NASA awards $15M for environmental consulting, with 9 bidders indicating competitive pricing

Contract Overview

Contract Amount: $14,975,985 ($15.0M)

Contractor: Earth Resources Technology, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2008-03-01

End Date: 2013-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ENVIRONMENTAL SUPPORT SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $15.0 million to EARTH RESOURCES TECHNOLOGY, LLC for work described as: ENVIRONMENTAL SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition among nine bidders suggests effective price discovery. 3. Contract type (Cost Plus Award Fee) allows for performance incentives. 4. Long contract duration (over 5 years) may indicate a need for sustained services. 5. The contract is positioned within environmental consulting services for NASA. 6. No small business set-aside was applied, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of approximately $15 million over five years for environmental consulting services appears to be within a reasonable range for a federal agency like NASA. While direct comparisons are difficult without specific service details, the presence of nine bidders suggests a competitive market was engaged. The Cost Plus Award Fee (CPA) structure, while potentially leading to higher costs if performance targets are exceeded, also incentivizes efficient service delivery. Benchmarking against similar large-scale environmental consulting contracts would provide a more precise value assessment.

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,' indicating that the opportunity was broadly advertised, and all responsible sources were permitted to submit offers. The participation of nine bidders is a positive sign of robust competition, suggesting that multiple firms were interested and capable of performing the required services. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition observed in this procurement is beneficial for taxpayers as it likely drove down the final contract price and encouraged innovative solutions from the bidders.

Public Impact

NASA benefits from expert environmental consulting services to ensure compliance and sustainability. Services likely include environmental impact assessments, compliance monitoring, and remediation planning. The geographic impact is primarily focused on NASA facilities and operations. The contract supports a workforce of environmental scientists, engineers, and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed diligently.
  • The long duration of the contract may not fully account for evolving environmental regulations or technologies.

Positive Signals

  • The high number of bidders (9) indicates a healthy and competitive market for these services.
  • The 'Full and Open Competition' award ensures a wide range of potential solutions were considered.
  • The contract is with a known entity, Earth Resources Technology, LLC, suggesting prior experience.

Sector Analysis

Environmental consulting services represent a significant sector within professional services, supporting government agencies and private industry in navigating complex environmental regulations and sustainability goals. This contract falls within the broader professional, scientific, and technical services category. Spending in this area is driven by regulatory requirements, corporate social responsibility, and the need for specialized expertise in areas like environmental impact assessment, hazardous waste management, and ecological restoration. Comparable spending benchmarks would typically be found within NASA's overall budget for support services and environmental compliance.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Earth Resources Technology, LLC, is not explicitly identified as a small business in the provided data. This suggests that the primary focus was on obtaining the best value from the most capable sources, regardless of size. However, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers, who are responsible for monitoring performance, approving payments, and ensuring compliance with contract terms. The Cost Plus Award Fee structure implies performance metrics that would be evaluated to determine award fees, providing a layer of accountability. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

  • Environmental Compliance Services
  • Environmental Impact Analysis
  • NASA Support Contracts
  • Professional and Technical Services

Risk Flags

  • Contract Type Risk (CPA)
  • Long-Term Service Dependency

Tags

environmental-consulting, nasa, professional-services, cost-plus-award-fee, full-and-open-competition, texas, large-contract, support-services, environmental-compliance

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $15.0 million to EARTH RESOURCES TECHNOLOGY, LLC. ENVIRONMENTAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EARTH RESOURCES TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2008-03-01. End: 2013-08-31.

What is the track record of Earth Resources Technology, LLC with NASA or similar federal agencies?

Earth Resources Technology, LLC has a history of performing environmental consulting services for federal agencies. While specific details on past performance with NASA are not provided in this data snippet, their ability to win a competitive contract of this magnitude suggests they have relevant experience and capabilities. Further investigation into their contract history, including past performance reviews and any awards or penalties, would be necessary for a comprehensive assessment. Examining their portfolio of completed projects and client testimonials could also shed light on their reliability and expertise in delivering environmental solutions.

How does the $15M contract value compare to similar environmental consulting contracts awarded by NASA or other agencies?

Benchmarking the $15 million contract value requires comparing it to similar environmental consulting services procured by NASA or other federal agencies of comparable size and scope. Factors such as the duration of the contract (over 5 years), the specific services required (e.g., impact assessments, remediation, compliance monitoring), and the geographic locations of service delivery all influence pricing. Given the 'Full and Open Competition' with nine bidders, the price achieved is likely competitive. However, without access to a database of comparable contracts, a precise value-for-money assessment is challenging. Generally, large-scale, multi-year environmental consulting contracts for federal agencies can range from several million to tens of millions of dollars.

What are the primary risks associated with a Cost Plus Award Fee (CPA) contract for environmental services?

The primary risks associated with a Cost Plus Award Fee (CPA) contract for environmental services revolve around cost control and performance definition. While CPA incentivizes performance through award fees, there's a risk that the contractor may incur higher costs to achieve those performance targets, potentially exceeding the government's initial cost estimates. Defining clear, measurable, and achievable performance metrics is crucial; vague or subjective criteria can lead to disputes or unintended outcomes. Additionally, the government bears the risk of cost overruns if the contractor's base costs escalate beyond projections, even if performance is satisfactory. Effective oversight and robust negotiation of the award fee structure are essential to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for environmental consulting services?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered highly effective in ensuring optimal value for environmental consulting services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving innovative solutions and competitive pricing. The 'exclusion of sources' aspect implies that certain pre-qualification criteria might have been applied, ensuring that only capable firms participated, which can streamline the evaluation process. The presence of nine bidders in this specific case strongly supports the effectiveness of this approach, indicating that it successfully attracted a diverse and competitive field of offerors, leading to better price discovery and potentially higher quality services for NASA.

What are the potential long-term implications of this contract on NASA's environmental management capabilities?

This contract could have significant long-term implications for NASA's environmental management capabilities by providing consistent access to specialized expertise. By outsourcing these services, NASA can maintain a focus on its core space exploration and research missions while ensuring environmental compliance and sustainability. The duration of the contract (over five years) suggests a commitment to a stable approach to environmental management. The chosen contractor's performance and the effectiveness of the CPA structure will influence the development of best practices and potentially foster long-term relationships that enhance NASA's internal environmental stewardship. However, over-reliance on external contractors could also potentially lead to a reduction in in-house environmental expertise over extended periods.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNJ06162825R

Offers Received: 9

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 14401 SWEITZER LN STE 300, LAUREL, MD, 20707

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,614,060

Exercised Options: $15,595,477

Current Obligation: $14,975,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2008-03-01

Current End Date: 2013-08-31

Potential End Date: 2013-08-31 00:00:00

Last Modified: 2020-02-27

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