DOE/NNSA awards $19.3M for technical support, with 4 bidders and a 364-day duration
Contract Overview
Contract Amount: $19,263,501 ($19.3M)
Contractor: Techsource, LLC
Awarding Agency: Department of Energy
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $52.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: DOE/NNSA, TEPS III (BPA), TECHNICAL SUPPORT SERVICES FOR THE OFFICE OF PRODUCTION MODERNIZATION (NA-19).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $19.3 million to TECHSOURCE, LLC for work described as: DOE/NNSA, TEPS III (BPA), TECHNICAL SUPPORT SERVICES FOR THE OFFICE OF PRODUCTION MODERNIZATION (NA-19). Key points: 1. Value for money appears fair given the 364-day duration and the nature of technical support services. 2. Competition dynamics show a moderate level of engagement with 4 bidders. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not closely managed. 4. Performance context is for technical support to the Office of Production Modernization. 5. Sector positioning is within Engineering Services for the Department of Energy.
Value Assessment
Rating: fair
The contract value of $19.3 million over 364 days for technical support services is within a reasonable range for specialized engineering support. Benchmarking against similar contracts for technical assistance within the Department of Energy or other federal agencies would provide a clearer picture of value. The Time and Materials (T&M) pricing structure, while common for services where scope can evolve, necessitates robust oversight to ensure cost efficiency and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With four bidders participating, the competition level suggests a reasonable degree of market interest. This level of competition is generally conducive to price discovery and can help ensure that the government receives competitive pricing, although a higher number of bidders often leads to more aggressive pricing.
Taxpayer Impact: The full and open competition with four bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. It ensures that multiple companies vied for the contract, driving down costs.
Public Impact
The Office of Production Modernization within the Department of Energy benefits from specialized technical support. Services delivered include engineering and technical expertise crucial for modernization efforts. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications include the potential for skilled engineers and technical professionals to be engaged through the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type poses a risk of cost escalation if not meticulously managed and monitored.
- The relatively short duration of 364 days might limit long-term strategic planning for the supported office.
- Dependence on a single contractor for critical technical support could create vulnerabilities if performance falters.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential providers.
- The contractor, TECHSOURCE, LLC, is likely experienced in providing technical support services.
- The contract supports a critical function within the Department of Energy's modernization efforts.
Sector Analysis
The engineering services sector is vital for government operations, particularly within agencies like the Department of Energy focused on complex infrastructure and modernization. This contract falls under NAICS code 541330 (Engineering Services). The market for such services is competitive, with numerous firms capable of providing specialized technical expertise. Comparable spending benchmarks for technical support services within federal agencies can vary widely based on scope, duration, and required specialization.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Technical Support Services
- NNSA Production Modernization Programs
- Engineering and Technical Consulting Services
- Federal IT and Engineering Support Contracts
Risk Flags
- Time and Materials contract type requires close monitoring to control costs.
- Scope definition and management are critical for T&M contracts.
- Potential for cost overruns if not managed effectively.
Tags
department-of-energy, nnsa, technical-support-services, engineering-services, full-and-open-competition, time-and-materials, delivery-order, district-of-columbia, medium-value-contract, production-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.3 million to TECHSOURCE, LLC. DOE/NNSA, TEPS III (BPA), TECHNICAL SUPPORT SERVICES FOR THE 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 $19.3 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is TECHSOURCE, LLC's track record with the Department of Energy and similar federal contracts?
TECHSOURCE, LLC has a history of receiving federal contracts, including those with the Department of Energy. Analyzing their past performance on similar technical support or engineering services contracts is crucial. Key metrics to examine include on-time delivery, adherence to budget, quality of work, and any past performance issues or awards. Their experience with Time and Materials contracts specifically would be relevant, as would their history with the specific agency or sub-agency (NNSA) being supported. A review of their contract history in FPDS and SAM.gov would reveal the scope and value of previous awards and any associated performance feedback.
How does the $19.3 million value compare to similar technical support contracts within the DOE or other agencies?
The $19.3 million contract value for 364 days of technical support services needs to be benchmarked against comparable contracts. Factors influencing this comparison include the specific technical expertise required, the level of support (e.g., strategic advice vs. hands-on engineering), the duration, and the agency. For instance, similar engineering support contracts within the Department of Energy or the National Nuclear Security Administration (NNSA) for modernization efforts could serve as benchmarks. If comparable contracts are significantly lower or higher in value for similar services and durations, it would indicate potential overpricing or under-resourcing. The Time and Materials (T&M) nature of this contract also means the final cost can fluctuate, making direct comparisons challenging without detailed scope information.
What are the primary risks associated with the Time and Materials (T&M) contract type for this engagement?
The primary risk associated with a Time and Materials (T&M) contract type for technical support services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or நிர்ணயம். If the scope of work is not clearly defined or if there is a lack of stringent oversight, the contractor may incur more hours or use more expensive materials than anticipated, leading to costs exceeding initial estimates. For this $19.3 million contract over 364 days, effective monitoring of labor hours, material costs, and task completion is essential to mitigate this risk and ensure value for taxpayer money. Clear task orders and regular performance reviews are critical.
How effective is the competition level (4 bidders) in ensuring optimal pricing and service quality for the government?
A competition level of four bidders for this $19.3 million technical support contract generally indicates a healthy market response and is considered a good level of competition. This number suggests that multiple firms were interested and capable of performing the required services, which typically drives more competitive pricing than a sole-source or limited competition scenario. The government can leverage this competition to negotiate favorable rates and terms. However, the optimal number of bidders can vary depending on the complexity and niche nature of the services. While four bidders are positive, a higher number could potentially lead to even more aggressive pricing, but it also increases the administrative burden of evaluation. The key is that the competition was 'full and open,' allowing all qualified entities to participate.
What is the historical spending pattern for technical support services within the DOE/NNSA for similar modernization efforts?
Analyzing historical spending patterns for technical support services within the Department of Energy (DOE) and the National Nuclear Security Administration (NNSA) for modernization efforts is crucial for context. This involves examining past contract awards for similar services, including their values, durations, contract types, and the number of bidders. Understanding trends in spending can reveal whether this $19.3 million award is consistent with previous investments, or if it represents an increase or decrease. It can also highlight which contractors have been historically successful in securing such work and whether spending has been concentrated or distributed across multiple providers. This historical data helps in assessing the current contract's reasonableness and identifying potential areas for cost savings or efficiency improvements in future procurements.
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: 89233124QNA000337
Offers Received: 4
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: $101,679,933
Exercised Options: $19,436,045
Current Obligation: $19,263,501
Actual Outlays: $3,897,883
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F003DA
IDV Type: FSS
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2025-12-05
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