DOE awards $8.26M for environmental consulting, with 4 bidders competing for a 4-year task order
Contract Overview
Contract Amount: $8,260,000 ($8.3M)
Contractor: Independent Strategic Management Solutions Inc
Awarding Agency: Department of Energy
Start Date: 2025-04-24
End Date: 2028-09-08
Contract Duration: 1,233 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES TASK ORDER
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $8.3 million to INDEPENDENT STRATEGIC MANAGEMENT SOLUTIONS INC for work described as: OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES TASK ORDER Key points: 1. Value for money appears reasonable given the 4-year duration and the competitive nature of the award. 2. The contract was awarded under full and open competition, suggesting a healthy market for these services. 3. Risk indicators are moderate, with a Time and Materials pricing structure that requires careful monitoring. 4. Performance context is tied to environmental consulting services at Oak Ridge, a critical site for DOE. 5. Sector positioning is within environmental consulting, a specialized field supporting government operations.
Value Assessment
Rating: good
The total award amount of $8.26 million over approximately 4 years suggests a moderate annual spend. Benchmarking against similar environmental consulting contracts is difficult without more specific service details, but the competitive award process implies a fair market price was likely achieved. The Time and Materials (T&M) pricing structure, while common, necessitates diligent oversight to ensure costs remain aligned with the value delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Four bidders participated in this competition, suggesting a reasonable level of market interest and a degree of price discovery. The presence of multiple bidders generally supports the government's ability to obtain competitive pricing and a wider range of technical solutions.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and encourages innovation.
Public Impact
The Department of Energy benefits from specialized technical, management, and administrative services for its Oak Ridge operations. Environmental consulting services will be delivered, crucial for managing and remediating environmental impacts at a major federal facility. The geographic impact is concentrated in Tennessee, specifically around the Oak Ridge facility. Workforce implications may include the need for specialized environmental scientists, engineers, and project managers, potentially sourced from the private sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type can lead to cost overruns if not closely managed, as it directly reimburses labor hours and material costs.
- The duration of the contract (over 4 years) requires sustained oversight to ensure continued value and performance.
- Lack of specific performance metrics in the provided data makes it challenging to assess the effectiveness of the services delivered.
Positive Signals
- Awarded under full and open competition with four bidders, indicating a competitive market and likely fair pricing.
- The contract supports critical environmental management functions at a significant federal site (Oak Ridge).
- The task order structure allows for flexibility in addressing evolving environmental needs over the contract period.
Sector Analysis
The environmental consulting services sector is a specialized segment of the professional services industry, often supporting government agencies with complex regulatory and operational challenges. This contract fits within the broader category of environmental services, which includes areas like site assessment, remediation, compliance, and management. The market for these services is driven by regulatory requirements and the need for expert technical support, particularly at large federal facilities like those managed by the Department of Energy.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, the prime contractor, Independent Strategic Management Solutions Inc., may engage small businesses as subcontractors, depending on their subcontracting plans and the specific needs of the task order. Further analysis would be required to determine the extent of small business participation through subcontracting.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy, specifically the Oak Ridge Office of Environmental Management. As a task order under a larger contract, it will be subject to the oversight mechanisms of the parent contract, including performance reviews and financial monitoring. Transparency is expected through contract reporting requirements. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.
Related Government Programs
- Oak Ridge National Laboratory Support Services
- Environmental Remediation Services
- Department of Energy Management and Consulting Contracts
- Technical Support Services for Federal Agencies
Risk Flags
- Time and Materials pricing structure requires robust oversight.
- Contract duration necessitates sustained performance monitoring.
- Scope definition and management are critical for T&M contracts.
Tags
environmental-consulting, department-of-energy, oak-ridge, tennessee, full-and-open-competition, task-order, time-and-materials, management-consulting, administrative-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $8.3 million to INDEPENDENT STRATEGIC MANAGEMENT SOLUTIONS INC. OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES TASK ORDER
Who is the contractor on this award?
The obligated recipient is INDEPENDENT STRATEGIC MANAGEMENT SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $8.3 million.
What is the period of performance?
Start: 2025-04-24. End: 2028-09-08.
What is the track record of Independent Strategic Management Solutions Inc. with the Department of Energy?
Independent Strategic Management Solutions Inc. has a history of receiving contracts from the Department of Energy. While specific details on past performance quality are not provided in this data snippet, the award of this task order suggests a satisfactory past performance record or a competitive bid that met DOE's requirements. Further investigation into their contract history, including any performance evaluations or past disputes, would provide a more comprehensive understanding of their reliability and expertise in delivering services to the DOE.
How does the per-unit cost of this contract compare to similar environmental consulting services?
A direct per-unit cost comparison is challenging without knowing the specific services rendered and the associated labor categories or units of measure. The contract is awarded on a Time and Materials (T&M) basis, which means costs are driven by hours worked and materials used rather than a fixed price per unit of service. Benchmarking would require analyzing the hourly rates for various labor categories and the markup on materials against industry standards and other government contracts for similar environmental consulting expertise. The fact that four bidders competed suggests the pricing structure was likely competitive within the market.
What are the primary risks associated with a Time and Materials (T&M) contract for environmental consulting?
The primary risk with a T&M contract for environmental consulting is the potential for cost escalation if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred, plus a fee or profit. This can lead to higher-than-expected costs if the scope of work is not well-defined, if the contractor is inefficient, or if the duration of the work extends beyond initial estimates. Effective oversight, including detailed timesheet reviews, material cost verification, and close monitoring of project progress against milestones, is crucial to mitigate these risks and ensure value for taxpayer money.
How effective are competitive bidding processes in ensuring value for money in specialized consulting services like environmental management?
Competitive bidding processes, particularly full and open competition with multiple bidders, are generally effective in ensuring value for money for specialized consulting services. By allowing numerous qualified firms to compete, the government can leverage market forces to drive down prices and encourage innovation. The presence of four bidders in this case suggests a healthy competitive environment. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria used, and the government's ability to accurately assess technical proposals and pricing. For specialized services, ensuring bidders have the requisite expertise is as critical as achieving a low price.
What is the historical spending trend for environmental consulting services at the Oak Ridge Office of Environmental Management?
Analyzing historical spending trends for environmental consulting services at the Oak Ridge Office of Environmental Management (OOEM) would require access to historical contract databases and budget information. Without that specific data, it's difficult to provide a precise trend. However, given the nature of environmental management at a large, historically significant federal site like Oak Ridge, spending in this area is often substantial and can fluctuate based on remediation needs, regulatory changes, and new environmental challenges. The current $8.26 million award over four years provides a benchmark for recent spending levels in this category.
What are the implications of this contract award for the environmental consulting market in Tennessee?
This contract award signifies a significant opportunity for the prime contractor, Independent Strategic Management Solutions Inc., and potentially for subcontractors within the environmental consulting sector in Tennessee. It highlights the demand for specialized environmental services at federal facilities in the region. The competitive nature of the award suggests that multiple firms in the market possess the capabilities to serve such contracts, fostering a dynamic business environment. It also indicates that the Department of Energy relies on private sector expertise to manage complex environmental challenges at its Oak Ridge site.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting 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: 89303324REM000126
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1950 KEENE RD, RICHLAND, WA, 99352
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $74,820,282
Exercised Options: $43,780,186
Current Obligation: $8,260,000
Actual Outlays: $2,482,217
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA21D0087
IDV Type: FSS
Timeline
Start Date: 2025-04-24
Current End Date: 2028-09-08
Potential End Date: 2030-09-08 00:00:00
Last Modified: 2026-02-04
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