DOE Awards $160.8M for Strategic Analysis Support Services to Keylogic, LLC
Contract Overview
Contract Amount: $160,856,404 ($160.9M)
Contractor: Keylogic, LLC
Awarding Agency: Department of Energy
Start Date: 2023-02-01
End Date: 2028-01-31
Contract Duration: 1,825 days
Daily Burn Rate: $88.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Engineering Services
Official Description: STRATEGIC ANALYSIS SUPPORT SERVICES
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $160.9 million to KEYLOGIC, LLC for work described as: STRATEGIC ANALYSIS SUPPORT SERVICES Key points: 1. Contract awarded to Keylogic, LLC for strategic analysis support. 2. The contract has a potential value of $160.8 million over 5 years. 3. Competition method was 'Full and Open', suggesting broad market access. 4. The sector is Engineering Services, with a PSC code of 541330.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed effectively. The base award amount is $88.14 million, with significant potential for award fees.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing.
Taxpayer Impact: The use of a CPAF contract type requires careful monitoring to ensure taxpayer funds are used efficiently and award fees are justified by performance.
Public Impact
Supports the Department of Energy's strategic analysis capabilities. Potential for job creation in West Virginia, where the contractor is located. Long-term contract (5 years) provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher costs.
- Potential for scope creep over the 5-year period.
- Limited visibility into specific performance metrics and award fee justification.
Positive Signals
- Full and open competition suggests a competitive bidding process.
- Contract supports critical strategic analysis functions for the DOE.
- Contractor is located in West Virginia, potentially benefiting a specific region.
Sector Analysis
The Engineering Services sector (NAICS 541330) encompasses a wide range of technical consulting and support. Spending in this sector can vary significantly based on agency needs and project complexity.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside or requirement for this award, as 'sb' is false. This suggests larger firms or joint ventures likely competed.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Award Fee structure is managed effectively, with clear performance metrics and justified award fees to protect taxpayer interests.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contract type.
- Long contract duration (5 years).
- Potential for undefined award fee criteria.
- Lack of specific small business participation goals.
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 $160.9 million to KEYLOGIC, LLC. STRATEGIC ANALYSIS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is KEYLOGIC, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $160.9 million.
What is the period of performance?
Start: 2023-02-01. End: 2028-01-31.
How will the Department of Energy ensure that the award fees under this CPAF contract are justified and do not excessively inflate costs?
The DOE must establish clear, measurable, and objective performance criteria linked to the strategic goals of the agency. Regular performance reviews and rigorous justification for any awarded fees are essential. Independent cost analysis and comparison against industry benchmarks for similar services should be conducted to validate fee amounts and ensure they reflect exceptional performance rather than routine service delivery.
What are the primary risks associated with a 5-year Cost Plus Award Fee contract for strategic analysis support services?
Key risks include potential cost overruns if performance metrics are poorly defined or if the contractor inflates costs to maximize award fees. There's also a risk of scope creep, where the services provided expand beyond the original intent without commensurate adjustments to cost and oversight. Ensuring consistent, high-quality strategic analysis over the long term requires robust contract management and continuous performance monitoring.
How effective is the 'Full and Open Competition' strategy in ensuring the best value for strategic analysis support services?
Full and open competition is generally effective in maximizing the pool of potential bidders and fostering price competition, which can lead to better value. However, the effectiveness for specialized services like strategic analysis also depends on the clarity of the solicitation requirements and the evaluation criteria. Ensuring that the most capable and cost-effective provider is selected requires a well-defined statement of work and a robust evaluation process beyond just price.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243321RFE000050
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 3168 COLLINS FERRY RD, MORGANTOWN, WV, 26505
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $294,977,483
Exercised Options: $294,977,483
Current Obligation: $160,856,404
Actual Outlays: $134,154,221
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-02-01
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2026-04-13
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