DOE awards $20.2M for technical support, with 18 months remaining on contract
Contract Overview
Contract Amount: $20,126,945 ($20.1M)
Contractor: Techsource, LLC
Awarding Agency: Department of Energy
Start Date: 2024-03-29
End Date: 2025-09-30
Contract Duration: 550 days
Daily Burn Rate: $36.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: TECHNICAL SUPPORT SERVICES FOR THE DOE/NNSA OFFICE OF PRODUCTION MODERNIZATION (NA-19)
Place of Performance
Location: LOS ALAMOS, LOS ALAMOS County, NEW MEXICO, 87544
Plain-Language Summary
Department of Energy obligated $20.1 million to TECHSOURCE, LLC for work described as: TECHNICAL SUPPORT SERVICES FOR THE DOE/NNSA OFFICE OF PRODUCTION MODERNIZATION (NA-19) Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. Performance is contextually benchmarked against similar engineering services contracts. 5. The contract falls within the Engineering Services sector, a common area for federal procurement. 6. No small business set-aside was applied to this specific award.
Value Assessment
Rating: good
The total award amount of $20.2 million for technical support services over approximately 1.5 years suggests a moderate annual spend. Benchmarking against similar engineering services contracts within the Department of Energy indicates that the pricing structure is likely competitive, especially given the full and open competition. The contract type (delivery order) implies that the underlying IDIQ vehicle was also competitively awarded, further supporting the likelihood of fair pricing. Without specific cost breakdowns or labor rates, a precise value-for-money assessment is limited, but the overall award size seems aligned with the expected scope of technical support for a specialized office like Production Modernization.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a robust bidding environment, encouraging multiple vendors to compete on price and technical merit. The specific number of bidders is not provided, but the 'full and open' designation suggests that the government sought the widest possible pool of qualified contractors. This level of competition is generally expected to drive down costs and ensure the best value is obtained for the taxpayer.
Taxpayer Impact: Full and open competition maximizes the chances of securing the most cost-effective solution for taxpayers by encouraging a wide range of offers and promoting competitive pricing.
Public Impact
The primary beneficiaries are the Department of Energy and the National Nuclear Security Administration (NNSA) Office of Production Modernization, who receive essential technical support. Services delivered include technical expertise crucial for modernizing production capabilities within the NNSA. The geographic impact is centered in New Mexico, where the NNSA's operations are significantly located. The contract supports a specialized workforce of technical experts, potentially including engineers, analysts, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited transparency on the specific technical deliverables and performance metrics.
- Potential for scope creep if requirements are not tightly managed.
- Dependence on a single contractor for critical technical support could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contract duration provides a stable period for support, allowing for focused project execution.
- The contractor, TECHSOURCE, LLC, likely has relevant experience in providing technical services to government agencies.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS code 541330), which encompasses firms providing specialized engineering consulting and design services. This sector is vital for government agencies undertaking complex modernization and infrastructure projects. Federal spending in engineering services is substantial, supporting everything from defense systems to energy infrastructure. This specific contract supports the NNSA's critical mission of modernizing production facilities, a high-priority area within the broader energy and defense landscape. Comparable spending benchmarks would typically involve analyzing other contracts for similar technical support services within defense and energy agencies.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting requirements indicated in the provided data. This suggests that the primary award went to a large business or that subcontracting plans were not a deciding factor for this particular delivery order. The absence of a small business focus means that opportunities for small businesses to participate in this specific contract are likely limited to potential subcontracting roles that may or may not be mandated.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy contracting officers and program managers responsible for the NNSA Office of Production Modernization. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy IT Support Services
- NNSA Production Modernization Initiatives
- Engineering Consulting Services
- Federal Technical Support Contracts
- Defense Nuclear Nonproliferation Programs
Risk Flags
- Potential for key personnel turnover
- Cybersecurity risks associated with technical support
- Dependence on contractor performance for critical modernization timelines
Tags
engineering-services, department-of-energy, nnsa, production-modernization, technical-support, delivery-order, full-and-open-competition, new-mexico, labor-hours, medium-value, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.1 million to TECHSOURCE, LLC. TECHNICAL SUPPORT SERVICES FOR THE DOE/NNSA OFFICE OF PRODUCTION MODERNIZATION (NA-19)
Who is the contractor on this award?
The obligated recipient is TECHSOURCE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2024-03-29. End: 2025-09-30.
What is TECHSOURCE, LLC's track record with the Department of Energy and similar agencies?
TECHSOURCE, LLC has a history of receiving federal contracts, including those with the Department of Energy and other agencies requiring technical and professional services. Their past performance data, often available through federal procurement databases, would detail the types of services rendered, contract values, and performance ratings. A review of their portfolio would indicate experience in areas relevant to engineering, IT, and program management support. For this specific contract, the Department of Energy's contracting officers would have evaluated TECHSOURCE, LLC's past performance as part of the source selection process to ensure they possess the necessary capabilities and reliability to execute the awarded task order effectively. Their ability to secure this contract suggests a satisfactory or strong performance history in previous engagements.
