DOE's $14.1M technical countermeasures support contract awarded to APS-ARTI, LLC, lacked competition
Contract Overview
Contract Amount: $14,157,520 ($14.2M)
Contractor: Aps-Arti, LLC
Awarding Agency: Department of Energy
Start Date: 2008-09-01
End Date: 2015-09-30
Contract Duration: 2,585 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SUPPORT SERVICES FOR DOE TECHNICAL COUNTERMEASURES PROGRAM
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $14.2 million to APS-ARTI, LLC for work described as: SUPPORT SERVICES FOR DOE TECHNICAL COUNTERMEASURES PROGRAM Key points: 1. The contract's value for money is difficult to assess due to the lack of competitive bidding. 2. Limited competition raises concerns about potential overpricing and reduced innovation. 3. The contract duration of over 7 years suggests a long-term need for these services. 4. Performance context is limited as specific deliverables and outcomes are not detailed. 5. This contract falls within the security systems services sector, supporting critical government functions. 6. The sole-source nature of the award warrants scrutiny of the justification for non-competition.
Value Assessment
Rating: questionable
Benchmarking the value for money of this $14.1 million contract is challenging given its sole-source award. Without competitive bids, it's difficult to determine if APS-ARTI, LLC provided services at a fair market price. The contract's duration of over seven years suggests a significant investment, and the lack of transparency in pricing mechanisms makes a definitive value assessment problematic. Further analysis would require access to detailed cost breakdowns and comparisons with similar sole-source procurements for comparable services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. The justification for this approach is not provided in the available data. Typically, sole-source awards occur when only one vendor can provide the required goods or services due to unique capabilities, urgent needs, or specific circumstances. The absence of multiple bidders means that price discovery through market forces was bypassed, potentially impacting the final cost to the government.
Taxpayer Impact: The lack of competition for this contract means taxpayers may not have received the best possible price. Without competing offers, the government had less leverage to negotiate favorable terms and pricing, potentially leading to higher overall expenditures.
Public Impact
The Department of Energy benefits from specialized support services for its technical countermeasures program. These services are crucial for maintaining the security and integrity of DOE's operations. The contract's impact is primarily national, supporting federal security infrastructure. The workforce implications are likely concentrated within APS-ARTI, LLC, and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to inflated costs for taxpayers.
- Sole-source awards can reduce transparency and accountability in government spending.
- The extended contract duration without competitive re-evaluation poses a risk of complacency.
- Absence of detailed performance metrics makes it difficult to assess effectiveness.
- Limited information on the specific technical countermeasures supported hinders understanding of the contract's criticality.
Positive Signals
- The contract provided essential support services to a critical government agency.
- APS-ARTI, LLC has a long-standing relationship with the DOE, suggesting some level of established trust and capability.
- The contract was in place for a significant duration, indicating a sustained need for the services provided.
- The services likely contributed to the security and operational continuity of the Department of Energy.
Sector Analysis
This contract falls under the Security Systems Services (except Locksmiths) industry, classified under NAICS code 561621. This sector encompasses a range of services related to the installation, maintenance, and monitoring of security systems. Federal spending in this area is often driven by national security requirements and the need to protect sensitive government assets and information. Comparable spending benchmarks are difficult to establish without more specific details on the services rendered, but federal contracts for security systems support can range from thousands to millions of dollars depending on the scope and complexity.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no information available regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to APS-ARTI, LLC, which may or may not be a small business itself. Without specific subcontracting requirements, opportunities for small businesses to participate in this contract are not guaranteed.
Oversight & Accountability
Oversight mechanisms for this contract are not detailed in the provided data. As a sole-source award, it may have undergone specific justification and approval processes within the Department of Energy. Transparency is limited due to the lack of competitive bidding and public performance reporting. Accountability would typically be managed through contract clauses and performance reviews, but the specifics of these are unknown. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Technical Support Services
- Federal Security Systems Contracts
- Sole-Source Government Procurements
- National Security Support Services
Risk Flags
- Sole-source award lacks transparency
- Potential for uncompetitive pricing
- Extended contract duration without competition
- Lack of defined performance metrics
- Limited public information on services provided
Tags
department-of-energy, technical-countermeasures, aps-arti-llc, definitive-contract, time-and-materials, sole-source, security-systems-services, maryland, federal-contract, support-services, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14.2 million to APS-ARTI, LLC. SUPPORT SERVICES FOR DOE TECHNICAL COUNTERMEASURES PROGRAM
Who is the contractor on this award?
