DOE awards $15.3M administrative support contract to LBYD FEDERAL, LLC, citing no competition
Contract Overview
Contract Amount: $15,279,023 ($15.3M)
Contractor: Lbyd Federal, LLC
Awarding Agency: Department of Energy
Start Date: 2023-12-21
End Date: 2026-05-03
Contract Duration: 864 days
Daily Burn Rate: $17.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ADMINISTRATIVE AND SUPPORT SERVICES FOR THE OFFICE OF SCIENCE ORGANIZATIONS WITHIN THE DEPARTMENT OF ENERGY
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $15.3 million to LBYD FEDERAL, LLC for work described as: ADMINISTRATIVE AND SUPPORT SERVICES FOR THE OFFICE OF SCIENCE ORGANIZATIONS WITHIN THE DEPARTMENT OF ENERGY Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract's duration of over two years suggests a need for sustained administrative support. 3. Performance is in Tennessee, potentially impacting local administrative workforce dynamics. 4. The use of Time and Materials pricing introduces cost uncertainty compared to fixed-price awards. 5. No small business set-aside was utilized, indicating a focus on specific contractor capabilities. 6. The administrative and support services category is broad, requiring clear performance metrics.
Value Assessment
Rating: questionable
The contract value of $15.3 million for administrative and support services over approximately 2.5 years warrants scrutiny. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar government contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely managed and monitored. A comparison to other administrative support contracts within the Department of Energy or other federal agencies for similar scope and duration would be necessary to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the agency determined that only one source was capable of meeting the requirement. This could be due to specialized expertise, proprietary technology, or urgent needs where a full and open competition was not feasible. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The justification for a sole-source award needs to be robust to ensure public funds are used efficiently.
Public Impact
The Office of Science organizations within the Department of Energy will benefit from sustained administrative and support services. Essential administrative functions will be maintained, ensuring the smooth operation of scientific research programs. The contract's performance location in Tennessee may have implications for the local administrative support workforce. The services provided are crucial for the effective management and execution of the Department of Energy's scientific mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing and service quality.
- Time and Materials contract type introduces potential for cost escalation without fixed-price controls.
- Lack of small business participation may limit opportunities for smaller, specialized firms.
- The broad nature of 'administrative and support services' requires diligent oversight to ensure scope adherence.
Positive Signals
- Contract supports critical administrative functions for the Department of Energy's Office of Science.
- The award provides continuity of essential services over a defined period.
- The contractor, LBYD FEDERAL, LLC, is tasked with delivering these services, implying they possess the necessary qualifications.
Sector Analysis
The administrative and support services sector is a significant component of government contracting, encompassing a wide range of functions from general office management to specialized program support. Federal agencies rely heavily on these services to maintain operational efficiency and focus on core missions. The market for these services is competitive, with numerous firms offering various levels of expertise. However, sole-source awards, like this one, bypass typical market dynamics. Benchmarking this contract's value would involve comparing its total value and duration against similar administrative support contracts awarded to other federal agencies or within the DOE itself, considering the specific services rendered.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary focus was on securing the necessary administrative support services, potentially from a contractor with specific capabilities or existing relationships, rather than prioritizing small business participation. The absence of set-asides means that opportunities for small businesses to compete for or subcontract on this specific award are limited, potentially impacting the small business ecosystem in this particular service area.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. Given it is a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs will be essential to ensure compliance with the contract terms and prevent cost overruns. Transparency regarding the justification for the sole-source award and the performance metrics will be key. While specific Inspector General (IG) jurisdiction is not detailed, the DOE IG typically oversees all agency contracts for waste, fraud, and abuse.
Related Government Programs
- Department of Energy Administrative Support Contracts
- Office of Science Operations
- Federal Administrative Services
- Sole-Source Contract Awards
Risk Flags
- Sole-source award lacks competitive pricing.
- Time and Materials contract type poses cost overrun risk.
