DOE's $340M R&D Support Services Contract Awarded to Research and Development Solutions, LLC
Contract Overview
Contract Amount: $340,800,887 ($340.8M)
Contractor: Research and Development Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2004-11-15
End Date: 2010-05-14
Contract Duration: 2,006 days
Daily Burn Rate: $169.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: RDS SUPPORT SERVICES CONTRACT
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $340.8 million to RESEARCH AND DEVELOPMENT SOLUTIONS, LLC for work described as: RDS SUPPORT SERVICES CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract type (Cost Plus Award Fee) allows for flexibility but requires careful oversight to manage costs and incentivize performance. 3. A duration of over 5 years indicates a significant, long-term need for these R&D support services. 4. The contract was awarded to a single vendor, Research and Development Solutions, LLC, highlighting their specialized capabilities or competitive advantage. 5. The contract's value of over $340 million signifies a substantial investment in research and development support. 6. The contract was awarded in 2004, providing a historical benchmark for similar R&D support services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable contracts. The Cost Plus Award Fee structure can lead to costs exceeding initial estimates if not managed tightly. However, the full and open competition suggests that the pricing was likely competitive at the time of award. The duration and total value indicate a significant commitment by the Department of Energy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than a sole source, a higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.
Taxpayer Impact: The full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving service quality.
Public Impact
The primary beneficiaries are likely the researchers and scientific personnel within the Department of Energy who receive support services. Services delivered include crucial support for research and development activities, enabling scientific advancement. The geographic impact is centered in West Virginia, where the contract was performed. Workforce implications include the creation or maintenance of jobs for individuals providing R&D support services in West Virginia.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize cost overruns if performance metrics are not strictly defined and monitored.
- The limited number of bidders (2) may indicate potential barriers to entry or a concentrated market for these specialized R&D support services.
- Lack of specific performance metrics makes it difficult to assess the 'award fee' component's effectiveness in driving exceptional performance.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
- The contract's long duration suggests a stable and ongoing need for these critical R&D support services.
- The contract was awarded to a single entity, Research and Development Solutions, LLC, indicating a potentially strong and reliable partnership for the DOE.
Sector Analysis
The contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). This sector is vital for innovation and technological advancement across various government agencies. Spending in this area often supports scientific discovery, technological prototyping, and advanced engineering projects. Comparable spending benchmarks would depend on the specific nature of the R&D support, but large-scale R&D contracts can range from tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Research and Development Solutions, LLC, is likely a larger entity. There is no direct information on subcontracting plans for small businesses within this data, which could be a missed opportunity for small business participation.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract would primarily fall under the Department of Energy's contracting officers and program managers. The 'award fee' component implies performance metrics that require regular evaluation. Transparency would depend on the DOE's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Research and Development Programs
- Federal Scientific and Technical Services Contracts
- Government Support Services Contracts
- Cost-Plus-Fee Contracts
Risk Flags
- Cost Plus Award Fee contract type requires robust oversight to manage potential cost growth.
- Long contract duration increases risk of changing requirements or technological obsolescence.
- Single awardee increases performance risk if contractor fails to meet expectations.
Tags
research-and-development, department-of-energy, support-services, cost-plus-award-fee, full-and-open-competition, large-contract, west-virginia, scientific-services, federal-contract, research-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $340.8 million to RESEARCH AND DEVELOPMENT SOLUTIONS, LLC. RDS SUPPORT SERVICES CONTRACT
Who is the contractor on this award?
The obligated recipient is RESEARCH AND DEVELOPMENT SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $340.8 million.
What is the period of performance?
Start: 2004-11-15. End: 2010-05-14.
What specific types of R&D support services were provided under this contract?
The provided data does not specify the exact nature of the 'RDS SUPPORT SERVICES CONTRACT.' However, given the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences), the services likely encompassed a broad range of support functions essential for scientific research. This could include laboratory management, technical assistance, data analysis, equipment maintenance, procurement of specialized materials, administrative support for research projects, and potentially specialized scientific or engineering expertise. The Cost Plus Award Fee structure suggests that the contractor's performance was evaluated against specific objectives, and bonuses were awarded for exceeding expectations, implying a focus on quality and efficiency in the support provided.
How does the $340 million contract value compare to other R&D support service contracts awarded by the Department of Energy?
Without access to a comprehensive database of historical DOE R&D support contracts, a direct comparison is difficult. However, a contract value of $340 million over its duration (approximately 5.5 years) represents a significant investment. This averages to roughly $61.8 million per year. This figure suggests that the services procured were substantial in scope and critical to the DOE's mission. Larger R&D agencies often award contracts in this range for major research initiatives or long-term support functions. The fact that it was competed suggests that this level of spending was deemed necessary and justifiable by the agency.
What were the key performance indicators (KPIs) used to determine the 'award fee' for Research and Development Solutions, LLC?
The specific Key Performance Indicators (KPIs) used to determine the award fee for Research and Development Solutions, LLC are not detailed in the provided data. For a Cost Plus Award Fee (CPAF) contract, these KPIs are typically established in the contract's Performance Work Statement (PWS). They would likely relate to the quality, timeliness, and efficiency of the R&D support services provided. Examples could include meeting research milestones, maintaining equipment uptime, providing timely technical reports, adhering to safety protocols, and managing resources effectively. The 'award fee' portion incentivizes the contractor to go beyond minimum requirements and achieve exceptional performance in these areas.
What is the track record of Research and Development Solutions, LLC with federal contracts prior to and after this award?
The provided data indicates that Research and Development Solutions, LLC was awarded this significant $340 million contract by the Department of Energy. This suggests they had the capability and experience to handle large-scale federal contracts. To assess their broader track record, one would need to examine other federal contract databases (like FPDS or SAM.gov) for awards made to this entity before November 2004 and after May 2010. This would reveal the types of agencies they contract with, the value and duration of those contracts, their performance history (if available), and whether they specialize in R&D support or other areas. A comprehensive review would indicate their overall reliability and experience as a federal contractor.
Given the contract's duration and value, what were the potential risks associated with this engagement for the Department of Energy?
Several risks are inherent in a contract of this magnitude and type. Firstly, the Cost Plus Award Fee (CPAF) structure, while flexible, carries the risk of cost growth if the contractor's costs exceed projections and the award fee is maximized. Effective oversight is crucial to mitigate this. Secondly, the long duration (over 5 years) increases the risk of technological obsolescence or shifts in research priorities, potentially making the contracted services less relevant over time. Thirdly, reliance on a single contractor, even if competitively selected, carries performance risk; if Research and Development Solutions, LLC underperforms, it could significantly disrupt DOE's R&D activities. Finally, ensuring the contractor maintains adequate security protocols for sensitive research data is a constant risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-RP26-04NT41817
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 3604 COLLINS FERRY RD # 200, MORGANTOWN, WV, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $340,800,887
Exercised Options: $340,800,887
Current Obligation: $340,800,887
Timeline
Start Date: 2004-11-15
Current End Date: 2010-05-14
Potential End Date: 2010-05-14 00:00:00
Last Modified: 2012-02-09
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