The obligated recipient is APS-ARTI, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14.2 million.
What is the period of performance?
Start: 2008-09-01. End: 2015-09-30.
What specific technical countermeasures were supported under this contract?
The provided data does not specify the exact nature of the 'technical countermeasures' supported by APS-ARTI, LLC for the Department of Energy. This category can encompass a wide range of activities, including but not limited to, the development, implementation, maintenance, or testing of systems designed to detect, deter, or mitigate threats. These could relate to physical security, cybersecurity, or specialized technological defenses relevant to the DOE's mission, such as protecting nuclear facilities or sensitive research data. Without further details, the precise scope and criticality of the services remain unclear.
What was the justification for awarding this contract on a sole-source basis?
The data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. However, the specific justification for this determination is not provided. Typically, sole-source procurements require a formal justification, such as the existence of only one responsible source capable of providing the required services, an urgent and compelling need that would be compromised by competitive bidding, or specific national security concerns. The Department of Energy would have had to document and approve such a justification internally before proceeding with the sole-source award to APS-ARTI, LLC.
How does the contract's pricing structure (Time and Materials) compare to industry standards for similar services?
The contract utilized a 'TIME AND MATERIALS' (T&M) pricing structure. T&M contracts can be advantageous when the scope of work is not clearly defined or is expected to change frequently. However, they also carry a higher risk for the government, as costs can escalate if not closely monitored. For security systems services, T&M can be appropriate for reactive maintenance or undefined support tasks. Industry standards often favor fixed-price or cost-plus-fixed-fee contracts for well-defined projects to ensure better cost control. The effectiveness of T&M hinges on robust oversight, detailed timesheets, and material cost verification to prevent overruns and ensure value.
What is the track record of APS-ARTI, LLC in supporting federal technical countermeasures programs?
APS-ARTI, LLC has a history of supporting the Department of Energy, as evidenced by this contract spanning from September 2008 to September 2015. The duration of over seven years suggests a sustained engagement and likely a degree of satisfaction from the agency regarding the contractor's performance. While specific details of their track record beyond this contract are not provided, the longevity of this award implies capability and reliability in delivering the required support services for DOE's technical countermeasures program. Further investigation into past performance reviews or other federal contracts held by APS-ARTI, LLC would provide a more comprehensive understanding.
What were the key performance indicators (KPIs) or deliverables associated with this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or detailed deliverables for this contract. Contracts of this nature, especially those involving support services for technical programs, typically outline specific objectives, service level agreements, and measurable outcomes. Without this information, it is difficult to objectively assess the contractor's performance and the overall effectiveness of the services provided by APS-ARTI, LLC. Standard KPIs might include response times, system uptime, successful threat mitigation, or adherence to security protocols, but these are not specified here.
How does the total contract value of $14.1 million compare to other federal spending in the security systems services sector?
The total contract value of $14.1 million for APS-ARTI, LLC's support services falls within a moderate range for federal contracts in the security systems services sector (NAICS 561621). While significant, it is not exceptionally large compared to major system integration or large-scale security infrastructure projects. However, the value is substantial enough to warrant scrutiny, particularly given the sole-source nature of the award. Federal spending in this sector can vary widely, with smaller contracts for routine maintenance and much larger ones for complex security solutions. This contract's value suggests a consistent, long-term need for specialized support rather than a one-off project.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1555 KING ST STE 500, ALEXANDRIA, VA, 22314
Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $29,404,118
Exercised Options: $14,563,175
Current Obligation: $14,157,520
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-09-01
Current End Date: 2015-09-30
Potential End Date: 2016-03-18 00:00:00
Last Modified: 2016-03-24
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