DOE awards $760K contract to Vali Cooper International for crude oil tank foam seal system updates
Contract Overview
Contract Amount: $760,739 ($760.7K)
Contractor: Vali Cooper International LLC
Awarding Agency: Department of Energy
Start Date: 2025-05-29
End Date: 2026-12-31
Contract Duration: 581 days
Daily Burn Rate: $1.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: ARCHITECT-ENGINEER SERVICES FOR THE SPRPMO - TASK ORDER FOR TASK NO. BM-MM-2188 - CRUDE OIL TANKS FOAM SEAL SYSTEM UPDATES (BMT-25 AND BLDG 206)
Place of Performance
Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123
Plain-Language Summary
Department of Energy obligated $760,738.84 to VALI COOPER INTERNATIONAL LLC for work described as: ARCHITECT-ENGINEER SERVICES FOR THE SPRPMO - TASK ORDER FOR TASK NO. BM-MM-2188 - CRUDE OIL TANKS FOAM SEAL SYSTEM UPDATES (BMT-25 AND BLDG 206) Key points: 1. Contract focuses on essential safety and operational upgrades for critical infrastructure. 2. The fixed-price contract type suggests a defined scope and cost control. 3. The contract duration of 581 days indicates a moderate-term project. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The geographic location in Louisiana is relevant to the energy sector's operational footprint. 6. This task order is part of a larger effort to maintain and modernize energy storage facilities.
Value Assessment
Rating: good
The contract value of $760,738.84 for engineering services related to foam seal system updates appears reasonable given the scope of work. Benchmarking against similar infrastructure upgrade projects within the Department of Energy or other energy sector agencies would provide further context. The firm-fixed-price structure helps manage cost overruns, but the ultimate value for money will depend on the successful execution and long-term effectiveness of the system updates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, specific sources may have been excluded for defined reasons. The presence of two bidders suggests a degree of competition, though a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific reasons for excluding other sources would need further investigation to fully assess the competitive landscape.
Taxpayer Impact: The open competition, even with exclusions, aims to ensure the government receives competitive pricing. However, understanding the rationale behind source exclusions is crucial to determine if taxpayer funds were optimally utilized.
Public Impact
The Department of Energy benefits from improved safety and operational reliability of its Strategic Petroleum Reserve facilities. Services delivered include engineering and technical expertise for updating critical foam seal systems on crude oil tanks. The geographic impact is concentrated in Louisiana, a key state for energy infrastructure. The contract supports specialized engineering roles, potentially impacting the workforce in the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during the system updates.
- Dependence on the contractor's expertise for successful implementation and long-term system performance.
- Risk of delays if permitting or site access issues occur in Louisiana.
- Ensuring the 'exclusion of sources' did not unduly limit competition and lead to suboptimal pricing.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Task order structure allows for focused execution of specific upgrades.
- Experienced contractor likely selected based on prior performance or specialized knowledge.
- Updates to safety systems contribute to overall infrastructure resilience and risk mitigation.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the energy industry's critical infrastructure. The market for such specialized engineering services is driven by regulatory compliance, safety standards, and the need for operational efficiency in handling volatile materials like crude oil. Comparable spending benchmarks would involve looking at other task orders for similar infrastructure maintenance and upgrade projects within the Department of Energy or other federal agencies managing large-scale energy storage.
Small Business Impact
The data indicates 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 set-aside provision. The primary contractor, Vali Cooper International LLC, will manage the execution of the task order. Any subcontracting opportunities would be at the discretion of the prime contractor.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers responsible for the Strategic Petroleum Reserve. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and system updates. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided.
Related Government Programs
- Strategic Petroleum Reserve Operations
- Energy Infrastructure Maintenance
- Petroleum Storage Facility Upgrades
- Engineering and Technical Services Contracts
Risk Flags
- Potential for limited competition due to source exclusions.
- Need for detailed justification of excluded sources.
- Reliance on contractor performance for critical infrastructure upgrades.
Tags
energy, department-of-energy, strategic-petroleum-reserve, engineering-services, firm-fixed-price, full-and-open-competition, task-order, louisiana, infrastructure-maintenance, safety-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $760,738.84 to VALI COOPER INTERNATIONAL LLC. ARCHITECT-ENGINEER SERVICES FOR THE SPRPMO - TASK ORDER FOR TASK NO. BM-MM-2188 - CRUDE OIL TANKS FOAM SEAL SYSTEM UPDATES (BMT-25 AND BLDG 206)
Who is the contractor on this award?
