DOE's $47.4M Safeguards & Security Support Contract Awarded to NetGain Corporation
Contract Overview
Contract Amount: $47,432,831 ($47.4M)
Contractor: Netgain Corporation
Awarding Agency: Department of Energy
Start Date: 2004-11-18
End Date: 2010-01-15
Contract Duration: 1,884 days
Daily Burn Rate: $25.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SAFEGUARDS & SECURITY PROGRAMS SUPPORT SERVICES
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $47.4 million to NETGAIN CORPORATION for work described as: SAFEGUARDS & SECURITY PROGRAMS SUPPORT SERVICES Key points: 1. Contract value of $47.4M over its lifetime. 2. Awarded under full and open competition. 3. Potential risk associated with cost-plus award fee structure. 4. Services fall under 'Other Scientific and Technical Consulting Services' (NAICS 541690).
Value Assessment
Rating: fair
The contract's cost-plus award fee structure can incentivize performance but may also lead to higher costs if not managed carefully. Benchmarking against similar consulting services contracts is needed for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. However, the cost-plus award fee type requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are utilized for essential safeguards and security program support. The competitive award process aims to ensure value, but oversight is crucial to manage costs effectively.
Public Impact
Ensures critical safeguards and security programs within the Department of Energy are adequately supported. Supports national security objectives by maintaining robust security protocols. The contract's duration and value indicate a significant investment in specialized consulting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure can lead to cost overruns.
- Long contract duration (1884 days) increases risk of scope creep or changing requirements.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Contract supports vital national security functions.
- Experienced contractor (NetGain Corporation) likely brings specialized expertise.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically consulting. Spending in this sector is often driven by specialized expertise needs, and benchmarks vary widely based on the specific services provided.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. The contract was awarded under full and open competition, suggesting large businesses may have been the primary bidders.
Oversight & Accountability
The Department of Energy is responsible for oversight. The cost-plus award fee structure necessitates robust monitoring of contractor performance and costs to ensure accountability and value for taxpayer money.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Contract duration of over 5 years may not align with evolving security needs.
- Lack of transparency on specific deliverables and performance metrics.
- Limited insight into the competitive landscape beyond the initial award.
Tags
other-scientific-and-technical-consultin, department-of-energy, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $47.4 million to NETGAIN CORPORATION. SAFEGUARDS & SECURITY PROGRAMS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is NETGAIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $47.4 million.
What is the period of performance?
Start: 2004-11-18. End: 2010-01-15.
What specific safeguards and security functions does NetGain Corporation provide under this contract?
The provided data does not detail the specific functions. However, given the contract title 'SAFEGUARDS & SECURITY PROGRAMS SUPPORT SERVICES' and the NAICS code 'Other Scientific and Technical Consulting Services,' it likely involves expert advice, analysis, planning, and potentially implementation support related to physical security, personnel security, information security, and emergency preparedness within the Department of Energy's facilities and operations.
How effectively has the cost-plus award fee structure managed costs and incentivized performance for this contract?
Without access to detailed performance reports and final award fee determinations, it's difficult to definitively assess effectiveness. Cost-plus award fee contracts can be effective when performance metrics are clear and achievable, and oversight is rigorous. However, they carry inherent risks of cost escalation if not managed diligently by the contracting agency.
What is the long-term impact of this contract on the Department of Energy's internal capabilities in safeguards and security?
This contract likely supplements internal capabilities by providing specialized expertise that may not be readily available in-house or is needed for specific projects. The long-term impact depends on knowledge transfer and whether the contract fosters sustainable improvements or creates ongoing reliance on external support for core functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2095 LAKESIDE CENTRE WAY STE 115, KNOXVILLE, TN, 37922
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $47,432,831
Exercised Options: $47,432,831
Current Obligation: $47,432,831
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-11-18
Current End Date: 2010-01-15
Potential End Date: 2010-01-15 00:00:00
Last Modified: 2018-02-22
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