DOE awards $122.5M for Pipeline Construction Management to ASRC Federal
Contract Overview
Contract Amount: $122,551,437 ($122.6M)
Contractor: Asrc Federal Information Management, LLC
Awarding Agency: Department of Energy
Start Date: 2003-12-01
End Date: 2008-11-30
Contract Duration: 1,826 days
Daily Burn Rate: $67.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: CONSTRUCTION MANAGEMENT SERVICES
Place of Performance
Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123
Plain-Language Summary
Department of Energy obligated $122.6 million to ASRC FEDERAL INFORMATION MANAGEMENT, LLC for work described as: CONSTRUCTION MANAGEMENT SERVICES Key points: 1. Significant contract value of $122.5 million over 5 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract type (Cost Plus Award Fee) can incentivize performance but requires robust oversight. 4. Focus on oil and gas pipeline construction indicates a specialized sector.
Value Assessment
Rating: fair
The contract value of $122.5 million over five years averages $24.5 million annually. Without comparable contracts or detailed cost breakdowns, assessing value is difficult. The Cost Plus Award Fee structure suggests potential for cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to discover the lowest possible price through market forces and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long duration of the contract (5 years) means potential overpayment could be substantial. The specialized nature of oil and gas pipeline construction means fewer companies may be qualified, potentially justifying sole-source in some cases, but still warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Award Fee contract type requires strong oversight.
- Long contract duration.
Positive Signals
- ASRC Federal is a known entity in government contracting.
- Contract is for a specific, potentially specialized, construction need.
Sector Analysis
This contract falls within the construction sector, specifically focusing on oil and gas pipeline construction management. Annual spending in this area can fluctuate based on energy infrastructure needs and regulatory environments. Benchmarking is difficult without more specific project details.
Small Business Impact
The data indicates this contract was not awarded to small businesses, either as prime or sub-contractor. Further analysis would be needed to determine if small business participation was sought or required.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates diligent oversight from the Department of Energy to ensure performance targets are met and costs are controlled. Without detailed reporting, it's difficult to assess the effectiveness of this oversight.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source procurement.
- Cost Plus Award Fee contract type.
- Lack of transparency on performance metrics and award fee determination.
- Long contract duration without clear justification for sole-source.
Tags
oil-and-gas-pipeline-and-related-structu, department-of-energy, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $122.6 million to ASRC FEDERAL INFORMATION MANAGEMENT, LLC. CONSTRUCTION MANAGEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is ASRC FEDERAL INFORMATION MANAGEMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $122.6 million.
What is the period of performance?
Start: 2003-12-01. End: 2008-11-30.
What specific factors justified the sole-source award, and were alternatives explored?
Sole-source awards are typically justified when only one responsible source is available or when a compelling urgency exists. For this contract, the Department of Energy would need to document why ASRC Federal was the only viable option and if any market research was conducted to identify potential competitors. The absence of this information raises concerns about the procurement process and potential missed opportunities for cost savings.
How effectively has the Cost Plus Award Fee structure been managed to control costs and incentivize performance?
The Cost Plus Award Fee (CPAF) contract type allows for reimbursement of costs plus an award fee based on performance. Effective management requires clear performance metrics, rigorous monitoring, and fair evaluation of the contractor's achievements. Without access to award fee determinations and cost performance reports, it's challenging to assess if the government received optimal value and if the fee structure successfully drove desired outcomes or simply increased the overall contract cost.
What is the long-term strategic value of this sole-source pipeline construction management contract for the Department of Energy?
The long-term value hinges on the criticality of the oil and gas infrastructure managed under this contract and ASRC Federal's unique capabilities. If these pipelines are vital to national energy security or if ASRC Federal possesses highly specialized, irreplaceable expertise, the sole-source nature might be strategically justified. However, continuous evaluation is needed to ensure ongoing necessity and explore future competitive opportunities as circumstances evolve.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)
Address: 7000 MUIRKIRK MEADOW DR, BELTSVILLE, MD, 20705
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $122,551,437
Exercised Options: $122,551,437
Current Obligation: $122,551,437
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-12-01
Current End Date: 2008-11-30
Potential End Date: 2008-11-30 00:00:00
Last Modified: 2016-03-01
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