Department of Energy awards $2.28M contract for advanced simulation and computing technical support to TECHSOURCE, LLC

Contract Overview

Contract Amount: $2,281,278 ($2.3M)

Contractor: Techsource, LLC

Awarding Agency: Department of Energy

Start Date: 2024-08-27

End Date: 2026-08-26

Contract Duration: 729 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: OFFICE OF ADVANCED SIMULATION AND COMPUTING AND INSTITUTIONAL R&D PROGRAMS (NA-114) TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $2.3 million to TECHSOURCE, LLC for work described as: OFFICE OF ADVANCED SIMULATION AND COMPUTING AND INSTITUTIONAL R&D PROGRAMS (NA-114) TECHNICAL SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for technical support related to advanced simulation and computing. 3. TECHSOURCE, LLC, a private company, is the awardee. 4. The contract duration is approximately 2 years. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award is a Delivery Order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $2.28 million over two years for technical support in a specialized field like advanced simulation and computing appears moderate. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is difficult. Benchmarking against similar technical support contracts within the Department of Energy or other federal agencies for specialized engineering services would be necessary for a more robust evaluation. The Time and Materials pricing structure warrants careful monitoring to ensure costs remain within reasonable bounds.

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 a bid. The data shows 2 bids were received. A higher number of bidders typically suggests a more competitive environment, which can lead to better pricing and innovation. However, with only two bids, the extent of true price discovery and the potential for a more robustly competitive outcome is somewhat limited.

Taxpayer Impact: A full and open competition, even with a limited number of bids, is generally favorable for taxpayers as it provides an opportunity for multiple companies to offer their services, potentially driving down costs compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Energy's Office of Advanced Simulation and Computing and Institutional R&D Programs. The contract will provide essential technical support services for advanced simulation and computing initiatives. This support is crucial for maintaining and advancing the department's research and development capabilities. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract supports specialized technical expertise, potentially impacting the workforce in engineering and computing fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Engineering Services sector (NAICS code 541330), which is a significant part of federal spending, particularly for agencies involved in research, development, and complex technical operations like the Department of Energy. The market for specialized technical support in advanced simulation and computing is driven by government needs for cutting-edge research and development. Comparable spending benchmarks would involve looking at other federal contracts for similar engineering and technical support services, especially those supporting scientific research and high-performance computing.

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 stemming from a small business set-aside. The award to TECHSOURCE, LLC, a private company, does not inherently create opportunities for small business subcontracting unless specified in the contract terms or pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. Accountability measures would be tied to the delivery of technical support services as outlined in the contract statement of work. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Risk Flags

Tags

department-of-energy, technical-support, advanced-simulation, computing, engineering-services, time-and-materials, full-and-open-competition, delivery-order, district-of-columbia, r&d

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.3 million to TECHSOURCE, LLC. OFFICE OF ADVANCED SIMULATION AND COMPUTING AND INSTITUTIONAL R&D PROGRAMS (NA-114) TECHNICAL SUPPORT

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 $2.3 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-08-26.

What is the track record of TECHSOURCE, LLC in performing similar technical support contracts for the federal government?

Assessing the track record of TECHSOURCE, LLC requires a review of their past performance on federal contracts, particularly those involving advanced simulation and computing or similar technical support services. Information on past performance, including client satisfaction, adherence to schedule and budget, and quality of deliverables, is typically available through sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS). A detailed analysis would involve examining the size, duration, and complexity of their previous contracts, as well as any documented performance issues or commendations. Without specific CPARS data or a detailed contract history review, it is difficult to definitively assess their suitability for this specific award beyond the fact that they were selected through a competitive process.

How does the awarded amount compare to similar technical support contracts within the Department of Energy or other agencies?

To benchmark the $2.28 million award for technical support, one would need to compare it against contracts for similar services, considering factors like duration, scope of work, and the specific technical domain (advanced simulation and computing). For instance, contracts for engineering services, IT support for research facilities, or specialized scientific consulting within the Department of Energy or agencies like the National Science Foundation (NSF) or NASA could serve as comparators. The Time and Materials (T&M) pricing structure also influences comparability, as T&M contracts can have variable costs. A comprehensive comparison would involve analyzing the average hourly rates, total contract values, and the number of labor hours billed on similar T&M or firm-fixed-price contracts to determine if this award represents a fair market price for the services rendered.

What are the primary risks associated with a Time and Materials (T&M) contract for technical support in this domain?

The primary risk associated with a Time and Materials (T&M) contract for technical support in advanced simulation and computing is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a predetermined total cost, meaning the government pays for the actual labor hours and materials used. This can lead to higher-than-expected expenditures if the scope of work is not clearly defined, if the contractor's efficiency is low, or if the project requires more resources than initially anticipated. Effective oversight, including detailed tracking of hours, labor categories, and material costs, is crucial to mitigate these risks and ensure that the government receives good value for its investment. The Department of Energy will need robust project management to control costs under this T&M award.

How effective are the current oversight mechanisms for ensuring the successful delivery of technical support under this contract?

The effectiveness of oversight for this contract hinges on the Department of Energy's established procedures for managing Time and Materials (T&M) awards. Standard oversight mechanisms include the appointment of a Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC) responsible for monitoring contractor performance, verifying hours and materials, and ensuring adherence to the statement of work. Regular progress meetings, performance reviews, and audits are also critical. The success of these mechanisms depends on the diligence of the government personnel involved, the clarity of the contract's deliverables, and the transparency of the contractor's reporting. Without specific details on the DOE's internal oversight protocols for this particular contract, a definitive assessment of effectiveness is challenging, but the framework for oversight generally exists within federal acquisition regulations.

What is the historical spending pattern for technical support services related to advanced simulation and computing at the Department of Energy?

Analyzing historical spending patterns for technical support in advanced simulation and computing at the Department of Energy (DOE) would involve examining contract data over several fiscal years. This would reveal trends in contract values, award types (e.g., T&M vs. fixed-price), competition levels, and the prime contractors frequently awarded such work. Understanding these patterns can help identify whether spending has been consistent, increasing, or decreasing, and whether it has been subject to competitive pressures. For example, a historical trend of sole-source awards or consistently high spending on T&M contracts might indicate areas for potential improvement in procurement strategy or cost management. This specific $2.28 million award should be viewed within the context of the DOE's broader investment in these critical research areas.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: 89233124QNA000345

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $5,936,901

Exercised Options: $2,281,278

Current Obligation: $2,281,278

Actual Outlays: $1,409,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F003DA

IDV Type: FSS

Timeline

Start Date: 2024-08-27

Current End Date: 2026-08-26

Potential End Date: 2029-08-26 00:00:00

Last Modified: 2026-03-30

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