Department of Energy's $236.8M contract for specialized technical and administrative support awarded to Eagle Research Group, Inc

Contract Overview

Contract Amount: $236,762,153 ($236.8M)

Contractor: Eagle Research Group, Inc.

Awarding Agency: Department of Energy

Start Date: 2013-05-16

End Date: 2020-10-31

Contract Duration: 2,725 days

Daily Burn Rate: $86.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF SPECIALIZED TECHNICAL AND ADMINSTRATIVE SUPPORT SERVICES TO THE OFFICE OF HEALTH SAFETY AND SECURITY. UNDER THIS CONTRACT, THE CONTRACTOR WILL PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE OFFICE OF HEALTH, SAFETY AND SECURITY IN SUPPORT OF ITS MISSION TO PROVIDE THE SECRETARY OF ENERGY AND SENIOR DEPARTMENT OF ENERGY MANAGERS WITH AN INDEPENDENT ASSESSMENT OF THE EFFECTIVENESS OF DEPARTMENT OF ENERGY POLICIES AND SITE PERFORMANCE IN THE AREAS OF SAFEGUARDS AND SECURITY, CYBER SECURITY, EMERGENCY MANAGEMENT, ENVIRONMENT, SAFETY, HEALTH, AND OTHER CRITICAL FUNCTIONS AS DIRECTED BY THE SECRETARY.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $236.8 million to EAGLE RESEARCH GROUP, INC. for work described as: IGF::OT::IGF SPECIALIZED TECHNICAL AND ADMINSTRATIVE SUPPORT SERVICES TO THE OFFICE OF HEALTH SAFETY AND SECURITY. UNDER THIS CONTRACT, THE CONTRACTOR WILL PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE OFFICE OF HEALTH, SAFETY AND SECURITY IN SUPPORT OF ITS MISSION TO PR… Key points: 1. The contract provided essential technical and administrative support to the Office of Health, Safety and Security, bolstering critical assessment functions. 2. Services encompassed safeguards and security, cybersecurity, emergency management, environment, safety, and health, aligning with departmental priorities. 3. The contract's duration of over 7 years allowed for sustained support and integration of services. 4. Awarded under full and open competition, this suggests a robust market engagement process. 5. The cost-plus award fee structure incentivizes performance and cost control. 6. The contract's value places it within a significant spending category for specialized consulting services.

Value Assessment

Rating: good

The contract's total value of $236.8 million over approximately 7.5 years suggests a substantial investment in specialized support. Benchmarking this against similar large-scale technical and administrative support contracts within federal agencies is challenging without more granular data on service scope and duration. However, the cost-plus award fee (CPAF) structure indicates an intent to manage costs while incentivizing high performance, which can be a good value proposition if performance targets are met and appropriately rewarded. The relatively low number of modifications (2) suggests stability in the contract's execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. This approach is designed to foster robust competition, leading to potentially better pricing and service quality. The fact that it was competed suggests that the Department of Energy sought the best value from the market rather than relying on a single provider.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives competitive pricing for essential services.

Public Impact

The Office of Health, Safety and Security directly benefited from enhanced technical and administrative capabilities. Services supported the Secretary of Energy and senior managers in assessing departmental policies and site performance. The contract's impact is national, given the scope of the Department of Energy's mission. Workforce implications include the employment of technical and administrative professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • The cost-plus award fee structure, while incentivizing performance, can lead to higher overall costs if not carefully managed and monitored.
  • The broad scope of 'specialized technical and administrative support' could lead to scope creep if not clearly defined and managed.
  • Reliance on a single contractor for critical support functions may pose a risk if the contractor experiences performance issues or financial instability.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
  • The contract had a stable execution with only two modifications over its lifespan, indicating clear requirements and effective management.
  • The cost-plus award fee structure, when managed effectively, can drive high performance and ensure value for money.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting services. This sector is characterized by a wide range of specialized expertise offered to government and private entities. The Department of Energy's need for independent assessments in areas like security, emergency management, and environmental safety highlights the critical role of specialized consulting in complex governmental operations. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar advisory and support services across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Eagle Research Group, Inc., may have engaged small businesses as subcontractors, which would be detailed in their subcontracting plan, but this information is not provided in the summary data.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Energy's contracting officers and program managers. The cost-plus award fee structure inherently requires robust oversight to ensure performance standards are met and that award fees are justified. Transparency is typically facilitated through contract awards databases and reporting requirements. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

  • Department of Energy Administrative Support Services
  • Federal Technical Consulting Contracts
  • Office of Health, Safety and Security Operations Support
  • Cybersecurity and Emergency Management Support Services
  • Government-wide Professional Services Contracts

Risk Flags

  • Contract duration is extensive, requiring sustained oversight.
  • Cost-plus award fee structure necessitates careful performance monitoring.
  • Broad service scope requires clear definition to prevent scope creep.

Tags

department-of-energy, technical-support, administrative-support, consulting-services, full-and-open-competition, cost-plus-award-fee, large-contract, federal-agency, office-of-health-safety-and-security, maryland, definitive-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $236.8 million to EAGLE RESEARCH GROUP, INC.. IGF::OT::IGF SPECIALIZED TECHNICAL AND ADMINSTRATIVE SUPPORT SERVICES TO THE OFFICE OF HEALTH SAFETY AND SECURITY. UNDER THIS CONTRACT, THE CONTRACTOR WILL PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE OFFICE OF HEALTH, SAFETY AND SECURITY IN SUPPORT OF ITS MISSION TO PROVIDE THE SECRETARY OF ENERGY AND SENIOR DEPARTMENT OF ENERGY MANAGERS WITH AN INDEPENDENT ASSESSMENT OF THE EFFECTIVENESS OF DEPARTMENT OF ENERGY POLICIES AND SITE PERFORMANCE IN THE AREAS OF SAFEGUARDS AND SECURITY, CY

Who is the contractor on this award?

The obligated recipient is EAGLE RESEARCH GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $236.8 million.

What is the period of performance?

Start: 2013-05-16. End: 2020-10-31.

What was the specific performance criteria used to determine award fees for Eagle Research Group, Inc. under this contract?

The provided data does not specify the exact performance criteria used for award fee determination. However, Cost-Plus Award Fee (CPAF) contracts typically tie award fees to the contractor's achievement of specific, measurable performance objectives outlined in the contract's Performance Work Statement (PWS). For this contract supporting the Office of Health, Safety and Security, these criteria likely included metrics related to the quality, timeliness, and effectiveness of technical and administrative support provided in areas such as safeguards and security, cybersecurity, emergency management, environment, safety, and health. The Department of Energy's contracting officer would have evaluated the contractor's performance against these predefined metrics to determine the amount of award fee, if any, to be granted.

How does the per-unit cost of services compare to similar contracts or market rates?

The provided data does not include specific per-unit cost breakdowns or details that would allow for a direct comparison to similar contracts or market rates. The total contract value of $236.8 million is for a broad scope of specialized technical and administrative support over a period of approximately 7.5 years. To conduct a meaningful per-unit cost analysis, one would need to identify specific services rendered (e.g., hours of consulting, specific reports generated, number of assessments completed) and their associated costs. Benchmarking would then require access to similar detailed cost data from other federal contracts or industry surveys for comparable services, which is not available in the summary information.

What was the track record of Eagle Research Group, Inc. with the Department of Energy prior to this contract?

The provided data does not include information on Eagle Research Group, Inc.'s prior contract history with the Department of Energy. To assess their track record, one would need to review historical contract databases (like FPDS or USASpending) for previous awards to this contractor from the Department of Energy. This would allow for an analysis of their past performance, including contract values, durations, types of services provided, and any reported performance issues or successes. Without this historical context, it is difficult to evaluate their established relationship and performance reliability with the agency.

What were the primary risks identified during the solicitation and award process for this contract?

The provided data does not detail the specific risks identified during the solicitation and award process for this contract. However, for a contract of this magnitude and scope, potential risks typically include contractor performance (ability to deliver required services), cost overruns (especially with CPAF structures), schedule delays, cybersecurity vulnerabilities, and potential for scope creep. The 'full and open competition' aspect suggests that the agency aimed to mitigate some risks by allowing multiple bidders to propose solutions, thereby fostering competition that could lead to better risk management and pricing. A thorough risk assessment would have been conducted by the agency as part of the source selection process.

How effective was the competition in driving down costs for this specific contract?

The contract was awarded under 'full and open competition after exclusion of sources,' which is designed to maximize competition and thereby drive down costs. While the data does not provide a pre-competition estimate or a comparison of the final award price to initial bids, the competitive nature of the award process generally leads to more favorable pricing for the government. The fact that it was competed suggests that the Department of Energy received proposals from multiple offerors, and the selection was based on achieving the best value. Without knowing the number of bids received and the range of proposed prices, it's difficult to quantify the exact cost savings achieved solely due to competition.

What is the historical spending pattern for specialized technical and administrative support services by the Department of Energy?

The provided data focuses on a single contract and does not offer insight into the Department of Energy's overall historical spending patterns for specialized technical and administrative support services. To analyze historical spending, one would need to aggregate data from multiple contracts over several fiscal years, filtering for similar service categories (NAICS codes like 541690) and agencies. This would reveal trends in spending levels, identify major contractors, and highlight shifts in service requirements or funding priorities within the Department of Energy over time.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 13241 EXECUTIVE PARK TER, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $262,901,198

Exercised Options: $243,100,250

Current Obligation: $236,762,153

Actual Outlays: $34,893,961

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2013-05-16

Current End Date: 2020-10-31

Potential End Date: 2022-02-18 00:00:00

Last Modified: 2022-02-23

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