DOE awards $6.6M for environmental consulting at LBNL, raising value-for-money questions

Contract Overview

Contract Amount: $662,575 ($662.6K)

Contractor: S & K Federal Services LLC

Awarding Agency: Department of Energy

Start Date: 2023-05-16

End Date: 2025-04-30

Contract Duration: 715 days

Daily Burn Rate: $927/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER TECHNICAL SUPPORT SERVICES FOR LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL)

Place of Performance

Location: BERKELEY, ALAMEDA County, CALIFORNIA, 94720

State: California Government Spending

Plain-Language Summary

Department of Energy obligated $662,575.21 to S & K FEDERAL SERVICES LLC for work described as: ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER TECHNICAL SUPPORT SERVICES FOR LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Pricing appears high relative to the estimated value of services. 3. Lack of competition may indicate potential risks to cost control. 4. Performance period extends over 20 months, suggesting a need for ongoing oversight. 5. Contract falls within the environmental consulting sector, a common area for federal support. 6. No small business set-aside, potentially impacting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract's value of $6.6 million for environmental consulting services at Lawrence Berkeley National Laboratory (LBNL) warrants scrutiny. Without competitive bidding, it's difficult to benchmark against market rates or similar government contracts. The time and materials pricing structure, combined with a lack of defined cost ceilings, presents a risk of cost overruns. Further analysis is needed to determine if the awarded price reflects fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or authorized by statute. The absence of multiple bidders means there was no opportunity for price discovery through competition, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing, potentially resulting in taxpayer funds being used less efficiently.

Public Impact

The primary beneficiary is Lawrence Berkeley National Laboratory, which will receive essential environmental consulting services. Services include technical support for environmental management, ensuring compliance and operational efficiency. The geographic impact is localized to the LBNL facility in California. The contract supports specialized technical roles within the environmental consulting field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The environmental consulting services sector is a significant part of the professional services market, supporting government agencies in compliance, remediation, and management. Federal spending in this area often involves complex projects requiring specialized expertise. This contract for LBNL fits within the broader category of scientific and technical support services, where agencies rely on external expertise to manage environmental responsibilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means opportunities for small businesses to participate in this specific contract are limited. The absence of a small business set-aside may not significantly impact the broader small business ecosystem unless this represents a pattern of excluding small firms from similar environmental consulting needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers at LBNL. Given the sole-source nature and time-and-materials structure, robust monitoring of labor hours, direct costs, and adherence to the scope of work is crucial. Transparency could be enhanced through regular reporting requirements and public access to contract performance data.

Related Government Programs

Risk Flags

Tags

environmental-consulting, department-of-energy, lawrence-berkeley-national-laboratory, sole-source, time-and-materials, california, technical-support, professional-services, non-competitive, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $662,575.21 to S & K FEDERAL SERVICES LLC. ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER TECHNICAL SUPPORT SERVICES FOR LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL)

Who is the contractor on this award?

The obligated recipient is S & K FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $662,575.21.

What is the period of performance?

Start: 2023-05-16. End: 2025-04-30.

What is the track record of S & K FEDERAL SERVICES LLC in performing similar environmental consulting services for federal agencies?

Information regarding S & K FEDERAL SERVICES LLC's specific track record in performing environmental consulting services for federal agencies, particularly for national laboratories, is not readily available in the provided data. A deeper dive into contract databases and performance reviews would be necessary to assess their past performance, project success rates, and client satisfaction. Without this data, it's challenging to evaluate their suitability and reliability for this specific role at LBNL. Future analysis should focus on identifying past performance metrics and any reported issues or commendations related to their service delivery in similar contexts.

How does the awarded price of $6.6 million compare to similar environmental consulting contracts awarded by the Department of Energy or other agencies for national laboratories?

Benchmarking this $6.6 million contract against similar environmental consulting services for national laboratories is difficult without more specific data on contract scope, duration, and deliverables. However, given the sole-source nature and time-and-materials pricing, there is an inherent risk that the price may not be as competitive as a fully competed contract. A comprehensive comparison would require identifying contracts with comparable services, geographic locations, and contract types, and then analyzing their total value and hourly rates. The absence of competition here suggests a potential for higher costs than might be achieved in a competitive bidding environment.

What are the primary risks associated with a sole-source, time-and-materials contract for environmental consulting services?

The primary risks associated with a sole-source, time-and-materials contract for environmental consulting services include a lack of price competition, which can lead to inflated costs. The time-and-materials structure, without a firm ceiling or robust oversight, creates a risk of uncontrolled spending as labor hours and material costs accumulate. Furthermore, the sole-source nature means the government does not benefit from the innovation and efficiency that multiple bidders might bring. There's also a risk that the contractor may not be incentivized to complete tasks efficiently if their payment is directly tied to time spent.

What specific environmental management challenges at LBNL does this contract aim to address?

The provided data indicates this contract is for 'TECHNICAL SUPPORT SERVICES FOR LAWRENCE BERKELEY NATIONAL LABORATORY (LBNL)' within 'Environmental Consulting Services.' While the specific challenges are not detailed, such services typically address a range of environmental management needs. These can include ensuring compliance with environmental regulations (e.g., EPA, state, local), managing hazardous waste, conducting environmental impact assessments, developing pollution prevention strategies, supporting site remediation efforts, and providing general technical expertise to maintain environmental stewardship at the laboratory's complex facilities. The contract's duration suggests ongoing support is required.

What is the historical spending pattern for environmental consulting services at Lawrence Berkeley National Laboratory?

Historical spending patterns for environmental consulting services at Lawrence Berkeley National Laboratory (LBNL) are not detailed in the provided data. To understand this, one would need to analyze past contracts awarded to LBNL for similar services over several fiscal years. This analysis should identify the total amounts spent, the types of services procured, the contracting mechanisms used (e.g., competitive vs. sole-source), and the primary contractors. Understanding historical spending can reveal trends, identify potential cost efficiencies or inefficiencies, and inform future procurement strategies for environmental support at LBNL.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' (CT) designation for this contract?

The 'NOT AVAILABLE FOR COMPETITION' designation, often synonymous with sole-source awards, means that the Department of Energy did not solicit bids from multiple potential contractors for these environmental consulting services. This typically occurs when only one contractor is deemed capable of performing the work, or when specific circumstances (like urgent needs or unique capabilities) justify bypassing the competitive process. For taxpayers, this designation implies a reduced opportunity to benefit from competitive pricing and potentially less innovation. It necessitates strong internal oversight to ensure the awarded price is fair and reasonable and that the services delivered meet all requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesEnvironmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 63066 OLD HIGHWAY 93 STE F, SAINT IGNATIUS, MT, 59865

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $692,003

Exercised Options: $692,003

Current Obligation: $662,575

Actual Outlays: $649,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303320DEM000035

IDV Type: IDC

Timeline

Start Date: 2023-05-16

Current End Date: 2025-04-30

Potential End Date: 2025-04-30 00:00:00

Last Modified: 2026-04-02

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