DOE's $20.7M Safeguards and Security Systems contract awarded to PAI Corporation shows fair value with 14 bids
Contract Overview
Contract Amount: $20,743,319 ($20.7M)
Contractor: PAI Corporation
Awarding Agency: Department of Energy
Start Date: 2006-12-07
End Date: 2012-06-30
Contract Duration: 2,032 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SAFEGUARDS AND SECURITY SYSTEMS
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $20.7 million to PAI CORPORATION for work described as: SAFEGUARDS AND SECURITY SYSTEMS Key points: 1. The contract demonstrates a competitive bidding process, suggesting potential for good value. 2. While specific performance metrics are not detailed, the duration and cost indicate a significant, long-term service requirement. 3. The contract's value appears reasonable when benchmarked against similar facilities support services. 4. The use of a Cost Plus Fixed Fee (CPFF) structure warrants scrutiny for cost control. 5. The exclusion of sources after initial full and open competition requires further investigation. 6. The contract's focus on safeguards and security systems highlights critical infrastructure protection.
Value Assessment
Rating: good
The total award amount of $20.7 million over approximately six years suggests a moderate annual spend. Benchmarking against similar facilities support services contracts, particularly those involving security systems, indicates that the pricing is likely within a competitive range. The CPFF contract type, while allowing for flexibility, necessitates careful monitoring to ensure costs remain controlled and do not escalate beyond reasonable expectations. The number of bids received (14) further supports the assessment of fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was initially competed under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while there was an initial broad competition, subsequent phases or modifications may have involved a more limited pool of bidders. Receiving 14 bids in the initial phase suggests robust interest, which is generally positive for price discovery. However, the 'exclusion of sources' aspect requires deeper analysis to understand if it limited competition unfairly or was based on legitimate technical or security requirements.
Taxpayer Impact: The initial broad competition is beneficial for taxpayers, as it likely drove down prices. However, any subsequent exclusion of sources could potentially reduce competitive pressure and lead to higher costs if not adequately justified.
Public Impact
The primary beneficiaries are the Department of Energy and its facilities, which receive enhanced security and safeguard systems. The contract delivers essential services for maintaining the physical security and operational integrity of government installations. The geographic impact is concentrated at the Department of Energy's Nevada facilities. The contract supports a workforce involved in specialized security and facility management services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' after initial full and open competition raises concerns about potential limitations on future competition and cost efficiencies.
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously managed and monitored.
- Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
- The contract's long duration (over 5 years) increases the risk of cost escalation due to inflation or unforeseen changes in requirements.
Positive Signals
- The initial award attracted a significant number of bidders (14), indicating a healthy level of market interest and competition.
- The contract addresses critical safeguards and security systems, essential for national security and government operations.
- The award to PAI Corporation suggests a level of trust and capability recognized by the Department of Energy.
- The contract's total value of $20.7 million, spread over its term, appears reasonable for the scope of services.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government and commercial facilities. This specific contract focuses on the critical niche of safeguards and security systems, which are vital for protecting sensitive government installations. The market for such services is substantial, driven by ongoing needs for physical security, access control, and surveillance technologies. Comparable spending benchmarks in this sector often vary widely based on the scale and complexity of the facilities being supported.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, PAI Corporation, would determine any subcontracting opportunities based on its own business needs and strategy.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The contract's CPFF structure necessitates robust financial oversight to control costs. Transparency is facilitated through contract award databases, but detailed operational oversight information is typically internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facilities Management
- Government Security Services
- Infrastructure Protection Contracts
- Physical Security Systems Procurement
- Federal Support Services
Risk Flags
- Limited competition due to 'exclusion of sources'
- Potential for cost overruns with CPFF contract type
- Lack of publicly available performance metrics
- Long contract duration increases risk exposure
Tags
department-of-energy, safeguards-and-security-systems, facilities-support-services, pai-corporation, definitive-contract, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, nevada, critical-infrastructure, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.7 million to PAI CORPORATION. SAFEGUARDS AND SECURITY SYSTEMS
Who is the contractor on this award?
The obligated recipient is PAI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2006-12-07. End: 2012-06-30.
What is the track record of PAI Corporation in performing similar safeguards and security systems contracts for the federal government?
Assessing PAI Corporation's track record requires a review of its past performance on federal contracts, particularly those involving safeguards and security systems. Information on contract databases like FPDS or SAM.gov can reveal previous awards, contract values, and performance ratings. A history of successful, on-time, and within-budget completions on similar projects would indicate a lower performance risk. Conversely, a pattern of disputes, contract terminations, or poor performance reviews would raise concerns. Specific details on PAI Corporation's experience with the Department of Energy or other agencies managing sensitive facilities would be particularly relevant for this contract's context.
How does the awarded amount compare to the estimated value or initial solicitation for this requirement?
To compare the awarded amount ($20.7 million) to the estimated value, one would need access to the original solicitation documents or pre-solicitation notices. These documents often contain an independent government cost estimate (IGCE) or a range for the expected contract value. If the awarded amount is significantly higher than the IGCE, it could suggest potential overpricing or a less competitive outcome. Conversely, if it's within or below the estimated range, it might indicate successful price negotiation and competitive bidding. Without the solicitation details, a definitive comparison is challenging, but the fact that 14 bids were received suggests the award was likely competitive.
What are the specific risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this particular service?
The CPFF contract type carries inherent risks for cost control. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. For safeguards and security systems, where unforeseen technical challenges or material costs can arise, the risk of cost escalation is present. Effective risk mitigation requires stringent government oversight, detailed cost accounting, and clear definitions of allowable costs to prevent contractor inefficiencies from driving up the final price.
What does the 'after exclusion of sources' clause imply for the competition and potential future procurements?
The 'after exclusion of sources' clause indicates that while the procurement began as full and open, certain potential bidders were subsequently excluded. This exclusion could be based on various factors, such as failure to meet specific technical qualifications, security clearances, or other mandatory requirements outlined in the solicitation. While this can streamline the process by focusing on qualified vendors, it inherently limits the competitive pool. For taxpayers, this means potentially fewer bids than in a truly open competition, which could impact price discovery. Future procurements might face similar limitations if the exclusion criteria remain relevant, potentially reducing overall competition over time unless actively managed.
How has the Department of Energy's spending on safeguards and security systems evolved over the past five years?
Analyzing the Department of Energy's spending on safeguards and security systems over the past five years would involve aggregating data from similar contract awards. This would reveal trends in overall investment, identify key contractors, and highlight any shifts in technology or service requirements. For instance, an increasing trend might indicate growing security concerns or expansion of facilities, while a decrease could suggest budget constraints or consolidation of services. Comparing this specific $20.7 million contract to the historical spending average would provide context on its relative significance within the DOE's overall security budget.
Are there any performance metrics or Key Performance Indicators (KPIs) associated with this contract that can be publicly assessed?
Publicly available contract data often does not include detailed performance metrics or Key Performance Indicators (KPIs) for specific contracts. These are typically defined in the contract's Statement of Work (SOW) and monitored internally by the contracting agency. For a contract focused on safeguards and security systems, KPIs might relate to system uptime, response times to security incidents, successful security audits, or adherence to safety protocols. Without access to the SOW or performance reports, assessing the effectiveness and efficiency of the services delivered by PAI Corporation is not possible based solely on the award data.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 14
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4471 DEAN MARTIN DR UNIT 1010, LAS VEGAS, NV, 89103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $23,083,340
Exercised Options: $23,083,339
Current Obligation: $20,743,319
Actual Outlays: $41,197
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2006-12-07
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2022-08-24
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