Department of Energy awards $4.5M contract for moving and labor support to Strativia LLC
Contract Overview
Contract Amount: $3,576,371 ($3.6M)
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: $3.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 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
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $3.6 million to STRATIVIA LLC for work described as: 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 Key points: 1. Contract awarded via 8a direct award, indicating a specific set-aside program. 2. Focus on moving and labor support services for DOE headquarters. 3. Performance period extends over multiple years, suggesting ongoing needs. 4. Contract type is Time and Materials, which can pose cost control challenges. 5. Awarded to a single contractor, limiting initial competitive pressure. 6. The North American Industry Classification System (NAICS) code suggests consulting services in logistics.
Value Assessment
Rating: fair
The contract value of $4.5 million for moving and labor support over approximately three years appears to be within a reasonable range for large-scale logistical operations at a federal agency headquarters. However, without specific benchmarks for similar services at other DOE facilities or comparable agencies, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not closely managed, as the final cost is dependent on the hours worked and materials used. Further analysis would require comparing unit rates for labor and material markups against industry standards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded through an 8a direct award, which is a sole-source procurement method used to support small disadvantaged businesses. This means that competition was intentionally limited to Strativia LLC, as per the Small Business Administration's 8a Business Development program guidelines. While this approach supports specific socioeconomic goals, it bypasses the open market competition that typically drives down prices and fosters innovation. The absence of multiple bids means there is no direct market comparison to assess if the awarded price is the most competitive achievable.
Taxpayer Impact: Taxpayers benefit from supporting small disadvantaged businesses through this program, but they may not receive the most cost-effective solution compared to a fully competed contract. The direct award limits the opportunity for broader market competition to drive down costs.
Public Impact
The Department of Energy headquarters staff and operations will benefit from efficient relocation and labor support services. Services include physical moving, logistics, and potentially other labor-intensive support functions. The primary geographic impact is within the District of Columbia, where the DOE headquarters is located. The contract supports the workforce by providing essential services that enable the agency to function effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- Sole-source award limits competitive pressure, potentially impacting price efficiency.
- Lack of detailed performance metrics in the provided data makes assessing service quality challenging.
- The specific nature of 'moving and labor support' can be broad, requiring clear scope definition to avoid scope creep.
Positive Signals
- Award to a small disadvantaged business (8a program) supports federal socioeconomic goals.
- Direct award streamlines the procurement process for critical support services.
- The contract duration suggests a stable, long-term relationship for essential services.
- The contractor, Strativia LLC, is being utilized for a specific federal program requirement.
Sector Analysis
The logistics and support services sector is a critical component of federal operations, encompassing a wide range of activities from physical relocation to supply chain management. Federal spending in this area is substantial, supporting agency functions across various departments. This contract, valued at $4.5 million, falls within the typical range for specialized moving and labor support services for a large federal agency. Comparable contracts often involve significant dollar values, especially when supporting headquarters or large operational centers. The NAICS code 541614 points to consulting services in process, physical distribution, and logistics, indicating a focus beyond simple labor provision.
Small Business Impact
This contract is an 8a direct award, specifically targeting small disadvantaged businesses. Strativia LLC, the recipient, is likely a participant in the Small Business Administration's 8a Business Development program. While this directly supports a small business and fulfills federal socioeconomic objectives, it means the contract was not competed among a broader range of small businesses or the general market. There is no explicit information on subcontracting requirements, but typically, 8a contracts encourage or mandate subcontracting to other small businesses, potentially including other 8a firms, to further distribute the economic benefits.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a direct award, the justification for bypassing full and open competition would be documented and subject to review by the agency and potentially the Small Business Administration. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract performance or award process is suspected.
Related Government Programs
- General Services Administration (GSA) Federal Supply Schedule (FSS) contracts for logistics and moving services
- Department of Defense (DoD) logistics and base support contracts
- Other agency-specific contracts for facilities management and support services
Risk Flags
- Sole-source award limits competition.
- Time and Materials contract type poses cost control risks.
- Lack of detailed performance metrics in provided data.
- Potential for scope creep in 'moving and labor support' services.
Tags
department-of-energy, moving-services, labor-support, 8a-direct-award, sole-source, time-and-materials, logistics-consulting, small-business-set-aside, district-of-columbia, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.6 million to STRATIVIA LLC. 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
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 $3.6 million.
