DOE's Y-12 APMO Spends $38.5M on Engineering Services via BPA Call, Full and Open Competition
Contract Overview
Contract Amount: $38,543,769 ($38.5M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Energy
Start Date: 2022-09-28
End Date: 2027-09-27
Contract Duration: 1,825 days
Daily Burn Rate: $21.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: THE Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO), NA-93, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE. THE APMO ORGANIZATION IS COMPRIS
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89135
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $38.5 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO), NA-93, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE. THE APMO ORGANIZATION IS COMPRIS Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The contract is Time and Materials (T&M) based, which can pose cost control risks. 4. Parsons Government Services Inc. is the awardee for engineering services at the Y-12 site. 5. The contract duration is 5 years, aligning with long-term project needs.
Value Assessment
Rating: fair
The Time and Materials (T&M) pricing structure, while flexible, lacks a fixed ceiling, making it harder to benchmark against similar fixed-price contracts. The total award amount of $38.5M over five years requires careful monitoring of labor hours and rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the use of a BPA Call suggests that the underlying competition for the BPA itself may have occurred previously.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure the best possible pricing through a competitive process.
Public Impact
Ensures critical engineering services for capital projects at the Y-12 National Nuclear Security Complex. Supports national security objectives by maintaining essential infrastructure and equipment. Provides employment opportunities within the engineering and project management sectors. The T&M nature of the contract necessitates vigilant oversight to prevent cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Potential for cost creep without strict oversight
- BPA Call mechanism may limit direct competition on this specific award
Positive Signals
- Full and open competition utilized
- Long contract duration aligns with project needs
- Awardee has experience in government contracting
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for government infrastructure and defense projects. Spending benchmarks for engineering services can vary widely based on project complexity and duration, but $38.5M over five years for a major site like Y-12 appears within a reasonable range for specialized technical support.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (sb: false). There is no information provided on whether the prime contractor is utilizing small business subcontractors for this BPA Call.
Oversight & Accountability
The Acquisition and Project Management Office (APMO) is responsible for contract management and oversight. The duration of the contract and its T&M nature will require robust oversight mechanisms to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Time and Materials pricing
- Lack of specific performance metrics in provided data
- Potential for cost overruns
- Limited insight into subcontractor utilization
Tags
engineering-services, department-of-energy, nv, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $38.5 million to PARSONS GOVERNMENT SERVICES INC.. THE Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO), NA-93, PROVIDES CONTRACT MANAGEMENT AND CONTRACT OVERSIGHT FOR ONGOING CAPITAL PROJECTS AND MAJOR ITEMS OF EQUIPMENT AT THE Y-12 SITE IN OAK RIDGE, TENNESSEE. THE APMO ORGANIZATION IS COMPRIS
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $38.5 million.
What is the period of performance?
Start: 2022-09-28. End: 2027-09-27.
What specific engineering services are being procured under this contract, and how do they align with the Y-12 site's critical mission requirements?
The contract provides contract management and oversight for ongoing capital projects and major equipment at the Y-12 site. While the specific services aren't detailed, they are essential for maintaining and upgrading the complex's infrastructure, which supports national security missions related to nuclear weapons stockpile stewardship and nonproliferation.
What are the primary risks associated with the Time and Materials (T&M) contract type for this $38.5M award, and what mitigation strategies are in place?
The primary risk is cost escalation due to the lack of a fixed ceiling, potentially leading to overspending if not managed tightly. Mitigation strategies likely include detailed monitoring of labor hours and rates, clear task definitions, and strong project management oversight by the APMO to ensure efficient resource utilization and prevent scope creep.
How does the use of a BPA Call, even with full and open competition for the BPA itself, impact the overall cost-effectiveness and transparency of this specific contract?
A BPA Call leverages pre-negotiated terms and conditions, potentially speeding up procurement. While the BPA itself was competed openly, this specific call might have had limited competition among BPA holders. This can impact price discovery for this individual task order, though overall efficiency gains are often the goal.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,512,044
Exercised Options: $42,801,203
Current Obligation: $38,543,769
Actual Outlays: $32,708,275
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89233222ANA000004
IDV Type: BPA
Timeline
Start Date: 2022-09-28
Current End Date: 2027-09-27
Potential End Date: 2027-09-27 00:00:00
Last Modified: 2026-04-06
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