DOE's $47M engineering services contract with Project Enhancement Corporation shows fair value but limited competition

Contract Overview

Contract Amount: $47,080,931 ($47.1M)

Contractor: Project Enhancement Corporation

Awarding Agency: Department of Energy

Start Date: 2008-08-26

End Date: 2016-08-25

Contract Duration: 2,921 days

Daily Burn Rate: $16.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE THE DEPARTMENT OF ENERGY OFFICE OF HEALTH, SAFETY AND SECURITY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $47.1 million to PROJECT ENHANCEMENT CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE THE DEPARTMENT OF ENERGY OFFICE OF HEALTH, SAFETY AND SECURITY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES. Key points: 1. Contract provides essential technical and administrative support to DOE's Office of Health, Safety and Security. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. Competition was limited, raising potential concerns about optimal price discovery. 4. Contract duration of nearly 8 years suggests a stable, long-term need for these services. 5. The contract falls within the broad 'Engineering Services' sector, a common area for federal procurement. 6. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of approximately $47 million over nearly eight years suggests a moderate annual spend. Benchmarking against similar engineering services contracts indicates that the pricing structure, likely time and materials based, is within a reasonable range for the specialized support provided. While not exceptionally low, the value appears fair given the duration and the critical nature of the support to the Office of Health, Safety and Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, but the data indicates only two bids were received. While competition existed, the low number of bidders suggests that the market may not have been fully engaged or that barriers to entry for this specific type of support are significant. Limited competition can sometimes lead to less aggressive pricing than a more robust bidding process.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing achievable. A broader competition could have potentially driven down costs or secured more innovative solutions.

Public Impact

The primary beneficiary is the Department of Energy's Office of Health, Safety and Security, which receives crucial technical and administrative support. Services delivered include specialized engineering expertise and administrative functions vital for the office's operations. The geographic impact is primarily within Maryland, where the contract is managed and likely where services are performed. The contract supports a specialized workforce in engineering and administrative fields, contributing to employment in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs for taxpayers.
The long duration could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for nearly 8 years poses a risk if performance degrades.

Positive Signals

Consistent support provided to a critical DOE office over a long period.
The contract appears to have been competitively awarded, even with limited bidders.
The value seems fair relative to the services rendered and contract duration.

Sector Analysis

This contract falls under the Engineering Services (NAICS 541330) sector, a significant segment of federal procurement. This sector encompasses a wide range of specialized technical expertise. Federal spending in engineering services is often driven by complex infrastructure projects, research and development, and specialized technical support for various agencies. Comparable spending benchmarks would typically be assessed against other large, long-term engineering support contracts within the federal government, considering the specific technical requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting requirements specifically for small businesses. This suggests that the primary contractor, Project Enhancement Corporation, likely performed the majority of the work. Opportunities for small businesses to participate in this contract appear limited unless they were direct subcontractors to the prime.

Oversight & Accountability

Oversight for this contract would fall under the Department of Energy's contracting and program management offices. Accountability measures would be tied to the delivery order terms, performance metrics, and payment schedules. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Energy Technical Support Services
Federal Engineering and Architectural Services
Office of Health, Safety and Security Operations Support
Professional, Scientific, and Technical Services Contracts

Risk Flags

Limited competition
Long contract duration
Time and Materials pricing structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $47.1 million to PROJECT ENHANCEMENT CORPORATION. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE THE DEPARTMENT OF ENERGY OFFICE OF HEALTH, SAFETY AND SECURITY WITH TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is PROJECT ENHANCEMENT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2008-08-26. End: 2016-08-25.

What is the track record of Project Enhancement Corporation with the Department of Energy?

Project Enhancement Corporation (PEC) has a history of performing contracts with the Department of Energy. While this specific task order represents a significant value of approximately $47 million over nearly eight years, PEC's broader track record with DOE would need further investigation. This includes examining past performance reviews, any documented issues or commendations on previous contracts, and their overall experience in providing technical and administrative support services. Understanding their history helps contextualize their ability to successfully execute this current task order and assess potential risks associated with their performance.

How does the value of this contract compare to similar engineering support contracts at DOE?

The total value of $47 million over approximately 96 months (8 years) equates to an average annual value of around $5.875 million. When compared to other federal engineering support contracts, particularly those providing similar technical and administrative services to specialized offices, this contract appears to be of moderate size. Larger contracts in this category can easily exceed tens or hundreds of millions annually. However, for a specific office like DOE's Office of Health, Safety and Security, this level of funding suggests a substantial and ongoing need for specialized expertise, placing it within a reasonable range for such support.

What are the primary risks associated with a contract of this duration and limited competition?

The primary risks associated with this contract stem from its long duration (nearly 8 years) and limited competition (2 bidders). A long duration increases the risk of vendor lock-in, where the contractor becomes indispensable, potentially leading to complacency or price increases over time. It also means that the government is committed to a specific solution for an extended period, which might become outdated. Limited competition, as seen with only two bidders, raises concerns about suboptimal price discovery and potentially less incentive for the contractor to maintain peak performance or offer innovative cost-saving measures. There's also the inherent risk of contractor performance degradation over such a long period.

How effective is the current oversight for this contract?

Oversight effectiveness for this contract is presumed to be managed through the Department of Energy's established contracting and program management structures. This typically involves regular performance reviews, monitoring of deliverables, and financial oversight. The 'time and materials' pricing structure necessitates diligent oversight to ensure that hours billed and material costs are reasonable and directly related to the contract's objectives. While the contract itself doesn't detail specific oversight mechanisms, the existence of a contracting officer and the potential involvement of an Inspector General provide a framework for accountability. Transparency is generally maintained through federal procurement databases.

What is the historical spending trend for engineering services within the Office of Health, Safety and Security?

Analyzing historical spending trends for engineering services specifically within the Department of Energy's Office of Health, Safety and Security (OHSS) would provide crucial context for this $47 million task order. Without specific historical data for OHSS, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of spending in this category. However, the nearly 8-year duration and substantial value suggest a consistent, long-term requirement for these services. Understanding past spending patterns would help determine if this contract is a continuation of established needs or a new initiative, and whether the current funding level is aligned with previous resource allocations for similar support.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 20300 CENTURY BLVD STE 175, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,567,083

Exercised Options: $49,567,083

Current Obligation: $47,080,931

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0291T

IDV Type: FSS

Timeline