Department of Energy awards $27.6M contract for technical and oversight support at Oak Ridge

Contract Overview

Contract Amount: $27,621,263 ($27.6M)

Contractor: Professional Project Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2023-02-23

End Date: 2027-02-22

Contract Duration: 1,460 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS AWARD IS FOR PROVIDE VARIOUS TECHNICAL AND OVERSIGHT SUPPORT SERVICES RELATED TO PLANNING AND MANAGEMENT OF THE OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT PORTFOLIO OF PROJECTS. AWARD IS MADE AGAINST THE THE NNSA TECHNICAL, ENGINEERING, AND PR

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Energy obligated $27.6 million to PROFESSIONAL PROJECT SERVICES, INC. for work described as: THIS AWARD IS FOR PROVIDE VARIOUS TECHNICAL AND OVERSIGHT SUPPORT SERVICES RELATED TO PLANNING AND MANAGEMENT OF THE OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT PORTFOLIO OF PROJECTS. AWARD IS MADE AGAINST THE THE NNSA TECHNICAL, ENGINEERING, AND PR Key points: 1. Contract focuses on planning and management for environmental management projects. 2. Awarded to Professional Project Services, Inc. against a broader NNSA technical services framework. 3. The contract duration is approximately four years, indicating a need for sustained support. 4. This award represents a significant investment in environmental remediation and management capabilities. 5. The use of Time and Materials pricing may require close monitoring to ensure cost control. 6. The contract is not set aside for small businesses, suggesting a focus on specialized capabilities.

Value Assessment

Rating: good

The contract value of $27.6 million over four years suggests a substantial need for specialized technical and oversight services. Benchmarking against similar contracts for environmental management and technical support within the Department of Energy or other agencies would provide a clearer picture of value for money. The Time and Materials pricing structure, while flexible, necessitates robust oversight to prevent cost overruns and ensure efficient resource utilization. Without specific comparable contract data, it's difficult to definitively assess pricing competitiveness, but the award against a broader framework implies some level of pre-competed pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings. This approach suggests the agency sought the best possible solution from the widest range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The primary beneficiaries are the Department of Energy and its mission at Oak Ridge, ensuring effective management of environmental projects. Services delivered include technical and oversight support crucial for planning and execution. The geographic impact is concentrated at the Oak Ridge Office of Environmental Management in Tennessee. The contract supports specialized technical and management roles, potentially impacting the local workforce in skilled professional services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not closely managed.
Reliance on a single contractor for critical technical and oversight functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Contract is part of a larger NNSA technical services framework, implying some pre-qualification and potentially standardized terms.
Long-term nature of the contract (four years) indicates a stable and ongoing need for these critical services.

Sector Analysis

This contract falls within the Environmental Services and Remediation sector, a critical area for government operations, particularly for agencies managing legacy industrial sites like Oak Ridge. The market for these services is specialized, requiring deep technical expertise in environmental science, engineering, and project management. Spending in this sector is often driven by regulatory requirements and long-term cleanup obligations. Comparable spending benchmarks would likely be found in contracts awarded by the EPA, DOD, and other agencies involved in environmental management and site remediation.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The award value and specialized nature of the services suggest it was likely competed on a broader scale, potentially favoring larger, established firms with extensive experience in environmental management and technical oversight. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract itself.

Oversight & Accountability

Oversight mechanisms for this contract would likely involve the Department of Energy's contracting officers and program managers. Given the nature of the services and the agency involved (Department of Energy), the Inspector General's office would likely have jurisdiction for audits and investigations related to waste, fraud, and abuse. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones, though specific details on oversight intensity are not provided.

Related Government Programs

NNSA Technical, Engineering, and Programmatic Support Services
Department of Energy Environmental Management Programs
Oak Ridge Reservation Operations
Federal Remediation Services

Risk Flags

Potential for cost overruns due to T&M pricing
Need for robust oversight to ensure efficient labor utilization
Contract performance risk if specialized expertise is not maintained

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $27.6 million to PROFESSIONAL PROJECT SERVICES, INC.. THIS AWARD IS FOR PROVIDE VARIOUS TECHNICAL AND OVERSIGHT SUPPORT SERVICES RELATED TO PLANNING AND MANAGEMENT OF THE OAK RIDGE OFFICE OF ENVIRONMENTAL MANAGEMENT PORTFOLIO OF PROJECTS. AWARD IS MADE AGAINST THE THE NNSA TECHNICAL, ENGINEERING, AND PR

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL PROJECT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2023-02-23. End: 2027-02-22.

