DOE awarded $33.4M to East Tennessee Mechanical Contractors for automotive repair and maintenance services

Contract Overview

Contract Amount: $33,412,358 ($33.4M)

Contractor: East Tennessee Mechanical Contractors, Inc

Awarding Agency: Department of Energy

Start Date: 2002-05-15

End Date: 2008-02-03

Contract Duration: 2,090 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Energy obligated $33.4 million to EAST TENNESSEE MECHANICAL CONTRACTORS, INC for work described as: Key points: 1. The contract value of $33.4 million over its period of performance suggests a significant need for the services provided. 2. The full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The contract's duration of 2090 days (approximately 5.7 years) suggests a long-term requirement for these services. 4. The award was made by the Department of Energy, indicating a specific operational need within the agency. 5. The North American Industry Classification System (NAICS) code 811198 points to specialized automotive repair and maintenance, not standard vehicle servicing. 6. The contract type is Time and Materials, which can carry risks of cost overruns if not closely managed.

Value Assessment

Rating: fair

Benchmarking the value of this $33.4 million contract is challenging without specific service details or comparable contract data. However, the duration of nearly six years suggests a consistent need. The Time and Materials (T&M) contract type, while flexible, requires diligent oversight to ensure costs remain reasonable and do not escalate beyond expectations. Without more granular data on the specific services rendered and their associated labor rates and material markups, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Department of Energy sought bids from all responsible sources. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed broadly is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider selection of qualified contractors, maximizing the use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Energy facilities and operations that rely on specialized automotive repair and maintenance. Services delivered include the upkeep and repair of automotive equipment essential for DOE operations. The geographic impact is centered in Tennessee, where the contractor is based and likely where the services are performed. Workforce implications include employment opportunities for skilled automotive technicians and mechanics within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns if not managed rigorously.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The long duration of the contract (nearly 6 years) could indicate a lack of market innovation or a reliance on a single provider over an extended period.

Positive Signals

Awarded through full and open competition, indicating a broad market solicitation and potential for competitive pricing.
The significant contract value suggests a sustained and critical need for the services by the Department of Energy.
The contractor's long tenure on this contract (if it represents a renewal or extension) could imply satisfactory performance historically.

Sector Analysis

The automotive repair and maintenance sector is diverse, ranging from routine servicing to highly specialized mechanical work. This contract, under NAICS 811198, falls into the latter category, suggesting services beyond standard oil changes and tire rotations. Such specialized services are crucial for government agencies operating unique or extensive fleets of vehicles and equipment. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the automotive assets being maintained by the Department of Energy.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, East Tennessee Mechanical Contractors, Inc., is likely not a small business, or if it is, it won the contract through open competition. There is no explicit information on subcontracting plans, but large contracts often involve some level of subcontracting, which could potentially benefit small businesses if included in the contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Energy. Given the Time and Materials nature, robust monitoring of labor hours, material costs, and justification for work performed is crucial. Transparency would be enhanced through regular reporting requirements stipulated in the contract. The Inspector General's office for the Department of Energy would have jurisdiction for audits and investigations if any irregularities or fraud were suspected.

Related Government Programs

Department of Energy Vehicle Maintenance Contracts
Federal Automotive Fleet Management
Specialized Mechanical Repair Services
Government Equipment Maintenance

Risk Flags

Time and Materials Contract Type Risk
Long Contract Duration Potential for Obsolescence
Lack of Specific Performance Metrics
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $33.4 million to EAST TENNESSEE MECHANICAL CONTRACTORS, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EAST TENNESSEE MECHANICAL CONTRACTORS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.4 million.

What is the period of performance?

Start: 2002-05-15. End: 2008-02-03.

What specific types of automotive repair and maintenance services are covered under this contract?

The contract falls under NAICS code 811198, which is defined as 'All Other Automotive Repair and Maintenance.' This typically includes specialized services not covered by other automotive repair codes, such as transmission repair, exhaust system repair, and potentially the maintenance of specialized government vehicles or equipment. Without access to the contract's statement of work, the precise services remain unspecified, but it implies a level of technical expertise beyond routine vehicle servicing. The Department of Energy likely utilizes unique or heavy-duty automotive equipment that requires this specialized maintenance to ensure operational readiness.

How does the Time and Materials (T&M) contract type compare to other contract types for this type of service?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined at the outset or is expected to fluctuate. For automotive repair and maintenance, T&M offers flexibility, allowing the contractor to bill for actual labor hours and material costs incurred. However, this flexibility comes with inherent risks for the government, primarily cost uncertainty and the potential for contractor inefficiency if not closely monitored. Fixed-price contracts, in contrast, offer greater cost certainty but require a well-defined scope. For specialized maintenance where unforeseen issues can arise, T&M can be appropriate, but it necessitates stringent oversight from the government to control costs and ensure fair pricing.

What is the historical spending pattern for automotive repair and maintenance services at the Department of Energy?

Analyzing the historical spending patterns for automotive repair and maintenance at the Department of Energy (DOE) requires access to broader federal procurement data beyond this single contract. This $33.4 million award to East Tennessee Mechanical Contractors, Inc. spans from May 2002 to February 2008, indicating a significant, long-term requirement. To understand the overall pattern, one would need to examine total DOE spending on similar services across different fiscal years and potentially across various DOE facilities or field offices. This would reveal trends in demand, average contract values, and the prevalence of different contract types used for fleet and equipment maintenance within the agency.

What are the potential risks associated with a nearly six-year contract for automotive services?

A contract duration of nearly six years (2090 days) for automotive services presents several potential risks. Firstly, technology in the automotive sector evolves rapidly; a long-term contract might not account for newer, more efficient repair methods or diagnostic tools. Secondly, the T&M nature of this contract, combined with its length, increases the risk of cost escalation over time if labor rates and material costs are not effectively controlled or benchmarked. Thirdly, a prolonged contract with a single provider could stifle competition and potentially lead to complacency in service quality or pricing. Finally, the government's needs might change significantly over six years, making the contracted services less relevant or requiring costly modifications.

How does the contractor's location in Tennessee potentially impact service delivery for the Department of Energy?

The contractor, East Tennessee Mechanical Contractors, Inc., being located in Tennessee suggests that the services are likely performed at or near DOE facilities within that state or region. This proximity can be advantageous for timely response to maintenance needs, reducing travel time and associated costs for the contractor. For the Department of Energy, having a local provider can facilitate easier communication, oversight, and quicker deployment of technicians for critical repairs. However, if DOE operations requiring this service extend beyond Tennessee, the contractor might incur additional travel costs, which could be passed on through the T&M structure, or the DOE might have other arrangements for services outside the primary geographic area.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › All Other Automotive Repair and Maintenance

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 109 BERTRAND STREET, N.E., KNOXVILLE, TN, 02

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $34,412,358

Exercised Options: $34,412,358

Current Obligation: $33,412,358

Timeline