- Lack of transparency regarding justification for sole-source award.
- Potential for reduced contractor incentive due to lack of competition.
Tags
administrative-support, department-of-energy, office-of-science, lbyd-federal-llc, definitive-contract, time-and-materials, sole-source, tennessee, naics-561110, office-administrative-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $15.3 million to LBYD FEDERAL, LLC. ADMINISTRATIVE AND SUPPORT SERVICES FOR THE OFFICE OF SCIENCE ORGANIZATIONS WITHIN THE DEPARTMENT OF ENERGY
Who is the contractor on this award?
The obligated recipient is LBYD FEDERAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $15.3 million.
What is the period of performance?
Start: 2023-12-21. End: 2026-05-03.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Agencies must document a justification and approval (J&A) for such awards, typically citing reasons like the existence of only one responsible source, urgent and compelling needs, or specific government-unique requirements. Without access to the J&A document for this specific contract, the precise rationale remains unknown. However, common reasons include highly specialized skills, proprietary technology, or a critical need where competition would cause unacceptable delays or costs. The Department of Energy would have had to formally document and approve this justification.
How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar administrative services?
Time and Materials (T&M) contracts pay the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. This structure offers flexibility, especially when the scope of work is not clearly defined or is expected to change. However, it places a greater risk on the government for cost overruns, as the final price is not predetermined. Fixed-price contracts, conversely, establish a set price for a well-defined scope of work, providing greater cost certainty for the government but offering less flexibility. For administrative services, where tasks can sometimes be variable, T&M might seem appropriate. However, it necessitates robust government oversight to manage labor hours and rates effectively. Compared to fixed-price contracts for similar administrative support, T&M contracts generally carry a higher risk of exceeding budget if not meticulously managed.
What are the potential risks associated with a sole-source award for administrative support services?
The primary risk of a sole-source award for administrative support services is the lack of price competition. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing, potentially leading to higher costs for taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional service, as they face no direct competitive pressure. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other capable businesses that were not given a chance to compete. Agencies must have strong justifications for sole-source awards to mitigate these risks and ensure responsible use of public funds.
What is the typical cost range for administrative and office support services contracts within the Department of Energy?
Determining a precise 'typical' cost range for administrative and office support services within the Department of Energy (DOE) is challenging without specific details on the scope, duration, and complexity of services. DOE contracts vary widely, from small, localized support roles to large, comprehensive service agreements. However, based on general federal procurement data for NAICS code 561110 (Office Administrative Services), contract values can range from tens of thousands to millions of dollars annually, depending on the agency, location, and specific requirements. The $15.3 million awarded to LBYD FEDERAL, LLC over approximately 2.5 years ($6.12M/year average) appears to be a substantial award, suggesting a significant scope of support for the Office of Science organizations. Benchmarking would require comparing this contract's specific deliverables and labor mix against similar DOE or agency-wide contracts.
What performance metrics are likely being used to evaluate LBYD FEDERAL, LLC's services?
While specific performance metrics are not provided in the data, contracts for administrative and support services typically include metrics focused on timeliness, accuracy, responsiveness, and adherence to procedures. For the Office of Science, these could include metrics related to the efficiency of processing requests, maintaining records, supporting personnel actions, managing facilities-related administrative tasks, or facilitating communication within and between scientific organizations. Performance standards might be defined in the Performance Work Statement (PWS) or Statement of Work (SOW). Common metrics could involve response times for inquiries, accuracy rates in data entry or reporting, and successful completion of assigned administrative tasks within specified deadlines. The government's quality assurance surveillance plan (QASP) would outline how these metrics are monitored and evaluated.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89243123RSC000110
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,807,812
Exercised Options: $19,543,353
Current Obligation: $15,279,023
Actual Outlays: $13,032,188
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-21
Current End Date: 2026-05-03
Potential End Date: 2026-08-04 00:00:00
Last Modified: 2026-02-17
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