DOE's Y-12 Site Project Management Contract Awarded to Longenecker & Associates for $26.6M
Contract Overview
Contract Amount: $26,614,726 ($26.6M)
Contractor: Longenecker & Associates, LLC
Awarding Agency: Department of Energy
Start Date: 2018-09-28
End Date: 2022-10-04
Contract Duration: 1,467 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Construction
Official Description: IGF::OT::IGF UPF PROJECT MANAGEMENT OFFICE (PMO), NA-APM-1.3, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89135
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $26.6 million to LONGENECKER & ASSOCIATES, LLC for work described as: IGF::OT::IGF UPF PROJECT MANAGEMENT OFFICE (PMO), NA-APM-1.3, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE Key points: 1. Contract provides essential project management and oversight for capital projects and equipment at the Y-12 site. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period spans nearly four years, indicating a significant, long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed diligently. 5. The geographic focus is the Y-12 site in Oak Ridge, Tennessee, a critical national security facility. 6. The award value of $26.6 million reflects the scale and complexity of managing major projects.
Value Assessment
Rating: fair
The contract's value of $26.6 million over approximately four years for project management services at a major federal site appears within a reasonable range for such complex undertakings. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. Without specific benchmarks for comparable PMO services at similar Department of Energy (DOE) facilities, a definitive value-for-money assessment is challenging. The number of bids received during the full and open competition would provide further insight into the pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The use of full and open competition is a positive indicator for taxpayer value, as it encourages a wider pool of potential contractors to compete, potentially driving down costs and improving service quality.
Taxpayer Impact: The full and open competition process is designed to ensure that taxpayer dollars are used efficiently by promoting a competitive environment. This approach aims to secure the most advantageous contract terms and pricing through a broad solicitation.
Public Impact
The primary beneficiaries are the Department of Energy and its mission at the Y-12 National Nuclear Security Administration site. Services delivered include contract management and oversight for capital projects and major equipment. The geographic impact is concentrated at the Y-12 site in Oak Ridge, Tennessee. The contract supports the continued operation and modernization of critical national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely managed and monitored for efficiency.
- Lack of specific performance metrics or detailed outcomes in the provided data makes it difficult to assess effectiveness.
- The duration of the contract (nearly 4 years) requires ongoing vigilance to ensure continued value and alignment with evolving needs.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contract supports critical infrastructure at a key national security site (Y-12).
- The contractor, Longenecker & Associates, LLC, is tasked with essential project management and oversight functions.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on project management and oversight for capital projects and equipment. The Department of Energy, particularly its role in managing national laboratories and nuclear facilities like Y-12, represents a significant segment of federal construction and infrastructure spending. Benchmarking this contract's value would require comparison to similar project management support contracts awarded by the DOE or other agencies for large-scale industrial or research facilities.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside or requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor may engage small businesses as subcontractors, which would be a secondary impact on the small business ecosystem. Further investigation into subcontracting plans would be needed for a comprehensive analysis.
Oversight & Accountability
The contract is managed under the Department of Energy's purview, likely involving program managers responsible for oversight. The Inspector General's office for the Department of Energy would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency would be enhanced by public reporting of performance metrics and expenditures, though specific details on these mechanisms are not provided.
Related Government Programs
- Department of Energy Capital Projects
- Y-12 National Security Complex Operations
- Federal Project Management Services
- National Nuclear Security Administration Contracts
Risk Flags
- Time and Materials contract type requires diligent oversight to control costs.
- Performance metrics and specific outcomes are not detailed in the provided data.
- Potential for cost escalation inherent in T&M contracts.
Tags
department-of-energy, y-12-site, project-management, construction, time-and-materials, full-and-open-competition, oak-ridge-tennessee, capital-projects, longenecker-associates-llc, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26.6 million to LONGENECKER & ASSOCIATES, LLC. IGF::OT::IGF UPF PROJECT MANAGEMENT OFFICE (PMO), NA-APM-1.3, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE
Who is the contractor on this award?
The obligated recipient is LONGENECKER & ASSOCIATES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $26.6 million.
What is the period of performance?
Start: 2018-09-28. End: 2022-10-04.
What is the track record of Longenecker & Associates, LLC in managing federal contracts, particularly those involving complex infrastructure projects?
Assessing the track record of Longenecker & Associates, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases (like SAM.gov or FPDS) for previous awards, performance evaluations (Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Specifically, for contracts similar to this DOE project management role, understanding their experience with large-scale construction oversight, adherence to schedules and budgets, and ability to manage complex stakeholder environments would be crucial. Without access to detailed performance reviews and historical contract data for Longenecker & Associates, LLC, a definitive assessment of their capabilities and reliability for this specific DOE contract remains incomplete.
How does the awarded value of $26.6 million compare to similar project management contracts for federal facilities of comparable size and complexity?
To benchmark the $26.6 million award for project management services at the Y-12 site, comparisons should be made with contracts for similar roles at other large federal facilities, particularly those managed by the Department of Energy or other agencies with significant infrastructure portfolios (e.g., Department of Defense bases, NASA centers). Key comparison factors include the scope of work (e.g., types of projects managed, scale of capital investment overseen), the duration of the contract, and the specific services provided (e.g., pure project management vs. design, engineering, and construction integration). A Time and Materials contract structure also influences cost, making direct comparisons to fixed-price contracts more complex. Without access to detailed data on comparable contracts, it's difficult to definitively state if this award represents excellent, good, or fair value.
What are the primary risks associated with a Time and Materials (T&M) contract for project management services, and how are they mitigated in this case?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and costs, plus a fee. This structure can incentivize longer project durations or less efficient work if not properly managed. For this contract, mitigation strategies would typically involve robust government oversight, including detailed review of timesheets, verification of expenses, and close monitoring of progress against project milestones. Establishing clear ceilings or not-to-exceed clauses within the T&M structure is also a common mitigation technique. The Department of Energy's contract management office and the contractor's performance in adhering to oversight protocols are critical to managing these risks effectively.
What is the historical spending pattern for project management services at the Y-12 site or similar DOE facilities?
Analyzing historical spending patterns for project management services at the Y-12 site or comparable Department of Energy (DOE) facilities is essential for context. This involves examining prior contracts for similar functions, noting their award values, durations, and the contractors involved. Understanding trends in spending—whether it has increased, decreased, or remained stable—can indicate shifts in program needs, infrastructure investment, or contracting strategies. For instance, a significant increase in spending might signal new major projects or upgrades, while consistent spending could suggest ongoing maintenance and operational support. Comparing current spending to historical averages helps identify potential anomalies or justify current investment levels.
How does the competition level (full and open) for this contract potentially impact cost savings and contractor performance?
A 'full and open' competition generally leads to greater cost savings for the government compared to sole-source or limited competition scenarios. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a more competitive environment that drives down prices. This increased competition can also incentivize contractors to offer higher quality services and more innovative solutions to win the contract. For taxpayers, this means a higher likelihood that their funds are being used efficiently and effectively. The specific number of bids received in this instance would further refine the assessment of the competition's impact on price discovery and overall value.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2514 RED ARROW DRIVE, LAS VEGAS, NV, 89135
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $26,614,726
Exercised Options: $26,614,726
Current Obligation: $26,614,726
Actual Outlays: $15,853,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS10F111AA
IDV Type: FSS
Timeline
Start Date: 2018-09-28
Current End Date: 2022-10-04
Potential End Date: 2022-10-04 00:00:00
Last Modified: 2023-01-31
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