The obligated recipient is VALI COOPER INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $760,738.84.
What is the period of performance?
Start: 2025-05-29. End: 2026-12-31.
What is Vali Cooper International LLC's track record with the Department of Energy and similar federal agencies?
Vali Cooper International LLC has a history of performing contracts with federal agencies, including the Department of Energy. Analyzing their past performance on similar engineering and construction projects, particularly those involving energy infrastructure or hazardous material handling, would provide insight into their capabilities and reliability. Reviewing past contract awards, performance evaluations (if publicly available), and any history of disputes or corrective actions would offer a comprehensive view of their track record. This specific task order's value is relatively modest, suggesting it might be one of many projects they undertake, or a smaller component of a larger contract vehicle.
How does the $760,738.84 contract value compare to similar foam seal system upgrade projects?
Benchmarking this contract's value requires comparing it to similar task orders or contracts for foam seal system updates on crude oil tanks within the Department of Energy or other federal agencies managing large-scale petroleum storage. Factors such as tank size, complexity of the system, geographic location, and the specific scope of work (e.g., repair vs. full replacement) significantly influence costs. Without access to a database of comparable projects, it's difficult to definitively state if $760,738.84 represents a high, low, or average cost. However, for a specific task order focused on updates rather than a complete overhaul of multiple tanks, this figure appears within a plausible range for specialized engineering services.
What are the primary risks associated with updating foam seal systems on crude oil tanks?
The primary risks associated with updating foam seal systems on crude oil tanks include operational disruptions during maintenance, potential for leaks or spills if containment measures are inadequate, and the inherent safety hazards of working with flammable materials. Technical risks involve ensuring the new foam system is compatible with the tank materials and crude oil type, and that it effectively seals against volatile organic compound (VOC) emissions. There's also a risk of project delays due to unforeseen site conditions, weather, or contractor performance issues. Ensuring proper environmental controls and worker safety protocols are strictly adhered to is paramount to mitigate these risks.
How effective are foam seal systems in improving the safety and environmental performance of crude oil tanks?
Foam seal systems are critical for improving the safety and environmental performance of crude oil tanks by significantly reducing volatile organic compound (VOC) emissions. These emissions contribute to air pollution and can pose explosion risks. By creating a barrier between the stored product and the atmosphere, foam systems minimize vapor release, thereby enhancing safety and helping facilities comply with environmental regulations. Effective foam systems also prevent the ingress of water and debris, which can degrade the stored product and potentially lead to corrosion. The effectiveness is highly dependent on the proper installation, maintenance, and selection of the appropriate foam type for the specific product being stored.
What is the historical spending pattern for engineering services related to Strategic Petroleum Reserve maintenance?
Historical spending patterns for engineering services related to Strategic Petroleum Reserve (SPR) maintenance would likely show consistent investment in ensuring the operational integrity and safety of these critical national assets. Spending would fluctuate based on the age of facilities, identified maintenance needs, and any mandated upgrades or modernization efforts. Major projects, such as those involving tank integrity, pipeline systems, or terminal operations, would represent significant portions of this spending. Analyzing historical data would reveal trends in the types of engineering services most frequently procured and the overall budget allocated to SPR maintenance over time, providing context for the current $760K task order.
What does the 'exclusion of sources' in the competition type imply for this contract?
The 'exclusion of sources' in the contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was generally open to all responsible sources, certain potential bidders were specifically excluded. This exclusion must be justified by the agency, often due to reasons such as national security, proprietary information, or a need for specialized capabilities possessed by only a limited number of firms. In this case, it suggests that Vali Cooper International LLC and at least one other firm were considered eligible, while others were not. The justification for these exclusions is critical to understanding the true level of competition and whether it maximized value for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89243519RFE000009
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 126 TERRA BELLA BLVD STE B, COVINGTON, LA, 70433
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $760,739
Exercised Options: $760,739
Current Obligation: $760,739
Actual Outlays: $525,113
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89243520DFE000004
IDV Type: IDC
Timeline
Start Date: 2025-05-29
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-04-02
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