Management and Technical Support for Strategic Petroleum Reserve Awarded for $21.1 Million
Contract Overview
Contract Amount: $21,131,017 ($21.1M)
Contractor: Performance Excellence Partners, LLC
Awarding Agency: Department of Energy
Start Date: 2011-10-01
End Date: 2016-10-31
Contract Duration: 1,857 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE STRATEGIC PETROLEUM RESERVE
Place of Performance
Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123
Plain-Language Summary
Department of Energy obligated $21.1 million to PERFORMANCE EXCELLENCE PARTNERS, LLC for work described as: MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE STRATEGIC PETROLEUM RESERVE Key points: 1. Contract awarded to Performance Excellence Partners, LLC for essential support services. 2. The contract type is Cost Plus Award Fee, incentivizing performance. 3. Duration of the contract is over 5 years, indicating a long-term need. 4. The contract was awarded under full and open competition after exclusion of sources. 5. The base value of the contract is $11.4 million, with potential for growth. 6. The contract is located in Louisiana, a key state for energy infrastructure.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for performance-based incentives, which can drive value. Benchmarking against similar management and technical support contracts for critical infrastructure would provide a clearer picture of value for money. The total award value of $21.1 million over five years suggests a moderate investment for specialized support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, certain sources may have been excluded based on specific criteria, potentially limiting the breadth of competition. The number of bidders is not explicitly stated, but the 'exclusion of sources' clause warrants further investigation into the rationale behind it.
Taxpayer Impact: The exclusion of sources, if not fully justified, could potentially lead to less competitive pricing and reduced opportunities for a wider range of capable contractors to bid, impacting taxpayer value.
Public Impact
Ensures the continuous and effective operation of the Strategic Petroleum Reserve. Provides critical management and technical expertise to safeguard national energy security. Supports the Department of Energy's mission in managing vital energy assets. The contract's execution in Louisiana has implications for the local workforce in administrative and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources' clause.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Dependence on a single contractor for critical support services carries inherent risk.
Positive Signals
- Performance Excellence Partners, LLC is tasked with providing specialized support.
- The Cost Plus Award Fee structure incentivizes high performance.
- The contract duration suggests a stable and reliable support mechanism for the SPR.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting government administration and critical infrastructure management. The Strategic Petroleum Reserve is a unique national asset, making direct spending benchmarks challenging. However, spending on similar government support services often ranges from millions to billions depending on the scope and criticality of the asset being supported.
Small Business Impact
The contract does not indicate any specific small business set-aside provisions. Given the specialized nature of the services required for the Strategic Petroleum Reserve, it is unlikely that significant subcontracting opportunities would be directed towards small businesses unless they possess highly specialized niche capabilities.
Oversight & Accountability
Oversight is primarily managed by the Department of Energy, which awarded and administers the contract. The Cost Plus Award Fee structure inherently includes performance metrics that are monitored to determine award fees. Transparency would be enhanced by public reporting on the performance metrics and award fee determinations. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse.
Related Government Programs
- Strategic Petroleum Reserve Operations
- Department of Energy Management Support
- Federal Energy Infrastructure Security
- Government Administrative Services Contracts
Risk Flags
- Potential for limited competition
- Cost growth risk in CPAF contracts
- Dependence on single contractor for critical services
Tags
management-support, technical-support, strategic-petroleum-reserve, department-of-energy, cost-plus-award-fee, definitive-contract, full-and-open-competition-after-exclusion-of-sources, louisiana, energy-sector, administrative-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $21.1 million to PERFORMANCE EXCELLENCE PARTNERS, LLC. MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE STRATEGIC PETROLEUM RESERVE
Who is the contractor on this award?
The obligated recipient is PERFORMANCE EXCELLENCE PARTNERS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $21.1 million.
What is the period of performance?
Start: 2011-10-01. End: 2016-10-31.
What is the track record of Performance Excellence Partners, LLC with similar government contracts?
Information regarding the specific track record of Performance Excellence Partners, LLC with similar government contracts is not detailed in the provided data. A comprehensive review would require accessing contract databases like SAM.gov or FPDS to analyze past performance, past performance evaluations, and any history of contract disputes or awards. Understanding their experience with large-scale, critical infrastructure support would be key to assessing their capability for this role.
How does the awarded value compare to similar management and technical support contracts for critical national assets?
The awarded value of $21.1 million over approximately five years for management and technical support of the Strategic Petroleum Reserve is a moderate figure for such a critical national asset. Benchmarking requires comparing it to contracts for other large-scale federal infrastructure management, such as those for national defense facilities, major research installations, or other strategic resource reserves. Factors like the complexity of the asset, the level of technical expertise required, and the duration of the contract heavily influence these comparisons. Without specific comparable contract data, it's difficult to definitively state if this represents high or low value.
What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract?
The primary risks associated with a CPAF contract include potential for cost growth if performance targets are not clearly defined or if the contractor's efforts to achieve award fees lead to inefficient practices. There's also a risk that the 'award fee' component might be subjective, leading to disputes. For this specific contract, risks also include the potential for contractor performance issues impacting the critical operations of the Strategic Petroleum Reserve, and the inherent risks of relying on a single entity for specialized management and technical support.
How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?
The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing is variable and depends heavily on the justification for excluding certain sources. If the exclusion is based on legitimate, well-defined technical requirements or security needs that only a limited number of contractors can meet, then the competition among the remaining eligible bidders might still be robust. However, if the exclusions are arbitrary or overly restrictive, it can significantly limit the bidder pool, potentially leading to higher prices than would be achieved in true full and open competition. A thorough review of the exclusion justification is necessary to assess its impact on price discovery.
What is the historical spending pattern for management and technical support services for the Strategic Petroleum Reserve?
Historical spending patterns for management and technical support services for the Strategic Petroleum Reserve are not provided in the current data. To analyze this, one would need to examine past contracts awarded for similar services to the SPR, noting their values, durations, and the contractors involved. Understanding trends in spending, whether increasing or decreasing, and the reasons behind these trends (e.g., changes in reserve management strategy, inflation, contract scope) would provide valuable context for the current contract's value and necessity.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative 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-SOL-0002832
Offers Received: 10
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 7911 PROFESSIONAL CIRCLE, HUNTINGTON BEACH, CA, 92648
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $21,131,017
Exercised Options: $21,131,017
Current Obligation: $21,131,017
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-10-01
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2017-10-25
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