DOE's $41.3M Personnel Security Contract Awarded to Synergy Solutions Faces Scrutiny
Contract Overview
Contract Amount: $41,272,161 ($41.3M)
Contractor: Synergy Solutions, Incorporated
Awarding Agency: Department of Energy
Start Date: 2010-01-01
End Date: 2017-10-31
Contract Duration: 2,860 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PERSONNEL SECURITY AND FACILITY CLEARANCE PROGRAMS SUPPORT SERVICES FOR PERSONNEL SECURITY DEPARTMENT - SC-PSD
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $41.3 million to SYNERGY SOLUTIONS, INCORPORATED for work described as: PERSONNEL SECURITY AND FACILITY CLEARANCE PROGRAMS SUPPORT SERVICES FOR PERSONNEL SECURITY DEPARTMENT - SC-PSD Key points: 1. The contract awarded to Synergy Solutions, Inc. for personnel security and facility clearance support totaled $41.3 million. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract type, Cost Plus Fixed Fee, can incentivize cost overruns. 4. The 'Other Scientific and Technical Consulting Services' NAICS code indicates a broad range of potential services. 5. The contract duration was substantial, spanning from 2010 to 2017.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts. Without detailed cost breakdowns and performance metrics, it's difficult to definitively assess value for money against similar consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process but with specific criteria that may have limited the pool of bidders. This method aims for competition while ensuring specialized capabilities are met, but the price discovery might be influenced by the pre-selected pool.
Taxpayer Impact: The total award of $41.3 million represents a significant taxpayer investment. The CPFF structure warrants close monitoring to ensure costs remain reasonable and aligned with the services provided.
Public Impact
Taxpayers funded a significant contract for essential security services. The duration of the contract suggests a long-term need for these specialized consulting services. The specific nature of personnel security and facility clearances impacts national security operations. The choice of contract type may influence overall program costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (2010-2017)
- Exclusion of sources in competition
Positive Signals
- Full and open competition utilized
- Services are critical for national security
Sector Analysis
The 'Other Scientific and Technical Consulting Services' sector is broad, encompassing specialized expertise. Benchmarking this contract's value is challenging without more specific service details, but $41.3 million over nearly 8 years for security consulting is substantial.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the services required were likely beyond the scope or capacity of typical small business providers in this specialized consulting area.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight to ensure performance, cost control, and adherence to security protocols. Without specific oversight reports, the effectiveness of accountability mechanisms remains unclear.
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 CPFF structure.
- Limited competition due to 'exclusion of sources'.
- Lack of specific performance metrics in provided data.
- Long contract duration may indicate potential for complacency or evolving needs not fully captured.
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 $41.3 million to SYNERGY SOLUTIONS, INCORPORATED. PERSONNEL SECURITY AND FACILITY CLEARANCE PROGRAMS SUPPORT SERVICES FOR PERSONNEL SECURITY DEPARTMENT - SC-PSD
Who is the contractor on this award?
The obligated recipient is SYNERGY SOLUTIONS, INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $41.3 million.
What is the period of performance?
Start: 2010-01-01. End: 2017-10-31.
What specific performance metrics were used to evaluate Synergy Solutions' effectiveness under this Cost Plus Fixed Fee contract?
The provided data does not detail specific performance metrics. For a CPFF contract, key metrics would typically include adherence to security clearance timelines, accuracy of background checks, effectiveness of facility access controls, and compliance with all relevant federal regulations. Robust oversight would involve regular reviews of these metrics to ensure value for money and mission accomplishment.
How did the 'exclusion of sources' in the competition impact the final contract price and service quality?
Excluding sources can limit the competitive landscape, potentially leading to higher prices than a truly open competition might yield. However, it can also ensure that bidders possess highly specialized skills necessary for complex tasks like personnel security. The impact on price and quality depends on the justification for exclusion and the rigor of the remaining competition.
What was the rationale for awarding a Cost Plus Fixed Fee contract for these services, and what were the potential risks associated with it?
CPFF contracts are often used when the scope of work is not precisely defined or when there's uncertainty in the cost of performance. The primary risk is that the contractor may have less incentive to control costs, potentially leading to expenditures exceeding initial estimates. This necessitates strong government oversight to manage costs effectively.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 101 DONNER DR, OAK RIDGE, TN, 37830
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $41,272,161
Exercised Options: $41,272,161
Current Obligation: $41,272,161
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2010-01-01
Current End Date: 2017-10-31
Potential End Date: 2026-02-19 00:00:00
Last Modified: 2026-03-03
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)