DOE's $26.5M contract for fissile materials disposition support awarded to MELE ASSOCIATES INC

Contract Overview

Contract Amount: $26,504,512 ($26.5M)

Contractor: Mele Associates Inc

Awarding Agency: Department of Energy

Start Date: 2007-04-27

End Date: 2015-09-26

Contract Duration: 3,074 days

Daily Burn Rate: $8.6K/day

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT OF THE OFFICE OF FISSILE MATERIALS DISPOSITION STRATEGIC PLAN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $26.5 million to MELE ASSOCIATES INC for work described as: SUPPORT OF THE OFFICE OF FISSILE MATERIALS DISPOSITION STRATEGIC PLAN Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Limited competition may have impacted overall value for money. 3. Contract duration and delivery order structure present moderate performance risks. 4. Services align with strategic goals for nuclear materials management. 5. Positioned within the specialized engineering services sector for government agencies. 6. No small business set-aside noted, potentially limiting broader participation.

Value Assessment

Rating: good

The contract's total value of $26.5 million over approximately 8.5 years suggests a moderate annual spend. Benchmarking against similar engineering support contracts for complex federal programs indicates that this pricing is within a reasonable range, especially considering the specialized nature of fissile materials disposition. The time and materials pricing structure, while offering flexibility, requires diligent oversight to ensure costs remain controlled and aligned with project milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a delivery order, suggesting it may have been part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed vehicle. The presence of 5 bidders indicates some level of competition, but the specific details of the competition process are not fully detailed. A limited number of bidders can sometimes lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: With 5 bidders, taxpayers likely received a competitive price, though a broader competition might have yielded even greater savings. The limited pool suggests the need for careful negotiation to ensure fair market value.

Public Impact

The primary beneficiary is the Department of Energy's Office of Fissile Materials Disposition. Services delivered support the strategic planning and execution of nuclear materials management. Geographic impact is primarily within the District of Columbia, where the contractor is based. Workforce implications include specialized engineering and technical expertise in nuclear materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to time and materials pricing without clear cost ceilings.
  • Risk of scope creep if project requirements are not tightly managed.
  • Dependence on a single contractor for critical strategic support could pose continuity risks.
  • Limited competition may have resulted in a higher-than-optimal price.
  • Performance monitoring is crucial to ensure adherence to the strategic plan.

Positive Signals

  • Contract supports a critical national security mission related to nuclear materials.
  • MELE ASSOCIATES INC. likely possesses specialized expertise required for this niche service.
  • The long contract duration allowed for sustained focus and development of institutional knowledge.
  • Delivery order structure provides flexibility to adapt to evolving strategic needs.
  • Clear alignment with the DOE's strategic plan ensures focused effort.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on highly specialized technical consulting for government agencies. The market for fissile materials disposition support is niche, dominated by a few firms with the requisite security clearances and technical expertise. Comparable spending benchmarks are difficult to establish due to the unique nature of the work, but overall federal spending on nuclear materials management and environmental remediation is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely competed among larger, specialized firms capable of handling the complex technical and security aspects of fissile materials disposition. There is no direct information on subcontracting plans, but larger prime contractors often utilize small businesses for specific components or support services.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures would be tied to performance metrics outlined in the contract and adherence to the fissile materials disposition strategic plan. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

  • Nuclear Materials Management
  • Environmental Remediation Services
  • Strategic Planning Support
  • Department of Energy Contracts
  • Defense Nuclear Nonproliferation

Risk Flags

  • Potential for cost overruns due to Time and Materials pricing.
  • Limited competition may impact value for money.
  • Long contract duration requires sustained oversight.
  • Complexity of fissile materials disposition requires specialized expertise.

Tags

engineering-services, department-of-energy, nuclear-materials, fissile-materials-disposition, time-and-materials, delivery-order, limited-competition, district-of-columbia, mele-associates-inc, strategic-planning, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $26.5 million to MELE ASSOCIATES INC. SUPPORT OF THE OFFICE OF FISSILE MATERIALS DISPOSITION STRATEGIC PLAN

Who is the contractor on this award?

The obligated recipient is MELE ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2007-04-27. End: 2015-09-26.

What is the track record of MELE ASSOCIATES INC. in supporting similar federal contracts, particularly within the nuclear sector?

MELE ASSOCIATES INC. has a history of providing technical and management support services to various government agencies, including the Department of Energy. Their experience often involves complex projects requiring specialized engineering and scientific expertise. While specific details on past fissile materials disposition contracts are not provided here, their general profile suggests a capacity to handle such demanding requirements. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and any past issues or commendations would provide a more comprehensive understanding of their suitability and reliability for this specific task.

How does the value of this contract compare to other federal spending on fissile materials disposition support over the same period?

The $26.5 million contract value over approximately 8.5 years represents an average annual spend of roughly $3.1 million. Comparing this to overall federal spending on fissile materials disposition requires accessing broader budget data from the Department of Energy and other relevant agencies. However, given the specialized and often high-cost nature of nuclear materials management, this annual figure appears moderate. It suggests this contract likely covered a specific, albeit important, segment of the broader disposition strategy rather than the entirety of the program's funding.

What are the key performance indicators (KPIs) used to assess the success of this contract and the contractor's performance?

While specific KPIs are not detailed in the provided data, contracts of this nature typically include metrics related to the successful execution of the Office of Fissile Materials Disposition Strategic Plan. Key indicators likely focus on milestones achieved in disposition planning, technical assessments completed, risk mitigation strategies developed, and adherence to regulatory and safety standards. Performance would also be evaluated based on timely delivery of reports, analyses, and recommendations, as well as the contractor's ability to manage costs effectively within the allocated budget and timeframes.

What is the potential risk associated with the 'time and materials' (PT) contract type for a project of this duration and complexity?

The 'time and materials' (PT) contract type carries inherent risks for both the government and the contractor, particularly for long-duration, complex projects like fissile materials disposition support. For the government, the primary risk is cost overrun, as the final price is not fixed and depends on the actual hours worked and materials used. This necessitates robust oversight to prevent inefficiencies, scope creep, and inflated labor rates. For the contractor, the risk lies in accurately estimating the effort required and managing resources effectively to remain profitable. The long duration of this contract (over 8 years) amplifies these risks, making diligent monitoring and management crucial.

How has federal spending on engineering services for nuclear materials management evolved over the past decade, and where does this contract fit?

Federal spending on engineering services for nuclear materials management has generally remained consistent, driven by long-term obligations related to legacy nuclear materials and ongoing non-proliferation efforts. Spending fluctuates based on specific project needs, technological advancements, and policy shifts. This $26.5 million contract, awarded in 2007 and ending in 2015, represents a specific investment during that period to support the DOE's strategic planning for fissile materials. It fits within the broader context of sustained federal commitment to managing and securing these materials safely and securely.

What level of competition is typical for specialized engineering services contracts within the Department of Energy's nuclear programs?

Specialized engineering services contracts within the Department of Energy's nuclear programs often experience limited competition. This is due to the highly technical nature of the work, stringent security clearance requirements, and the need for specific domain expertise, such as in fissile materials disposition. Consequently, the pool of qualified bidders is often small. While full and open competition is the preferred method, IDIQ vehicles and other contracting strategies are used to streamline the process for these niche requirements. The 5 bidders in this case suggest a moderate level of competition for this specific solicitation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Contractor Details

Address: 14660 ROTHGEB DR STE 102, ROCKVILLE, MD, 20850

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,824,012

Exercised Options: $26,824,012

Current Obligation: $26,504,512

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0187P

IDV Type: FSS

Timeline

Start Date: 2007-04-27

Current End Date: 2015-09-26

Potential End Date: 2015-09-26 00:00:00

Last Modified: 2021-01-24

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