DOE Awards $138M Mission Execution Support Services Contract to KBC Energy Solutions LLC
Contract Overview
Contract Amount: $137,953,509 ($138.0M)
Contractor: KBC Energy Solutions LLC
Awarding Agency: Department of Energy
Start Date: 2023-04-01
End Date: 2028-03-31
Contract Duration: 1,826 days
Daily Burn Rate: $75.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: MISSION EXECUTION SUPPORT SERVICES
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $138.0 million to KBC ENERGY SOLUTIONS LLC for work described as: MISSION EXECUTION SUPPORT SERVICES Key points: 1. Contract value of $138M over 5 years. 2. KBC Energy Solutions LLC is the sole awardee. 3. Potential for cost overruns due to Cost Plus Award Fee structure. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee type, which can lead to higher costs than fixed-price contracts. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not have resulted in the most competitive pricing.
Taxpayer Impact: The Cost Plus Award Fee structure and limited competition raise concerns about maximizing taxpayer value.
Public Impact
Supports critical mission execution for the Department of Energy. Potential impact on energy sector research and development if services are not cost-effective. Job creation in West Virginia, where the contract is managed.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Award Fee structure
- Limited competition
Positive Signals
- Supports critical DOE mission
- Long-term contract provides stability
Sector Analysis
Engineering services are crucial for government operations, particularly in sectors like energy. The benchmark for such contracts varies widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight to ensure performance and control costs effectively.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns
- Limited competition may lead to suboptimal pricing
- Lack of transparency in award fee determination
- Contract performance not yet demonstrated
Tags
engineering-services, department-of-energy, wv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $138.0 million to KBC ENERGY SOLUTIONS LLC. MISSION EXECUTION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is KBC ENERGY SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $138.0 million.
What is the period of performance?
Start: 2023-04-01. End: 2028-03-31.
What specific metrics are used to determine award fees for KBC Energy Solutions LLC?
Award fee determination typically relies on pre-defined performance objectives and metrics outlined in the contract. These often include factors like timeliness, quality of deliverables, innovation, and overall mission support. The specific metrics for this contract would be detailed in the Statement of Objectives and Performance Work Statement, requiring careful monitoring by the contracting officer.
How does the 'exclusion of sources' clause impact the overall risk of this contract?
Excluding sources limits the pool of potential offerors, which can increase the risk of not achieving the best possible price or solution. While justified in some cases, it necessitates a strong rationale to ensure fair and reasonable pricing and to mitigate the risk of vendor lock-in or reduced innovation.
What is the expected effectiveness of these mission execution support services in achieving DOE's strategic goals?
The effectiveness hinges on the clarity of the Statement of Objectives, the contractor's ability to meet performance standards, and the agency's oversight. Successful execution should directly contribute to DOE's mission objectives by ensuring efficient and effective program delivery and operational support.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243321RFE000049
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 75 ARLINGTON STREET, BOSTON, MA, 02116
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $251,993,811
Exercised Options: $251,993,811
Current Obligation: $137,953,509
Actual Outlays: $103,178,423
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-04-01
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-04-09
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