DOE's $10M+ engineering services contract with Pacific Western Technologies, Ltd. awarded in 1999
Contract Overview
Contract Amount: $10,064,523 ($10.1M)
Contractor: Pacific Western Technologies, Ltd.
Awarding Agency: Department of Energy
Start Date: 1999-12-15
End Date: 2007-09-28
Contract Duration: 2,844 days
Daily Burn Rate: $3.5K/day
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $10.1 million to PACIFIC WESTERN TECHNOLOGIES, LTD. for work described as: Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. Long contract duration of 2844 days suggests a sustained requirement for these services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Awarded by the Department of Energy, suggesting a focus on energy-related projects or infrastructure. 5. The North American Industry Classification System (NAICS) code 541330 points to a significant engineering services market. 6. The contract was awarded in 1999, providing historical context for current spending patterns.
Value Assessment
Rating: fair
The total award amount of over $10 million for engineering services over an 8-year period appears reasonable given the duration and the nature of engineering projects. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar long-term, complex engineering contracts would be necessary for a more definitive evaluation of pricing and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. Understanding whether this was a full and open competition, a limited competition, or a sole-source award is crucial for assessing its impact on pricing and efficiency. A competitive process typically drives down costs and encourages innovation, while a sole-source award may indicate unique capabilities or a lack of alternatives.
Taxpayer Impact: The level of competition directly impacts taxpayer value. More competition generally leads to better prices and services for the government, while less competition can result in higher costs.
Public Impact
The Department of Energy benefits from specialized engineering expertise to support its mission. Services delivered likely include design, analysis, and technical support for energy projects or facilities. The geographic impact is likely focused on New Mexico, where the contract was administered. The contract supports a workforce of engineers and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Cost Plus Fixed Fee contract type if not rigorously managed.
- Lack of transparency regarding competition level makes it difficult to assess price discovery.
- Long contract duration could lead to vendor lock-in or reduced incentive for innovation over time.
Positive Signals
- Awarded by a major federal agency (DOE) suggests alignment with national energy priorities.
- Sustained need for engineering services indicates the critical nature of the work performed.
- The contract was administered in New Mexico, potentially supporting regional economic activity.
Sector Analysis
The engineering services sector is a critical component of the federal procurement landscape, supporting a wide range of government functions from infrastructure development to research and development. The NAICS code 541330 encompasses establishments primarily engaged in providing architectural, engineering, and related services. Federal spending in this sector is substantial, reflecting the government's reliance on external expertise for complex technical projects. This contract fits within the broader category of professional services procured by the Department of Energy.
Small Business Impact
The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Analysis of small business participation would require further investigation into the contract's specific terms and performance. Without this information, it's difficult to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures would be tied to the contract's performance requirements and milestones. Transparency regarding the contract's details, including competition and pricing, is essential for public trust and effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Research and Development Contracts
- Engineering and Technical Services Contracts
- Long-Term Government Service Contracts
- Cost-Plus Contract Types
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration may reduce flexibility and increase potential for cost escalation.
- Lack of specified competition level hinders assessment of price discovery and value.
- Limited information on specific deliverables makes performance evaluation difficult.
Tags
engineering-services, department-of-energy, cost-plus-fixed-fee, long-term-contract, professional-services, new-mexico, federal-contract, naics-541330, contract-award-1999
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.1 million to PACIFIC WESTERN TECHNOLOGIES, LTD.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PACIFIC WESTERN TECHNOLOGIES, LTD..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 1999-12-15. End: 2007-09-28.
What specific engineering services were provided under this contract?
The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services procured by the Department of Energy could range from design and analysis of energy infrastructure (e.g., power plants, transmission lines), environmental remediation engineering, nuclear facility engineering, to research and development support for new energy technologies. A deeper dive into the contract's statement of work or task orders would be necessary to ascertain the precise deliverables and technical areas covered.
How does the $10 million award amount compare to similar engineering contracts awarded by the DOE around 1999?
Comparing the $10 million award amount for Pacific Western Technologies, Ltd. requires context regarding the scope, duration, and complexity of similar engineering contracts awarded by the Department of Energy (DOE) in the late 1990s. Engineering services can vary widely in cost depending on specialization (e.g., nuclear engineering vs. civil engineering), project scale, and duration. A contract spanning nearly 8 years (from December 1999 to September 2007) for over $10 million suggests a significant, long-term engagement. To benchmark effectively, one would need to analyze other DOE contracts for comparable engineering services awarded within a similar timeframe, considering factors like the number of bidders, contract type, and specific technical requirements to determine if the pricing was competitive and represented good value.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Pacific Western Technologies, Ltd., carry inherent risks, particularly for long-duration projects exceeding $10 million. The primary risk is that the 'cost-plus' component allows the contractor to recover allowable costs, potentially leading to cost overruns if not meticulously managed and audited. While the 'fixed fee' provides a defined profit margin, it doesn't cap the total project cost. If the contractor's costs escalate due to inefficiencies, scope creep, or unforeseen technical challenges, the government bears the brunt of these increased expenses. For a contract running over 2800 days, the risk of cost escalation is amplified due to the extended period over which costs can accrue and the potential for evolving project requirements. Robust oversight, detailed cost tracking, and stringent change control processes are critical to mitigate these risks.
What does the contract's award date (1999) suggest about historical spending patterns for engineering services at the DOE?
The award date of December 15, 1999, places this contract in the late fiscal year 1999 or early fiscal year 2000, a period characterized by significant federal investment in technology and infrastructure. For the Department of Energy (DOE), this era likely involved ongoing management of legacy nuclear sites, investment in energy research, and potentially early initiatives related to grid modernization or renewable energy. A contract of this size and duration for engineering services suggests a consistent, long-term need for specialized technical support within the DOE's operational framework. It reflects a pattern of relying on external contractors for complex engineering tasks rather than solely internal capabilities, a trend common across many federal agencies during that period. Analyzing spending patterns around this time could reveal priorities in energy policy and infrastructure development.
Given the contract's duration (2844 days), what are the implications for contractor performance and accountability?
A contract duration of 2844 days (approximately 7.8 years) presents unique challenges and opportunities for contractor performance and accountability. On one hand, the extended period allows for deep integration and understanding of the client's needs, potentially leading to highly optimized solutions and strong working relationships. It also provides a stable revenue stream for the contractor. However, it also necessitates robust performance management systems from the government's side. Key implications include: 1) **Sustained Quality:** Ensuring consistent high-quality performance over nearly eight years requires ongoing monitoring and feedback. 2) **Adaptability:** The contractor must remain adaptable to evolving technological landscapes and project requirements. 3) **Accountability Mechanisms:** Performance metrics, regular reviews, and clear deliverables are crucial to hold the contractor accountable throughout the contract's lifecycle. 4) **Risk of Stagnation:** There's a potential risk that long-term contracts could lead to complacency or reduced innovation if not actively managed with performance incentives and competitive pressures where possible.
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
Contractor Details
Address: 605 PARFET STREET, SUITE 200, LAKEWOOD, CO, 07
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $12,862,523
Exercised Options: $12,862,523
Current Obligation: $10,064,523
Timeline
Start Date: 1999-12-15
Current End Date: 2007-09-28
Potential End Date: 2007-09-28 00:00:00
Last Modified: 2009-12-12
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