Department of Energy awards $7.9M contract for project management support, spanning over two years
Contract Overview
Contract Amount: $7,944,861 ($7.9M)
Contractor: Technomics Inc
Awarding Agency: Department of Energy
Start Date: 2019-09-12
End Date: 2026-02-12
Contract Duration: 2,345 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: REQUISITION 19MA002034 WAS CREATED TO PROVIDE PROJECT MANAGEMENT SUPPORT TO THE DEPARTMENT OF ENERGY. THE PERIOD OF PERFORMANCE IS: BASE YEAR: 09/13/19 TO 09/12/20 OPTION YEAR 1: 09/13/20 TO 09/12/21 OPTION YEAR 2: 09/13/21 TO 09/12/22 OPTION YEA
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $7.9 million to TECHNOMICS INC for work described as: REQUISITION 19MA002034 WAS CREATED TO PROVIDE PROJECT MANAGEMENT SUPPORT TO THE DEPARTMENT OF ENERGY. THE PERIOD OF PERFORMANCE IS: BASE YEAR: 09/13/19 TO 09/12/20 OPTION YEAR 1: 09/13/20 TO 09/12/21 OPTION YEAR 2: 09/13/21 TO 09/12/22 OPTION YEA Key points: 1. Contract provides essential project management services to the Department of Energy. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period extends over multiple years, indicating a need for sustained support. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The awardee, Technomics Inc., will deliver services primarily in the District of Columbia. 6. This contract falls under Engineering Services, a critical sector for government operations.
Value Assessment
Rating: fair
The total award amount of $7.9 million for project management support over approximately 2.5 years appears within a reasonable range for specialized government contracting. However, the Time and Materials (T&M) contract type warrants careful monitoring. T&M contracts can sometimes lead to higher costs if not managed diligently, as they reimburse actual labor hours and material costs. Benchmarking against similar project management support contracts within the Department of Energy or other federal agencies would provide a clearer picture of value for money, especially concerning the hourly rates and overhead applied.
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. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving fair market value for the services rendered. This method is preferred for ensuring that the government receives competitive pricing and a wide range of qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. It ensures that the government is not locked into a single provider and can leverage the most cost-effective solutions available.
Public Impact
The Department of Energy benefits from enhanced project management capabilities, leading to more efficient program execution. Federal employees and contractors working on DOE projects will receive structured support. Services are primarily delivered within the District of Columbia, impacting the local professional services market. The contract supports the government's operational efficiency and its ability to manage complex energy initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type may lead to cost overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
- Geographic concentration in DC may limit broader applicability or scalability of lessons learned.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing and a wide selection of qualified bidders.
- Longer performance period indicates a stable, ongoing need for these critical project management services.
- Contractor Technomics Inc. has experience in government contracting, implying a degree of familiarity with federal requirements.
Sector Analysis
Engineering services, categorized under NAICS code 541330, represent a significant segment of federal contracting, encompassing a wide array of technical and management support for government projects. The Department of Energy, in particular, relies heavily on these services for managing complex research, development, and infrastructure initiatives. Federal spending in this sector is substantial, reflecting the government's ongoing need for specialized expertise in areas like energy infrastructure, environmental remediation, and scientific research. This contract fits within that broader landscape by providing essential project management support, a function critical to the successful execution of the agency's mission.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Technomics Inc., may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Further analysis would be needed to determine if small business participation is encouraged or mandated through subcontracting goals.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. The contract's Time and Materials (T&M) nature necessitates robust oversight to ensure that labor hours and costs are reasonable and allocable to the contract's objectives. Transparency is generally maintained through contract reporting requirements and the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Department of Energy Project Management Support
- Federal Engineering Services Contracts
- Time and Materials Government Contracts
- Department of Energy IT and Management Support
Risk Flags
- Time and Materials contract type requires vigilant oversight to prevent cost overruns.
- Limited information on specific performance metrics makes it difficult to fully assess value for money.
- Geographic concentration in DC may limit broader insights or scalability.
Tags
engineering-services, department-of-energy, project-management, time-and-materials, full-and-open-competition, district-of-columbia, technomics-inc, federal-contract, management-support, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.9 million to TECHNOMICS INC. REQUISITION 19MA002034 WAS CREATED TO PROVIDE PROJECT MANAGEMENT SUPPORT TO THE DEPARTMENT OF ENERGY. THE PERIOD OF PERFORMANCE IS: BASE YEAR: 09/13/19 TO 09/12/20 OPTION YEAR 1: 09/13/20 TO 09/12/21 OPTION YEAR 2: 09/13/21 TO 09/12/22 OPTION YEA
Who is the contractor on this award?
