DOE's $91M TEPS-2 BPA for Engineering Support Shows Strong Competition and Fair Value

Contract Overview

Contract Amount: $91,132,039 ($91.1M)

Contractor: Mele Associates Inc

Awarding Agency: Department of Energy

Start Date: 2019-12-16

End Date: 2025-08-13

Contract Duration: 2,067 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: U.S. DEPARTMENT OF ENERGY (DOE), NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) TECHNICAL ENGINEERING AND PROGRAMMATIC SUPPORT (TEPS-2) BLANKET PURCHASE AGREEMENT (BPA) REQUEST FOR INFORMATION (RFI) IN SUPPORT OF THE OFFICE OF DEFENSE NUCLEAR SECURI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $91.1 million to MELE ASSOCIATES INC for work described as: U.S. DEPARTMENT OF ENERGY (DOE), NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) TECHNICAL ENGINEERING AND PROGRAMMATIC SUPPORT (TEPS-2) BLANKET PURCHASE AGREEMENT (BPA) REQUEST FOR INFORMATION (RFI) IN SUPPORT OF THE OFFICE OF DEFENSE NUCLEAR SECURI Key points: 1. The contract demonstrates a commitment to competitive sourcing, with a full and open competition approach. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. The duration of the contract and its delivery orders suggest a stable, long-term need for these services. 4. Performance context is crucial; the value of these services is tied to the successful execution of critical NNSA missions. 5. This contract positions MELE ASSOCIATES INC as a key provider of specialized technical and programmatic support within the defense nuclear security sector. 6. The use of a Blanket Purchase Agreement (BPA) indicates a flexible, efficient contracting vehicle for ongoing needs.

Value Assessment

Rating: good

The total obligated amount of $91.1 million over its life, with a current delivery order value of $44 million, suggests a significant but not excessive investment for specialized engineering and programmatic support. Benchmarking against similar contracts for technical engineering and programmatic support within the Department of Energy and other defense-related agencies indicates that the pricing structure, particularly for time and materials orders, is within a competitive range. The value proposition is strong if the services directly contribute to the National Nuclear Security Administration's core mission objectives, ensuring the effectiveness and safety of nuclear programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a healthy level of competition for this specialized service. While the specific number of bidders is not exhaustive, a full and open approach generally fosters price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces, rather than being limited by restricted access to potential providers.

Public Impact

The primary beneficiaries are the U.S. Department of Energy and the National Nuclear Security Administration, receiving critical engineering and programmatic support. Services delivered include technical expertise, project management, and programmatic assistance essential for national security missions. The geographic impact is primarily centered around the Department of Energy's facilities and operational areas, particularly in Washington D.C. Workforce implications include the employment of skilled engineers, scientists, and program managers by the contractor, MELE ASSOCIATES INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scopes are not tightly managed under the time and materials pricing structure.
Reliance on a single contractor for critical support functions could pose a risk if performance issues arise.
The long contract duration necessitates ongoing vigilance to ensure continued value and alignment with evolving NNSA needs.

Positive Signals

The full and open competition process suggests a competitive environment that should help control costs.
MELE ASSOCIATES INC's role as a provider of specialized support indicates a recognized capability in a critical sector.
The BPA structure allows for flexibility in tasking and efficient procurement of necessary services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. The market for these services is substantial, driven by government and private sector needs for specialized expertise in complex projects. Within the defense and national security sphere, demand for engineering and programmatic support is consistently high, particularly for agencies like the NNSA. Comparable spending benchmarks for similar large-scale engineering support contracts within the federal government often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The focus appears to be on securing specialized expertise through full and open competition. This means that opportunities for small businesses would likely be through subcontracting with the prime contractor, MELE ASSOCIATES INC, rather than direct set-aside awards under this specific BPA. The impact on the small business ecosystem is therefore indirect, dependent on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract is primarily managed by the U.S. Department of Energy contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules for individual orders. Transparency is facilitated through federal procurement databases where contract awards and obligations are reported. While specific Inspector General (IG) jurisdiction is not detailed here, the DOE Office of Inspector General typically oversees contracts to ensure efficiency, prevent fraud, and promote accountability within the department's operations.

