Department of Energy awards $20M engineering services contract to MELE ASSOCIATES INC for nuclear security

Contract Overview

Contract Amount: $19,984,156 ($20.0M)

Contractor: Mele Associates Inc

Awarding Agency: Department of Energy

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TSCM, TEMPEST FOR DEFENSE NUCLEAR SECURITY ORGANIZATION (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 $20.0 million to MELE ASSOCIATES INC for work described as: TSCM, TEMPEST FOR DEFENSE NUCLEAR SECURITY ORGANIZATION (NA-70) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is 364 days, indicating a short-term need for specialized services. 3. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for national security. 5. The contract is for Time and Materials (T&M) pricing, which can pose cost control challenges if not managed closely. 6. The contractor, MELE ASSOCIATES INC, has secured this award, indicating their capability in the engineering services domain.

Value Assessment

Rating: fair

The contract value of approximately $20 million for a 364-day period suggests a significant investment in specialized engineering services. Benchmarking this against similar contracts for nuclear security support is difficult without more data on the specific tasks involved. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost-effectiveness and prevent potential overruns, as T&M contracts can sometimes lead to higher costs compared to fixed-price arrangements if not managed diligently. The number of bids received (2) is on the lower side for a full and open competition, which might suggest limited market interest or specialized requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. This limited number of bidders could indicate a highly specialized niche market, potential barriers to entry for other firms, or perhaps a lack of aggressive outreach by the procuring agency. While competition was technically open, the low bid count may have limited the price discovery and the range of innovative solutions considered.

Taxpayer Impact: A low number of bidders in a full and open competition can sometimes mean less pressure on pricing, potentially leading to higher costs for taxpayers than if more firms had competed. However, it could also reflect the specialized nature of the work, where only a few firms possess the necessary expertise.

Public Impact

The primary beneficiaries are the Department of Energy's Defense Nuclear Security organization (NA-70), which will receive critical engineering support. The services delivered are essential for maintaining the security and integrity of nuclear defense assets. The geographic impact is centered in the District of Columbia, where the agency is located. The contract supports specialized engineering roles, potentially impacting the workforce in the defense and nuclear security sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored and managed.
A low number of bidders (2) in a full and open competition might indicate limited market competition, potentially impacting price discovery.
The specialized nature of nuclear security engineering may limit the pool of qualified contractors, raising concerns about future competition.
The contract is a delivery order, suggesting it's part of a larger IDIQ vehicle, which requires understanding the overall scope and value of the parent contract.

Positive Signals

Awarded through full and open competition, ensuring a broad initial opportunity for qualified contractors.
The contractor, MELE ASSOCIATES INC, has secured a contract for critical defense nuclear security services, indicating trust in their capabilities.
The contract duration of 364 days allows for focused execution of specific engineering tasks.
The specific NAICS code (541330) highlights the provision of essential engineering services vital to national security.

Sector Analysis

The engineering services sector, particularly those supporting defense and national security, is a critical and often high-value market. NAICS code 541330 encompasses establishments primarily engaged in providing engineering services. This contract falls within the specialized segment of engineering services related to defense and nuclear security, a niche requiring high levels of expertise, security clearances, and specialized knowledge. Spending in this area is driven by national security imperatives and the need to maintain and secure sensitive government assets. Comparable spending benchmarks would typically be found within Department of Defense and Department of Energy solicitations for similar specialized engineering support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). MELE ASSOCIATES INC is likely a large business, given the contract value. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business participation in its subcontracting efforts, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. The contract's performance will likely be monitored through regular progress reports, technical reviews, and financial oversight. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS-NG, where basic award information is publicly available, though detailed performance metrics may not be.

Related Government Programs

Department of Energy - Defense Nuclear Security
Engineering Services Contracts
National Nuclear Security Administration (NNSA) Contracts
Defense-related Professional Services
Time and Materials Contracts
IDIQ Contract Vehicles

Risk Flags

Low number of bidders in full and open competition.
Use of Time and Materials (T&M) pricing structure.
Specialized nature of defense nuclear security services.
Contract is a delivery order, requiring context of the parent IDIQ.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $20.0 million to MELE ASSOCIATES INC. TSCM, TEMPEST FOR DEFENSE NUCLEAR SECURITY ORGANIZATION (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 $20.0 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

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

MELE ASSOCIATES INC has a history of securing contracts with various government agencies, including the Department of Energy. Their portfolio often includes professional, scientific, and technical services. To assess their track record specifically for defense nuclear security, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or commendations, and their experience with the specific technical requirements of NA-70. Their ability to consistently meet deadlines, manage budgets, and deliver quality engineering solutions on complex defense projects is crucial for evaluating their suitability for this award.

How does the $20 million value compare to other engineering services contracts for nuclear security support?

The $20 million value for a 364-day contract is substantial, reflecting the specialized and critical nature of defense nuclear security engineering. Without access to a comprehensive database of all similar contracts, a precise comparison is challenging. However, contracts for highly specialized engineering, cybersecurity, and technical support within the nuclear defense sector can range from several million to tens or even hundreds of millions of dollars, depending on the scope, duration, and complexity. This award appears to be within a typical range for a significant, focused engineering support effort for a specific organizational unit like NA-70, rather than a broad, multi-year program.

What are the primary risks associated with a Time and Materials (T&M) contract for this type of service?

The primary risk with Time and Materials (T&M) contracts, especially for specialized engineering services like those for defense nuclear security, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not precisely defined or if project management is weak, the contractor may incur more hours or use more expensive materials than initially anticipated, leading to costs exceeding initial estimates. This necessitates robust oversight, detailed tracking of hours and materials, and clear communication to manage the scope and prevent unnecessary expenditures.

How effective is the 'full and open competition' process when only two bids are received?

While 'full and open competition' is the preferred method for ensuring broad market access and competitive pricing, its effectiveness is diminished when only a small number of bids are submitted. In this case, with only two bidders, the competitive pressure on pricing and innovation may be less intense than if five or more bids had been received. This situation can arise due to the highly specialized nature of the services required, limited contractor availability, or potentially restrictive requirements in the solicitation. The agency must still evaluate the bids received rigorously, but the outcome might not fully leverage the potential benefits of a truly robust competitive market.

What are the historical spending patterns for engineering services related to defense nuclear security within the Department of Energy?

Historical spending patterns for defense nuclear security engineering services within the Department of Energy (DOE) are generally substantial and consistent, driven by the ongoing need to maintain and secure the nation's nuclear deterrent and related infrastructure. The DOE, through its various components like the National Nuclear Security Administration (NNSA), consistently awards significant contracts for engineering, research, development, and technical support. Annual spending can fluctuate based on specific program needs, modernization efforts, and budget allocations. Analyzing past years' spending on similar NAICS codes (like 541330) and contract types within the DOE's defense-related programs would provide context for the $20 million award, indicating whether it represents an increase, decrease, or stable level of investment.

What are the implications of this contract being a 'delivery order' rather than a standalone contract?

This contract being a 'delivery order' implies it is a task-specific order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. The IDIQ contract establishes the terms and conditions, including pricing structures and general scope, under which multiple delivery orders can be placed over a period. This approach allows the agency to procure services efficiently as needed, without having to conduct a full competitive procurement for each individual task. The implications are that the $20 million is for a specific period and set of tasks, and the overall value and scope of the parent IDIQ contract are likely much larger. Oversight needs to consider both the individual delivery order and the performance under the parent IDIQ.

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: 89233125QNA000411

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: $138,969,197

Exercised Options: $21,734,571

Current Obligation: $19,984,156

Actual Outlays: $6,713,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F243CA

IDV Type: FSS

Timeline