrates a significant, multi-year commitment to specialized services. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration and value may indicate a need for sustained support. 4. Performance period spans over 10 years, suggesting a stable, long-term requirement. 5. The award value is substantial, reflecting the scope and complexity of services. 6. The specific services provided are not detailed, making direct performance assessment challenging.

Value Assessment

Rating: fair

The contract value of $11.3 million over a 10-year period suggests an average annual spend of approximately $1.13 million. Without specific details on the services rendered or comparable contracts, it is difficult to definitively benchmark the value for money. However, the extended duration could imply cost efficiencies through long-term partnership, or it could indicate a lack of more agile, shorter-term solutions. Further analysis of the specific deliverables would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 5 bids suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiary is the Department of the Navy, which receives specialized services essential for its operations. The services delivered are described broadly as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support. The contract's geographic impact is noted as 'ITALY,' suggesting a focus on overseas operations or support for personnel stationed there. Workforce implications are not explicitly detailed but likely involve skilled professionals contributing to naval readiness and support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details hinders a clear understanding of the value proposition.
The extended contract duration might limit flexibility in adapting to evolving needs.
Geographic focus on Italy may not reflect broader departmental requirements.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long contract duration suggests a stable and predictable requirement.
The contract value is substantial, implying significant and necessary services are being procured.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, a significant sector within federal procurement. The market for such services is diverse, encompassing a wide array of specialized expertise. The Department of the Navy's reliance on these services, particularly in overseas locations like Italy, underscores the importance of this sector in supporting military operations and infrastructure. Benchmarking against similar long-term service contracts within the defense sector would provide further context on pricing and scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or their impact on the small business ecosystem. Therefore, the direct impact on small businesses from this specific award is not discernible from the data.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. However, as a Department of Defense contract, it would typically fall under the purview of the Department of the Navy's contracting officer representatives (CORs) and potentially the Inspector General's office for audits and investigations. Transparency would be enhanced by public reporting of performance metrics and deliverables.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Professional, Scientific, and Technical Services
Department of Defense Services Contracts
Overseas Support Contracts
Long-Term Service Agreements

Risk Flags

Lack of specific service details
Extended contract duration may reduce flexibility
Potential for service obsolescence over time

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to ERI/HEC EFA-MED., LLC.. 200605!309831!1700!N62473!NAVFAC SOUTHWEST !N4740800D8131 !A!N! !N!0002 !04 !20060209!20201219!101162741!039271064!006953418!N!SELECT ENERGY SERVICES INC !24 PRIME PARK WAY STE 3 !NATICK !MA!01760!00000! !IT! ! !ITALY !-000000851784!N!N!000000000000!S119!OTHER UTILITIES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!S!C! !D!201

Who is the contractor on this award?

The obligated recipient is ERI/HEC EFA-MED., LLC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2006-02-09. End: 2020-12-19.

What specific services are being provided under this contract?

The contract is categorized under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests a wide range of potential activities, which could include anything from specialized consulting, research and development support, technical assistance, or other non-classifiable professional services. Without further details or access to the contract's statement of work, the precise nature of the services remains unspecified. This lack of specificity makes it challenging to assess the contract's effectiveness or to compare it accurately with other procurements.

How does the $11.3 million award value compare to similar long-term service contracts for the Navy?

Comparing the $11.3 million award value for a contract spanning over 10 years requires context regarding the specific services rendered. If the services are highly specialized or critical to overseas operations, this value might be reasonable. However, without knowing the exact deliverables, it's difficult to benchmark. For instance, a contract for routine maintenance might be considered high, while one for advanced technological support could be low. Benchmarking would ideally involve comparing the average annual cost (approx. $1.13M) against similar long-term, full-and-open competed service contracts awarded by the Navy or other DoD components for comparable functions, considering factors like geographic location and required expertise.

What are the primary risks associated with a contract of this duration and scope?

A significant risk with a contract spanning over 10 years is the potential for obsolescence of services or technology, leading to diminished value over time. There's also a risk of scope creep, where the requirements may expand beyond the original intent without commensurate adjustments in cost or oversight. Furthermore, long-term contracts can sometimes reduce flexibility for the government to adapt to changing strategic needs or to incorporate innovative solutions that emerge during the contract period. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

What does the 'ITALY' geographic designation imply for the contract's purpose?

The 'ITALY' designation strongly suggests that the services procured under this contract are intended to support U.S. Navy operations, personnel, or facilities located in Italy. This could range from logistical support, infrastructure maintenance, technical assistance for deployed units, or specialized services required for naval bases or installations in the region. Such overseas contracts often involve unique logistical challenges and may require adherence to specific international agreements or local regulations, potentially influencing cost and execution.

Given the 'All Other Professional, Scientific, and Technical Services' category, how can performance be effectively measured?

Measuring performance for a broad category like 'All Other Professional, Scientific, and Technical Services' requires clearly defined Key Performance Indicators (KPIs) within the contract's Statement of Work (SOW). These KPIs should be specific, measurable, achievable, relevant, and time-bound (SMART). Examples could include response times for technical support, accuracy rates for data analysis, successful completion of project milestones, or adherence to specific technical standards. Regular performance reviews, user feedback mechanisms, and independent quality assessments are essential to ensure the contractor is meeting the government's needs effectively despite the broad service description.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 24 PRIME PARKWAY, NATICK, MA, 01760

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N4740800D8131

IDV Type: IDC

Timeline