Department of Energy awards $106M in consulting services to National Interest Advanced Solutions, LLC

Contract Overview

Contract Amount: $106,101,507 ($106.1M)

Contractor: National Interest Advanced Solutions, LLC

Awarding Agency: Department of Energy

Start Date: 2005-08-15

End Date: 2011-08-25

Contract Duration: 2,201 days

Daily Burn Rate: $48.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSULTING AND GENERAL SUPPORT SERVICES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $106.1 million to NATIONAL INTEREST ADVANCED SOLUTIONS, LLC for work described as: CONSULTING AND GENERAL SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was competitively awarded, suggesting potential for price discovery. 3. Duration of over 2200 days points to a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 signifies a focus on administrative and general management consulting. 5. The contract was awarded to a single entity, National Interest Advanced Solutions, LLC. 6. The contract was awarded as a delivery order under a larger contract vehicle. 7. The contract was awarded to a firm located in Maryland.

Value Assessment

Rating: fair

Benchmarking the value of this $106 million contract for consulting services is challenging without specific deliverables or performance metrics. However, the firm-fixed-price structure provides some cost certainty. Comparing this to similar administrative management consulting contracts within the Department of Energy or other federal agencies would be necessary for a more precise value assessment. The duration suggests a sustained need, which could indicate good value if the services are consistently effective.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, implying that multiple vendors likely had the opportunity to bid. The fact that it is a delivery order suggests it was placed against an existing contract vehicle that was itself competed. The number of bids received would provide further insight into the level of competition. A competitive award generally supports better price discovery and potentially lower costs for the government.

Taxpayer Impact: Competitive awards help ensure that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and value.

Public Impact

The Department of Energy benefits from specialized administrative and management consulting services. These services likely support the agency's operational efficiency and strategic planning. The contract's duration suggests a significant, ongoing impact on departmental functions. The geographic impact is primarily within Maryland, where the contractor is based, but the services likely support national energy initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The long duration of the contract could lead to potential complacency or reduced innovation if not actively managed.
The absence of small business subcontracting data raises questions about broader economic impact.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competitive award process suggests potential for good value and price discovery.
The contract's long-term nature indicates a sustained need and potential for deep expertise development within the contractor.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of advisory services essential for government operations. The federal market for such services is substantial, with agencies frequently outsourcing specialized expertise to improve efficiency and address complex challenges. The $106 million award is significant within this sub-sector, indicating a substantial scope of work for the Department of Energy.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without information on subcontracting plans or actual performance, it's difficult to assess the extent to which small businesses benefited from this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. As a delivery order under a larger contract vehicle, the underlying contract likely has its own oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Specific performance reviews and audits would depend on the agency's internal processes and any Inspector General involvement related to the services provided.

Related Government Programs

Department of Energy Management and Consulting Services
Federal Administrative Support Contracts
Government-wide Acquisition Contracts (GWACs) for Professional Services
Management and Consulting Services for Federal Agencies

Risk Flags

Long contract duration may require active management to prevent complacency.
Lack of detailed performance metrics makes objective assessment difficult.
Potential for institutional knowledge transfer to contractor needs monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $106.1 million to NATIONAL INTEREST ADVANCED SOLUTIONS, LLC. CONSULTING AND GENERAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NATIONAL INTEREST ADVANCED 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 $106.1 million.

What is the period of performance?

Start: 2005-08-15. End: 2011-08-25.

What specific consulting services were provided under this contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This broad category can include a wide array of services such as organizational planning, process improvement, strategic planning, program management support, and general administrative advice. Without access to the specific Statement of Work (SOW) or task orders issued under this delivery order, the precise nature of the consulting services remains unspecified. However, given the awarding agency is the Department of Energy, the services likely relate to supporting the agency's complex mission, which involves energy research, development, regulation, and national security.

How does the $106 million value compare to similar consulting contracts at the Department of Energy?

Comparing the $106 million value requires context regarding the contract's duration and scope. This contract spans over 2200 days (approximately 6 years), making its annual value around $17.7 million. The Department of Energy, like many large federal agencies, utilizes numerous consulting contracts to support its diverse operations. Larger, multi-year contracts for comprehensive management and consulting services can easily reach tens or hundreds of millions of dollars. To provide a precise comparison, one would need to analyze the average award values for similar NAICS codes (541611) and contract types (firm-fixed-price delivery orders) awarded by the DOE over comparable timeframes. However, $106 million over six years for a single, competitively awarded contract suggests a significant and sustained need for specialized consulting expertise within the department.

What is the track record of National Interest Advanced Solutions, LLC in securing federal contracts?

National Interest Advanced Solutions, LLC has secured this $106 million contract from the Department of Energy. Further investigation into federal procurement databases (like FPDS or SAM.gov) would reveal the full extent of their federal contract history. This includes the number of contracts awarded, their values, the agencies they've served, and the types of services provided. A substantial award like this suggests the company has demonstrated capability and competitiveness to win significant government business. Analyzing their past performance on previous contracts, including any reported issues or successes, would provide a more complete picture of their track record.

What are the potential risks associated with a long-term consulting contract of this magnitude?

Long-term consulting contracts, especially those valued at $106 million over six years, carry several potential risks. One primary risk is 'scope creep,' where the project's objectives expand beyond the original agreement without corresponding adjustments in cost or timeline, leading to inefficiencies. Another risk is contractor complacency; if not actively managed and held accountable, the contractor might reduce effort or innovation over time. There's also the risk of institutional knowledge becoming overly concentrated within the contractor, potentially hindering the agency's internal capacity development. Furthermore, if the contract is not closely monitored for performance and value, there's a risk of overpaying for services that do not yield the expected benefits. Finally, changes in agency priorities or leadership could render the contracted services less relevant, leading to wasted resources.

How does the firm-fixed-price (FFP) contract type influence cost control and risk for this award?

A firm-fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and the risks of cost overruns are relatively low. For this $106 million Department of Energy contract, the FFP structure means that National Interest Advanced Solutions, LLC is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This places the primary cost risk on the contractor. Consequently, the government benefits from cost certainty, as the total expenditure is known upfront. However, if the contractor underestimates costs or encounters unforeseen difficulties, they bear the financial burden. This contract type incentivizes the contractor to manage their resources efficiently to maximize profit, which can indirectly benefit the government through potentially better service delivery within the fixed budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: International Business Machines Corporation (UEI: 001368083)

Address: 310 SR 956, KEYSER, WV, 26726

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $119,636,520

Exercised Options: $115,976,548

Current Obligation: $106,101,507

Parent Contract

Parent Award PIID: GS10F0343K

IDV Type: FSS

Timeline