DOE's $17M Navarro Research contract for remediation services shows fair value with 8500 hours benchmarked
Contract Overview
Contract Amount: $17,067,762 ($17.1M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-06-23
End Date: 2014-12-22
Contract Duration: 2,008 days
Daily Burn Rate: $8.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: BROAD-BASED TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $17.1 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: BROAD-BASED TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES Key points: 1. The contract was awarded competitively, suggesting a reasonable price discovery process. 2. Performance was tracked over a significant period, allowing for evaluation of sustained service delivery. 3. The use of Time and Materials pricing introduces some cost variability, requiring diligent oversight. 4. The contract's scope covers broad technical, management, and administrative services for remediation. 5. The contractor, Navarro Research and Engineering, Inc., has a track record in this sector. 6. The contract's duration and value place it within a moderate spending category for its type.
Value Assessment
Rating: good
The contract's total value of approximately $17 million over its period of performance appears reasonable given the scope of broad technical, management, and administrative services for remediation. Benchmarking against similar contracts is challenging without more specific service details, but the reported 8500 hours (br: 8500) suggests a substantial effort. The Time and Materials (T&M) pricing structure, while flexible, necessitates careful monitoring to ensure efficiency and prevent cost overruns. Compared to fixed-price contracts for similar remediation projects, T&M can sometimes lead to higher overall costs if not managed tightly, but it also allows for adaptation to unforeseen complexities inherent in remediation work.
Cost Per Unit: 8500 hours benchmarked
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was subject to a full and open competition process. While the specific number of bidders is not provided, the 'COMPETITIVE DELIVERY ORDER' designation implies that multiple offerors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing for the services rendered. The process likely involved a pre-existing contract vehicle or a solicitation where Navarro Research and Engineering, Inc. was selected based on a combination of technical merit and price.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It reduces the risk of overpayment and promotes a more responsible allocation of public funds.
Public Impact
The Department of Energy benefits from specialized technical, management, and administrative support for its remediation activities. Services delivered likely contribute to environmental cleanup and compliance efforts at DOE facilities. The geographic impact is tied to the specific DOE sites requiring remediation services within Tennessee (st: TN, sn: TENNESSEE). The contract supports a workforce skilled in environmental remediation, engineering, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost escalation if not closely monitored for efficiency and necessity of hours.
- Lack of specific bidder count for the competitive delivery order makes it difficult to fully assess the intensity of competition.
- The broad nature of 'technical, management, and administrative services' could mask inefficiencies if performance metrics are not clearly defined and tracked.
Positive Signals
- Awarded through a competitive process, suggesting a degree of price reasonableness.
- The contract duration (2009-2014) allowed for sustained service delivery and performance evaluation.
- The contractor, Navarro Research and Engineering, Inc., is likely experienced in the remediation sector, implying technical competence.
Sector Analysis
The contract falls within the Environmental Remediation and Support Services sector, a critical area for government agencies managing legacy contamination and environmental compliance. This sector involves specialized technical expertise, project management, and regulatory navigation. The market size for federal environmental remediation services is substantial, driven by ongoing cleanup efforts at military bases, energy facilities, and other government-owned sites. Navarro Research and Engineering, Inc.'s award fits within this landscape, competing with other firms offering similar capabilities. Comparable spending benchmarks would typically look at the average cost per hour or per project for similar remediation tasks across agencies like the EPA and DoD.
Small Business Impact
The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this delivery order. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Navarro Research and Engineering, Inc., may still engage small businesses as subcontractors based on project needs and their own procurement policies. The absence of a set-aside means the primary focus was on obtaining the best value from the overall pool of eligible contractors, rather than specifically promoting small business involvement through this particular award.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy (DOE) contracting officers and program managers. Given it's a delivery order under a larger contract vehicle, oversight likely involves monitoring performance against task orders, reviewing invoices for accuracy and compliance with T&M rates, and ensuring adherence to the Statement of Work. Transparency is facilitated through contract award databases, but detailed performance reports are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Environmental Management Program
- EPA Superfund Program
- Department of Defense Environmental Restoration Program
- Federal Remediation Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Need for robust oversight to ensure efficiency and prevent contractor inefficiency.
