DOE's $23.5M Engineering Services Contract with North Wind Services Faces Scrutiny for Limited Competition
Contract Overview
Contract Amount: $23,505,944 ($23.5M)
Contractor: North Wind Services, LLC
Awarding Agency: Department of Energy
Start Date: 2011-04-25
End Date: 2015-02-28
Contract Duration: 1,405 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ENGINEERING, ENVIRONMENTAL, RELATED TECHNICAL/ADMINISTRATIVE SERVICES
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $23.5 million to NORTH WIND SERVICES, LLC for work described as: ENGINEERING, ENVIRONMENTAL, RELATED TECHNICAL/ADMINISTRATIVE SERVICES Key points: 1. Contract awarded to North Wind Services, LLC for $23.5M. 2. Limited competition raises questions about price discovery and value. 3. Potential risks include lack of competitive pressure on pricing. 4. Services fall under Engineering Services sector.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, combined with limited competition, makes a direct value assessment difficult. Without competitive bids, it's hard to determine if the $23.5M represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for full and open competition, indicating a limited approach. This lack of robust competition may have hindered effective price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The limited competition may have resulted in a higher overall cost to taxpayers than a fully competitive procurement.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Energy's procurement process for this contract warrants further review. Lack of transparency in pricing could impact public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of competitive benchmark
Positive Signals
- Contract completed within duration
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government infrastructure and technical projects. Benchmarks for similar services are highly variable and depend on scope, but competitive bidding typically ensures better value.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The limited competition and Time and Materials pricing structure suggest a need for enhanced oversight to ensure accountability and prevent potential cost overruns.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition
- Time and Materials pricing structure
- Lack of clear justification for limited competition
- Potential for cost overruns
- Insufficient data on oversight mechanisms
Tags
engineering-services, department-of-energy, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $23.5 million to NORTH WIND SERVICES, LLC. ENGINEERING, ENVIRONMENTAL, RELATED TECHNICAL/ADMINISTRATIVE SERVICES
Who is the contractor on this award?
The obligated recipient is NORTH WIND SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2011-04-25. End: 2015-02-28.
What was the justification for limiting competition on this $23.5M contract?
The justification for limiting competition is not provided in the data. Typically, such limitations require a strong rationale, such as a sole-source provider or urgent need. Without this justification, it raises concerns about whether the government explored all viable competitive options to secure the best value.
How did the Time and Materials pricing impact the final cost compared to a fixed-price contract?
Time and Materials (T&M) contracts can lead to higher costs if not carefully managed, as they reimburse actual labor and material costs plus a fee. Without a fixed price, there's less incentive for the contractor to control costs. The final cost of $23.5M for this T&M contract, especially with limited competition, suggests potential for cost inefficiencies compared to a well-defined fixed-price contract.
What measures were in place to ensure effective oversight and accountability given the contract's structure?
The data does not specify the oversight measures employed. For T&M contracts, especially those with limited competition, robust oversight is critical. This includes detailed tracking of hours, labor categories, material costs, and regular performance reviews to ensure the work is necessary and costs are reasonable. The absence of this information is a concern.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ciri Development Corporation (UEI: 828048277)
Address: 1425 HIGHAM ST RM 220, IDAHO FALLS, ID, 83402
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,000,000
Exercised Options: $25,000,000
Current Obligation: $23,505,944
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-25
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2015-06-30
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