DOE's $26M Navarro contract for WIPP/NTP technical assistance shows fair value, but competition details warrant scrutiny
Contract Overview
Contract Amount: $26,179,209 ($26.2M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2025-04-01
End Date: 2029-06-30
Contract Duration: 1,551 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROVIDING TECHNICAL ASSISTANCE FOR CBFO TO SUPPORT ON-GOING MISSIONS ASSOCIATED WITH THE WIPP AND NTP. THE CBFO CONTRACTING OFFICER (CO) MAY ORDER THE SUPPORT PERSONNEL NECESSARY TO KEEP ALL OF THE CBFO PROGRAM AREAS FULLY FUNCTIONAL, EXCEPT THOSE AR
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88220
Plain-Language Summary
Department of Energy obligated $26.2 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: PROVIDING TECHNICAL ASSISTANCE FOR CBFO TO SUPPORT ON-GOING MISSIONS ASSOCIATED WITH THE WIPP AND NTP. THE CBFO CONTRACTING OFFICER (CO) MAY ORDER THE SUPPORT PERSONNEL NECESSARY TO KEEP ALL OF THE CBFO PROGRAM AREAS FULLY FUNCTIONAL, EXCEPT THOSE AR Key points: 1. Contract provides essential technical support for critical DOE missions at WIPP and NTP. 2. Navarro Research and Engineering, Inc. has a history with DOE, suggesting some level of established performance. 3. The contract's Time and Materials (T&M) pricing structure can pose cost control challenges if not closely managed. 4. The duration of over 5 years indicates a long-term need for these specialized services. 5. Geographic concentration in New Mexico highlights the localized impact of this federal spending. 6. The contract's value, while significant, needs to be benchmarked against similar technical assistance contracts.
Value Assessment
Rating: fair
The contract's total value of approximately $26.2 million over a period of roughly 5 years suggests a moderate annual spend. Benchmarking this against similar technical assistance contracts for large-scale remediation and operational support would be necessary for a definitive value-for-money assessment. The Time and Materials (T&M) pricing model, while offering flexibility, can lead to cost overruns if not meticulously monitored by the Department of Energy (DOE). Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively assess if this represents excellent value, but it appears to be within a reasonable range for specialized, long-term support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while a competitive process was intended, certain sources were excluded. This procurement approach suggests that the initial competition may have been narrowed down, potentially limiting the pool of bidders. The specific reasons for excluding sources are not detailed, making it difficult to fully assess the breadth of competition. A limited competition can sometimes lead to less aggressive pricing compared to full and open competition.
Taxpayer Impact: The exclusion of certain sources, even if justified, may have reduced the competitive pressure, potentially resulting in higher costs for taxpayers than if a broader competition had been pursued.
Public Impact
The primary beneficiaries are the Department of Energy's Carlsbad Field Office (CBFO) and its ongoing missions at the Waste Isolation Pilot Plant (WIPP) and the National Transuranic Program (NTP). The contract delivers crucial technical assistance and support personnel necessary to maintain the functionality of these critical program areas. The geographic impact is concentrated in New Mexico, where the WIPP and NTP operations are located. The contract supports a workforce of specialized technical personnel, contributing to employment in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises questions about the extent of true competition and potential cost implications for taxpayers.
- The Time and Materials (T&M) contract type requires diligent oversight to prevent cost escalation and ensure efficient resource utilization.
- Lack of specific performance metrics in the provided data makes it challenging to assess the contractor's efficiency and effectiveness beyond basic mission support.
Positive Signals
- The contract addresses essential technical assistance for critical national missions (WIPP/NTP), indicating a necessary and important government function.
- The multi-year duration suggests a stable, long-term commitment to supporting these vital operations.
- The award to Navarro Research and Engineering, Inc. may indicate a level of trust and established working relationship with the agency.
Sector Analysis
This contract falls within the Environmental Remediation and Technical Services sector, a critical area for the Department of Energy given its legacy of nuclear operations. The WIPP and NTP are unique, large-scale projects requiring highly specialized expertise. Spending in this sector is often characterized by long-term contracts, significant regulatory oversight, and a limited number of qualified contractors. Comparable spending benchmarks would likely involve other large federal remediation projects or specialized technical support contracts for complex government facilities.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing specialized technical expertise, likely favoring larger, established firms. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for specialized support not covered by their core capabilities.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's Carlsbad Field Office (CBFO) Contracting Officer and their representatives. Given the critical nature of WIPP and NTP, robust oversight mechanisms are expected, including regular performance reviews, site visits, and audits. Transparency would be facilitated through contract reporting requirements and public availability of contract awards. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy - Waste Isolation Pilot Plant (WIPP)
- Department of Energy - National Transuranic Program (NTP)
- Environmental Remediation Services
- Technical Assistance Contracts
- Department of Energy - Carlsbad Field Office (CBFO)
Risk Flags
- Potential for cost overruns due to T&M pricing structure.
- Limited competition due to exclusion of sources.
- Need for continuous oversight to ensure contractor efficiency over the long contract term.
- Dependence on specialized contractor expertise for critical national missions.
