Department of Energy awards $194M engineering services contract to New West-Energetics Joint Venture, LLC
Contract Overview
Contract Amount: $194,092,512 ($194.1M)
Contractor: NEW West-Energetics Joint Venture, LLC
Awarding Agency: Department of Energy
Start Date: 2008-06-25
End Date: 2015-06-30
Contract Duration: 2,561 days
Daily Burn Rate: $75.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: Other
Official Description: INITIAL FUNDING IN THE AMOUNT OF $400,000.
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $194.1 million to NEW WEST-ENERGETICS JOINT VENTURE, LLC for work described as: INITIAL FUNDING IN THE AMOUNT OF $400,000. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 2561 days indicates a long-term need for engineering services. 3. The initial funding of $400,000 is a small fraction of the total award, typical for phased or incrementally funded contracts. 4. The contract type is a definitive contract, often used for complex projects with defined scopes. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for infrastructure and research. 6. The contract was awarded to a joint venture, potentially indicating a need for specialized expertise or capacity. 7. The contract was awarded in Maryland, suggesting a specific geographic focus for the services.
Value Assessment
Rating: fair
Benchmarking the value of this $194 million contract requires more detailed information on the specific engineering services rendered and their complexity. Without comparable contract data for similar scope and duration, it is difficult to definitively assess value for money. The initial funding of $400,000 appears to be a small placeholder, which is common for large, long-term contracts that are incrementally funded. The total award amount suggests a significant investment in engineering expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that it was 'after exclusion of sources' suggests that at some point, there might have been a consideration for other sources, but ultimately, the decision was made to proceed with full and open competition. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that the government receives the best possible value for its investment.
Public Impact
The primary beneficiaries are likely the Department of Energy and its various research, development, and operational programs that require specialized engineering expertise. The services delivered are engineering services, which could encompass a wide range of activities such as design, analysis, project management, and technical consulting. The geographic impact is centered in Maryland, where the contract was awarded, but the services may support projects across the nation or even globally, depending on the DOE's mission. The contract supports a workforce of engineers and technical professionals, contributing to employment in the engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the engineering services provided makes it difficult to assess the true value and necessity of the contract.
- The long duration of the contract (over 7 years) could lead to scope creep or inefficiencies if not managed rigorously.
- Potential for cost overruns if the project's complexity is underestimated or if market conditions change significantly over the contract period.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair bidding process.
- The significant total award amount suggests the contract addresses a substantial and critical need for the Department of Energy.
- The use of a joint venture may bring together diverse and specialized expertise, enhancing the quality of engineering services.
Sector Analysis
The engineering services sector is a vital component of the U.S. economy, supporting a wide array of industries including defense, energy, infrastructure, and technology. The Department of Energy, in particular, relies heavily on engineering services for its research, development, and operational missions, which can range from nuclear energy to renewable energy technologies and scientific research facilities. Spending in this sector is often characterized by large, complex, and long-term contracts due to the nature of the projects undertaken. Comparable spending benchmarks would typically be found within other large federal agencies like the Department of Defense or NASA for similar large-scale engineering support contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor is a joint venture, which may itself be comprised of larger entities or a mix of large and small businesses, but the contract itself was not awarded under a small business program.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The contract's definitive nature suggests a defined scope, which aids in oversight. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the execution of this contract. The specific oversight mechanisms would be detailed within the contract's terms and conditions.
Related Government Programs
- Department of Energy Research and Development Programs
- Federal Engineering Services Contracts
- Large-Scale Infrastructure Projects
- Energy Sector Technology Development
Risk Flags
- Long contract duration may increase risk of cost overruns and scope creep.
- Lack of specific service details hinders comprehensive value assessment.
- Joint venture structure requires scrutiny of member company capabilities and integration.
Tags
engineering-services, department-of-energy, maryland, definitive-contract, large-contract, full-and-open-competition, joint-venture, federal-contract, us-government, research-and-development, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $194.1 million to NEW WEST-ENERGETICS JOINT VENTURE, LLC. INITIAL FUNDING IN THE AMOUNT OF $400,000.
Who is the contractor on this award?
The obligated recipient is NEW WEST-ENERGETICS JOINT VENTURE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $194.1 million.
