DoD's $96M Engineering Services Contract Awarded to Clean Earth Technologies LLC for RDTE/Services Management Support

Contract Overview

Contract Amount: $12,593,264 ($12.6M)

Contractor: CET LLC

Awarding Agency: Department of Defense

Start Date: 2002-03-15

End Date: 2005-02-25

Contract Duration: 1,078 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200209!000057!2100!AD05 !USA MATERIEL COMMAND ACQUISITION!DAAD0502C0017 !A!N! !N! !20020315!20030825!961564770!961564770!961564770!N!CLEAN EARTH TECHNOLOGIES, LLC !13378 LAKEFRONT DRIVE !EARTH CITY !MO!63045!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000001000000!N!N!000000000000!AD26!RDTE/SERVICES-MANAGEMENT SUPPORT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!030!B! !Z!Y!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! !Y! ! !0001!

Place of Performance

Location: EARTH CITY, ST. LOUIS County, MISSOURI, 63045, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to CET LLC for work described as: 200209!000057!2100!AD05 !USA MATERIEL COMMAND ACQUISITION!DAAD0502C0017 !A!N! !N! !20020315!20030825!961564770!961564770!961564770!N!CLEAN EARTH TECHNOLOGIES, LLC !13378 LAKEFRONT DRIVE !EARTH CITY !MO!63045!65000!510!29!ST. LOUIS !ST. L… Key points: 1. Contract awarded for RDTE/Services Management Support, indicating a focus on research, development, testing, and evaluation. 2. The contract value of $96.16M over its period of performance suggests a significant investment in specialized engineering services. 3. Awarded by the Department of the Army, this contract falls under the broader Department of Defense spending umbrella. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of defense readiness and technological advancement. 5. The contract's duration of approximately 3 years (1078 days) implies a need for sustained support in the specified service area. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while ensuring contractor profit. 7. The presence of 30 bids suggests a competitive procurement process for these specialized engineering services.

Value Assessment

Rating: good

The contract value of $96.16 million for engineering services appears reasonable given the duration and scope of RDTE/Services Management Support. Benchmarking against similar contracts for specialized engineering services within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, requires careful oversight to ensure costs remain within reasonable bounds and that the fixed fee is appropriate for the level of effort and risk involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 30 bids received. This indicates a robust bidding process, suggesting that the government sought a wide range of potential offerors. The high number of bidders generally leads to a more competitive environment, which can result in better pricing and innovative solutions for the government.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair and reasonable price, maximizing the value of federal investment.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other Department of Defense entities requiring advanced engineering and R&D support. The services delivered are expected to encompass research, development, testing, and evaluation, contributing to technological advancements and operational capabilities. The geographic impact is primarily within the United States, supporting defense initiatives and potentially leveraging specialized engineering expertise across different regions. Workforce implications include the employment of engineers, scientists, and technical personnel by Clean Earth Technologies, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle requires ongoing review.
The specialized nature of RDTE/Services Management Support may limit the pool of truly qualified contractors, despite the number of bids.

Positive Signals

Full and open competition with 30 bids suggests a healthy market and competitive pricing.
The contract award to a specific company indicates a successful match between government needs and contractor capabilities.
The duration of the contract allows for sustained focus and development of expertise in the required service area.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to Research, Development, Testing, and Evaluation (RDTE) and management support. The market for such services within the defense sector is substantial, driven by the continuous need for technological superiority and modernization. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD and its various branches, particularly those focused on advanced research and development initiatives.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, with 30 bidders in a full and open competition, there is a potential opportunity for small businesses to participate as subcontractors to the prime contractor, Clean Earth Technologies, LLC. Further analysis would be needed to determine if specific small business goals were established for this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering Services Contracts
Army Contracting Command Awards
RDTE Support Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Need to verify contractor's past performance on similar RDTE contracts.
Ensure fixed fee is appropriate for the scope and risk of RDTE work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to CET LLC. 200209!000057!2100!AD05 !USA MATERIEL COMMAND ACQUISITION!DAAD0502C0017 !A!N! !N! !20020315!20030825!961564770!961564770!961564770!N!CLEAN EARTH TECHNOLOGIES, LLC !13378 LAKEFRONT DRIVE !EARTH CITY !MO!63045!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000001000000!N!N!000000000000!AD26!RDTE/SERVICES-MANAGEMENT SUPPORT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is CET LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2002-03-15. End: 2005-02-25.

What is the track record of Clean Earth Technologies, LLC in performing similar RDTE and services management support contracts for the Department of Defense?

A comprehensive review of Clean Earth Technologies, LLC's past performance is crucial for assessing their capability to execute this $96.16 million contract. This would involve examining their history with similar RDTE (Research, Development, Testing, and Evaluation) and services management support contracts, particularly within the Department of Defense or other federal agencies. Key areas to investigate include their on-time delivery record, quality of work, adherence to budget, and any past performance issues or commendations. Analyzing past contract values and durations can also provide insight into their experience with projects of comparable scale and complexity. A lack of extensive relevant experience could indicate a higher risk for this contract, while a strong track record would suggest a lower risk and a higher likelihood of successful performance.

How does the awarded amount of $96.16 million compare to market rates for similar engineering services contracts?

To benchmark the $96.16 million award, one would compare it against the average contract values for similar RDTE and services management support contracts awarded by the Department of Defense and other agencies over the past several years. This comparison should consider factors such as contract duration, scope of work, specific technical requirements, and the level of competition. For instance, if similar contracts with comparable scopes and durations typically range from $70 million to $110 million, then this award would fall within a reasonable market range. Conversely, if the average is significantly lower or higher, it would warrant further investigation into the specific drivers of the cost, such as unique technical requirements, urgency, or market conditions at the time of award. The Cost Plus Fixed Fee (CPFF) nature of the contract also means that the final cost could fluctuate, making a direct comparison to fixed-price contracts challenging without detailed cost breakdowns.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDTE services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDTE services revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently motivated to control costs, as their profit (the fixed fee) is predetermined and not directly tied to cost savings. This can lead to cost overruns if not managed diligently. Contractors, on the other hand, bear the risk of underestimating the costs required to perform the work, as they will not be reimbursed for costs exceeding the estimated amount, beyond the agreed-upon fee. For RDTE projects, which are inherently uncertain, this risk is amplified. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

How effective is the competition level (30 bidders) in ensuring price discovery and value for the taxpayer in this contract?

A competition level of 30 bidders for this engineering services contract is generally considered very strong and highly indicative of effective price discovery. A large number of bids suggests that the market for these services is robust and that the government's requirements were clearly defined and accessible to a wide range of potential offerors. This intense competition typically drives down prices as contractors vie to win the award, forcing them to submit their most competitive proposals. For taxpayers, this means a higher likelihood that the contract was awarded at a fair and reasonable price, maximizing the value of the government's investment. The extensive competition reduces the risk of the government overpaying due to a lack of viable alternatives.

What are the historical spending patterns for engineering services under NAICS code 541330 within the Department of Defense?

Historical spending patterns for engineering services (NAICS 541330) within the Department of Defense are substantial and consistently high, reflecting the military's reliance on advanced technological capabilities and infrastructure. The DoD is a major procurer of engineering services, encompassing a wide array of needs from R&D and system design to construction oversight and technical support. Annual spending in this category often runs into the tens of billions of dollars across all branches. Analyzing trends over the past decade would likely show a steady demand, with peaks and troughs influenced by geopolitical events, modernization programs, and budget allocations. This specific contract, valued at approximately $96 million, represents a moderate-sized award within the broader context of DoD's extensive engineering service procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 30

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13695 RIDER TRL N, EARTH CITY, MO, 63045

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline