NOAA's $23.5M environmental consulting contract awarded to GENWEST SYSTEMS INC shows fair value with 3 bidders

Contract Overview

Contract Amount: $23,476,932 ($23.5M)

Contractor: Genwest Systems Inc

Awarding Agency: Department of Commerce

Start Date: 2018-06-28

End Date: 2023-12-31

Contract Duration: 2,012 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IFG::OT::IGF NOAA BSSS

Place of Performance

Location: EDMONDS, SNOHOMISH County, WASHINGTON, 98020

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $23.5 million to GENWEST SYSTEMS INC for work described as: IFG::OT::IGF NOAA BSSS Key points: 1. The contract demonstrates a reasonable value proposition, with the final award price aligning with initial estimates. 2. A competitive bidding process involving three distinct offers suggests a healthy market for these environmental consulting services. 3. The use of a Time and Materials contract type introduces some cost variability, necessitating close monitoring of labor hours and rates. 4. Performance context indicates a long-term engagement, suggesting a need for consistent service delivery and contractor responsiveness. 5. This contract positions GENWEST SYSTEMS INC as a key provider within the environmental consulting sector for NOAA. 6. The contract's duration and value place it within a moderate spending category for similar federal environmental services.

Value Assessment

Rating: good

The contract's total value of approximately $23.5 million over its period of performance appears reasonable when benchmarked against similar environmental consulting services procured by federal agencies. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was scrutinized. The final award amount, derived from a delivery order under a larger contract, indicates that the negotiated rates were deemed acceptable by the agency, reflecting a fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a competitive landscape for these specialized environmental consulting services. A multi-bidder scenario generally promotes price discovery and allows the agency to select the offer that provides the best value, considering both technical approach and cost.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among service providers.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its various research and operational programs, which receive essential environmental consulting support. Services delivered include a range of environmental assessments, compliance support, and technical expertise crucial for NOAA's mission. The geographic impact is likely nationwide, supporting NOAA's diverse operations and environmental stewardship responsibilities across the United States. Workforce implications may include the direct employment of environmental consultants by GENWEST SYSTEMS INC and potential indirect support roles within NOAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not meticulously managed, as it directly reimburses labor hours and material costs.
The long duration of the contract (over 5 years) increases the risk of scope creep or evolving requirements that may not be adequately captured in the initial pricing.
Lack of specific performance metrics or detailed deliverables in the provided data makes it difficult to assess the quality and impact of the services provided.
The absence of small business subcontracting goals (indicated by 'sb': false) might limit opportunities for smaller firms to participate in this significant federal contract.

Positive Signals

The award to GENWEST SYSTEMS INC under full and open competition suggests a robust vetting process and a belief in the contractor's capability to meet NOAA's needs.
The contract's substantial value and long-term nature indicate a consistent need for these services, highlighting the importance of environmental consulting to NOAA's mission.
The agency's selection of a single delivery order under a broader contract framework implies a strategic approach to managing specialized service needs.
The contract's completion date in late 2023 suggests that the services have been delivered and the agency has likely evaluated the contractor's performance.

Sector Analysis

The environmental consulting services sector is a critical component of the broader professional services industry, supporting government and private entities in navigating complex environmental regulations and challenges. Federal spending in this area is driven by mandates for environmental protection, impact assessments, and compliance. Comparable spending benchmarks for large-scale environmental consulting contracts can range from several million to tens of millions of dollars annually, depending on the scope and duration. NOAA's procurement of these services aligns with a consistent federal investment in environmental science and management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). This means that the competition was open to all eligible firms, regardless of size. Consequently, there are no explicit subcontracting requirements for small businesses mandated by this specific award. The absence of a small business set-aside suggests that the agency determined that the scope of work was best suited for larger, potentially more specialized firms, or that the competitive market analysis did not identify sufficient small business capacity to meet the requirement effectively.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within NOAA responsible for environmental services. Performance monitoring, review of invoices, and ensuring compliance with contract terms are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS-NG, which provide public access to contract details. While specific Inspector General (IG) jurisdiction is not detailed here, NOAA's Office of Inspector General would have oversight authority for potential fraud, waste, or abuse related to this contract.

Related Government Programs

Environmental Consulting Services
NOAA Scientific and Technical Support
Federal Environmental Compliance
Professional Services Contracts
Department of Commerce Procurements

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage labor hours and material costs.
Risk of scope creep over the contract's extended duration.
Limited visibility into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $23.5 million to GENWEST SYSTEMS INC. IFG::OT::IGF NOAA BSSS

Who is the contractor on this award?

The obligated recipient is GENWEST SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2018-06-28. End: 2023-12-31.

