DOE awards $16.5M contract for radiation portal monitors in Turkmenistan, highlighting international security efforts
Contract Overview
Contract Amount: $16,475,862 ($16.5M)
Contractor: Tech2 Solutions
Awarding Agency: Department of Energy
Start Date: 2019-03-18
End Date: 2025-07-31
Contract Duration: 2,327 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE DICCE2 SERVICES TO INSTALL FULLY FUNCTIONAL RADIATION PORTAL MONITORS (RPMS), COMMUNICATION SYSTEMS AND RELATED EQUIPMENT IN TURKMENISTAN GROUP 1, PROGRAM GROUP 2.
Plain-Language Summary
Department of Energy obligated $16.5 million to TECH2 SOLUTIONS for work described as: THE CONTRACTOR SHALL PROVIDE DICCE2 SERVICES TO INSTALL FULLY FUNCTIONAL RADIATION PORTAL MONITORS (RPMS), COMMUNICATION SYSTEMS AND RELATED EQUIPMENT IN TURKMENISTAN GROUP 1, PROGRAM GROUP 2. Key points: 1. Contract focuses on critical infrastructure security and non-proliferation. 2. Sole-source award after exclusion of sources suggests specific technical requirements or limited vendor pool. 3. Long performance period indicates a complex, multi-year deployment. 4. Cost-plus-fixed-fee structure may incentivize contractor efficiency. 5. Geographic focus on Turkmenistan points to strategic international partnerships. 6. No small business set-aside indicates a focus on specialized capabilities.
Value Assessment
Rating: fair
The contract's value of $16.5 million for installing radiation portal monitors and related equipment in Turkmenistan appears reasonable given the specialized nature of the equipment and the international deployment. However, without specific benchmarks for similar international security installations or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, can sometimes lead to higher overall costs if not managed carefully. Further analysis of the fixed fee and indirect cost rates would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the government intended to compete the contract, certain sources were excluded, potentially due to specific technical qualifications, security clearances, or prior performance requirements. The exact number of bidders considered or the rationale for excluding other sources is not detailed, making it difficult to fully assess the breadth of competition. This approach can sometimes limit price discovery compared to unrestricted full and open competition.
Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. However, if the exclusions were justified by essential technical needs, it could ensure the most capable contractor is selected for a critical security mission.
Public Impact
The primary beneficiaries are the Turkmenistani authorities and potentially international security organizations, receiving enhanced capabilities to detect illicit radioactive materials. Services delivered include the installation of fully functional Radiation Portal Monitors (RPMs), communication systems, and related equipment. The geographic impact is concentrated in Turkmenistan, supporting national security and border control efforts. Workforce implications may include specialized technical personnel for installation and training, potentially involving both U.S. and local labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not rigorously monitored.
- Dependence on a single contractor for critical security equipment installation in a foreign country.
- Geopolitical risks associated with operating in Turkmenistan could impact project timelines and costs.
Positive Signals
- Focus on critical security infrastructure aligns with national security priorities.
- Long-term contract duration suggests a commitment to a sustained security solution.
- Award to a specialized contractor likely ensures technical expertise for a sensitive mission.
Sector Analysis
This contract falls within the broader construction and engineering services sector, specifically focusing on the installation of specialized security equipment. The market for such security technology and installation services is often niche, driven by government requirements for border security, non-proliferation, and critical infrastructure protection. Comparable spending benchmarks are difficult to establish without more specific details on the type and quantity of RPMs and the complexity of the installation environment.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the nature of the required services, including specialized equipment and international deployment, necessitated a contractor with specific large-scale capabilities and resources, likely beyond the scope typically undertaken by small businesses in this domain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. Given the international nature and security implications, additional oversight may be provided by relevant interagency bodies focused on non-proliferation and security cooperation. Transparency is facilitated through contract databases, but detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.
Related Government Programs
- Department of Energy Non-Proliferation Programs
- Export Control and Related Border Security Assistance
- International Atomic Energy Agency (IAEA) Safeguards Support
Risk Flags
- Limited competition may impact price.
- CPFF contract type requires diligent oversight to control costs.
- International deployment introduces geopolitical and logistical risks.
Tags
department-of-energy, international-security, radiation-detection, turkmenistan, construction-services, limited-competition, cost-plus-fixed-fee, infrastructure-installation, non-proliferation, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.5 million to TECH2 SOLUTIONS. THE CONTRACTOR SHALL PROVIDE DICCE2 SERVICES TO INSTALL FULLY FUNCTIONAL RADIATION PORTAL MONITORS (RPMS), COMMUNICATION SYSTEMS AND RELATED EQUIPMENT IN TURKMENISTAN GROUP 1, PROGRAM GROUP 2.
Who is the contractor on this award?
The obligated recipient is TECH2 SOLUTIONS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.5 million.