What is the period of performance?
Start: 2008-06-25. End: 2015-06-30.
What specific engineering services are encompassed by this contract, and how do they align with the Department of Energy's strategic objectives?
The provided data identifies the contract as being for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. For the Department of Energy (DOE), engineering services can span a vast array of critical functions, including but not limited to, the design and construction oversight of research facilities (e.g., particle accelerators, fusion reactors), environmental remediation projects, nuclear facility operations and safety, development of renewable energy technologies, and grid modernization efforts. To understand the alignment with strategic objectives, one would need to examine the contract's statement of work (SOW) and compare it against the DOE's current strategic plan, budget priorities, and mission-critical initiatives. For instance, if the DOE is prioritizing clean energy research, this contract might be for engineering support related to advanced battery storage or carbon capture technologies.
How does the total award amount of $194 million compare to other large engineering services contracts awarded by the Department of Energy or similar federal agencies?
The $194 million total award value places this contract in the category of significant federal procurements for engineering services. To benchmark it effectively, one would need to analyze historical contract data from the Federal Procurement Data System (FPDS) or similar databases. Comparisons should be made for contracts with similar NAICS codes (e.g., 541330) and durations, awarded by agencies with comparable missions, such as the Department of Energy itself, the Department of Defense (particularly for facilities and infrastructure), NASA (for complex research and development facilities), or the General Services Administration (GSA) for public building projects. Factors like inflation, the specific technical complexity, and the geographic location of the services would also need to be considered for a precise comparison. Without this granular data, it's challenging to definitively state if $194 million represents a particularly high, low, or average value for such a contract.
What are the potential risks associated with a contract of this magnitude and duration (over 7 years)?
Contracts of this scale and duration, like the $194 million Department of Energy engineering services award, carry several inherent risks. Firstly, **scope creep** is a significant concern; as projects evolve over many years, the scope can expand beyond the original intent, leading to increased costs and delays if not managed meticulously. Secondly, **cost escalation** due to inflation, changes in material prices, or unforeseen technical challenges can impact the contract's financial viability. Thirdly, **contractor performance risk** is always present; the joint venture may face internal management issues, or the technical expertise required might prove more challenging to sustain over the long term. Fourthly, **technological obsolescence** could become a factor if the engineering services relate to rapidly evolving technologies. Finally, **dependency risk** arises if the agency becomes overly reliant on a single contractor for critical functions, potentially reducing leverage in future negotiations or contract renewals.
Given the 'full and open competition' award, what does the number of bidders (if known) suggest about the market for these specialized engineering services?
The data indicates the contract was awarded under 'full and open competition,' which is a positive sign for market health and taxpayer value. However, the specific number of bidders is not provided in the initial data. If a substantial number of qualified bidders participated (e.g., 5 or more), it would suggest a healthy, competitive market for these specialized engineering services, likely leading to better pricing and innovation. Conversely, if only a few bidders submitted proposals, it might indicate a niche market with limited qualified providers, potentially leading to less competitive pricing or a higher risk of contractor consolidation. Understanding the number of bidders is crucial for assessing the effectiveness of the competition and its impact on price discovery and overall value for the government.
What is the track record of 'NEW WEST-ENERGETICS JOINT VENTURE, LLC' in performing similar large-scale engineering contracts for the federal government?
Information regarding the specific track record of 'NEW WEST-ENERGETICS JOINT VENTURE, LLC' is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases (like FPDS) or contractor performance assessment reporting tools (like CPARS). These resources would reveal past contract awards, performance ratings, and any history of disputes or contract terminations. As a joint venture, its performance history might be a composite of its member companies' experiences or reflect the specific capabilities developed for this venture. A thorough review of past performance is essential for understanding the reliability and capability of the contractor to successfully execute this significant $194 million Department of Energy contract.
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
Solicitation ID: DE-RP01-06EE11026
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 4351 GARDEN CITY DR STE 600, LANDOVER, MD, 20785
Business Categories: Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $205,514,704
Exercised Options: $205,514,704
Current Obligation: $194,092,512
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-25
Current End Date: 2015-06-30
Potential End Date: 2016-11-17 00:00:00
Last Modified: 2016-12-08
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