What specific environmental consulting services were provided under this contract?

The contract falls under the North American Industry Classification System (NAICS) code 541620, which designates 'Environmental Consulting Services.' While the specific details of the services rendered are not fully elaborated in the provided data, this category typically encompasses a broad range of activities. These can include environmental impact assessments (EIAs), regulatory compliance assistance (e.g., with EPA regulations), hazardous waste management consulting, site remediation planning, ecological studies, climate change impact analysis, and the development of environmental management plans. Given NOAA's mission, the services likely supported areas such as marine resource management, coastal zone management, climate monitoring, and fisheries research, ensuring that NOAA's operations and projects adhere to environmental laws and best practices.

How does the awarded amount of $23.5 million compare to similar environmental consulting contracts awarded by NOAA or other federal agencies?

The $23.5 million total value for this contract, spanning over five years (June 2018 to December 2023), places it in the mid-to-large tier for federal environmental consulting procurements. NOAA, being a significant agency focused on environmental and oceanic matters, regularly procures such services. Contracts of this magnitude are not uncommon for comprehensive, long-term support needs. For comparison, other federal agencies like the EPA, Department of the Interior, or Department of Defense also award contracts in the tens of millions for environmental services, particularly for large-scale assessments, remediation projects, or ongoing compliance support. The value appears consistent with the scope and duration, especially considering it was awarded through full and open competition.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The Time and Materials (T&M) contract type, while offering flexibility, carries inherent risks, primarily concerning cost control. In a T&M contract, the government pays the contractor for the actual cost of direct labor (at specified hourly rates) and materials, plus a fee or profit. The primary risk is that costs can escalate beyond initial expectations if the contractor's labor hours are not efficiently managed or if material costs increase unexpectedly. For the government, this necessitates robust oversight to ensure that the labor hours billed are reasonable and directly related to the work performed, and that material costs are fair. Without stringent monitoring, T&M contracts can become more expensive than fixed-price contracts, especially if the scope of work is not well-defined or if the project duration extends significantly.

What does the fact that there were 3 bidders imply about the contractor's track record and the market for these services?

The presence of three bidders for this contract, awarded under full and open competition, suggests a moderately competitive market for environmental consulting services relevant to NOAA's needs. It indicates that at least three firms possessed the necessary qualifications, experience, and capacity to compete for this work. For the winning contractor, GENWEST SYSTEMS INC, being selected from a pool of three implies they presented a compelling offer, likely balancing technical merit with cost-effectiveness. While this doesn't detail their specific past performance on this contract, it suggests they were competitive enough to win against other qualified entities. The number of bidders is generally seen as a positive indicator of market health and potential for good value, as it prevents a sole-source situation and encourages competitive pricing.

How has NOAA's spending on environmental consulting services evolved over the years, and does this contract fit into a historical pattern?

Historical spending patterns for environmental consulting services by NOAA, and federal agencies broadly, tend to show a consistent demand driven by regulatory requirements and scientific mandates. Agencies like NOAA, tasked with managing vast natural resources and complex environmental systems, require ongoing expert support. While the specific historical spending data for NOAA on environmental consulting isn't provided here, it's reasonable to assume that such procurements are a recurring necessity. Contracts like this one, valued in the tens of millions over several years, represent significant but not necessarily anomalous investments. Trends in federal environmental spending can be influenced by legislative changes, administration priorities, and emerging environmental challenges (e.g., climate change adaptation, pollution control). This $23.5 million contract likely reflects a sustained level of investment in critical environmental expertise.

What are the potential implications for taxpayer value given the contract's duration and T&M structure?

The potential implications for taxpayer value are mixed. On the positive side, the full and open competition suggests that NOAA sought the best value, and the presence of multiple bidders likely drove competitive pricing. The long duration (over 5 years) can also lead to efficiencies and institutional knowledge development, potentially reducing costs over time compared to repeatedly onboarding new contractors. However, the Time and Materials (T&M) structure introduces a risk factor. Taxpayer value is maximized when the contractor operates efficiently and the agency exercises rigorous oversight to prevent cost overruns. If managed effectively, the T&M flexibility can ensure that NOAA gets the necessary expertise as needs evolve without being locked into rigid, potentially outdated fixed-price scopes. Conversely, poor oversight or contractor inefficiency could lead to higher-than-expected costs, diminishing taxpayer value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: AB133C18RQ0246

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 170 W DAYTON ST, EDMONDS, WA, 98020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,560,828

Exercised Options: $26,560,828

Current Obligation: $23,476,932

Actual Outlays: $3,611,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F0002W

IDV Type: FSS

Timeline