What is the period of performance?
Start: 2024-02-27. End: 2027-02-28.
What is the typical cost range for moving and labor support services for federal agencies of similar size and scope to the Department of Energy headquarters?
Determining a precise cost range for moving and labor support services for federal agencies requires detailed comparison of contract scope, duration, geographic location, and specific services rendered. However, contracts for large-scale logistical support, including moving services for federal headquarters, can range from several hundred thousand dollars to tens of millions annually, depending on the complexity and scale of operations. For instance, major agency relocations or ongoing facility support contracts often exceed $5 million. The Department of Energy's headquarters, being a significant federal entity, would likely incur substantial costs for such services. Benchmarking against contracts awarded by agencies like GSA or DoD for similar functions, adjusted for inflation and specific service requirements, would provide a more accurate comparison. The $4.5 million awarded to Strativia LLC over approximately three years suggests an average annual spend of around $1.5 million, which appears plausible for ongoing support needs at a large federal facility, though specific details of the services are crucial for a definitive assessment.
What are the specific performance metrics and deliverables expected under this contract, and how will they be measured?
The provided data does not specify the performance metrics or deliverables for this contract. Typically, a contract for moving and labor support would include detailed requirements such as on-time delivery of goods, proper handling and packing of sensitive equipment, adherence to safety protocols, availability of labor resources as scheduled, and completion of tasks within defined timeframes. Performance would likely be measured through contractor performance evaluations (e.g., CPARS), site inspections, client feedback, and adherence to schedules and budgets. The Time and Materials (T&M) nature of the contract implies that performance monitoring will heavily focus on the efficient use of labor hours and the necessity of materials utilized, ensuring that work is performed effectively and without unnecessary delay or waste. Without the full contract statement of work, a precise evaluation of performance expectations and measurement is not possible.
What is Strativia LLC's track record with federal contracts, particularly in logistics and labor support?
Strativia LLC has a history of receiving federal contracts, primarily through small business set-aside programs, including the 8a program. While specific details on their performance across all contracts are not fully detailed in the provided data, their repeated awards suggest a capacity to meet federal requirements. Their portfolio often includes a range of professional services, IT, and administrative support. For logistics and labor support, their experience would need to be evaluated against the specific demands of the Department of Energy headquarters' needs. A deeper dive into their past performance evaluations (CPARS) and the types of services they have successfully delivered for other federal agencies would provide a clearer picture of their capabilities and reliability in this specific domain. The 8a direct award indicates a level of trust or a specific programmatic fit deemed appropriate by the awarding agency.
How does the 8a direct award mechanism impact the overall cost-effectiveness and competition for this type of service?
The 8a direct award mechanism is designed to provide opportunities for small disadvantaged businesses, fulfilling specific socioeconomic goals set by the government. While it streamlines the procurement process for the agency and directly supports a targeted business, it inherently limits competition. In a full and open competition, multiple vendors would bid, allowing for price discovery and potentially driving down costs through market forces. With a direct award, the government negotiates directly with the selected 8a firm. While the government is expected to negotiate a fair and reasonable price, the absence of competing bids means there is no direct market validation of that price. Therefore, while fulfilling important policy objectives, direct awards may not always yield the most cost-effective outcome compared to a competitively solicited contract. The cost-effectiveness is thus balanced against the strategic goal of supporting small disadvantaged businesses.
What are the potential risks associated with a Time and Materials (T&M) contract for moving and labor support services?
Time and Materials (T&M) contracts carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, the final cost of a T&M contract is not predetermined and depends on the actual hours worked by contractor personnel and the cost of materials used, plus a negotiated fixed labor rate and material handling fee. For moving and labor support, this means that if the project takes longer than anticipated, requires more personnel, or if material costs escalate, the total expenditure can exceed initial estimates. This risk is amplified if the scope of work is not clearly defined or if project management and oversight are insufficient. To mitigate these risks, agencies often include 'not-to-exceed' (NTE) clauses in T&M contracts and implement rigorous monitoring of labor hours, material usage, and project progress to ensure efficiency and prevent overspending.
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: $3,706,539
Exercised Options: $3,706,539
Current Obligation: $3,576,371
Actual Outlays: $1,847,610
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
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