DOE awards $61.7M for Carlsbad technical assistance, with Navarro Research & Engineering Inc. selected
Contract Overview
Contract Amount: $61,731,159 ($61.7M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-03-31
End Date: 2025-03-31
Contract Duration: 1,096 days
Daily Burn Rate: $56.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: CARLSBAD TECHNICAL ASSISTANCE CONTRACT YEARS 1 - 3 TASK ORDER.
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88220
Plain-Language Summary
Department of Energy obligated $61.7 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: CARLSBAD TECHNICAL ASSISTANCE CONTRACT YEARS 1 - 3 TASK ORDER. Key points: 1. Contract value of $61.7 million over three years suggests significant investment in remediation services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a deliberate selection process. 3. Performance period of 1096 days (3 years) allows for sustained support and project continuity. 4. The 'Time and Materials' pricing structure may pose a risk for cost overruns if not closely managed. 5. Navarro Research and Engineering, Inc. is the sole awardee, highlighting their specialized capabilities in this area. 6. The contract is for remediation services, a critical function for environmental protection and site cleanup. 7. Geographic focus on New Mexico (NM) indicates a specific regional need for these services.
Value Assessment
Rating: fair
Benchmarking the value of this $61.7 million contract is challenging without specific comparable contracts for similar remediation services in the Carlsbad area. The 'Time and Materials' (T&M) pricing model, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value for money. Further analysis of the task orders issued under this contract would be necessary to assess if the pricing reflects fair market value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior performance issues. The number of bidders is not specified, but the exclusion of sources implies a potentially narrower competitive pool than a standard full and open competition, which could affect price discovery.
Taxpayer Impact: The exclusion of sources, even within an open competition framework, may limit the number of competitive bids received, potentially leading to less aggressive pricing and a higher cost to taxpayers compared to a truly unrestricted full and open competition.
Public Impact
The Department of Energy (DOE) benefits from specialized technical assistance for remediation activities. Services delivered are critical for environmental cleanup and compliance at DOE sites. The primary geographic impact is in New Mexico, specifically related to the Carlsbad area. The contract supports specialized technical expertise, potentially impacting the workforce in environmental remediation and engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' pricing structure presents a risk of cost escalation if not rigorously monitored and controlled by the agency.
- The 'Exclusion of Sources' clause in the competition method warrants further investigation to understand the rationale and potential impact on competition.
- Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the contractor's work.
Positive Signals
- The contract is awarded to Navarro Research and Engineering, Inc., suggesting they possess the necessary specialized skills for remediation services.
- The three-year duration provides stability and allows for the development of a strong working relationship between the agency and the contractor.
- The contract falls under the Department of Energy, an agency with significant experience in managing complex environmental remediation projects.
Sector Analysis
This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government agencies managing legacy industrial sites. The market for these services is specialized, requiring expertise in engineering, geology, and regulatory compliance. Spending in this sector is often driven by long-term cleanup mandates and evolving environmental regulations. Comparable spending benchmarks would typically involve other large-scale environmental cleanup contracts awarded by federal agencies like the EPA or DoD.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. This suggests that the focus was on securing specialized technical expertise, potentially from larger firms or those with specific qualifications. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting these critical remediation efforts.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, but detailed oversight reports or Inspector General involvement would depend on specific performance issues or audits.
Related Government Programs
- Department of Energy - Environmental Management
- Environmental Protection Agency - Superfund Program
- Department of Defense - Environmental Restoration
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Limited competition due to exclusion of sources.
- Lack of detailed performance metrics in award data.
- Geographic concentration of services.
Tags
department-of-energy, remediation-services, technical-assistance, navarro-research-and-engineering, new-mexico, time-and-materials, full-and-open-competition-after-exclusion-of-sources, environmental-management, large-contract, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $61.7 million to NAVARRO RESEARCH AND ENGINEERING, INC.. CARLSBAD TECHNICAL ASSISTANCE CONTRACT YEARS 1 - 3 TASK ORDER.
Who is the contractor on this award?
The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $61.7 million.
What is the period of performance?
Start: 2022-03-31. End: 2025-03-31.
What is the track record of Navarro Research and Engineering, Inc. with the Department of Energy and similar remediation contracts?
Navarro Research and Engineering, Inc. has a history of working with the Department of Energy, particularly in areas related to environmental services and technical support. Their involvement in contracts similar to the Carlsbad Technical Assistance contract would indicate a level of expertise and familiarity with DOE's operational requirements and regulatory environment. A review of their past performance ratings on federal contract databases (like SAM.gov or FPDS) would provide insights into their reliability, quality of work, and adherence to schedules and budgets on previous projects. Specific details on their past performance on remediation projects, especially those involving complex waste management or site cleanup, would be crucial for a comprehensive assessment.
How does the $61.7 million contract value compare to similar remediation services contracts awarded by the DOE or other federal agencies?
The $61.7 million value over three years for the Carlsbad Technical Assistance contract places it as a significant, but not exceptionally large, award within the federal environmental remediation sector. Contracts for large-scale site cleanups or complex waste management can range from tens of millions to billions of dollars. To benchmark effectively, one would compare this contract's value per year ($20.57 million/year) against similar task orders or prime contracts for technical assistance, project management, or direct remediation services at DOE or EPA sites of comparable complexity and scope. Factors like the specific type of contamination, geographic location, and duration of services heavily influence these values.
What are the primary risks associated with the 'Time and Materials' (T&M) pricing structure for this contract?
The primary risk with a 'Time and Materials' (T&M) pricing structure is the potential for cost overruns. 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 used. If the scope of work is not well-defined, or if project management and oversight are insufficient, contractors may incur more labor hours or use more materials than anticipated, driving up the total cost. This places a significant burden on the government to closely monitor contractor effort, validate invoices, and ensure efficient performance to control expenditures and achieve value for money.
What does 'Full and Open Competition After Exclusion of Sources' mean for the effectiveness of the competition?
'Full and Open Competition After Exclusion of Sources' is a specific type of competitive procurement. It means that the agency initially intended to solicit offers from all responsible sources (full and open competition). However, during the process, certain sources were excluded. The reasons for exclusion could vary, such as specific technical requirements, past performance issues, or other documented justifications. While it aims for broad competition, the exclusion of sources inherently narrows the competitive pool compared to a standard full and open competition. The effectiveness of the competition, therefore, depends on the justification for exclusions and the number of remaining qualified bidders. If only a few sources remain, the price discovery might be less robust.
What are the historical spending patterns for technical assistance and remediation services at the Carlsbad site or similar DOE facilities?
Analyzing historical spending patterns for technical assistance and remediation at the Carlsbad site or similar DOE facilities is crucial for context. This involves examining previous contracts awarded for similar services, their values, durations, and the contractors involved. Significant year-over-year spending trends, fluctuations in contract values, or shifts in awarded contractors can indicate changes in program priorities, evolving environmental challenges, or market dynamics. For instance, a consistent increase in spending might suggest growing remediation needs, while a decrease could point to project completion or shifts in funding. Understanding these patterns helps in evaluating whether the current $61.7 million award is aligned with historical investment levels and future projected needs.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89303320REM000073
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1020 COMMERCE PARK DR STE 4, OAK RIDGE, TN, 37830
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $61,731,159
Exercised Options: $61,731,159
Current Obligation: $61,731,159
Actual Outlays: $61,167,946
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303321DEM000063
IDV Type: IDC
Timeline
Start Date: 2022-03-31
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2026-02-18
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