DOE awards $23M contract for site facilities, safety, security, and business operations at National Training Center
Contract Overview
Contract Amount: $23,012,393 ($23.0M)
Contractor: Kupono Government Services, LLC
Awarding Agency: Department of Energy
Start Date: 2018-09-19
End Date: 2025-02-05
Contract Duration: 2,331 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::CA,CF::IGF CLIN 2000 SITE FACILITIES, SAFETY, SECURITY AND BUSINESS OPERATIONS AT THE NATIONAL TRAINING CENTER
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $23.0 million to KUPONO GOVERNMENT SERVICES, LLC for work described as: IGF::CA,CF::IGF CLIN 2000 SITE FACILITIES, SAFETY, SECURITY AND BUSINESS OPERATIONS AT THE NATIONAL TRAINING CENTER Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Risk indicators are moderate, with potential for cost overruns in time and materials contracts. 4. Performance context involves essential operational support for a critical training facility. 5. Sector positioning is within professional and management development training services.
Value Assessment
Rating: good
The contract's total value of $23 million over approximately 6.5 years (September 2018 to February 2025) averages around $3.5 million annually. This appears to be a fair price for comprehensive site facilities, safety, security, and business operations support at a significant training center. Benchmarking against similar large-scale facility management contracts would provide a more precise value assessment, but initial indications suggest reasonable pricing.
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 bids. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality. This approach maximizes the opportunity for the government to receive the best value.
Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service delivery due to a robust competitive process.
Public Impact
The Department of Energy and its personnel at the National Training Center are the primary beneficiaries, receiving essential operational support. Services include site facilities management, safety protocols, security measures, and business operations. The geographic impact is localized to the National Training Center in New Mexico. Workforce implications include employment opportunities for individuals in facility management, security, and administrative roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type carries inherent risk of cost overruns if not closely managed.
- Scope creep could increase costs without corresponding adjustments to contract value.
- Ensuring consistent service quality across all operational areas (facilities, safety, security, business) requires diligent oversight.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing structure.
- Long-term contract duration (over 6 years) provides stability for service provider and consistent support for the facility.
- Focus on essential operational support indicates a critical need being met.
Sector Analysis
This contract falls within the professional and management development training sector, specifically focusing on the operational support services required for a large training facility. The market for facility management, security, and business operations support is substantial, with numerous companies offering these services. The Department of Energy's spending in this area is consistent with the needs of maintaining and operating specialized government installations.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process or could be involved as subcontractors. Further analysis would be needed to determine the extent of small business participation and its impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Energy responsible for the National Training Center. Accountability measures would be defined in the contract's performance work statement, with potential for performance-based payments or penalties. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facilities Management Contracts
- Government Training Center Operations Support
- Professional and Management Development Services
- Site Security and Safety Services Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need for robust oversight to ensure performance standards are met.
- Ensuring fair competition and value for taxpayer money in future contract renewals.
Tags
department-of-energy, facilities-management, safety-and-security, business-operations, training-center-support, time-and-materials, full-and-open-competition, new-mexico, professional-services, government-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $23.0 million to KUPONO GOVERNMENT SERVICES, LLC. IGF::CA,CF::IGF CLIN 2000 SITE FACILITIES, SAFETY, SECURITY AND BUSINESS OPERATIONS AT THE NATIONAL TRAINING CENTER
Who is the contractor on this award?
The obligated recipient is KUPONO GOVERNMENT SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2018-09-19. End: 2025-02-05.
What is the track record of Kupono Government Services, LLC with similar government contracts?
Kupono Government Services, LLC has a history of performing various government contracts, often related to base operations, facilities management, and support services. Their experience typically includes managing diverse operational requirements for federal agencies. Analyzing their past performance on contracts of similar size and scope, particularly those involving site facilities, safety, security, and business operations, would provide insight into their capabilities and reliability. A review of past performance evaluations and any reported issues or successes on previous contracts would be crucial for a comprehensive assessment of their track record.
How does the annual cost of this contract compare to similar facility management contracts at other federal training centers?
The annual cost for this contract averages approximately $3.5 million ($23 million / 6.5 years). To benchmark this effectively, we would need to compare it to contracts for similar services at other federal training facilities of comparable size and complexity. Factors such as geographic location, specific security requirements, the range of facilities managed (e.g., administrative buildings, specialized training areas, housing), and the level of operational support required all influence pricing. Without specific data on comparable contracts, it's challenging to definitively state if this represents excellent, fair, or inflated value. However, the full and open competition suggests an effort to achieve competitive pricing.
What are the primary risks associated with the Time and Materials (T&M) contract type for this service?
The primary risk with a Time and Materials (T&M) contract type, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a fixed fee or profit. If the scope of work is not clearly defined, or if project management is weak, the contractor may incur higher labor hours or material costs than anticipated, leading to a significantly higher final price than initially estimated. Effective oversight, detailed tracking of hours and materials, and strong negotiation skills from the government's side are crucial to mitigate these risks and ensure value for taxpayer money.
How effective are the current oversight mechanisms in ensuring the contractor meets performance standards?
The effectiveness of oversight mechanisms relies heavily on the diligence of the contracting officer and the program management team. For this contract, oversight would likely involve regular performance reviews, site inspections, monitoring of key performance indicators (KPIs) outlined in the Performance Work Statement (PWS), and review of contractor-submitted reports. The T&M nature of the contract necessitates particularly close monitoring of labor hours and material expenditures. If the Department of Energy has robust processes for tracking performance, managing changes, and holding the contractor accountable for deviations from the PWS, then the oversight is likely effective. Conversely, a lack of consistent monitoring or enforcement could lead to performance issues or cost inefficiencies.
What has been the historical spending trend for site facilities, safety, security, and business operations at the National Training Center?
Historical spending data for this specific contract indicates an initial award value and subsequent modifications or task orders that contribute to the total obligated amount. The contract was awarded in September 2018 and is set to expire in February 2025, with a total value of $23,012,393.19. To understand the historical trend, one would need to examine spending patterns across previous contracts for similar services at the National Training Center. This would involve looking at the total amounts obligated in prior fiscal years and comparing them to the current contract's expenditure rate. Analyzing whether spending has increased, decreased, or remained stable over time would provide context on the evolving needs and costs associated with these essential operations.
What is the potential impact of this contract on the local economy in New Mexico?
This contract has the potential to positively impact the local economy in New Mexico through job creation and local procurement. Kupono Government Services, LLC, as the contractor, would likely hire personnel from the local workforce to fill positions related to facility management, security, safety, and administrative support. Additionally, the company may engage local vendors and suppliers for materials, equipment, and services, further injecting funds into the regional economy. The stability provided by a multi-year contract can also contribute to sustained economic activity. The exact scale of this impact would depend on the proportion of local hiring and procurement undertaken by the contractor.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1600 KAPIOLANI BLVD STE 530, HONOLULU, HI, 96814
Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,965,655
Exercised Options: $29,965,655
Current Obligation: $23,012,393
Actual Outlays: $16,305,410
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303018DEA000003
IDV Type: IDC
Timeline
Start Date: 2018-09-19
Current End Date: 2025-02-05
Potential End Date: 2025-02-05 00:00:00
Last Modified: 2025-07-01
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