DOE Awards Northstar Federal Services $13.5M for Engineering Services in Mongolia

Contract Overview

Contract Amount: $13,482,751 ($13.5M)

Contractor: Northstar Federal Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2007-12-20

End Date: 2009-12-31

Contract Duration: 742 days

Daily Burn Rate: $18.2K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Construction

Official Description: DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN MONGOLIA FOR NA-25

Plain-Language Summary

Department of Energy obligated $13.5 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN MONGOLIA FOR NA-25 Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award raises questions about competition and price discovery. 3. Potential risks associated with international project execution and oversight. 4. Construction and engineering sector, with a focus on heavy civil projects.

Value Assessment

Rating: questionable

The award value of $13.5 million for a 2-year period is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar international engineering contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source delivery order, meaning competition was not sought. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for this significant contract value could lead to suboptimal pricing, impacting taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The effectiveness of services provided in a foreign country requires close monitoring. Potential for cost overruns or delays in international projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under heavy and civil engineering construction, a sector that often involves large-scale infrastructure projects. Benchmarks for similar international projects are difficult to ascertain without competitive data.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are involved. Further analysis would be needed to determine small business subcontracting opportunities.

Oversight & Accountability

Oversight of a sole-source contract, especially one executed internationally, is critical. The Department of Energy must ensure robust monitoring of performance, costs, and adherence to contract terms to protect taxpayer interests.

Related Government Programs

Risk Flags

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 $13.5 million to NORTHSTAR FEDERAL SERVICES, INC.. DESIGN, INTEGRATION, COMMUNICATIONS, CONSTRUCTION AND ENGINEERING SERVICES IN MONGOLIA 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 $13.5 million.

What is the period of performance?

Start: 2007-12-20. End: 2009-12-31.

What specific justifications were provided for the sole-source award, and were alternatives thoroughly explored?

Sole-source awards typically require extensive justification, citing unique capabilities or urgent needs. The Department of Energy would need to document why Northstar Federal Services was the only viable option and demonstrate that market research was conducted to confirm this exclusivity. Without this documentation, the rationale for bypassing competition remains unclear and raises concerns about potential missed savings.

How will the Department of Energy ensure cost control and quality assurance for services performed in Mongolia?

Executing projects internationally presents unique challenges for cost control and quality assurance. The Department of Energy should implement rigorous oversight mechanisms, including regular site visits, performance metrics tracking, and independent quality reviews. Establishing clear communication channels and understanding local regulations are also crucial to mitigate risks and ensure the project's success within budget.

What is the potential impact of geopolitical factors or local conditions in Mongolia on project delivery and cost?

Geopolitical stability, local labor availability, regulatory changes, and logistical challenges in Mongolia could significantly impact project timelines and costs. The Department of Energy and Northstar Federal Services must proactively identify and mitigate these risks through comprehensive planning, contingency measures, and strong relationships with local stakeholders. Failure to address these factors could lead to delays and budget overruns.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

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: $13,482,751

Exercised Options: $13,482,751

Current Obligation: $13,482,751

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM5208NA28443

IDV Type: IDC

Timeline

Start Date: 2007-12-20

Current End Date: 2009-12-31

Potential End Date: 2009-12-31 00:00:00

Last Modified: 2021-03-09

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