DOE's $3.8M contract for administrative support at Los Alamos Field Office awarded to Street Legal Industries LLC

Contract Overview

Contract Amount: $3,865,415 ($3.9M)

Contractor: Street Legal Industries LLC

Awarding Agency: Department of Energy

Start Date: 2021-02-03

End Date: 2026-08-02

Contract Duration: 2,006 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE, RECORDS MANAGEMENT, AND MAILROOM SUPPORT SERVICES FOR THE NNSA LOS ALAMOS FIELD OFFICE

Place of Performance

Location: LOS ALAMOS, LOS ALAMOS County, NEW MEXICO, 87544

State: New Mexico Government Spending

Plain-Language Summary

Department of Energy obligated $3.9 million to STREET LEGAL INDUSTRIES LLC for work described as: ADMINISTRATIVE, RECORDS MANAGEMENT, AND MAILROOM SUPPORT SERVICES FOR THE NNSA LOS ALAMOS FIELD OFFICE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market-driven pricing. 2. The duration of the contract, spanning over five years, suggests a need for stable, long-term administrative support. 3. Lack of competition may limit opportunities for innovation and service improvements typically driven by a competitive bidding process. 4. Performance context is limited without specific metrics on service delivery or contractor performance history. 5. The contract falls within the broader category of administrative and support services, a common area of federal spending. 6. The award to a single vendor warrants scrutiny regarding the justification for not pursuing a competitive solicitation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of publicly available comparable contract data for similar administrative support services at the Los Alamos Field Office. The fixed price structure provides some cost certainty, but without competitive bids, it's difficult to ascertain if the pricing reflects optimal market value or represents a premium. Further analysis would require understanding the specific scope of services and comparing them to industry standards for administrative, records management, and mailroom support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for a sole-source award typically involves specific circumstances, such as the unique capabilities of the contractor or the urgency of the requirement. Without a competitive process, there were no multiple bidders, and the government did not benefit from price discovery through market competition. This approach can sometimes lead to higher costs compared to competitively awarded contracts.

Taxpayer Impact: Taxpayers may not be receiving the best possible value for their money when contracts are awarded without competition. The absence of bidding means there's no pressure on the contractor to offer the lowest possible price, potentially resulting in overspending.

Public Impact

The primary beneficiaries are the National Nuclear Security Administration (NNSA) Los Alamos Field Office, which receives essential administrative, records management, and mailroom support. Services delivered include the operational backbone for the field office, ensuring efficient workflow and document handling. The geographic impact is localized to Los Alamos, New Mexico, supporting federal operations within that specific region. Workforce implications are indirect, as the contract supports federal employees by offloading administrative tasks to a contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Lack of transparency in the justification for sole-source award.
Contract duration of over five years may reduce flexibility to adapt to changing needs.
Absence of performance metrics makes it difficult to assess contractor effectiveness.
Potential for vendor lock-in due to the long-term, sole-source nature of the award.

Positive Signals

Contract provides essential administrative support, ensuring operational continuity for the NNSA Los Alamos Field Office.
Fixed-price contract offers some predictability in costs.
Long contract duration indicates a stable, ongoing need for these services.
Contracting for administrative services allows federal personnel to focus on core mission-critical activities.

Sector Analysis

This contract falls within the administrative and support services sector, a broad category encompassing a wide range of services essential for the functioning of government agencies. The North American Industry Classification System (NAICS) code 561110, Office Administrative Services, indicates a market focused on providing operational support. Federal spending in this sector is substantial, supporting various agencies across different locations. Benchmarking this specific contract's value is difficult without more granular data on the scope of services and prevailing market rates for similar support functions within the federal government.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Street Legal Industries LLC, without specific information on the company's size, does not directly address the small business ecosystem. The absence of a small business set-aside or subcontracting plan means that opportunities for small businesses to participate in this specific contract are likely limited.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program officials within the Department of Energy. Accountability measures are inherent in the contract terms, including performance expectations and payment schedules. Transparency is limited due to the sole-source nature of the award and the lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NNSA Field Office Operations Support
Federal Administrative Services Contracts
Department of Energy Support Services
Records Management Services
Mailroom Operations Support

