DOE awards $13.2M task order for equipment standards support, raising value-for-money questions
Contract Overview
Contract Amount: $13,235,049 ($13.2M)
Contractor: D & R International, Ltd.
Awarding Agency: Department of Energy
Start Date: 2005-09-01
End Date: 2009-09-30
Contract Duration: 1,490 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TASK ORDER FOR EQUIPMENT STANDARDS SUPPORT SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $13.2 million to D & R INTERNATIONAL, LTD. for work described as: TASK ORDER FOR EQUIPMENT STANDARDS SUPPORT SERVICES Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending. 2. Limited competition after exclusion of sources could lead to suboptimal pricing. 3. The contract duration of 1490 days suggests a long-term need for these services. 4. Performance context is limited due to the age of the award data. 5. Engineering services are critical for establishing equipment standards. 6. The award was made to D & R INTERNATIONAL, LTD., with a base value of $8.88M.
Value Assessment
Rating: questionable
Benchmarking the value of this $13.2M task order is challenging due to the limited competition and the nature of the services provided. The cost-plus-fixed-fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed carefully. Without more detailed performance metrics or comparable contract data, it's difficult to definitively assess if the government received optimal value for its investment. The base award of $8.88M suggests significant potential for growth, which warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. This type of procurement, while sometimes necessary for specific technical requirements, generally results in less robust competition than true full and open competition. The number of bidders is not specified, but the designation suggests a limited pool, potentially impacting price discovery and the government's ability to secure the most competitive pricing.
Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers compared to a scenario with broader participation from qualified vendors.
Public Impact
The Department of Energy benefits from specialized support in establishing equipment standards. This contract supports the development and maintenance of critical technical specifications for energy-related equipment. The geographic impact is primarily within the Department of Energy's operational areas. Workforce implications include the need for specialized engineering and technical expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure may lead to cost overruns.
- Limited competition could result in inflated pricing.
- Lack of detailed performance data makes value assessment difficult.
- The exclusion of sources raises questions about the breadth of competition sought.
Positive Signals
- The contract addresses a critical need for engineering services in standards development.
- D & R INTERNATIONAL, LTD. was awarded the contract, suggesting they met the required qualifications.
- The task order was part of a larger contracting effort, implying strategic planning.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of government procurement supporting technical development and infrastructure. The market for engineering services is diverse, with significant government spending allocated to specialized technical support. This task order specifically addresses the need for expertise in developing and maintaining equipment standards, a function vital for ensuring safety, efficiency, and interoperability within the energy sector. Comparable spending benchmarks would typically involve analyzing other contracts for similar engineering support services across various federal agencies.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific task order. There is no indication of a small business set-aside. Consequently, the impact on the small business ecosystem is likely minimal, with no specific subcontracting opportunities for small businesses explicitly detailed in this award information. The prime contractor, D & R INTERNATIONAL, LTD., is not flagged as a small business.
Oversight & Accountability
Oversight for this task order would typically fall under the Department of Energy's contracting and program management offices. Specific accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Acquisition Regulations
- Federal Acquisition Regulation (FAR)
- Engineering Services Contracts
- Standards Development Programs
Risk Flags
- Limited Competition
- Cost-Plus-Fixed-Fee Structure
- Potential for Cost Overruns
- Lack of Detailed Performance Data
- Expired Contract
Tags
engineering-services, department-of-energy, cost-plus-fixed-fee, limited-competition, task-order, equipment-standards, expired-contract, federal-contract, us-government, procurement
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.2 million to D & R INTERNATIONAL, LTD.. TASK ORDER FOR EQUIPMENT STANDARDS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is D & R INTERNATIONAL, LTD..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $13.2 million.
What is the period of performance?
Start: 2005-09-01. End: 2009-09-30.
What was the specific rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award typically stems from unique technical requirements, specialized expertise, or proprietary technology that only a limited number of contractors possess. For this Department of Energy task order concerning equipment standards support services, the exclusion might have been due to the need for highly specialized engineering knowledge related to specific energy technologies or regulatory frameworks. Without access to the solicitation documents or internal agency justifications, the precise reasons remain undisclosed in the public award data. This procurement method aims to balance the need for specialized capabilities with a degree of competition, but it inherently narrows the field of potential bidders, potentially impacting cost-effectiveness.
How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost compared to other contract types for similar services?
The Cost Plus Fixed Fee (CPFF) contract type, used for this $13.2M task order, allows the contractor to recover all allowable costs plus a predetermined fixed fee. This structure is often employed when the scope of work is not precisely defined or involves a high degree of uncertainty, making fixed-price contracts impractical. While the fixed fee provides the contractor with a profit incentive, it does not cap the total cost to the government. If the contractor's costs exceed initial estimates, the government is obligated to pay those additional costs. This contrasts with fixed-price contracts, where the contractor bears the risk of cost overruns. Consequently, CPFF contracts can sometimes lead to higher final costs for the government if cost controls are not rigorously managed and if the contractor's actual costs are significantly higher than anticipated.
What are the potential risks associated with a long contract duration (1490 days) for engineering support services?
A long contract duration, such as the 1490 days (approximately 4 years) for this task order, presents several potential risks. Firstly, the technological landscape and specific requirements within the energy sector can evolve rapidly. A lengthy contract might become outdated, requiring costly modifications or failing to keep pace with advancements. Secondly, maintaining consistent quality and performance from the contractor over an extended period can be challenging. Performance may degrade, or key personnel might leave. Thirdly, the government's needs might change, making the original scope of work less relevant or requiring adjustments that are difficult to implement within the existing contract framework. Finally, longer contracts can sometimes reduce the urgency for cost efficiency, as the contractor may become complacent, assuming continued funding.
Can the performance history of D & R INTERNATIONAL, LTD. on this contract be assessed given the award date?
Assessing the performance history of D & R INTERNATIONAL, LTD. on this specific contract is challenging due to the award date. The task order was awarded on September 1, 2005, with an end date of September 30, 2009. This means the contract has long since expired. To evaluate their performance, one would need access to historical performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) or project close-out reports from that period. Publicly available data typically focuses on award details rather than detailed historical performance outcomes for expired contracts. Without access to these specific historical records, a thorough assessment of their performance on this particular task order is not feasible.
How does the base award amount of $8.88M compare to the total task order value of $13.23M, and what does this imply?
The base award of $8.88M represents the initial funding allocated when the task order was issued, while the total task order value of $13.23M indicates the maximum potential value, including all options and potential modifications. The difference of approximately $4.35M suggests that a significant portion of the contract's value was contingent on exercising options or scope growth. This implies that the project scope was expected to expand or that additional services were anticipated beyond the initial requirements. For a Cost Plus Fixed Fee contract, such growth can lead to substantial increases in the final cost to the government. It underscores the importance of careful oversight to ensure that any scope expansion is necessary, justified, and priced appropriately.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1300 SPRING STREET, SILVER SPRING, MD, 08
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,244,799
Exercised Options: $13,244,799
Current Obligation: $13,235,049
Parent Contract
Parent Award PIID: DEAM2605NT42256
IDV Type: IDC
Timeline
Start Date: 2005-09-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2014-03-06
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