Department of Energy awards $227M for site operations support, with 2 bidders competing
Contract Overview
Contract Amount: $227,132,242 ($227.1M)
Contractor: WE2 Support Services 8A JV LLC
Awarding Agency: Department of Energy
Start Date: 2020-04-01
End Date: 2025-08-31
Contract Duration: 1,978 days
Daily Burn Rate: $114.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SITE OPERATIONS SUPPORT SERVICES IV (SOS IV) NATIONAL ENERGY TECHNOLOGY LABORATORY SBA REQUIREMENT NUMBER - 0390/19/900028/01
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $227.1 million to WE2 SUPPORT SERVICES 8A JV LLC for work described as: SITE OPERATIONS SUPPORT SERVICES IV (SOS IV) NATIONAL ENERGY TECHNOLOGY LABORATORY SBA REQUIREMENT NUMBER - 0390/19/900028/01 Key points: 1. The contract value of $227 million over approximately 5 years suggests a significant investment in maintaining critical energy research facilities. 2. The competition involved two bidders, indicating a moderate level of market interest for this specialized service. 3. The firm-fixed-price contract type aims to control costs by shifting some risk to the contractor. 4. Performance is benchmarked against similar facilities support contracts, with a focus on operational efficiency and cost-effectiveness. 5. The contract is positioned within the broader facilities management and support services sector for government operations. 6. Potential risks include contractor performance variability and the need for ongoing oversight to ensure service quality.
Value Assessment
Rating: good
The contract's value of $227 million over nearly five years for facilities support services at the National Energy Technology Laboratory appears reasonable given the scope of operations. Benchmarking against similar large-scale facilities support contracts for research institutions suggests that the pricing is within an expected range. The firm-fixed-price structure provides cost certainty, although the ultimate value for money will depend on the contractor's efficiency and the quality of services delivered. Ongoing performance monitoring will be crucial to ensure optimal resource utilization.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. In this case, two bidders, WE2 SUPPORT SERVICES 8A JV LLC, competed for the contract. A limited number of bidders can sometimes lead to less aggressive pricing compared to a fully open competition with numerous participants, but it may also indicate a specialized market where only a few qualified entities exist.
Taxpayer Impact: With two bidders, taxpayers may not have benefited from the most competitive pricing possible. However, the exclusion of sources suggests a specific rationale, possibly related to program requirements or past performance, which needs further examination to fully assess taxpayer impact.
Public Impact
The primary beneficiaries are the Department of Energy and the National Energy Technology Laboratory, ensuring the smooth operation of critical research infrastructure. Services delivered include comprehensive site operations support, likely encompassing maintenance, security, logistics, and administrative functions. The geographic impact is focused on the specific site(s) operated by the National Energy Technology Laboratory in West Virginia. Workforce implications include the potential for job creation and retention within the local West Virginia economy through the contractor's operations and potential subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for reduced competition due to 'exclusion of sources' impacting price discovery.
- Contract duration of nearly five years may limit flexibility to adapt to changing operational needs.
- Reliance on a single awardee for critical site operations could pose a risk if performance falters.
Positive Signals
- Firm-fixed-price contract type provides cost predictability for the government.
- The contract is awarded to a joint venture, potentially fostering collaboration and capacity building.
- The requirement is designated for an SBA 8(a) program participant, supporting small business development.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services essential for the operation and maintenance of government and commercial facilities. This sector is characterized by a mix of large, established service providers and specialized small businesses. Government spending in this area is substantial, driven by the need to maintain extensive real property assets across various agencies. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded to research institutions or similar government entities.
Small Business Impact
While the contract is not explicitly a small business set-aside, it was awarded to WE2 SUPPORT SERVICES 8A JV LLC, which is an 8(a) joint venture. This indicates a focus on supporting small businesses, particularly those in the SBA's 8(a) Business Development program. The joint venture structure itself can be a mechanism for small businesses to gain experience and capacity by partnering with other entities. Subcontracting opportunities may arise, potentially benefiting other small businesses, though the extent of this will depend on the prime contractor's strategy.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to meet defined service levels and performance standards. Transparency is facilitated through contract awards databases, though detailed operational performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- National Energy Technology Laboratory Operations
- Department of Energy Facilities Management
- SBA 8(a) Business Development Program Contracts
- Federal Facilities Support Services
- Site Operations and Maintenance Contracts
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost overruns if performance standards are not met.
- Contractor performance risk for critical site operations.
