DOE's $63M contract with Teledyne Environmental, Inc. for environmental services spanned over a decade

Contract Overview

Contract Amount: $63,236,670 ($63.2M)

Contractor: Teledyne Environmental, Inc.

Awarding Agency: Department of Energy

Start Date: 2000-03-15

End Date: 2011-02-18

Contract Duration: 3,992 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: HUNT VALLEY, BALTIMORE County, MARYLAND, 21031

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $63.2 million to TELEDYNE ENVIRONMENTAL, INC. for work described as: Key points: 1. The contract's long duration suggests a sustained need for environmental services. 2. A Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control by the contractor. 3. The absence of competition raises questions about potential overpayment and lack of innovation. 4. Performance context is limited without specific task orders or deliverables. 5. This contract falls within the Department of Energy's broader environmental management mission. 6. The contract's value is significant, requiring careful scrutiny of its cost-effectiveness.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its age and lack of detailed performance data. The CPFF structure, while common, can lead to higher costs if not managed diligently. Without comparable contracts or specific task order details, it's difficult to definitively assess if the $63 million spent represented good value for money. The extended period of performance without re-competition suggests potential inefficiencies or a lack of market alternatives.

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 among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities or when circumstances preclude a competitive process. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed award.

Taxpayer Impact: Sole-source awards mean taxpayers may not have benefited from the cost savings and innovation that typically arise from a competitive bidding process.

Public Impact

The primary beneficiaries are likely the Department of Energy's environmental cleanup and management programs. Services delivered would have pertained to environmental remediation, monitoring, or related technical support. The geographic impact is likely concentrated around DOE facilities or sites requiring environmental services. Workforce implications would involve specialized environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a contract of this magnitude over such a long period.
Potential for cost overruns inherent in CPFF contracts without robust oversight.
Limited transparency into specific task orders and performance metrics.
Difficulty in assessing true value for money due to sole-source award.
Contract duration extending beyond typical procurement cycles without justification.

Positive Signals

Contractor's sustained engagement suggests a level of capability and reliability.
CPFF contract type can provide flexibility for evolving environmental needs.
The contract supported critical environmental stewardship missions of the DOE.

Sector Analysis

This contract falls within the environmental services sector, a critical component of government operations, particularly for agencies managing legacy sites or complex facilities. The market for environmental services is diverse, encompassing remediation, consulting, waste management, and monitoring. The Department of Energy, with its extensive history of industrial and research activities, is a significant consumer of these services. Benchmarking this contract's value is difficult without specific task details, but its multi-year, multi-million dollar scope indicates a substantial engagement.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available from the provided data. As a sole-source award, it is less likely to have included specific small business participation goals unless mandated by specific program requirements or waivers.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Department of Energy contracting officers and program managers. The CPFF structure necessitates rigorous monitoring of costs and performance to ensure accountability. However, the sole-source nature and long duration mean that robust oversight is crucial to prevent potential inefficiencies and ensure fair pricing. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Department of Energy Environmental Management Program
Environmental Remediation Services
Hazardous Waste Management Contracts
Site Cleanup Contracts

Risk Flags

Sole-source award
Long contract duration without re-competition
Cost Plus Fixed Fee contract type
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $63.2 million to TELEDYNE ENVIRONMENTAL, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TELEDYNE ENVIRONMENTAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $63.2 million.

What is the period of performance?

Start: 2000-03-15. End: 2011-02-18.

What specific environmental services were performed under this contract?

The provided data does not detail the specific environmental services rendered under this $63 million contract awarded to Teledyne Environmental, Inc. by the Department of Energy. Typically, contracts of this nature for the DOE could encompass a wide range of activities, including but not limited to site assessment, hazardous waste characterization and disposal, soil and groundwater remediation, environmental monitoring, pollution prevention, and compliance support. The Cost Plus Fixed Fee (CPFF) structure suggests that the scope might have been adaptable to evolving environmental challenges or regulatory requirements at DOE facilities. Further investigation into specific task orders or contract modifications would be necessary to ascertain the precise nature and extent of the services provided over its nearly 11-year duration.

How does the $63 million total award compare to similar environmental service contracts awarded by the DOE during that period?

Comparing the $63 million total award to similar environmental service contracts by the DOE between 2000 and 2011 is challenging without more granular data on contract scope, duration, and specific services. However, given the nearly 11-year performance period, the average annual expenditure was approximately $5.7 million. This figure falls within a moderate range for large-scale environmental remediation and management contracts, which can often reach tens or hundreds of millions of dollars annually, especially for complex cleanup sites. The sole-source nature of this award, however, prevents a direct comparison with competitively bid contracts, which might have yielded different pricing structures and overall costs for similar services.

What were the justifications for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Specific justifications for sole-source procurements are typically documented in the contract file and agency procurement records. Common reasons include the unique capability of the contractor, the urgency of the requirement where competition is not feasible, or if the services are a follow-on to a previously competed effort where only one contractor could provide the necessary continuity. For a contract spanning over a decade, the initial justification would have been critical, and any subsequent sole-source extensions would require rigorous justification to ensure fair and reasonable pricing and to comply with federal acquisition regulations. Without access to these justifications, the rationale remains unclear.

What risks are associated with a sole-source contract of this duration and value?

A sole-source contract of this duration ($63 million over nearly 11 years) carries several inherent risks. Firstly, the lack of competition can lead to reduced price pressure, potentially resulting in higher costs for the government than if the contract had been competed. Secondly, without the stimulus of competition, there may be less incentive for the contractor to innovate or improve efficiency. Thirdly, long-term sole-source arrangements can create vendor lock-in, making it difficult to transition to other providers even if market conditions change. Finally, oversight becomes paramount; agencies must diligently monitor performance and costs to ensure the contractor is delivering value and not exploiting the lack of competition. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, also requires robust cost monitoring to prevent overspending.

How effective was Teledyne Environmental, Inc. in fulfilling the contract requirements?

The provided data does not contain specific performance metrics or evaluations for Teledyne Environmental, Inc. under this contract. Effectiveness would typically be assessed through contract performance reports, quality assurance reviews, and feedback from the government program managers overseeing the work. Given the contract's long duration and sole-source nature, it is crucial that the Department of Energy maintained strong oversight to ensure that Teledyne consistently met or exceeded performance expectations and delivered the required environmental services effectively and efficiently. Without access to performance data, a definitive assessment of effectiveness cannot be made.

What was the historical spending pattern for this contract leading up to the $63 million total?

The data indicates a total award amount of $63,236,669.51 for this contract, which ran from March 15, 2000, to February 18, 2011, a period of approximately 3,992 days (or nearly 11 years). This suggests an average annual spending rate of roughly $5.75 million. The 'COST PLUS FIXED FEE' (CPFF) contract type implies that costs were reimbursed, plus a predetermined fixed fee representing profit. The spending pattern would likely have fluctuated based on the specific environmental tasks undertaken during different phases of the contract. Without access to annual or quarterly expenditure reports, it's impossible to detail the precise spending trajectory, but the total amount reflects a consistent level of activity over the contract's lifespan.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Teledyne Technologies Incorporated (UEI: 112358432)

Address: 10707 GILROY, HUNT VALLEY, MD, 02

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,106,674

Exercised Options: $49,106,674

Current Obligation: $63,236,670

Timeline