DOE's $96M Portsmouht Plant Infrastructure Services Contract Awarded to TPMC Theta/Pro2serve Management Company LLC
Contract Overview
Contract Amount: $96,215,422 ($96.2M)
Contractor: Tpmc Theta/Pro2serve Management Company LLC
Awarding Agency: Department of Energy
Start Date: 2005-03-16
End Date: 2010-09-15
Contract Duration: 2,009 days
Daily Burn Rate: $47.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: INFRASTRUCTURE SERVICES FOR PORTSMOUHT GASEOUS DIFFUSION PLANT
Place of Performance
Location: PIKETON, PIKE County, OHIO, 45661
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $96.2 million to TPMC THETA/PRO2SERVE MANAGEMENT COMPANY LLC for work described as: INFRASTRUCTURE SERVICES FOR PORTSMOUHT GASEOUS DIFFUSION PLANT Key points: 1. Contract value of $96.2M over 5 years. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract type is Cost Plus Award Fee. 4. Facilities Support Services sector. 5. No small business participation noted.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can incentivize performance but may lead to higher costs if not managed tightly. Benchmarking against similar facilities support contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' suggests a limited competition pool, potentially impacting price discovery and overall cost-effectiveness.
Taxpayer Impact: The limited competition may result in higher costs for taxpayers compared to a truly open competition.
Public Impact
Essential infrastructure services for a critical government facility. Long-term contract duration (5 years) indicates ongoing need. Potential for cost overruns due to Cost Plus Award Fee structure. Lack of small business involvement limits economic opportunity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Award Fee structure
- No small business participation
Positive Signals
- Awarded to a single entity for comprehensive services
- Long-term contract provides stability for services
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, operations, and management of physical infrastructure. Spending in this sector can vary significantly based on facility size and complexity.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that the prime contractor is likely a large business, and subcontracting opportunities for small businesses were not specified or utilized.
Oversight & Accountability
Oversight is crucial for Cost Plus Award Fee contracts to ensure performance targets are met and costs are controlled. The Department of Energy's contracting office is responsible for monitoring this contract.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Award Fee structure carries inherent risk of overspending.
- Lack of small business participation.
- Contract duration extends over multiple fiscal years, requiring sustained budget allocation.
Tags
facilities-support-services, department-of-energy, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $96.2 million to TPMC THETA/PRO2SERVE MANAGEMENT COMPANY LLC. INFRASTRUCTURE SERVICES FOR PORTSMOUHT GASEOUS DIFFUSION PLANT
Who is the contractor on this award?
The obligated recipient is TPMC THETA/PRO2SERVE MANAGEMENT COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $96.2 million.
What is the period of performance?
Start: 2005-03-16. End: 2010-09-15.
What specific performance metrics are used to determine award fees, and how do they align with the overall value delivered to the government?
The effectiveness of the Cost Plus Award Fee structure hinges on clearly defined, measurable performance metrics. These metrics should directly correlate with the essential services provided, such as facility uptime, safety compliance, and operational efficiency. Robust oversight is required to ensure that award fees are earned based on genuine value and not simply on meeting minimum requirements, ultimately safeguarding taxpayer funds.
How did the exclusion of sources impact the competitive landscape and the final negotiated price for these infrastructure services?
Excluding sources inherently limits the competitive pool, potentially reducing downward pressure on pricing. While 'full and open' implies broad initial consideration, the exclusion suggests specific criteria or circumstances narrowed the field. A thorough review of the justification for exclusion and a comparison of the awarded price against market benchmarks are necessary to determine if the government received fair value.
What is the government's strategy for ensuring cost control and preventing potential overruns within this Cost Plus Award Fee contract?
Cost control in a Cost Plus Award Fee contract relies heavily on stringent oversight and well-defined award fee criteria. The Department of Energy must actively monitor incurred costs, compare them against projections, and ensure that award fees are tied to exceptional performance, not just baseline service delivery. Regular audits and performance reviews are essential to identify and mitigate any potential cost creep.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DERP2404OH20178
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 214 EAST NORTH STREET, WAVERLY, OH, 45690
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $96,377,244
Exercised Options: $96,377,244
Current Obligation: $96,215,422
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-03-16
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2017-07-06
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