Tags
department-of-energy, waste-isolation-pilot-plant, national-transuranic-program, technical-assistance, remediation-services, time-and-materials, limited-competition, new-mexico, navarro-research-and-engineering, long-term-contract, environmental-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26.2 million to NAVARRO RESEARCH AND ENGINEERING, INC.. PROVIDING TECHNICAL ASSISTANCE FOR CBFO TO SUPPORT ON-GOING MISSIONS ASSOCIATED WITH THE WIPP AND NTP. THE CBFO CONTRACTING OFFICER (CO) MAY ORDER THE SUPPORT PERSONNEL NECESSARY TO KEEP ALL OF THE CBFO PROGRAM AREAS FULLY FUNCTIONAL, EXCEPT THOSE AR
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 $26.2 million.
What is the period of performance?
Start: 2025-04-01. End: 2029-06-30.
What is the track record of Navarro Research and Engineering, Inc. with the Department of Energy, particularly on similar remediation or technical assistance contracts?
Navarro Research and Engineering, Inc. has a significant history of working with the Department of Energy (DOE) on various projects, including those related to environmental management and technical support. Their involvement often centers around complex operational and remediation tasks at DOE sites. While specific details of past performance on contracts directly comparable to this WIPP/NTP technical assistance role require deeper investigation into federal procurement databases, their continued selection by the DOE suggests a satisfactory performance history and established expertise. It is crucial to examine past performance evaluations and any documented issues or successes to fully understand their capabilities and reliability for this critical mission.
How does the $26.2 million contract value compare to similar technical assistance contracts for large-scale federal remediation projects?
The $26.2 million contract value over approximately five years represents an average annual spend of roughly $5.2 million. This figure needs to be contextualized against the scale and complexity of the WIPP and NTP missions. Technical assistance contracts for large-scale federal remediation projects, especially those involving nuclear materials or hazardous waste management, can range significantly. Contracts supporting operations at sites like Hanford or Savannah River, which involve extensive cleanup and management, often run into hundreds of millions or even billions of dollars over their lifetimes. Therefore, $5.2 million annually for specialized technical support for WIPP/NTP appears moderate, but a precise comparison requires identifying contracts with similar scope, duration, and specific technical requirements.
What are the primary risks associated with a Time and Materials (T&M) contract for technical assistance in a complex operational environment like WIPP/NTP?
The primary risk with a Time and Materials (T&M) contract, especially for technical assistance in complex environments like WIPP/NTP, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If project scope creeps, inefficiencies arise, or labor hours are not diligently managed and monitored by the government, costs can significantly exceed initial estimates. For the DOE, this means a heightened need for stringent oversight, detailed tracking of all labor hours and material costs, and proactive management to ensure the contractor operates efficiently and within budget. Without robust government oversight, T&M contracts can become less cost-effective than other contract types.
What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply for the level of competition and potential pricing?
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the initial solicitation was intended for all responsible sources. However, 'exclusion of sources' implies that specific potential bidders were deliberately excluded from the competition, either before or during the solicitation process. The reasons for exclusion are critical – they could range from failure to meet minimum qualifications to national security concerns or other regulatory requirements. While it's still a form of competition, excluding sources inherently limits the number of bidders compared to a pure 'full and open' competition. This reduced competition can potentially lead to less aggressive pricing, as the remaining bidders may face less pressure to offer the most competitive rates. The specific justification for excluding sources is key to understanding the impact on price discovery and overall value for taxpayers.
What are the potential implications of this contract's duration (over 5 years) on long-term mission support and contractor performance?
A contract duration exceeding five years, as seen with this award (ending June 30, 2029, from an April 1, 2025 start), suggests a long-term, stable requirement for the technical assistance services provided. This stability can be beneficial for mission continuity, allowing the contractor to develop deep institutional knowledge and a consistent support structure. It also provides the contractor with a predictable revenue stream, potentially encouraging investment in specialized personnel and equipment. However, a long duration also necessitates ongoing performance monitoring to ensure the contractor remains efficient and effective throughout the contract period. It increases the risk of complacency or performance degradation over time if oversight is not maintained. For taxpayers, a long-term commitment requires confidence that the services remain necessary and are being delivered at a fair price throughout the contract's life.
How does the geographic concentration in New Mexico (NM) affect the economic impact and oversight of this federal spending?
The geographic concentration of this contract in New Mexico, specifically related to the WIPP and NTP operations, means that the direct economic impact—such as job creation and spending on local goods and services—will be primarily localized within that state. This can be a significant benefit to the New Mexico economy, particularly in communities supporting these federal facilities. From an oversight perspective, the concentration simplifies some aspects, as government representatives can more easily conduct site visits and monitor contractor activities in person. However, it also means that any disruptions or issues at the site could have a concentrated impact. The reliance on a specific geographic location for such critical operations underscores the importance of robust local infrastructure and workforce development.
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
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: $45,710,405
Exercised Options: $45,710,405
Current Obligation: $26,179,209
Actual Outlays: $14,437,006
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: 2025-04-01
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-03-17
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