What is the track record of Professional Project Services, Inc. with the Department of Energy and similar environmental management contracts?

Professional Project Services, Inc. (PPS) has a history of working with federal agencies, including the Department of Energy, on various technical and management support contracts. Their experience often spans areas like environmental remediation, facility operations, and project management. To assess their track record specifically for this type of work, a review of their past performance evaluations on similar contracts would be necessary. This would involve examining data on their ability to meet cost, schedule, and performance requirements, as well as any documented issues or commendations. Without access to detailed past performance reports, it's challenging to provide a definitive assessment, but their ability to win this significant award suggests a generally positive or at least acceptable performance history with the government.

How does the awarded amount compare to similar technical and oversight support contracts for environmental management at other DOE sites?

The awarded amount of approximately $27.6 million over four years for technical and oversight support at the Oak Ridge Office of Environmental Management needs to be benchmarked against similar contracts at other Department of Energy (DOE) sites or facilities with comparable environmental management portfolios. Factors influencing comparison include the scope of work (planning, technical support, oversight), the complexity of the environmental challenges, the size and number of projects managed, and the duration of the contract. For instance, contracts at sites like Hanford or Savannah River, which also have extensive environmental cleanup missions, might offer relevant comparisons. A detailed analysis would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (e.g., 562910 - Remediation Services) and comparing total contract values, labor rates, and overhead structures, adjusted for inflation and regional economic differences.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure for this $27.6 million contract is the potential for cost overruns if not managed diligently. T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This can lead to unpredictable final costs for the government, especially if project scopes are not well-defined or if there are inefficiencies in labor application. Key risks include: 1) Uncontrolled labor hours: The contractor may not have a strong incentive to control labor hours, potentially leading to inflated costs. 2) Material cost inflation: Fluctuations in material prices could impact the overall cost. 3) Scope creep: Without clear definition and control, T&M can facilitate scope creep, increasing costs without corresponding increases in contract value. To mitigate these risks, the Department of Energy must implement robust oversight, including detailed tracking of labor hours, review of material invoices, and strict change control processes.

What is the expected impact of this contract on the environmental remediation efforts at Oak Ridge?

This contract is expected to have a significant positive impact on the environmental remediation efforts at the Oak Ridge Office of Environmental Management (OREM). By providing essential technical and oversight support, it ensures that the planning and management of the OREM portfolio of projects are handled effectively and efficiently. This support is crucial for navigating the complexities of environmental cleanup, ensuring regulatory compliance, and maintaining progress on long-term remediation goals. The contractor's role in oversight will help ensure that work is performed safely, on schedule, and within budget, thereby accelerating the cleanup process and reducing long-term environmental liabilities for the government and the region. Ultimately, this contract contributes to the successful closure of environmental cleanup missions at the Oak Ridge site.

How has federal spending on environmental remediation services (NAICS 562910) evolved over the past five years, and where does this award fit in?

Federal spending on environmental remediation services, typically categorized under NAICS code 562910, has remained a significant area of government expenditure, driven by ongoing cleanup obligations at sites managed by agencies like the Department of Energy (DOE), Environmental Protection Agency (EPA), and Department of Defense (DOD). Over the past five years, spending in this sector has generally been robust, reflecting the long-term nature of environmental cleanup projects. While specific aggregate spending data fluctuates annually based on project lifecycles and new initiatives, the overall trend indicates sustained investment. This $27.6 million award to Professional Project Services, Inc. for technical and oversight support at Oak Ridge fits within this broader spending pattern. It represents a substantial, but not unprecedented, investment for a specific site's management needs, contributing to the overall federal effort in environmental remediation and site closure.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 89303322QEM000017

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9721 SHERRILL BLVD STE J, KNOXVILLE, TN, 37932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,000,000

Exercised Options: $40,250,000

Current Obligation: $27,621,263

Actual Outlays: $25,092,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F112CA

IDV Type: FSS

Timeline