DOE's Y-12 APMO awards $25M for technical and administrative support, with SIGMA SCIENCE INC as prime
Contract Overview
Contract Amount: $24,974,701 ($25.0M)
Contractor: Sigma Science Inc
Awarding Agency: Department of Energy
Start Date: 2022-07-15
End Date: 2026-11-13
Contract Duration: 1,582 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO) TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES - NA-APM-1.3
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $25.0 million to SIGMA SCIENCE INC for work described as: Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO) TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES - NA-APM-1.3 Key points: 1. Contract provides essential technical and administrative support for the Y-12 National Security Complex. 2. SIGMA SCIENCE INC, the prime contractor, has a significant role in managing project operations. 3. The contract duration extends over 1500 days, indicating a long-term need for these services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. The geographic location of performance is Tennessee, impacting local workforce and economy.
Value Assessment
Rating: fair
The contract value of approximately $25 million over its period of performance appears reasonable for the scope of technical and administrative support required at a major national security complex like Y-12. Benchmarking against similar support contracts is challenging without more granular data on the specific services provided. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency and prevent potential overruns, as T&M contracts can sometimes lead to higher costs compared to fixed-price arrangements if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bids suggests a competitive environment, which generally benefits the government by fostering price discovery and potentially leading to more favorable terms. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and ensures that the government is not limited to a single provider, thereby promoting market efficiency.
Public Impact
The primary beneficiaries are the Department of Energy and the National Nuclear Security Administration, ensuring the smooth operation of the Y-12 National Security Complex. Services delivered include critical technical expertise and administrative functions necessary for project management and acquisition. The geographic impact is concentrated in Tennessee, where the Y-12 complex is located, potentially supporting local employment and businesses. The contract supports a specialized workforce with engineering and administrative skills, contributing to the skilled labor pool in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
- The long duration of the contract (over 4 years) requires sustained oversight to ensure continued value and performance.
- Reliance on a single prime contractor for a broad range of support services could present risks if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contract supports critical national security functions at the Y-12 National Security Complex.
- The prime contractor, SIGMA SCIENCE INC, is likely experienced in providing such specialized services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting government acquisition and project management. The market for these services is substantial, driven by ongoing needs in defense, energy, and infrastructure projects. Comparable spending benchmarks are difficult to establish without detailed service breakdowns, but large-scale government facilities like Y-12 consistently require significant support contracts in this domain.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, SIGMA SCIENCE INC, may still engage small businesses as subcontractors, but this is not mandated by the contract's set-aside status. Further analysis would be needed to determine if subcontracting plans include small business participation.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of Energy's Y-12 Acquisition and Project Management Office (APMO). Accountability measures would typically involve performance reviews, milestone tracking, and adherence to contract terms. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight details may not be publicly available. The Inspector General's office for the Department of Energy would have jurisdiction for audits and investigations.
Related Government Programs
- Y-12 National Security Complex Operations
- Department of Energy Technical Support Services
- Project Management Support Contracts
- National Nuclear Security Administration Services
Risk Flags
- Time and Materials contract type carries inherent cost overrun risk.
- Long contract duration requires sustained oversight.
- Potential for contractor performance issues impacting critical national security functions.
Tags
engineering-services, department-of-energy, y-12-national-security-complex, delivery-order, time-and-materials, full-and-open-competition, tennessee, acquisition-support, project-management, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $25.0 million to SIGMA SCIENCE INC. Y-12 ACQUISITION AND PROJECT MANAGEMENT OFFICE (APMO) TECHNICAL & ADMINISTRATIVE SUPPORT SERVICES - NA-APM-1.3
Who is the contractor on this award?
The obligated recipient is SIGMA SCIENCE INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $25.0 million.
What is the period of performance?
Start: 2022-07-15. End: 2026-11-13.
What is the track record of SIGMA SCIENCE INC in performing similar technical and administrative support services for government agencies, particularly within the Department of Energy?
SIGMA SCIENCE INC has a history of providing technical, engineering, and management support services to various government entities. While specific details on their performance for the Y-12 APMO prior to this award are not detailed here, their ability to win a full and open competition contract of this magnitude suggests they possess the requisite experience and capabilities. A deeper dive into their contract history, past performance evaluations, and any reported issues or commendations would provide a more comprehensive understanding of their track record. Their presence in the federal contracting space indicates a level of established performance, but the quality and consistency across different contracts would need further investigation.
How does the awarded amount of approximately $25 million compare to historical spending on similar technical and administrative support services at the Y-12 complex or comparable facilities?
Direct comparison of the $25 million award to historical spending requires access to detailed historical contract data for the Y-12 APMO or similar facilities. Without that granular data, it's difficult to definitively benchmark this award. However, the scale of the Y-12 National Security Complex suggests that substantial investments in technical and administrative support are routine. The duration of this contract (over 4 years) and its full and open competition award indicate it's a significant, planned expenditure. If historical data shows similar or higher spending for comparable support functions, this award could be considered within a normal range. Conversely, if it represents a significant increase or decrease, further analysis into the scope of work and market conditions would be warranted.
What are the primary risks associated with the Time and Materials (T&M) contract type for this specific service, and what mitigation strategies are in place?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, rather than a fixed price. This can lead to unpredictable expenditures if not managed effectively. For technical and administrative support services, risks include inefficient labor utilization, scope creep, and inflated material costs. Mitigation strategies typically involve robust government oversight, including detailed monitoring of labor hours, verification of material costs, and strict adherence to the defined scope of work. Establishing clear ceilings, requiring detailed progress reports, and conducting regular performance reviews are crucial to controlling costs and ensuring value under a T&M contract.
How effective is the current competition level (4 bidders) in ensuring optimal price discovery and value for taxpayers for these engineering services?
Having four bidders in a full and open competition generally indicates a healthy level of competition, which is conducive to good price discovery. This number suggests that multiple firms found the opportunity attractive enough to invest resources in preparing a bid. A higher number of bidders could potentially drive prices down further, but four is often considered a sufficient number to prevent a lack of competition. The effectiveness also depends on the quality and competitiveness of the bids submitted. If the bids were closely contested and the winning bid was significantly lower than others, it suggests strong price discovery. Conversely, if there was a large disparity in bids, it might indicate differing interpretations of the scope or varying cost structures among bidders.
What are the potential workforce implications in Tennessee resulting from this contract award to SIGMA SCIENCE INC?
This contract is likely to have positive workforce implications in Tennessee, particularly in the vicinity of the Y-12 National Security Complex. The provision of technical and administrative support services requires a skilled workforce, potentially including engineers, project managers, administrative staff, and technicians. The contract's duration of over four years suggests sustained employment opportunities. SIGMA SCIENCE INC may hire new personnel locally or relocate existing employees, contributing to job creation and economic activity in the region. The demand for these specialized skills could also spur training and development initiatives within the local labor market.
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
Solicitation ID: 89233122QNA000226
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6565 AMERICAS PKWY NE, ALBUQUERQUE, NM, 87110
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,380,102
Exercised Options: $54,669,708
Current Obligation: $24,974,701
Actual Outlays: $18,346,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA18D005Q
IDV Type: FSS
Timeline
Start Date: 2022-07-15
Current End Date: 2026-11-13
Potential End Date: 2027-11-13 00:00:00
Last Modified: 2026-03-30
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