Department of Energy awards $6.8M engineering services contract to Technomics Inc. for 5-year duration
Contract Overview
Contract Amount: $6,786,437 ($6.8M)
Contractor: Technomics Inc
Awarding Agency: Department of Energy
Start Date: 2021-09-27
End Date: 2026-09-26
Contract Duration: 1,825 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: THE PRINCIPAL BUSINESS LINES OF THIS OFFICE ARE AS FOLLOWS:
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $6.8 million to TECHNOMICS INC for work described as: THE PRINCIPAL BUSINESS LINES OF THIS OFFICE ARE AS FOLLOWS: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 3. The award amount of $6.8M over five years averages to approximately $1.36M annually. 4. The North American Industry Classification System (NAICS) code 541330 indicates engineering services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.
Value Assessment
Rating: fair
The contract's value of $6.8M over five years, averaging $1.36M annually, needs benchmarking against similar engineering services contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely monitored. Without specific performance metrics or comparison data, it's difficult to definitively assess value for money. However, the duration suggests a need for sustained engineering support.
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 a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these engineering services.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of a qualified contractor through a transparent process.
Public Impact
The Department of Energy benefits from specialized engineering services to support its mission. The contract likely supports various energy-related projects and initiatives within the agency. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract may indirectly support a workforce of engineers and technical professionals employed by Technomics Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of cost escalation due to Time and Materials contract type if not managed effectively.
- Potential for scope creep without clear deliverables and milestones.
- Dependence on a single contractor for a significant duration may limit future flexibility.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market and potential for best value.
- Long-term duration indicates a stable, ongoing need for the services.
- Contractor Technomics Inc. has secured a significant award, suggesting a level of established capability.
Sector Analysis
The engineering services sector is broad, encompassing design, consulting, and project management for various industries. For the Department of Energy, these services are critical for infrastructure development, research, and operational support. The market size for federal engineering services is substantial, with agencies like the DOE frequently procuring such expertise. This contract fits within the broader category of professional services supporting government operations.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that the primary award went to Technomics Inc. without specific provisions to ensure small business participation. The impact on the small business ecosystem is neutral to potentially negative if these services could have been effectively provided by small, disadvantaged businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Energy. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy - General Services
- Engineering Consulting Services
- Professional Services Contracts
- Time and Materials Contracts
- Delivery Orders
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Lack of Specific Performance Metrics in Summary Data
Tags
engineering-services, department-of-energy, technomics-inc, time-and-materials, full-and-open-competition, delivery-order, district-of-columbia, professional-services, naics-541330, moderate-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $6.8 million to TECHNOMICS INC. THE PRINCIPAL BUSINESS LINES OF THIS OFFICE ARE AS FOLLOWS:
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 $6.8 million.
What is the period of performance?
Start: 2021-09-27. End: 2026-09-26.
What is the specific nature of the engineering services Technomics Inc. will provide to the Department of Energy under this contract?
The provided data indicates the contract falls under NAICS code 541330 (Engineering Services) and is for the Department of Energy. While the principal business lines are mentioned as 'as follows:', the specific details are not included in the provided snippet. Generally, engineering services for the DOE can range from design and analysis of energy infrastructure (e.g., power grids, nuclear facilities, renewable energy projects), environmental remediation consulting, research and development support, to project management and technical advisory services. The Time and Materials (T&M) contract type suggests that the scope might be less defined upfront, requiring flexibility in resource allocation as needs evolve, which is common for advisory or support roles where the exact effort is hard to predict.
How does the $6.8M award amount compare to typical federal spending on similar engineering services contracts?
The $6.8M award over five years, averaging $1.36M annually, is a moderate-sized contract for engineering services within a large federal agency like the Department of Energy. Federal spending on engineering services is substantial, with many contracts ranging from hundreds of thousands to tens of millions of dollars annually, depending on the project's scale and complexity. For instance, major infrastructure projects or large-scale R&D initiatives could command significantly higher annual expenditures. However, for ongoing support, consulting, or specific project phases, this amount is within a common range. Benchmarking would require comparing it to contracts with similar NAICS codes, agencies, and service scopes, considering factors like contract duration and specific deliverables.
What are the primary risks associated with a Time and Materials (T&M) contract of this nature?
The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the effort required is underestimated, or if the scope expands without adequate controls, costs can significantly exceed initial projections. For the government, this necessitates robust oversight to ensure that the labor hours are reasonable and necessary, and that the work performed aligns with the contract's objectives. Without strong management and clear task definitions, T&M contracts can become less cost-effective than anticipated.
What does the 'full and open competition' designation imply for the Department of Energy and taxpayers?
The 'full and open competition' designation signifies that the Department of Energy solicited bids from all interested and capable sources, adhering to federal acquisition regulations designed to maximize competition. This process generally leads to better price discovery and allows the government to select the offer that provides the best overall value, considering both price and technical factors. For taxpayers, this implies that the contract was awarded through a transparent process intended to secure competitive pricing and a qualified contractor, thereby promoting efficient use of public funds. It suggests that the government explored the market broadly to find the most suitable solution.
What is Technomics Inc.'s track record with federal contracts, particularly with the Department of Energy?
The provided data identifies Technomics Inc. as the contractor for this $6.8M Department of Energy contract. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing contract history databases (like FPDS or SAM.gov) for previous awards, contract values, agencies served, and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). A positive track record with the DOE or similar agencies, especially on contracts of comparable size and scope, would indicate reliability and capability. Conversely, a history of performance issues or disputes could raise concerns about this new award.
Are there any specific performance metrics or deliverables mentioned for this contract that allow for assessing program effectiveness?
The provided data snippet does not include specific performance metrics or deliverables for this contract. Typically, these details are outlined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a Time and Materials contract, effectiveness is often assessed through the successful completion of assigned tasks, adherence to estimated effort levels, and the quality of the technical output or advice provided. Without access to the full contract documentation, it is impossible to quantitatively assess program effectiveness or benchmark performance against predefined goals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89303021QCF000018
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: $11,299,195
Exercised Options: $9,654,500
Current Obligation: $6,786,437
Actual Outlays: $5,512,811
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F103DA
IDV Type: FSS
Timeline
Start Date: 2021-09-27
Current End Date: 2026-09-26
Potential End Date: 2027-03-26 00:00:00
Last Modified: 2026-03-12
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