DOE awards $28.3M non-competitive contract for Romania engineering services to Northstar Federal Services
Contract Overview
Contract Amount: $28,281,770 ($28.3M)
Contractor: Northstar Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2007-11-21
End Date: 2017-04-30
Contract Duration: 3,448 days
Daily Burn Rate: $8.2K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN ROMANIA FOR NA-25
Plain-Language Summary
Department of Energy obligated $28.3 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN ROMANIA FOR NA-25 Key points: 1. Contract awarded non-competitively, raising questions about price discovery and value. 2. Long duration (10 years) and cost-plus-fixed-fee structure may incentivize cost overruns. 3. Services in Romania suggest potential geopolitical or operational complexities. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure and long duration make a direct pricing assessment difficult without detailed cost breakdowns. Benchmarking against similar international engineering contracts is challenging due to unique project scope and location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as a non-competitive delivery order, this method bypasses standard competitive bidding processes. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests taxpayers may not have received the best possible price for these extensive engineering services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract term could lock in potentially inefficient practices or costs. Limited transparency on how costs were evaluated and justified for this sole-source award. No clear benefit or set-aside for small businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost-plus-fixed-fee
- Long contract duration
- No small business participation
Positive Signals
- Services potentially critical for national interest in Romania
Sector Analysis
This contract falls under 'Other Heavy and Civil Engineering Construction' (NAICS 237990). Spending in this sector can vary widely based on infrastructure needs and geopolitical factors. The $28.3M award over 10 years represents a moderate annual spend for specialized international engineering services.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not sought or not feasible for this particular sole-source award.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure costs are reasonable and performance meets expectations. Transparency regarding the justification for the sole-source award and ongoing cost monitoring is crucial.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus-fixed-fee structure can incentivize higher spending.
- Long contract duration increases risk of cost escalation and performance issues.
- No small business participation limits economic opportunity.
- International location adds complexity and potential oversight challenges.
Tags
other-heavy-and-civil-engineering-constr, department-of-energy, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $28.3 million to NORTHSTAR FEDERAL SERVICES, INC.. DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN ROMANIA FOR NA-25
Who is the contractor on this award?
The obligated recipient is NORTHSTAR FEDERAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $28.3 million.
What is the period of performance?
Start: 2007-11-21. End: 2017-04-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without specific documentation, it's unclear why Northstar Federal Services was the only viable option. Exploring competitive alternatives, even for specialized services, is crucial to ensure taxpayer value and encourage market innovation.
How are costs being controlled and validated under the Cost Plus Fixed Fee (CPFF) structure for this long-term international contract?
CPFF contracts require robust government oversight to manage costs effectively. The Department of Energy must implement stringent monitoring of Northstar's expenditures, ensuring they are reasonable and allocable to the contract. Regular audits and performance reviews are essential to prevent cost overruns and ensure the fixed fee remains appropriate.
What is the specific nature of the 'DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES' in Romania, and how does it align with DOE's mission?
The broad description suggests a complex project potentially related to infrastructure, facilities, or communication networks supporting U.S. interests or operations in Romania. Clarification is needed on how these services directly support the Department of Energy's core mission, beyond general government contracting.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dynamic Management Solutions LLC (UEI: 079595753)
Address: 116 W BONNEVILLE ST, PASCO, WA, 99301
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,324,378
Exercised Options: $28,324,378
Current Obligation: $28,281,770
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM5208NA28443
IDV Type: IDC
Timeline
Start Date: 2007-11-21
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2021-02-17
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