Department of Energy awards $13.8M for administrative and engineering support to S & K Logistics Services LLC

Contract Overview

Contract Amount: $13,810,016 ($13.8M)

Contractor: S & K Logistics Services LLC

Awarding Agency: Department of Energy

Start Date: 2023-03-15

End Date: 2026-03-14

Contract Duration: 1,095 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD IS FOR ADMINISTRATIVE SUPPORT SERVICE AND ENGINEERING AND TECHNICAL SERVICES UNDER IDIQ CONTRACT NO. 89303723DEM000011.

Place of Performance

Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802

State: South Carolina Government Spending

Plain-Language Summary

Department of Energy obligated $13.8 million to S & K LOGISTICS SERVICES LLC for work described as: THIS AWARD IS FOR ADMINISTRATIVE SUPPORT SERVICE AND ENGINEERING AND TECHNICAL SERVICES UNDER IDIQ CONTRACT NO. 89303723DEM000011. Key points: 1. The contract focuses on administrative, engineering, and technical services, indicating a need for specialized support. 2. The award is a delivery order against an existing IDIQ contract, suggesting a pre-established relationship or framework. 3. The firm-fixed-price contract type aims to control costs by setting a predetermined price for the services. 4. The duration of 1095 days (3 years) provides a stable period for service delivery and planning. 5. The contract is not set aside for small businesses, which may limit opportunities for smaller firms in this segment. 6. The geographic location of South Carolina is specified, potentially indicating a concentration of facilities or operations.

Value Assessment

Rating: fair

The total award amount of $13.8 million over three years for administrative and engineering support services appears to be within a reasonable range for such a contract. Benchmarking against similar support service contracts would provide a clearer picture of value for money. The firm-fixed-price structure suggests an attempt to manage cost predictability, but without detailed service breakdowns, a precise value assessment is challenging. The absence of specific performance metrics in the provided data makes it difficult to evaluate the efficiency and effectiveness of the spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' which is a critical detail. This suggests that the award was likely made under specific circumstances, such as a sole-source justification, a follow-on to a previous contract where competition was previously established, or an emergency procurement. Without further details on the justification for 'not available for competition,' it is impossible to assess the level of competition or the number of bidders considered. This lack of transparency in the procurement process raises questions about potential price discovery.

Taxpayer Impact: When a contract is not competed, taxpayers may not benefit from the competitive pricing that typically drives down costs. This can lead to higher overall expenditures for the government.

Public Impact

The Department of Energy benefits from essential administrative and technical support, enabling its core functions. Services delivered likely include operational support, facility management, and technical assistance crucial for DOE operations. The geographic impact is concentrated in South Carolina, where the services will be performed. Workforce implications may include the creation or maintenance of jobs for administrative and engineering professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. This sector is crucial for ensuring the smooth functioning of various government agencies. Spending in this area can fluctuate based on infrastructure needs, modernization efforts, and operational requirements. Comparable spending benchmarks would typically involve analyzing other large-scale support service contracts awarded by federal agencies for similar facility types and service scopes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the procurement was open to all eligible contractors, including large businesses. Consequently, there are no specific subcontracting requirements mandated for small businesses under this award. The impact on the small business ecosystem is neutral in terms of direct set-aside opportunities, but large prime contractors may still engage small businesses as subcontractors if it aligns with their business strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a delivery order under an IDIQ, the initial IDIQ contract likely had its own oversight mechanisms. Transparency is limited by the 'not available for competition' status, making it difficult to assess public accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-energy, south-carolina, delivery-order, firm-fixed-price, not-available-for-competition, administrative-support, engineering-services, technical-services, s-and-k-logistics-services-llc

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $13.8 million to S & K LOGISTICS SERVICES LLC. THIS AWARD IS FOR ADMINISTRATIVE SUPPORT SERVICE AND ENGINEERING AND TECHNICAL SERVICES UNDER IDIQ CONTRACT NO. 89303723DEM000011.

Who is the contractor on this award?

The obligated recipient is S & K LOGISTICS 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 $13.8 million.

What is the period of performance?

Start: 2023-03-15. End: 2026-03-14.