Risk Flags

Sole-source award without clear justification.
Lack of competitive bidding may lead to suboptimal pricing.
Long contract duration without clear performance benchmarks.
Limited transparency regarding contractor selection and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $3.9 million to STREET LEGAL INDUSTRIES LLC. ADMINISTRATIVE, RECORDS MANAGEMENT, AND MAILROOM SUPPORT SERVICES FOR THE NNSA LOS ALAMOS FIELD OFFICE

Who is the contractor on this award?

The obligated recipient is STREET LEGAL INDUSTRIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2021-02-03. End: 2026-08-02.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required services, or when there is a compelling urgency. Reasons can include unique capabilities of the contractor, proprietary technology, or specific security requirements. Without further documentation from the Department of Energy, the precise rationale remains unknown, but it implies that a competitive solicitation was deemed inappropriate or unfeasible for this particular requirement.

How does the contract's duration of over five years (2006 days) compare to typical contracts for similar administrative services?

A contract duration of over five years (2006 days) for administrative, records management, and mailroom support services is relatively long, though not unprecedented, especially for established federal operations. Many federal agencies opt for longer-term contracts to ensure continuity and reduce the administrative burden of frequent re-solicitations. However, such long durations can also reduce flexibility to adapt to evolving needs or incorporate new technologies. Benchmarking against similar contracts would require analyzing the scope of services, the specific agency needs, and prevailing contracting practices. Shorter durations (e.g., 1-3 years with options) are often preferred to allow for market adjustments and performance reviews, but a longer term may be justified if the services are highly specialized or critical to ongoing operations.

What are the potential risks associated with a sole-source award for administrative services?

The primary risk associated with a sole-source award for administrative services is the lack of price competition. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing, potentially leading to higher costs than if the contract were competitively bid. Another risk is reduced innovation; a sole provider may have less incentive to introduce efficiencies or new approaches compared to a competitive environment. There's also a potential for vendor lock-in, where the agency becomes dependent on the incumbent contractor, making it difficult to switch providers even if performance or cost becomes an issue. Finally, the justification for a sole-source award itself can be scrutinized for adequacy, raising concerns about fairness and transparency in the procurement process.

What performance metrics or oversight mechanisms are in place to ensure the effectiveness of Street Legal Industries LLC's services?

The provided data does not specify the performance metrics or detailed oversight mechanisms for this contract. However, standard federal contracting practice dictates that contracts include performance standards, quality assurance surveillance plans (QASPs), and regular reviews by the contracting officer's representative (COR). For administrative services, metrics might include timeliness of mail processing, accuracy of record-keeping, response times for administrative requests, and overall client satisfaction. Oversight would involve monitoring these metrics, conducting site visits, and holding regular performance review meetings. The effectiveness of these mechanisms depends on their clarity, the diligence of the COR, and the contractor's commitment to meeting contractual obligations.

How does this contract's spending compare to other federal spending on administrative support services?

The $3.8 million contract for administrative, records management, and mailroom support services at the NNSA Los Alamos Field Office represents a modest portion of overall federal spending on administrative support. Federal agencies collectively spend billions annually on a wide array of administrative and general government support services, including office management, mail operations, and record-keeping. This specific contract's value is relatively small when viewed against the backdrop of the entire federal budget or even the broader administrative services category. However, for the specific function and location it serves, it represents a significant investment. Benchmarking requires comparing it to similar contracts within the Department of Energy or other agencies performing comparable functions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 89233120RNA000082

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 102 JEFFERSON CT, OAK RIDGE, TN, 37830

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,973,377

Exercised Options: $3,973,377

Current Obligation: $3,865,415

Actual Outlays: $3,097,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline