Department of Energy awards $3.99M for administrative support, raising questions about competition and value

Contract Overview

Contract Amount: $3,988,508 ($4.0M)

Contractor: Salmon Group Inc

Awarding Agency: Department of Energy

Start Date: 2019-01-01

End Date: 2023-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFICE ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99352

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $4.0 million to SALMON GROUP INC for work described as: OFFICE ADMINISTRATIVE SUPPORT SERVICES Key points: 1. The contract was awarded on a sole-source basis, limiting opportunities for competitive bidding and potentially impacting price. 2. The fixed-price contract structure provides some cost certainty, but the lack of competition hinders benchmarking. 3. Performance dates span five years, indicating a long-term need for these administrative services. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services, suggesting a broad scope. 5. The absence of small business set-aside flags indicates this contract did not prioritize small business participation. 6. The contract was awarded as a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.99 million contract is challenging due to its sole-source nature and the broad scope of 'office administrative support services'. Without competitive bids, it's difficult to assess if the pricing is fair market value. The fixed-price nature offers some predictability, but the lack of transparency in the procurement process prevents a robust value-for-money assessment compared to similar contracts that undergo open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed under the simplified acquisition procedures (SAP). This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple vendors. The lack of competition means that the Department of Energy did not explore potential savings or innovations that could have arisen from a bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. The lack of transparency in pricing and vendor selection limits the ability to ensure the most cost-effective solution was secured.

Public Impact

Federal employees within the Department of Energy benefit from the administrative and facilities support services provided. The services ensure the smooth operation of office environments and facilities managed by the Department of Energy. The geographic impact is primarily within Washington D.C., where the Department of Energy's main offices are located. The contract supports administrative roles, potentially impacting the efficiency and productivity of government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially inflates costs.
Lack of transparency in the procurement process hinders value assessment.
Broad service description makes it difficult to pinpoint specific cost drivers.
Long contract duration (5 years) could lead to complacency or missed opportunities for cost optimization.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Long-term award suggests a stable and ongoing need for the services.
Awarding to a single vendor may streamline management and reduce administrative overhead for the agency.

Sector Analysis

The administrative support services sector is vast, encompassing a wide range of functions from clerical tasks to facilities management. This contract, classified under NAICS 561210 (Facilities Support Services), falls within a segment focused on maintaining and operating government facilities. The total federal spending on facilities support services is substantial, with numerous contracts awarded annually. This specific award represents a small portion of that overall market, but its sole-source nature warrants scrutiny within the broader context of government procurement efficiency.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary contractor, SALMON GROUP INC, is likely not a small business, and there may be limited direct opportunities for small businesses to participate in fulfilling this contract's requirements. The absence of small business considerations could mean a missed opportunity to foster growth within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's contracting officer and program managers. As a sole-source award, there might be heightened scrutiny from internal audit functions or potentially the Government Accountability Office (GAO) if protests were filed. Transparency is limited due to the non-competitive nature, making public oversight more challenging. Specific inspector general jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts
Department of Defense administrative support contracts
Office of Management and Budget (OMB) guidance on procurement

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency in procurement process limits accountability.
Broad service description may obscure specific cost drivers and value.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $4.0 million to SALMON GROUP INC. OFFICE ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SALMON GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2019-01-01. End: 2023-12-31.

What is the track record of SALMON GROUP INC in performing federal contracts, particularly those involving administrative or facilities support?

Information regarding SALMON GROUP INC's specific track record with federal contracts, especially in administrative and facilities support, is not detailed in the provided data. A comprehensive review would require accessing contract databases like the Federal Procurement Data System (FPDS) to analyze past performance, contract values, and any reported issues. Without this data, it's difficult to assess their experience and reliability for this specific $3.99 million award. Agencies typically rely on past performance evaluations during the procurement process, but for sole-source awards, this information might be less accessible or less critical if justification for the sole source is strong.

How does the $3.99 million contract value compare to similar administrative support contracts awarded by the Department of Energy or other agencies?

Comparing the $3.99 million value of this contract to similar administrative support services is challenging without more specific details on the scope of services and the contract type. However, federal agencies frequently award contracts for administrative and facilities support ranging from tens of thousands to millions of dollars. The five-year duration of this contract suggests an average annual value of approximately $800,000. This figure is within a common range for significant support service contracts. The lack of competition for this specific award, however, prevents a direct price-to-price comparison with competitively bid contracts, making it difficult to ascertain if this represents optimal value.

What are the primary risks associated with awarding a sole-source contract for administrative support services?

The primary risks associated with sole-source contracts include a lack of price competition, which can lead to inflated costs for the government. There's also a reduced incentive for the contractor to innovate or improve efficiency, as they face no threat from competitors. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities to engage a wider range of capable vendors, including small businesses. Without competition, the government may not secure the best possible value or the most suitable solution available in the market.

What specific administrative support services are included under this contract, and how do they contribute to the Department of Energy's mission?

The provided data categorizes this contract under NAICS code 561210, 'Facilities Support Services,' and describes the service as 'OFFICE ADMINISTRATIVE SUPPORT SERVICES.' This broad description suggests the contract likely encompasses a range of activities essential for the day-to-day operations of the Department of Energy's facilities. These could include tasks such as managing office supplies, handling mail, providing reception services, scheduling meetings, maintaining records, and potentially supporting facility maintenance coordination. These services are crucial for ensuring that Department of Energy personnel can focus on their core mission-critical activities without being burdened by administrative overhead.

What is the historical spending pattern for administrative support services at the Department of Energy, and how does this contract fit within that trend?

Analyzing historical spending patterns for administrative support services at the Department of Energy (DOE) would require access to comprehensive historical contract data. However, it is common for large federal agencies like the DOE to consistently allocate significant budgets towards administrative and facilities support to ensure operational continuity. Contracts for such services often span multiple years and can range widely in value depending on the scope and duration. This $3.99 million, five-year contract appears to represent a steady, long-term investment in maintaining essential support functions within the DOE. Without historical data, it's difficult to determine if this specific award represents an increase, decrease, or continuation of previous spending trends for similar services.

Were there any justifications provided for awarding this contract on a sole-source basis, and do they align with federal procurement regulations?

Federal procurement regulations (e.g., the Federal Acquisition Regulation - FAR) allow for sole-source awards under specific circumstances, such as when only one responsible source is available, or when a compelling urgency exists. The provided data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which implies a sole-source justification was likely made. However, the specific reasons for this justification are not detailed. To assess alignment with regulations, one would need to review the official justification document (e.g., a Justification and Approval - J&A) filed by the Department of Energy. Without this document, it's impossible to confirm if the justification was valid and met the stringent requirements for non-competitive procurement.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 89303918QEM000012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 555 11TH ST NW # 402, WASHINGTON, DC, 20004

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,988,508

Exercised Options: $3,988,508

Current Obligation: $3,988,508

Actual Outlays: $2,553,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303919DEM000004

IDV Type: IDC

Timeline