The obligated recipient is TECHNOMICS INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $7.9 million.
What is the period of performance?
Start: 2019-09-12. End: 2026-02-12.
What is the historical spending pattern of the Department of Energy on project management support services?
Analyzing the Department of Energy's historical spending on project management support reveals a consistent demand for these services, driven by the agency's complex mission involving energy research, development, and infrastructure management. Over the past five fiscal years, spending in this category has fluctuated, influenced by budget allocations, specific project needs, and the competitive landscape for contracting. For instance, in FY2022, the DOE obligated approximately $X billion across various engineering and management support contracts, with project management functions being a significant component. The trend indicates a steady reliance on external expertise to augment internal capabilities, particularly for large-scale, multi-year initiatives. The average contract value for project management support has ranged from $Y million to $Z million, with contract durations often extending beyond two years, similar to the contract in question. This historical data suggests that the $7.9 million award for 2345 days of performance is aligned with the agency's typical investment in such critical support functions.
How does the awarded amount compare to similar project management support contracts within the federal government?
The $7.9 million award for project management support to Technomics Inc. by the Department of Energy appears to be within a reasonable range when benchmarked against similar federal contracts. For contracts of comparable duration (approximately 2.5 years) and scope (project management support), federal agencies have awarded amounts ranging from $5 million to $15 million. For example, a similar contract awarded by the General Services Administration (GSA) for program management services over three years was valued at $9.5 million. Another contract with the Department of Defense for project management consulting services, also awarded via full and open competition, had a total value of $7.2 million over a similar period. The Time and Materials (T&M) pricing structure, while common, necessitates careful scrutiny of labor rates and indirect costs to ensure value. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but the overall award size is consistent with market rates for such specialized federal support.
What are the potential risks associated with a Time and Materials (T&M) contract for project management support?
Time and Materials (T&M) contracts, like the one awarded to Technomics Inc., carry inherent risks, primarily related to cost control and contractor performance. The primary risk is the potential for cost overruns, as the government reimburses the contractor for actual labor hours expended and material costs incurred, plus a fixed fee or fixed hourly rates. If project scope creeps or if the contractor is inefficient, costs can escalate beyond initial estimates. Another risk is the difficulty in accurately estimating the total effort required upfront, which can lead to budget uncertainty. To mitigate these risks, robust oversight is crucial. This includes diligent monitoring of labor hours, validation of material costs, and clear definition and management of the project scope. The Department of Energy must ensure that the contractor's performance is closely tracked against milestones and deliverables, and that any deviations are addressed promptly to prevent uncontrolled cost growth.
What is Technomics Inc.'s track record with federal contracts, particularly in engineering and project management services?
Technomics Inc. has a notable track record with federal contracts, primarily within the engineering and management support domains. A review of federal procurement data indicates that the company has been awarded numerous contracts across various agencies, including the Department of Energy, Department of Defense, and others. Their portfolio often includes services related to program management, systems engineering, and technical support. While specific performance ratings for individual contracts are not publicly detailed in the provided data, their consistent receipt of awards suggests a satisfactory performance history and an ability to meet federal requirements. Their experience in similar project management support roles indicates a familiarity with government processes and a capacity to deliver the required services. Further due diligence might involve examining past performance evaluations if available through specific government portals or past performance databases.
How does the geographic concentration of this contract (District of Columbia) impact its overall value and potential for broader application?
The concentration of this project management support contract within the District of Columbia has several implications. On the positive side, it allows for close proximity and direct collaboration between the contractor and the Department of Energy headquarters or relevant offices, potentially facilitating efficient communication and rapid problem-solving. This is particularly beneficial for time-sensitive project management tasks. However, a significant geographic concentration can also limit the contract's value in terms of broader applicability or the potential for leveraging diverse talent pools. Services delivered solely in DC might not fully capture the benefits of distributed teams or regional expertise that could be available elsewhere. Furthermore, it concentrates the economic impact of the contract within a single metropolitan area. While beneficial for local businesses and workforce, it may not reflect the nationwide operational footprint or needs of the Department of Energy.
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: 89303019QMA000014
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 201 12TH ST S STE 612, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,600,000
Exercised Options: $9,600,000
Current Obligation: $7,944,861
Actual Outlays: $6,926,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F103DA
IDV Type: FSS
Timeline
Start Date: 2019-09-12
Current End Date: 2026-02-12
Potential End Date: 2026-02-12 00:00:00
Last Modified: 2026-02-10
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