DOE's $11.75M contract for business administration support awarded to Technology and Management Services, Inc
Contract Overview
Contract Amount: $11,748,747 ($11.7M)
Contractor: Technology and Management Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2007-04-26
End Date: 2008-02-29
Contract Duration: 309 days
Daily Burn Rate: $38.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TO PROVIDE SUPPORT SERVICES TO THE U.S. DEPARTMENT OF ENERGY DEPUTY ASSISTANT SECRETARY FOR BUSINESS ADMINISTRATION, OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $11.7 million to TECHNOLOGY AND MANAGEMENT SERVICES, INC. for work described as: TO PROVIDE SUPPORT SERVICES TO THE U.S. DEPARTMENT OF ENERGY DEPUTY ASSISTANT SECRETARY FOR BUSINESS ADMINISTRATION, OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Performance period was relatively short, suggesting a focused scope of work. 3. The contract utilized a Time and Materials pricing structure, which can pose cost control challenges. 4. The award was made to a single vendor, indicating potential lack of market research or specific vendor qualifications. 5. The contract value is modest within the broader federal IT services landscape. 6. The agency and awarding office are the same, suggesting internal tasking or a specific programmatic need.
Value Assessment
Rating: fair
The contract's value of $11.75 million for support services is within a typical range for federal agencies. However, without comparable sole-source contracts for similar services, a precise value-for-money assessment is difficult. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. Benchmarking against other engineering or management support services contracts would be necessary for a more robust evaluation.
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 among multiple vendors. This approach typically occurs when a specific vendor possesses unique capabilities, or in situations where only one vendor can meet the agency's requirements. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not secure the most competitive pricing available in the market.
Public Impact
The Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) benefits from essential business administration support. Services provided likely include administrative, management, and technical support to enhance operational efficiency within EERE. The contract's geographic impact is centered in Maryland, where the contractor is located. Workforce implications are primarily for Technology and Management Services, Inc., which provides the contracted personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Time and Materials pricing can lead to cost overruns if not closely monitored.
- Short performance duration might indicate a need for more stable, long-term support solutions.
Positive Signals
- Contract supports critical administrative functions within the Department of Energy.
- The vendor was selected, implying they met specific, albeit uncompeted, requirements.
- The contract was awarded by the Department of Energy to itself, suggesting internal alignment.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The federal market for these services is substantial, with agencies frequently procuring support for program management, administration, and technical analysis. Comparable spending benchmarks would involve analyzing other contracts for management and technical support services awarded to engineering firms by various federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, it does not directly contribute to the small business contracting ecosystem or provide opportunities for small business participation.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and program officials within the Department of Energy's Office of Energy Efficiency and Renewable Energy. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature and the lack of public competition details.
Related Government Programs
- Department of Energy Administrative Support Contracts
- Energy Efficiency and Renewable Energy Program Support
- Federal Management and Consulting Services
Risk Flags
- Sole-source award raises concerns about competitive pricing.
- Time and Materials contract type poses potential cost control risks.
Tags
department-of-energy, engineering-services, management-support, sole-source, time-and-materials, maryland, professional-services, administrative-support, energy-sector, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $11.7 million to TECHNOLOGY AND MANAGEMENT SERVICES, INC.. TO PROVIDE SUPPORT SERVICES TO THE U.S. DEPARTMENT OF ENERGY DEPUTY ASSISTANT SECRETARY FOR BUSINESS ADMINISTRATION, OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
Who is the contractor on this award?
The obligated recipient is TECHNOLOGY AND MANAGEMENT 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 $11.7 million.
What is the period of performance?
Start: 2007-04-26. End: 2008-02-29.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source justifications are based on factors such as the urgency of the requirement, the unique capabilities of a single contractor, or the unavailability of other sources. Without further documentation from the Department of Energy, the precise rationale remains unknown. This lack of competition means that the government did not explore potential cost savings or broader market solutions that a competitive process might have yielded.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M offers flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts, as the final cost is not predetermined. For services where the scope is well-defined, fixed-price contracts generally offer better value and cost certainty for the government. Benchmarking T&M against fixed-price contracts for similar administrative or engineering support services would reveal potential cost differences, with fixed-price often being more economical when scope is stable.
What is the typical performance duration for similar federal support service contracts?
The performance duration for federal support service contracts can vary significantly based on the nature of the services, the agency's needs, and the contract type. Contracts for administrative or management support can range from a few months for specific projects to several years for ongoing operational needs. This particular contract had a duration of approximately 10 months (April 26, 2007, to February 29, 2008). While this is a relatively short period, it might have been sufficient for the specific tasks required at the time. Longer-term contracts often provide greater stability and can sometimes lead to better economies of scale and contractor investment in efficiency.
What is the significance of the awarding agency and the servicing agency being the same (Department of Energy)?
When the awarding agency and the servicing agency are the same, as in this case with the Department of Energy (DOE), it typically indicates that the contract is for internal support or services directly managed by the department itself. The 'awarding agency' is the entity that procures the service, while the 'servicing agency' is the one that ultimately receives and benefits from the service. In this scenario, DOE is both procuring and utilizing the business administration support services, likely for one of its specific offices, such as the Office of Energy Efficiency and Renewable Energy (EERE). This internal focus can streamline communication and oversight but also underscores the importance of robust internal controls to ensure value.
What does the NAICS code '541330' (Engineering Services) imply about the nature of the support provided?
The North American Industry Classification System (NAICS) code '541330' designates 'Engineering Services.' This suggests that the support provided under this contract likely involved technical expertise, project management, or consulting related to engineering principles, even if the primary function was administrative support. For the Department of Energy, particularly within the Office of Energy Efficiency and Renewable Energy, engineering services can encompass a wide range of activities, from technical analysis and program evaluation to strategic planning and operational efficiency improvements. The 'Engineering Services' classification implies a level of technical acumen beyond basic administrative tasks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-RP01-07EE11515
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: International Business Machines Corporation (UEI: 001368083)
Address: 18757 N FREDERICK AVE, GAITHERSBURG, MD, 90
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,335,221
Exercised Options: $12,187,275
Current Obligation: $11,748,747
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-26
Current End Date: 2008-02-29
Potential End Date: 2008-02-29 00:00:00
Last Modified: 2011-11-30
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