DOE awards $3.4M contract for WTP site inspector support, highlighting administrative management needs

Contract Overview

Contract Amount: $3,423,756 ($3.4M)

Contractor: Street Legal Industries LLC

Awarding Agency: Department of Energy

Start Date: 2023-02-01

End Date: 2026-07-31

Contract Duration: 1,276 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACTOR TO PROVIDE WTP SITE INSPECTOR SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99354

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $3.4 million to STREET LEGAL INDUSTRIES LLC for work described as: CONTRACTOR TO PROVIDE WTP SITE INSPECTOR SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK. Key points: 1. Contract focuses on essential administrative and general management consulting services. 2. The contract duration spans over three years, indicating a need for sustained support. 3. Awarded via a BPA Call, suggesting a pre-competed framework was utilized. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The geographic location for service is Washington state. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: fair

The contract value of $3.4 million over approximately 3.75 years results in an average annual value of roughly $913,000. Benchmarking this against similar administrative management consulting contracts is challenging without more specific service details. However, the Time and Materials pricing structure warrants careful monitoring to ensure cost efficiency and prevent potential overruns compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of a BPA Call suggests that competition may have occurred at the BPA level, with this call being a specific task order. This approach generally promotes price discovery and value for taxpayers.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices through robust bidding and ensuring the government receives the best value.

Public Impact

The Department of Energy benefits from specialized support for its Water Treatment Plant (WTP) operations. Services include administrative and general management consulting, crucial for project oversight. The contract's impact is primarily within Washington state, where the WTP is located. The contract supports the operational efficiency and management of critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not closely managed.
Lack of specific bidder count makes it difficult to fully assess the competitive intensity for this specific task order.
The broad NAICS code (541611) could encompass a wide range of services, making precise value benchmarking difficult.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
The contract is part of a larger Blanket Purchase Agreement (BPA), suggesting a streamlined procurement process for established needs.
The multi-year duration indicates a stable requirement and potential for long-term relationship building with the contractor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. This sector is vital for government operations, providing expertise in areas ranging from strategic planning to operational efficiency. The market size for such services is substantial, with numerous firms capable of providing these specialized skills. This contract represents a small but important component of the Department of Energy's broader operational support spending.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small business participation were not specifically mandated through this procurement vehicle. The impact on the small business ecosystem is neutral, as there was no specific provision to direct work towards them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's contracting officer and program managers. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours and costs to ensure adherence to the Statement of Work and prevent cost overruns. Transparency is generally maintained through contract reporting mechanisms, and any significant issues could be subject to review by the DOE's Office of Inspector General.

Related Government Programs

Department of Energy Administrative Support Contracts
Water Treatment Plant Operations Support
Management and Consulting Services for Federal Agencies
BPA Call Task Orders

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust government oversight to manage contractor performance and costs.
Limited transparency on the number of bidders for this specific task order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $3.4 million to STREET LEGAL INDUSTRIES LLC. CONTRACTOR TO PROVIDE WTP SITE INSPECTOR SUPPORT SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is STREET LEGAL INDUSTRIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-07-31.

What is the specific scope of 'WTP Site Inspector Support Services' and how does it align with the broader mission of the Department of Energy?

The Statement of Work (SOW) details the specific requirements for 'WTP Site Inspector Support Services.' While the provided data does not include the SOW, these services typically involve on-site monitoring, inspection, and reporting related to the construction, operation, or maintenance of Water Treatment Plants (WTPs). This support is crucial for the Department of Energy (DOE) to ensure compliance with environmental regulations, safety standards, and project timelines for its facilities. The administrative and general management consulting aspect suggests the contractor may also be responsible for logistical coordination, documentation management, and progress reporting to DOE officials, thereby facilitating efficient project execution and oversight.

How does the Time and Materials (T&M) contract type compare to other potential contract types for this type of service in terms of cost control and risk?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they carry a higher risk of cost overruns for the government compared to Firm-Fixed-Price (FFP) contracts, as the final cost is directly tied to the hours worked and material used. For administrative and consulting services, T&M can be suitable if the exact effort is unpredictable. Effective cost control under T&M relies heavily on robust government oversight, detailed tracking of labor categories and hours, and strict management of material costs. Without strong oversight, T&M contracts can be less cost-effective than FFP or Cost-Plus contracts, where the contractor assumes more risk for cost overruns.

What does the use of a Blanket Purchase Agreement (BPA) Call imply about the procurement process and potential competition for this specific award?

A Blanket Purchase Agreement (BPA) is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. A BPA Call is a specific order placed against an existing BPA. This implies that the initial BPA was likely competed on a full and open basis, establishing pre-negotiated terms, conditions, and potentially ceiling prices. When a specific need arises, like this WTP site inspector support, the agency issues a 'call' against the BPA. Competition for the call can vary; sometimes it's awarded to the BPA holder directly if the BPA allows, or it might be competed among multiple BPA holders. The 'FULL AND OPEN COMPETITION' designation suggests that either the original BPA was competed broadly, or this specific call was competed among multiple qualified vendors who held similar BPAs.

Given the contract's duration of over three years, what are the potential long-term implications for the Department of Energy's operational efficiency and budget?

A contract duration exceeding three years suggests a stable, ongoing requirement for WTP site inspector support. This can lead to improved operational efficiency for the Department of Energy (DOE) by ensuring consistent access to specialized expertise without the need for frequent re-procurement. Budgetary implications include predictable spending for this service line over the contract period, allowing for better financial planning. However, the Time and Materials (T&M) pricing structure necessitates vigilant budget management to control costs. If managed effectively, the long-term engagement can foster a deeper understanding of DOE's specific needs by the contractor, potentially leading to more tailored and effective support, thus enhancing overall project and facility management.

What is the typical market rate or benchmark for administrative management and general management consulting services provided to federal agencies, and how does this contract's value compare?

Benchmarking the value of administrative management and general management consulting services is complex due to the wide variation in scope, complexity, and required expertise. For federal contracts under NAICS code 541611, rates can range significantly based on the level of consultants (junior, senior, principal), geographic location, and specific industry knowledge required. Time and Materials contracts further complicate direct value comparisons as the final cost is variable. Without specific details on the labor categories, hours, and overhead rates negotiated, it's difficult to definitively benchmark the $3.4 million value. However, the average annual value of approximately $913,000 for a multi-year engagement suggests a substantial need for dedicated support, and the government would rely on competitive bidding and oversight to ensure fair market pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FY23-SB13

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 102 JEFFERSON CT, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,424,356

Exercised Options: $3,423,956

Current Obligation: $3,423,756

Actual Outlays: $2,771,287

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303918AEM000009

IDV Type: BPA

Timeline