What is the period of performance?
Start: 2019-03-18. End: 2025-07-31.
What is the specific technical capability of TECH2 SOLUTIONS that led to this award, especially given the 'exclusion of sources' clause?
The contract details indicate that TECH2 SOLUTIONS was awarded this contract for providing DICCE2 services to install Radiation Portal Monitors (RPMs), communication systems, and related equipment. The 'Full and Open Competition After Exclusion of Sources' suggests that while the government sought competition, it identified specific sources deemed essential or uniquely qualified. This could be due to proprietary technology, specialized integration expertise with existing systems, specific security clearances required for the personnel or technology, or a demonstrated track record with similar complex international deployments. Without further details from the Department of Energy regarding the specific criteria for exclusion, it's presumed TECH2 SOLUTIONS met these stringent requirements, potentially involving advanced technical knowledge in radiation detection, secure communications, and international logistics for sensitive equipment.
How does the $16.5 million cost compare to similar international security equipment installation contracts?
Benchmarking the $16.5 million cost for installing Radiation Portal Monitors (RPMs) and related systems in Turkmenistan against similar international contracts is challenging due to the limited public data on such specialized deployments. Contracts involving border security technology and infrastructure installation in foreign countries can vary significantly based on the quantity and sophistication of equipment, the complexity of the installation environment, geopolitical factors, and the specific security protocols required. Typically, large-scale international security projects involving advanced detection systems and multi-year logistical support can run into tens of millions of dollars. The cost-plus-fixed-fee (CPFF) structure also means the final cost can fluctuate based on actual effort, making direct comparisons difficult without detailed cost breakdowns and scope definitions.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include geopolitical instability in the region affecting project execution, potential technical challenges during installation and integration of sensitive equipment, logistical hurdles in delivering and installing equipment in a foreign country, and the inherent cost management risks of a Cost Plus Fixed Fee (CPFF) contract. Mitigation strategies likely involve robust project management by the Department of Energy, close coordination with Turkmenistani authorities, adherence to strict security protocols, contingency planning for logistical and technical issues, and rigorous financial oversight to manage the CPFF structure. The long performance period (over 2 years) also presents risks related to potential changes in technology or security requirements during the contract's life.
What is the expected effectiveness of the installed Radiation Portal Monitors (RPMs) in enhancing Turkmenistan's security?
The installation of Radiation Portal Monitors (RPMs) is expected to significantly enhance Turkmenistan's capability to detect and interdict illicit trafficking of radioactive materials across its borders or at critical facilities. RPMs are designed to identify the presence of radioactive isotopes, providing an early warning system for security forces. This contributes to national security by preventing the smuggling of materials that could be used for malicious purposes, such as radiological dispersal devices ('dirty bombs'). The effectiveness is contingent on proper installation, calibration, maintenance, and the training of personnel who will operate and respond to the system's alerts, integrated within a broader security framework.
How has the Department of Energy's spending on similar international security infrastructure projects trended over the past five years?
Analyzing the Department of Energy's (DOE) spending trends on similar international security infrastructure projects over the past five years requires a broad look at its non-proliferation and national security-related programs. The DOE, through various offices, engages in international cooperation to secure nuclear materials and prevent their proliferation. Spending in this area can fluctuate based on global security priorities, specific threats identified, and the lifecycle of ongoing projects. While specific figures for 'international security infrastructure installation' are not readily aggregated, the DOE consistently allocates significant resources to programs aimed at enhancing security at foreign facilities, providing detection equipment, and supporting partner nations' security efforts. This contract represents a specific instance within that broader commitment.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89233119RNA000036
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3200 GEORGE WASHINGTON WAY STE D, RICHLAND, WA, 99354
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,666,017
Exercised Options: $16,666,017
Current Obligation: $16,475,862
Actual Outlays: $12,589,468
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DENA0003366
IDV Type: IDC
Timeline
Start Date: 2019-03-18
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-12-02
More Contracts from Tech2 Solutions
- Kazakhstan Task Order for Design, Integration, Construction, Communication and Engineering 2, Contract Line Item Number 1 (pre-Contract Cost Authorization for Notice to Proceed Issued on July 11, 2017 for Engineering Site Survey in Kazakhstan) — $48.1M (Department of Energy)
- Task Order Lebanon, Design, Integration, Construction, Communication and Engineering 2 — $35.8M (Department of Energy)
- Task Order for Design, Integration, Construction, Communication and Engineering 2 (dicce2) Services in Caucasus Region Group 1, Azerbaijan Program Group 15 — $28.0M (Department of Energy)
- Program Management and Planning for Design, Integration, Construction, Communication and Engineering 2 — $26.4M (Department of Energy)
- Poland Task Order for Design, Integration, Construction, Communication and Engineering 2, Contract Line Item Number 1 — $23.2M (Department of Energy)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)