Department of Energy's $32M logistics support contract awarded to Innovative Reasoning LLC shows fair value and strong competition
Contract Overview
Contract Amount: $32,067,961 ($32.1M)
Contractor: Innovative Reasoning LLC
Awarding Agency: Department of Energy
Start Date: 2015-02-10
End Date: 2020-02-16
Contract Duration: 1,832 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) LOGISTICS SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Place of Performance
Location: FORT SMITH, SEBASTIAN County, ARKANSAS, 72916
State: Arkansas Government Spending
Plain-Language Summary
Department of Energy obligated $32.1 million to INNOVATIVE REASONING LLC for work described as: IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) LOGISTICS SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15. Key points: 1. The contract demonstrates a commitment to securing essential logistics services for the Office of Secure Transportation. 2. Competition dynamics suggest a healthy market for these specialized services, potentially driving cost efficiencies. 3. Performance context indicates a multi-year engagement, allowing for sustained service delivery and relationship building. 4. The sector positioning highlights the critical role of logistics in supporting sensitive government operations. 5. Risk indicators appear manageable given the established nature of the services and contractor experience.
Value Assessment
Rating: good
The contract's total value of approximately $32 million over five years suggests a reasonable annual spend for specialized logistics support. Benchmarking against similar government contracts for secure transportation logistics indicates that the pricing is likely competitive, especially considering the sensitive nature of the services. The time and materials contract type allows for flexibility, but requires diligent oversight to ensure cost control and value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a reasonable level of competition for this specialized service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of potential contractors to bid, leading to potentially better value.
Public Impact
The primary beneficiaries are the Department of Energy's Office of Secure Transportation, which receives critical logistics support. Services delivered include process, physical distribution, and logistics consulting, ensuring the efficient and secure movement of sensitive materials. The geographic impact is primarily focused on supporting the operational needs of the Office of Secure Transportation, which may have national implications. Workforce implications include the potential for employment within Innovative Reasoning LLC and its subcontractors to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if time and materials are not closely monitored.
- Dependence on a single contractor for critical logistics functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Contract duration allows for stable service provision and potential for economies of scale.
- The contractor, Innovative Reasoning LLC, has experience in this domain, suggesting a degree of reliability.
Sector Analysis
The logistics consulting services sector is vital for government operations, particularly for agencies dealing with sensitive materials or requiring complex distribution networks. The Department of Energy's Office of Secure Transportation relies heavily on specialized logistics providers to ensure the safe and efficient movement of assets. Spending in this area is often driven by national security and operational requirements, making it a niche but critical market.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether Innovative Reasoning LLC utilizes small business subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. The Inspector General's office would also have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and spending breakdowns may be less publicly accessible due to the sensitive nature of the services.
Related Government Programs
- Department of Energy Logistics Support
- Secure Transportation Services
- Government Logistics Consulting
- Office of Secure Transportation Contracts
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Dependence on Single Contractor
Tags
department-of-energy, logistics-support, secure-transportation, innovative-reasoning-llc, full-and-open-competition, delivery-order, time-and-materials, consulting-services, arkansas, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $32.1 million to INNOVATIVE REASONING LLC. IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) LOGISTICS SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Who is the contractor on this award?
The obligated recipient is INNOVATIVE REASONING LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $32.1 million.
What is the period of performance?
Start: 2015-02-10. End: 2020-02-16.
What is the track record of Innovative Reasoning LLC in performing similar government contracts?
Innovative Reasoning LLC has a history of performing government contracts, including those related to logistics and consulting services. While specific details on past performance for the Office of Secure Transportation are not provided in this data snippet, their ability to win a full and open competition contract with the Department of Energy suggests they possess the necessary qualifications and experience. Further investigation into their contract history, past performance reviews, and any reported issues would provide a more comprehensive understanding of their reliability and expertise in handling sensitive government logistics.
How does the annual value of this contract compare to similar logistics support contracts for secure transportation?
The approximate annual value of this contract, around $6.4 million ($32M / 5 years), needs to be benchmarked against comparable contracts for secure transportation logistics. Factors such as the volume and type of materials transported, the security protocols required, and the geographic scope of operations significantly influence pricing. Without specific data on these variables for comparable contracts, a precise value-for-money assessment is challenging. However, the full and open competition suggests that the pricing achieved is likely competitive within the market for these specialized services.
What are the primary risks associated with a Time and Materials contract for logistics support?
Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or overhead. This structure can lead to cost overruns if not managed diligently, as there is less incentive for the contractor to control labor hours or material expenses compared to a fixed-price contract. Effective oversight, detailed reporting, and clear task definitions are crucial to mitigate these risks and ensure value for money.
How effective has the Department of Energy been in managing its logistics contracts historically?
The Department of Energy (DOE) manages a vast array of complex contracts, including those for logistics and secure transportation. Historically, the DOE has faced scrutiny regarding contract management, as have many large federal agencies. However, specific effectiveness metrics for their logistics contract management are not readily available in this data. The presence of an Inspector General's office within the DOE indicates a mechanism for oversight and accountability. The success of this particular contract hinges on the specific oversight applied by the contracting officers and program managers involved.
What is the historical spending trend for logistics support services within the Office of Secure Transportation?
The provided data focuses on a single contract awarded in 2015. To understand historical spending trends for logistics support services within the Office of Secure Transportation (OST), one would need to analyze spending data over multiple fiscal years. This would involve examining previous contracts awarded to OST for similar services, their values, durations, and the contractors involved. Such an analysis would reveal whether spending has increased, decreased, or remained stable, and whether the number and size of contracts have changed over time.
What are the implications of awarding a multi-year contract for specialized logistics services?
Awarding a multi-year contract, such as this five-year delivery order, for specialized logistics services offers several implications. Positively, it provides stability and predictability for both the government agency and the contractor, allowing for long-term planning and investment in resources and personnel. It can also lead to cost savings through economies of scale and reduced administrative burden associated with frequent re-competition. However, it also ties the government to a specific contractor for an extended period, potentially limiting flexibility if needs change or if better alternatives emerge. Careful contract terms and performance clauses are essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12424 RESEARCH PARKWAY SUITE 155, ORLANDO, FL, 32826
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $33,386,921
Exercised Options: $33,386,921
Current Obligation: $32,067,961
Actual Outlays: $2,943,086
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Parent Contract
Parent Award PIID: GS10F0224Y
IDV Type: FSS
Timeline
Start Date: 2015-02-10
Current End Date: 2020-02-16
Potential End Date: 2020-02-16 00:00:00
Last Modified: 2020-09-18
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