Department of Energy awards $2.4M logistics contract to Strativia LLC via 8(a) direct award
Contract Overview
Contract Amount: $2,434,210 ($2.4M)
Contractor: Strativia LLC
Awarding Agency: Department of Energy
Start Date: 2024-02-27
End Date: 2027-02-28
Contract Duration: 1,097 days
Daily Burn Rate: $2.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR WAREHOUSE SERVICES FOR THE DEPARTMENT OF ENERGY HEADQUARTERS IN THE AMOUNT OF $2,437,489.60. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR ONE 0
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $2.4 million to STRATIVIA LLC for work described as: REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR WAREHOUSE SERVICES FOR THE DEPARTMENT OF ENERGY HEADQUARTERS IN THE AMOUNT OF $2,437,489.60. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR ONE 0 Key points: 1. Contract awarded using 8(a) direct award, a set-aside program for small disadvantaged businesses. 2. The contract is for warehouse services, indicating a need for specialized logistics support. 3. The period of performance spans approximately three years, suggesting a medium-term need. 4. The award is a definitive contract, providing a clear framework for services. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. The geographic location of service is Washington D.C.
Value Assessment
Rating: fair
The contract value of $2.4 million over three years for warehouse services is within a typical range for government logistics support. However, without specific details on the scope of services, it's difficult to benchmark against similar contracts precisely. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not carefully monitored for efficiency and necessity of labor hours. The direct award nature, while serving the 8(a) program's goals, bypasses competitive bidding, which typically drives down prices.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded directly to Strativia LLC under the Small Business Administration's 8(a) Business Development program. This program allows for sole-source awards to eligible small disadvantaged businesses, bypassing the standard competitive bidding process. While this mechanism supports the development of small businesses, it limits the opportunity for other qualified vendors to compete and potentially offer lower prices or innovative solutions.
Taxpayer Impact: Taxpayers may not benefit from the price discovery that occurs through open competition. However, the 8(a) program aims to foster economic growth and provide opportunities for disadvantaged businesses, which can have broader societal benefits.
Public Impact
The Department of Energy headquarters will benefit from enhanced warehouse services, ensuring efficient storage and management of supplies. The contract supports the operational needs of a federal agency, contributing to its overall mission effectiveness. Services are delivered in Washington D.C., impacting the local economy through potential employment opportunities. The award supports the growth and development of Strativia LLC, a small disadvantaged business.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials contract type requires diligent oversight to prevent cost overruns and ensure efficient labor utilization.
- Sole-source awards, while serving program goals, limit price competition and may not always yield the most cost-effective outcome.
- The specific scope of 'warehouse services' is broad and requires clear performance metrics to ensure value for money.
Positive Signals
- The award supports a small disadvantaged business through the 8(a) program, aligning with federal small business development goals.
- The contract provides essential operational support to a federal agency, contributing to mission continuity.
- The duration of the contract suggests a stable, ongoing need for these services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics and supply chain management. The federal government is a significant consumer of these services, with spending often driven by the needs of agencies like the Department of Energy for managing physical assets and distribution. Benchmarking is challenging without detailed service scope, but government logistics contracts can range from tens of thousands to millions of dollars depending on complexity and duration.
Small Business Impact
This contract is an 8(a) direct award, specifically targeting a small disadvantaged business. While this directly benefits Strativia LLC, it means the contract was not competed among other small businesses, including those eligible for small business set-asides. There is no explicit mention of subcontracting requirements, but the 8(a) program encourages prime contractors to mentor and develop other small businesses, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract will primarily rest with the Department of Energy's contracting officers and program managers responsible for warehouse services. As a definitive contract, it should have defined deliverables and performance standards. Transparency is facilitated by federal contract databases, but the specifics of performance monitoring and any Inspector General involvement would depend on the agency's internal policies and the nature of any potential issues.
Related Government Programs
- Department of Energy Logistics Support
- Federal Warehouse Management Services
- 8(a) Direct Award Contracts
- Small Business Administration Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited price competition due to sole-source 8(a) direct award.
- Need for robust oversight to ensure contractor performance and value.
- Scope of 'warehouse services' requires clear definition and monitoring.
Tags
logistics, warehouse-services, department-of-energy, strativia-llc, 8a-direct-award, sole-source, time-and-materials, definitive-contract, washington-dc, small-business, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.4 million to STRATIVIA LLC. REQUISITION 24MA000063 WAS ISSUED TO CREATE AN 8A DIRECT AWARD FOR WAREHOUSE SERVICES FOR THE DEPARTMENT OF ENERGY HEADQUARTERS IN THE AMOUNT OF $2,437,489.60. THE PERIOD OF PERFORMANCE IS: BASE YEAR 03/01/2024 TO 02/28/2025 OPTION YEAR ONE 0
Who is the contractor on this award?