What specific administrative and engineering/technical services are included under this delivery order?

The provided data indicates the award is for 'ADMINISTRATIVE SUPPORT SERVICE AND ENGINEERING AND TECHNICAL SERVICES' under IDIQ contract NO. 89303723DEM000011. However, the specific breakdown and scope of these services are not detailed in the summary data. Typically, administrative support can encompass functions like personnel management, financial processing, records management, and general office operations. Engineering and technical services could range from facility maintenance and repair, systems engineering, project management support, cybersecurity, to specialized scientific or research support, depending on the Department of Energy's specific needs at the facility or program this order supports. A detailed review of the delivery order document itself would be necessary to ascertain the precise nature and extent of the services required.

What is the justification for this contract being 'NOT AVAILABLE FOR COMPETITION'?

The designation 'NOT AVAILABLE FOR COMPETITION' implies that the contract was not awarded through a full and open competitive process. Common justifications for such a status include: sole-source procurement (only one responsible source can satisfy agency requirements), follow-on contracts where competition was previously established and a specific contractor is uniquely positioned, or urgent and compelling needs that preclude a competitive solicitation. Without the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the exact reason. This lack of competition can impact price and potentially limit innovation, making it crucial for agencies to adhere strictly to regulations when invoking such exceptions.

How does the $13.8 million award compare to similar administrative and engineering support contracts within the Department of Energy or other federal agencies?

A direct comparison of the $13.8 million award for administrative and engineering support services requires access to a broader dataset of federal contract awards. The value of this contract, spread over three years, suggests a significant scope of work. Benchmarking would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (e.g., 561210 - Facilities Support Services) and service descriptions awarded by agencies like the Department of Energy, Department of Defense, or General Services Administration. Factors such as contract duration, geographic location, specific service requirements, and the level of technical complexity would need to be considered for a meaningful comparison. Without such comparative data, assessing whether this award represents excellent, good, or fair value is speculative.

What are the potential risks associated with awarding a contract of this magnitude without full competition?

Awarding a contract of $13.8 million without full competition introduces several potential risks. Firstly, there's a risk of paying a higher price than would be achieved through a competitive bidding process, as the government may not benefit from the cost-saving pressures inherent in competition. Secondly, it can limit the pool of innovative solutions or approaches that different contractors might offer. Thirdly, it may create a perception of favoritism or a lack of equal opportunity for other capable businesses. Finally, without the vetting process of a competitive bid, there's a slightly elevated risk related to contractor performance or capacity, although this is mitigated if it's a sole-source award based on specific qualifications.

What is the track record of S & K Logistics Services LLC in performing similar government contracts?

Information regarding the track record of S & K Logistics Services LLC in performing similar government contracts is not provided in the summary data. To assess their past performance, one would typically consult resources like the Federal Procurement Data System (FPDS), the Contractor Performance Assessment Reporting System (CPARS), or agency-specific past performance databases. These systems often contain ratings and feedback on previous contracts, including aspects like timeliness of delivery, quality of work, cost control, and overall customer satisfaction. A thorough review of their performance history is essential for understanding their reliability and capability in executing this $13.8 million award.

How does the duration of the contract (1095 days) align with typical support service contracts of this nature?

A contract duration of 1095 days, equivalent to three years, is a common and often preferred term for significant support service contracts. This duration provides stability for both the government agency and the contractor, allowing for effective planning, resource allocation, and the development of a strong working relationship. For services like administrative and engineering support, a multi-year term enables the contractor to build institutional knowledge and optimize service delivery. While shorter terms offer more frequent re-competition opportunities, longer terms can lead to greater efficiencies and potentially better value, provided performance is consistently satisfactory. The three-year period strikes a balance, offering stability without excessively long-term commitment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 138 PEACHTREE PKWY, BYRON, GA, 31008

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: $14,002,459

Exercised Options: $14,002,459

Current Obligation: $13,810,016

Actual Outlays: $12,748,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303723DEM000011

IDV Type: IDC

Timeline

Start Date: 2023-03-15

Current End Date: 2026-03-14

Potential End Date: 2026-04-15 00:00:00

Last Modified: 2026-04-14

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