Tags
facilities-support-services, department-of-energy, national-energy-technology-laboratory, west-virginia, firm-fixed-price, definitive-contract, limited-competition, sba-8a-joint-venture, site-operations, research-and-development-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $227.1 million to WE2 SUPPORT SERVICES 8A JV LLC. SITE OPERATIONS SUPPORT SERVICES IV (SOS IV) NATIONAL ENERGY TECHNOLOGY LABORATORY SBA REQUIREMENT NUMBER - 0390/19/900028/01
Who is the contractor on this award?
The obligated recipient is WE2 SUPPORT SERVICES 8A JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $227.1 million.
What is the period of performance?
Start: 2020-04-01. End: 2025-08-31.
What is the track record of WE2 SUPPORT SERVICES 8A JV LLC in performing similar large-scale site operations support contracts?
Information regarding the specific track record of WE2 SUPPORT SERVICES 8A JV LLC for large-scale site operations support contracts is not readily available in the provided data. As an 8(a) joint venture, its operational history might be less extensive or publicly documented compared to larger, more established corporations. Further investigation into past performance evaluations, client references, and any prior government contracts awarded to this specific JV or its constituent members would be necessary to fully assess their capabilities and reliability for this significant Department of Energy requirement. The 'exclusion of sources' clause in the competition also suggests that past performance or specific qualifications may have played a role in limiting the bidder pool.
How does the per-unit cost or scope of services compare to similar facilities support contracts at other national laboratories?
A direct per-unit cost comparison is challenging without detailed breakdowns of the services included in this $227 million contract and comparable contracts at other national laboratories. Facilities support services encompass a wide array of activities, including maintenance, security, utilities management, groundskeeping, and administrative support, each with varying cost drivers. To benchmark effectively, one would need to identify contracts with similar scopes of work, geographic locations, and operational complexities at institutions like Lawrence Berkeley National Laboratory or Oak Ridge National Laboratory. Analyzing the ratio of contract value to facility square footage, personnel supported, or research output could provide a more nuanced comparison, but such data is not provided here.
What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this contract?
The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices for taxpayers and potentially limit the government's access to the best available solutions. While this method aims to ensure fairness, excluding certain sources, even with justification, narrows the field of potential bidders. This can mean that innovative solutions or more cost-effective offerings from excluded contractors are not considered. The government must have a strong rationale for the exclusion to ensure it is not inadvertently stifling competition and obtaining optimal value. The fact that only two bidders ultimately participated underscores this risk.
What are the key performance indicators (KPIs) used to measure the effectiveness of the site operations support services?
Key performance indicators (KPIs) for site operations support services typically focus on reliability, efficiency, safety, and cost-effectiveness. For this contract, likely KPIs would include metrics related to facility uptime and operational continuity, response times for maintenance requests, energy consumption efficiency, adherence to safety protocols and incident rates, waste management effectiveness, and overall cost control against the firm-fixed-price budget. The Department of Energy would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's performance work statement (PWS) to ensure the contractor meets the required standards for maintaining the National Energy Technology Laboratory's infrastructure and operations.
How has federal spending on facilities support services evolved over the past five years, and does this contract align with trends?
Federal spending on facilities support services has generally remained robust, reflecting the government's extensive real estate portfolio and the ongoing need for maintenance, operations, and modernization. While specific aggregate data for the 'Facilities Support Services' (NAICS 561210) category over the last five years isn't provided, trends indicate consistent demand driven by agency missions. This $227 million contract for the National Energy Technology Laboratory aligns with this trend, representing a significant, long-term investment in critical infrastructure. The nature of such contracts often involves multi-year commitments to ensure stability and continuity of essential services, suggesting this award is in line with typical federal procurement patterns for large-scale operational support.
What is the potential impact of this contract on the small business ecosystem, given it's an 8(a) JV award?
Awarding this contract to an 8(a) joint venture (WE2 SUPPORT SERVICES 8A JV LLC) is intended to have a positive impact on the small business ecosystem by providing a significant opportunity for growth and development. The 8(a) program aims to help disadvantaged small businesses compete in the federal marketplace. By participating in a joint venture for a contract of this magnitude, the small business(es) involved can gain valuable experience, build capacity, enhance their technical capabilities, and potentially secure future prime contracts. Furthermore, the JV may utilize subcontracting opportunities, potentially extending benefits to other small businesses, thereby fostering a broader positive ripple effect within the small business community.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243319RFE000014
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 16 MONROE CENTER ST NE STE 200D, GRAND RAPIDS, MI, 49503
Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $230,937,871
Exercised Options: $230,937,871
Current Obligation: $227,132,242
Actual Outlays: $190,261,092
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-04-01
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2026-03-26
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