The obligated recipient is STRATIVIA LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2024-02-27. End: 2027-02-28.
What is the specific scope of 'warehouse services' required by the Department of Energy headquarters?
The provided data does not detail the specific scope of 'warehouse services.' Typically, this could encompass receiving, storing, inventory management, issuing, and shipping of goods and materials. For the Department of Energy headquarters, this might include sensitive equipment, office supplies, or specialized materials. A detailed statement of work (SOW) would outline the exact requirements, including any security protocols, inventory tracking systems, and delivery schedules. Understanding the precise nature of these services is crucial for evaluating the contract's value and ensuring it meets the agency's operational needs effectively.
How does the Time and Materials (T&M) contract type compare to other contract types for logistics services in terms of cost-effectiveness?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when the level of effort is uncertain. They reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For logistics services, where tasks can be relatively predictable, a firm-fixed-price contract or a fixed-price incentive contract might offer better cost control and predictability, provided the scope is well-defined. The government must implement robust oversight to manage T&M contracts effectively, ensuring labor hours are reasonable and necessary.
What are the typical performance metrics for government warehouse services contracts?
Typical performance metrics for government warehouse services contracts often include accuracy in receiving and shipping (e.g., percentage of orders filled correctly), inventory accuracy (e.g., variance between system and physical counts), on-time delivery rates, response times for requests, safety incident rates, and adherence to storage requirements (e.g., temperature, humidity control). For this specific Department of Energy contract, metrics would be detailed in the Performance Work Statement (PWS). Effective monitoring of these metrics is essential for ensuring the contractor meets contractual obligations and provides value for taxpayer money.
What is the track record of Strativia LLC in performing similar government contracts?
Information regarding Strativia LLC's specific track record in performing similar government contracts is not detailed in the provided data. As an 8(a) direct award recipient, the company is likely a relatively small business. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any reported issues or successes on previous federal awards. Given this is an 8(a) award, the focus may also be on their potential and developmental trajectory rather than extensive past performance, though some history is usually considered.
How does the $2.4 million contract value compare to historical spending on warehouse services by the Department of Energy?
The provided data does not include historical spending figures for warehouse services by the Department of Energy, making a direct comparison difficult. However, $2.4 million over three years (approximately $800,000 annually) for headquarters-level warehouse support in a major metropolitan area like Washington D.C. appears to be a moderate-sized contract. To provide a more accurate benchmark, one would need to analyze the agency's past expenditures on similar services, considering inflation, scope changes, and the number of contracts awarded over time.
What are the potential risks associated with a sole-source 8(a) direct award for essential services like warehousing?
The primary risk associated with a sole-source 8(a) direct award is the lack of price competition, which could lead to the government paying a higher price than if the contract were competed openly. There's also a risk that the selected contractor, while meeting the 8(a) criteria, may not have the most robust capabilities or experience compared to a broader pool of potential bidders. Furthermore, the government must ensure the 8(a) program's objectives are met without compromising essential service delivery or overall value for money. Diligent contract administration and performance monitoring are critical to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1401 MERCANTILE LANE, LARGO, MD, 20774
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,434,210
Exercised Options: $2,434,210
Current Obligation: $2,434,210
Actual Outlays: $1,377,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-27
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-02-26
More Contracts from Strativia LLC
- TSA Property Management Support Services — $12.6M (Department of Homeland Security)
- Provide a a Broad Range of Logistical, Administrative, and Management Support to the Various Program Offices Within the Office of Fossil Energy (FE) in ITS Administration of Various Responsibilities, Projects, and Programs — $12.4M (Department of Energy)
- Executive Assistant Support Under SBA 8(A) Program — $3.8M (Commodity Futures Trading Commission)
- Requisition 24MA000063 WAS Issued to Create an 8A Direct Award for Property Management Services AT the DOE Headquarters Facility for the Amount of $4,484,563.20. the Period of Performance IS: Base Year 03/01/2024 to 02/28/2025 Option Year — $3.7M (Department of Energy)
- Requisition 24MA000065 WAS Issued to Create an 8A Direct Award for Moving and Labor Support for the Department of Energy Headquarters for the Amount of $4,497,038.40. the Period of Performance IS: Base Year 03/01/2024 to 02/28/2025 Option YE — $3.6M (Department of Energy)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)