DOE Awarded $23.5M Contract for Consulting Services to Systems Management and Research Technologies Corporation
Contract Overview
Contract Amount: $23,498,948 ($23.5M)
Contractor: Systems Management and Research Technologies Corporation
Awarding Agency: Department of Energy
Start Date: 2003-09-15
End Date: 2008-09-30
Contract Duration: 1,842 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Place of Performance
Location: LUSBY, CALVERT County, MARYLAND, 20657
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $23.5 million to SYSTEMS MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1842 days (approx. 5 years) indicates a long-term need for these services. 3. The primary service category is 'Other Scientific and Technical Consulting Services', a broad area. 4. The contract was awarded by the Department of Energy, indicating a focus on energy-related consulting. 5. The award amount of $23.5 million over its term suggests a significant investment in external expertise. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Time and Materials pricing structure, while common for consulting, can lead to cost overruns if not tightly managed. Comparing it to similar contracts for 'Other Scientific and Technical Consulting Services' would require detailed analysis of scope and duration. The $23.5 million award over approximately five years averages to about $4.7 million annually, which falls within a typical range for large-scale consulting engagements.
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 a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition is generally positive for price discovery, as it incentivizes bidders to offer competitive rates to secure the award.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment. Open competition helps ensure that the awarded price is reflective of market rates and that the government is not overpaying for the services.
Public Impact
The Department of Energy benefits from specialized consulting services to support its operations and research. The contract likely supports various scientific and technical initiatives within the energy sector. The geographic impact is primarily within Maryland, where the contractor is located. The contract may indirectly support a workforce of consultants and researchers in the scientific and technical services industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess true value for money.
- The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep if not well-defined.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Long contract duration suggests a sustained need and potential for stable service delivery.
- Contractor is SYSTEM MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION, which may have a track record with the agency.
Sector Analysis
The 'Other Scientific and Technical Consulting Services' sector is a broad category encompassing a wide range of expertise. This contract likely falls within the government's broader spending on professional services, which is a significant market. The Department of Energy often procures specialized consulting for research, development, policy analysis, and operational support. Comparable spending benchmarks would depend heavily on the specific technical domain and deliverables, but $23.5 million over five years is a substantial award.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no information on subcontracting plans, but large contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses to directly contract with the government on this specific award are limited, though they might participate as subcontractors.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures would be tied to the contract's performance clauses and deliverables, especially given the Time and Materials structure. Transparency is generally facilitated through contract award databases, but detailed performance and spending reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Consulting Services
- Scientific and Technical Consulting
- Professional Services Contracts
- Federal Research and Development Support
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Broad Service Category
Tags
consulting-services, scientific-and-technical-services, department-of-energy, time-and-materials, full-and-open-competition, large-contract, professional-services, federal-contract, maryland, energy-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $23.5 million to SYSTEMS MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SYSTEMS MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2003-09-15. End: 2008-09-30.
What is the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?
The provided data classifies the service under NAICS code 541690, 'Other Scientific and Technical Consulting Services'. This is a broad category that can encompass a wide array of specialized consulting activities. Without further details on the contract's statement of work, it is difficult to ascertain the precise nature of the services. However, given the awarding agency is the Department of Energy, these services could range from policy analysis, research support, technical assessments, environmental consulting, or strategic planning related to energy initiatives. The Time and Materials (T&M) contract type suggests that the scope might have been less defined at the outset, allowing for flexibility as needs evolved, or that the value of labor hours was the primary cost driver.
How does the $23.5 million award compare to typical spending for similar consulting services at the Department of Energy?
The $23.5 million award over approximately five years (1842 days) represents an average annual expenditure of roughly $4.7 million for consulting services. This amount is substantial and indicates a significant engagement. To benchmark this effectively, one would need to compare it against other Department of Energy contracts for 'Other Scientific and Technical Consulting Services' with similar durations and scopes. However, in the broader context of federal professional services, $4.7 million annually for specialized consulting is within the range of large-scale engagements. The Department of Energy, like many large federal agencies, relies on external expertise for complex technical and scientific challenges, making such awards not uncommon for critical projects.
What are the potential risks associated with a Time and Materials (T&M) contract of this magnitude?
Time and Materials contracts, while offering flexibility, carry inherent risks, particularly for large-value, long-duration awards like this $23.5 million contract. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. Without stringent oversight, well-defined task orders, and robust monitoring of hours and rates, costs can significantly exceed initial estimates. There's also a risk of inefficiency, as the contractor may have less incentive to complete tasks quickly compared to a fixed-price contract. For the Department of Energy, managing this T&M contract effectively would require diligent tracking of all expenditures, clear communication with the contractor, and proactive identification of any potential scope creep or inefficiencies to ensure value for taxpayer money.
What is the track record of SYSTEMS MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION with the Department of Energy or similar agencies?
The provided data indicates that SYSTEMS MANAGEMENT AND RESEARCH TECHNOLOGIES CORPORATION was awarded this $23.5 million contract by the Department of Energy (DOE) with a start date of September 15, 2003, and an end date of September 30, 2008. This suggests a prior relationship and likely experience working with the DOE. To fully assess their track record, further investigation into their past performance on this and other federal contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes, and their history of delivering services within budget and schedule for the DOE or other agencies in similar sectors. A positive performance history on this contract could indicate reliability and expertise.
How does the 'full and open competition' award mechanism impact the value received by the government?
Awarding a contract through 'full and open competition' generally enhances the value received by the government. This mechanism allows any responsible source to submit a bid, fostering a competitive environment. When multiple companies vie for a contract, they are incentivized to offer their best pricing and most compelling technical solutions to win the award. This competitive pressure helps ensure that the government secures services at a price closer to market rates and potentially obtains higher quality solutions. For this $23.5 million contract, the full and open competition suggests that the Department of Energy likely received competitive proposals, contributing to a more favorable outcome for taxpayers compared to a sole-source or limited competition scenario.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 14150 JOY RD, LUSBY, MD, 05
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,440,854
Exercised Options: $31,038,166
Current Obligation: $23,498,948
Timeline
Start Date: 2003-09-15
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2013-09-23
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