- Scope ambiguity in 'broad-based technical, management, and administrative services' could impact performance measurement.
Tags
department-of-energy, remediation-services, environmental-services, technical-services, management-services, administrative-services, competitive-delivery-order, time-and-materials, navarro-research-and-engineering, tennessee, federal-contract, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $17.1 million to NAVARRO RESEARCH AND ENGINEERING, INC.. BROAD-BASED TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SERVICES
Who is the contractor on this award?
The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2009-06-23. End: 2014-12-22.
What is the track record of Navarro Research and Engineering, Inc. in performing similar remediation services for the federal government?
Navarro Research and Engineering, Inc. has a history of performing environmental and engineering services for various federal agencies, including the Department of Energy. Their work often involves site characterization, risk assessment, remediation design, and construction management for contaminated sites. Publicly available contract data and agency reports often detail their involvement in projects related to nuclear waste management, hazardous material cleanup, and environmental restoration. While specific performance metrics for this particular $17 million contract are not detailed here, their continued awards in this sector suggest a generally satisfactory performance history. Further analysis would require examining past performance evaluations and any documented disputes or corrective actions related to their federal contracts.
How does the $17 million contract value compare to other federal remediation contracts of similar scope and duration?
Comparing the $17 million value requires context on the specific remediation activities, site complexity, and duration. Federal remediation contracts can range from a few million to hundreds of millions of dollars. This contract, spanning approximately five years (June 2009 - December 2014), averages around $3.4 million per year. This figure appears moderate for comprehensive technical, management, and administrative services supporting environmental cleanup. For instance, large-scale Superfund site cleanups or major facility decommissioning projects often command significantly higher annual expenditures. However, for specific site remediation tasks or focused management support, this value could represent a substantial and well-resourced effort, especially if the scope was well-defined and the contractor was efficient.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the final price is not fixed. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs, plus a fee or profit margin. This structure can incentivize longer project durations or less efficient work if not rigorously overseen. For the government, risks include difficulty in accurately forecasting total project costs, potential for inflated labor hours, and the need for robust monitoring and auditing mechanisms to ensure fair pricing and prevent waste. Effective management requires detailed tracking of all hours, justification for work performed, and comparison against established labor rates and industry benchmarks.
How effective was the competitive delivery order process in ensuring value for money for this contract?
The 'COMPETITIVE DELIVERY ORDER' designation suggests that the contract was awarded through a process that allowed multiple bidders to compete, which is generally a positive indicator for value for money. Competition drives down prices and encourages contractors to offer their best technical solutions at reasonable costs. However, the effectiveness hinges on the specifics of the competition: the number of bidders, the clarity of the solicitation requirements, and the evaluation criteria used. Without knowing the number of bids received or the details of the evaluation, it's difficult to definitively state the degree of value achieved. A robust competition typically involves several qualified bidders vying for the contract, leading to a more assured outcome in terms of price and performance.
What is the historical spending trend for similar remediation services procured by the Department of Energy?
The Department of Energy (DOE) consistently spends billions of dollars annually on environmental remediation services, reflecting its significant legacy of nuclear weapons production and energy research. Historical spending trends show a sustained, high level of investment in cleaning up contaminated sites across the DOE complex. This includes major programs like the DOE Office of Environmental Management (EM), which manages the cleanup of radioactive, hazardous, and mixed waste. Spending fluctuates based on program priorities, congressional appropriations, and the identification of new cleanup needs. Contracts like the one awarded to Navarro Research and Engineering, Inc. are part of this larger, ongoing federal commitment to environmental stewardship and site remediation.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0000275
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 669 EMORY VALLEY RD, OAK RIDGE, TN, 37830
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, Woman Owned Business
Financial Breakdown
Contract Ceiling: $29,667,913
Exercised Options: $29,667,913
Current Obligation: $17,067,762
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00F0092N
IDV Type: FSS
Timeline
Start Date: 2009-06-23
Current End Date: 2014-12-22
Potential End Date: 2015-06-11 00:00:00
Last Modified: 2018-05-18
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