How does the $20.2 million award compare to historical spending on technical support for NNSA Production Modernization?
To accurately compare this $20.2 million award to historical spending, one would need to analyze prior contracts specifically for the NNSA Office of Production Modernization (NA-19) or closely related functions. This would involve querying federal procurement databases for contracts awarded to support this office over previous fiscal years. Factors to consider include the duration of those historical contracts, the scope of work, and whether they were also competitively awarded. If previous support was delivered through multiple smaller contracts or different vehicles, a direct comparison of total award value might be less meaningful than analyzing annual spending trends. The current award, covering a period of approximately 1.5 years, provides a specific funding level for the defined scope, and historical data would reveal if this represents an increase, decrease, or consistent level of investment in technical support for this critical modernization effort.
What are the key performance indicators (KPIs) or metrics used to assess TECHSOURCE, LLC's performance on this contract?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data but are typically defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For technical support services related to production modernization, common KPIs might include timeliness of deliverables, accuracy of technical analyses, effectiveness of recommendations, adherence to project schedules, and responsiveness to requests for support. Performance is often assessed through regular progress reports, client feedback, and milestone achievement. The Department of Energy's contracting officer and technical point of contact would monitor these metrics to ensure TECHSOURCE, LLC is meeting the contract requirements and delivering the expected value. Failure to meet KPIs could result in contractual remedies, including potential termination or reduced future awards.
What is the risk associated with relying on TECHSOURCE, LLC for critical production modernization technical support?
The primary risks associated with relying on TECHSOURCE, LLC for critical production modernization technical support include potential contractor underperformance, key personnel loss, and cybersecurity vulnerabilities. If the contractor fails to deliver high-quality technical expertise or meet deadlines, it could delay crucial modernization efforts, impacting national security objectives. The departure of experienced personnel from TECHSOURCE, LLC could disrupt continuity and institutional knowledge. Furthermore, as with any IT-reliant service contract, there's a risk of data breaches or cyberattacks if robust security protocols are not maintained. Mitigation strategies employed by the Department of Energy would include rigorous performance monitoring, clear contractual requirements, contingency planning for key personnel, and strict adherence to cybersecurity standards.
How does the 'Delivery Order' contract type affect competition and pricing compared to a standalone contract?
A 'Delivery Order' is issued under an existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. The competition and pricing dynamics differ significantly from a standalone contract. The initial IDIQ contract itself would have undergone a full and open competition, establishing a pool of pre-qualified vendors and potentially pre-negotiated labor rates or pricing structures. When a specific delivery order is placed, it leverages the terms of that established IDIQ. For this particular award, the 'full and open' designation likely refers to the competition for the underlying IDIQ vehicle. While individual delivery orders might sometimes be competed among IDIQ holders, they can also be awarded based on the initial competition if the IDIQ terms allow for it. This structure can streamline procurement but might offer less direct price competition for each individual task compared to a new, standalone solicitation.
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
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1475 CENTRAL AVE, LOS ALAMOS, NM, 87544
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $27,164,432
Exercised Options: $27,164,432
Current Obligation: $20,126,945
Actual Outlays: $20,064,116
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F003DA
IDV Type: FSS
Timeline
Start Date: 2024-03-29
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-10-15
More Contracts from Techsource, LLC
- Igf:cl:igf U.S. Department of Energy, National Nuclear Security Administration's (doe/Nnsa) Technical, Engineering, and Programmatic Support Services II (teps II) Blanket Purchase Agreement (BPA) Holders--Rfq 89233120QNA000116 Technical Suppo — $28.9M (Department of Energy)
- Liaison, Technical, Program, and Strategic Communications Support Services to the Office of the Deputy Administrator for Defense Programs (NA-10) — $25.3M (Department of Energy)
- Requisition 19MA002035 WAS Created to Provide Project Management Support to the Department of Energy. the Period of Performance IS: Base Year: 09/13/19 to 09/12/20 Option Year 1: 09/13/20 to 09/12/21 Option Year 2: 09/13/21 to 09/12/22 Option YEA — $21.5M (Department of Energy)
- Igf:cl:igf U.S. Department of Energy, National Nuclear Security Administration's (doe/Nnsa) Technical, Engineering, and Programmatic Support Services II (teps II) Blanket Purchase Agreement (BPA) Holders--Rfq 89233120QNA000137 Technical Suppo — $20.4M (Department of Energy)
- Doe/Nnsa, Teps III (BPA), Technical Support Services for the Office of Production Modernization (NA-19) — $19.3M (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)