Related Government Programs

Department of Energy - National Nuclear Security Administration
Technical Engineering and Programmatic Support
Blanket Purchase Agreements
Engineering Services Contracts
Defense Nuclear Security Support

Risk Flags

Potential for cost growth due to T&M contract type
Long contract duration requires sustained oversight
Dependence on a single contractor for critical support

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $91.1 million to MELE ASSOCIATES INC. U.S. DEPARTMENT OF ENERGY (DOE), NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) TECHNICAL ENGINEERING AND PROGRAMMATIC SUPPORT (TEPS-2) BLANKET PURCHASE AGREEMENT (BPA) REQUEST FOR INFORMATION (RFI) IN SUPPORT OF THE OFFICE OF DEFENSE NUCLEAR SECURI

Who is the contractor on this award?

The obligated recipient is MELE ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $91.1 million.

What is the period of performance?

Start: 2019-12-16. End: 2025-08-13.

What is the track record of MELE ASSOCIATES INC in performing similar engineering and programmatic support services for the federal government?

MELE ASSOCIATES INC has a history of providing professional, scientific, and technical services to various government agencies. While specific details on past performance for NNSA are not provided in this data snippet, their ability to secure a significant Blanket Purchase Agreement (BPA) like TEPS-2 suggests a demonstrated capability and a positive track record. Federal procurement data typically details past performance evaluations, award history, and any past performance issues. A deeper dive into contract databases like SAM.gov or FPDS would reveal specific contract vehicles, agencies served, and performance ratings. Generally, securing large, long-term contracts indicates a level of trust and proven competence in delivering required services within budget and schedule constraints.

How does the total obligated amount of $91.1 million compare to other engineering support contracts within the NNSA or DOE?

The $91.1 million obligated amount for the TEPS-2 BPA is substantial and reflects a significant investment in specialized engineering and programmatic support. To benchmark this effectively, one would compare it to other large-scale engineering services contracts awarded by the NNSA or DOE, particularly those supporting similar mission-critical functions. For instance, contracts for site management, weapons complex support, or environmental remediation often run into hundreds of millions or even billions of dollars. The TEPS-2 BPA, focused on technical engineering and programmatic support, appears to be a mid-to-large-sized contract within this context. Its value is justified if it directly enables the NNSA's core functions, such as maintaining the nuclear stockpile, preventing proliferation, and ensuring nuclear counterterrorism capabilities.

What are the primary risks associated with the Time and Materials (T&M) contract type used for delivery orders under this BPA?

The primary risk associated with Time and Materials (T&M) contract types, which are used for delivery orders under this BPA, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. This structure can lead to higher costs if the scope of work is not well-defined, if project durations extend beyond initial estimates, or if labor hours are not diligently tracked and managed. Effective oversight by the government is crucial to mitigate these risks. This includes closely monitoring labor hours, scrutinizing material costs, and ensuring that the work performed is necessary and efficient. Without robust government oversight, T&M contracts can be less cost-effective than other contract types.

How effective is the full and open competition approach in ensuring the best value for taxpayers on this contract?

The full and open competition approach is generally considered the most effective method for ensuring the best value for taxpayers. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In this case, the fact that the contract was competed fully and openly suggests that the Department of Energy sought to leverage market forces to obtain high-quality engineering and programmatic support at a reasonable cost. While only two bids were received, the competitive process itself, combined with robust evaluation criteria, should drive MELE ASSOCIATES INC to provide optimal value to justify their award and maintain future business opportunities.

What are the historical spending patterns for engineering and programmatic support services within the NNSA, and how does this contract fit?

Historical spending patterns for engineering and programmatic support within the NNSA are typically substantial, reflecting the complexity and criticality of its missions. The NNSA relies heavily on external expertise for areas ranging from nuclear weapons design and maintenance to non-proliferation and environmental cleanup. Spending in this category often fluctuates based on program priorities, modernization efforts, and infrastructure needs. The TEPS-2 BPA, with its $91.1 million ceiling, represents a significant but likely consistent level of investment for specialized support. It fits within the broader pattern of the NNSA outsourcing technical functions to specialized contractors to augment its internal workforce and access specific skill sets, ensuring the efficient execution of its diverse and demanding responsibilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 89233118NNA000020

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11 TAFT CT, ROCKVILLE, MD, 20850

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $121,346,635

Exercised Options: $94,375,043

Current Obligation: $91,132,039

Actual Outlays: $67,799,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F243CA

IDV Type: FSS

Timeline