Department of Energy awards $28.1M for nuclear security technical support to MELE ASSOCIATES INC

Contract Overview

Contract Amount: $28,100,006 ($28.1M)

Contractor: Mele Associates Inc

Awarding Agency: Department of Energy

Start Date: 2024-08-30

End Date: 2026-08-31

Contract Duration: 731 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TECHNICAL AND ANALYTICAL SUPPORT SERVICES FOR THE OFFICE OF DEFENSE NUCLEAR SECURITY (NA-70)

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 $28.1 million to MELE ASSOCIATES INC for work described as: TECHNICAL AND ANALYTICAL SUPPORT SERVICES FOR THE OFFICE OF DEFENSE NUCLEAR SECURITY (NA-70) Key points: 1. Contract value represents a significant investment in specialized technical and analytical support for a critical national security function. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The duration of the contract (731 days) indicates a need for sustained support. 4. The use of a Time and Materials contract type may present cost control challenges if not closely managed. 5. MELE ASSOCIATES INC. is the sole awardee, highlighting their specific qualifications for this niche requirement. 6. The contract is not set aside for small businesses, indicating the scale and nature of the required expertise.

Value Assessment

Rating: good

The contract value of $28.1 million over two years for specialized technical and analytical support for the Office of Defense Nuclear Security appears reasonable given the niche expertise required. Benchmarking against similar contracts for highly specialized defense and security consulting services suggests that pricing is likely competitive, especially considering the full and open competition. The Time and Materials pricing structure, however, warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of bidders is relatively low for a contract of this magnitude. This level of competition is generally positive for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, leading to potentially lower costs and higher quality services.

Public Impact

The Office of Defense Nuclear Security (NA-70) will benefit from enhanced technical and analytical capabilities. Services delivered will support the critical mission of ensuring the security of nuclear materials and facilities. The primary geographic impact is within the District of Columbia, where the Department of Energy is headquartered. The contract supports specialized technical and analytical roles, likely requiring highly skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to Time and Materials contract type if not managed diligently.
  • Limited number of bidders (2) could indicate a concentrated market or high barriers to entry for this specialized service.
  • Dependence on a single contractor (MELE ASSOCIATES INC.) for critical nuclear security support functions.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive process.
  • MELE ASSOCIATES INC. has secured a significant contract, indicating confidence in their capabilities.
  • The contract duration suggests a stable, long-term need for these specialized services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and national security functions. The market for such specialized technical and analytical support is often characterized by a limited number of highly qualified firms with specific security clearances and expertise. Comparable spending benchmarks in this niche would focus on contracts providing similar high-level advisory and technical services to government agencies involved in sensitive national security operations.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false parameter. The nature of the specialized technical and analytical support required for defense nuclear security likely necessitates advanced capabilities, clearances, and experience that may be more readily available from larger, established firms. There is no explicit indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers within the Office of Defense Nuclear Security. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is generally maintained through federal contract databases, though specific operational details of the support provided may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Department of Energy - National Nuclear Security Administration
  • Department of Defense - Nuclear Weapons Programs
  • Department of Homeland Security - Critical Infrastructure Protection
  • Federal Bureau of Investigation - Counterterrorism and Nuclear Smuggling Investigations

Risk Flags

  • Potential for cost overruns due to Time and Materials contract type.
  • Limited number of bidders may indicate market concentration.
  • Dependence on a single contractor for critical functions.

Tags

department-of-energy, defense-nuclear-security, technical-support, analytical-support, engineering-services, full-and-open-competition, time-and-materials, district-of-columbia, mele-associates-inc, national-security, nuclear-security

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $28.1 million to MELE ASSOCIATES INC. TECHNICAL AND ANALYTICAL SUPPORT SERVICES FOR THE OFFICE OF DEFENSE NUCLEAR SECURITY (NA-70)

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 $28.1 million.

What is the period of performance?

Start: 2024-08-30. End: 2026-08-31.

What is MELE ASSOCIATES INC.'s track record with the Department of Energy and similar defense contracts?

MELE ASSOCIATES INC. has a history of contracting with various U.S. government agencies, including the Department of Energy. Their portfolio often includes providing technical, analytical, and management support services, particularly in areas related to national security, energy, and defense. Specific details on their performance metrics for past Department of Energy contracts, such as on-time delivery, quality of work, and adherence to budget, would require a deeper dive into contract performance reports and agency penilaian data. However, securing a contract of this value and nature suggests a demonstrated capability and a positive past performance record that met the agency's requirements during the evaluation process.

How does the $28.1 million contract value compare to similar technical support contracts for defense nuclear security?

The $28.1 million contract value over two years for specialized technical and analytical support for the Office of Defense Nuclear Security is substantial, reflecting the high level of expertise and security clearances required. Benchmarking against similar contracts is challenging due to the niche nature of nuclear security support. However, contracts for high-level scientific, engineering, and security consulting services to agencies like the Department of Energy, Department of Defense, or the National Nuclear Security Administration often range from several million to tens of millions of dollars annually, depending on the scope and duration. This award appears to be within the expected range for specialized, mission-critical support in this sensitive sector.

What are the primary risks associated with this Time and Materials contract, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and materials used, plus a fixed fee or labor-hour rate. This structure can incentivize longer project durations or less efficient work if not rigorously managed. Mitigation strategies employed by the Department of Energy would typically include establishing clear ceilings on the total contract value, detailed monitoring of labor hours and material costs, requiring regular progress reports, and defining specific deliverables and performance standards. Strong contract administration and oversight are crucial to ensure cost control and value for taxpayer money.

How effective is the 'full and open competition' process in ensuring value for money for this specific contract?

The 'full and open competition' process is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified vendors to compete. For this contract, with two bids received, the competition, while not extensive, likely drove MELE ASSOCIATES INC. to offer competitive pricing and technical solutions. The effectiveness is further enhanced by the agency's evaluation criteria, which would weigh both technical merit and cost. The Department of Energy's ability to select the best value proposal, rather than solely the lowest price, under this competitive framework is key to achieving optimal outcomes for this specialized requirement.

What is the historical spending trend for technical and analytical support services within the Department of Energy's nuclear security programs?

Historical spending on technical and analytical support services for the Department of Energy's nuclear security programs has been significant and consistent, reflecting the ongoing need for specialized expertise in areas such as nuclear material control, non-proliferation, facility security, and threat assessment. While specific year-over-year figures for NA-70 would require detailed analysis of historical contract databases, the overall budget allocated to nuclear security functions within the DOE and its associated agencies (like the National Nuclear Security Administration) typically runs into billions of dollars annually. A substantial portion of this funding is directed towards contracts for scientific, engineering, and analytical support, indicating a sustained demand for services like those awarded to MELE ASSOCIATES INC.

What are the potential implications of MELE ASSOCIATES INC. being the sole awardee for this specific task order, despite the contract being competed broadly?

The fact that MELE ASSOCIATES INC. is the sole awardee for this specific delivery order, even though the overarching contract vehicle may have been competed broadly (or this was a standalone full and open competition), suggests they submitted the most advantageous proposal based on the agency's evaluation criteria. This could be due to a combination of factors including highly competitive pricing, superior technical approach, specific expertise tailored to the requirement, or favorable past performance. While it means taxpayers are relying on one company for this particular task, the initial competition process should have ensured that their offering represented good value. Ongoing performance monitoring will be key to ensuring continued value and risk mitigation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS.TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 89233123QNA000285

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: $76,223,447

Exercised Options: $28,884,310

Current Obligation: $28,100,006

Actual Outlays: $15,775,075

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F243CA

IDV Type: FSS

Timeline

Start Date: 2024-08-30

Current End Date: 2026-08-31

Potential End Date: 2030-02-28 00:00:00

Last Modified: 2026-04-08

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