DOE's $17M contract for Estonian core services awarded to Northstar Federal Services, Inc

Contract Overview

Contract Amount: $17,086,974 ($17.1M)

Contractor: Northstar Federal Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2008-04-16

End Date: 2015-12-31

Contract Duration: 2,815 days

Daily Burn Rate: $6.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

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

Sector: Construction

Official Description: CORE SERVICES IN ESTONIA FOR NA-25

Plain-Language Summary

Department of Energy obligated $17.1 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: CORE SERVICES IN ESTONIA FOR NA-25 Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition dynamics for this delivery order need further examination to assess price discovery. 3. Risk indicators are moderate, with performance context suggesting a need for close monitoring. 4. Sector positioning places this within heavy and civil engineering construction, supporting national interests. 5. Performance context indicates a long-term engagement for essential services.

Value Assessment

Rating: good

The contract value of approximately $17 million over a period of roughly 7 years (2815 days) suggests a moderate annual spend. Benchmarking against similar international service contracts would be necessary for a precise value-for-money assessment. However, the duration implies a stable, ongoing need for these services, which can sometimes lead to more favorable pricing through long-term commitments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMPETITIVE DELIVERY ORDER', which implies that the initial award was competed. However, the specific details of the competition, such as the number of bids received for this particular delivery order, are not provided. A competitive delivery order suggests that multiple vendors were considered, potentially leading to better pricing and service options compared to a sole-source award.

Taxpayer Impact: The competitive nature of the award, even if details are limited, suggests that taxpayer dollars were likely used more efficiently by leveraging market forces to secure the best possible terms.

Public Impact

The Department of Energy benefits from the provision of essential core services in Estonia. These services likely support U.S. national security interests and diplomatic operations abroad. The geographic impact is concentrated in Estonia, facilitating U.S. government functions in the region. Workforce implications are not explicitly detailed but would involve personnel to deliver the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Other Heavy and Civil Engineering Construction (NAICS 237990) sector. This sector encompasses a wide range of construction activities, including the building of infrastructure projects. The market for such services internationally can be competitive, with various firms capable of undertaking complex projects. The spending benchmark for similar international support contracts varies significantly based on location, scope, and duration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this award. As the contract was awarded to Northstar Federal Services, Inc., further investigation would be needed to determine if they have a subcontracting plan that includes small businesses. Without this data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures would be tied to the performance work statement and delivery schedules. Transparency is facilitated through contract databases, though detailed performance reports are often internal.

Related Government Programs

Risk Flags

Tags

construction, department-of-energy, estonia, competitive-delivery-order, large-contract, international-services, heavy-and-civil-engineering, northstar-federal-services-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $17.1 million to NORTHSTAR FEDERAL SERVICES, INC.. CORE SERVICES IN ESTONIA 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 $17.1 million.

What is the period of performance?

Start: 2008-04-16. End: 2015-12-31.

What is the specific nature of the 'CORE SERVICES IN ESTONIA' provided under this contract?

The provided data indicates the contract is for 'CORE SERVICES IN ESTONIA' and falls under NAICS code 237990 (Other Heavy and Civil Engineering Construction). While the exact services are not detailed, this classification suggests the contract likely involves construction, maintenance, repair, or related support activities for facilities or infrastructure essential to U.S. government operations in Estonia. This could encompass a range of activities from base operations support to specialized engineering and construction projects critical for national interests or diplomatic missions abroad. Further details would be required from the contract's statement of work to fully understand the scope.

How does the $17 million contract value compare to similar international service contracts awarded by the Department of Energy?

Benchmarking the $17 million contract value requires comparing it to similar international service contracts, particularly those managed by the Department of Energy or other agencies with overseas operations. The contract duration of approximately 7 years (2815 days) translates to an average annual spend of roughly $2.4 million. This figure needs to be assessed against the complexity and criticality of the services provided. Without specific data on comparable contracts for similar services in comparable geographic locations, it's challenging to definitively state whether this represents excellent, fair, or questionable value. However, for long-term, essential support services in a foreign country, this annual spend is within a plausible range.

What are the primary risks associated with a long-term contract for services in a foreign country like Estonia?

Long-term contracts for services in foreign countries present several inherent risks. Geopolitical instability or changes in international relations can impact operational feasibility and security. Currency fluctuations can affect the actual cost in U.S. dollars. Local regulatory changes, labor laws, and availability of skilled local workforce can pose challenges. Furthermore, logistical complexities in managing resources and personnel across borders, along with potential cultural and language barriers, add layers of risk. For this specific contract, ensuring consistent service delivery and maintaining compliance with both U.S. federal regulations and Estonian laws would be critical risk mitigation areas.

What does the contract type 'COMPETITIVE DELIVERY ORDER' imply about the procurement process and potential value for taxpayers?

A 'COMPETITIVE DELIVERY ORDER' signifies that this specific order was placed under a pre-existing contract that was itself awarded through a competitive process. This implies that multiple vendors likely competed for the original contract, and for this particular delivery order, Northstar Federal Services, Inc. was selected based on competitive factors. While the exact number of bidders for this specific order isn't detailed, the competitive nature generally suggests that the government sought to obtain the best value, price, and performance. This process is designed to foster price discovery and ensure that taxpayer funds are used efficiently by leveraging market competition.

What is Northstar Federal Services, Inc.'s track record with federal contracts, particularly those involving international operations?

Northstar Federal Services, Inc. has a history of receiving federal contracts. While the provided data focuses on this specific $17 million award for core services in Estonia, a comprehensive assessment of their track record would involve reviewing their entire contract portfolio. This includes examining past performance on similar international contracts, their history of on-time delivery, quality of service, and any past performance issues or disputes. Understanding their experience with complex overseas operations, security protocols, and navigating foreign legal and logistical environments is crucial for evaluating their capability to successfully execute this contract.

How does this contract fit within the Department of Energy's broader mission and spending in international affairs?

This contract likely supports the Department of Energy's (DOE) mission related to international cooperation, energy security, non-proliferation, or environmental initiatives that require a U.S. presence and operational support in Estonia. DOE's international engagement often involves technical assistance, research collaborations, and maintaining facilities or programs abroad. Contracts for 'core services' in foreign locations are essential for enabling these broader programmatic objectives by providing the necessary infrastructure and operational backbone. The $17 million expenditure represents a component of DOE's overall budget allocated to supporting its global mission and diplomatic objectives.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

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: $17,086,974

Exercised Options: $17,086,974

Current Obligation: $17,086,974

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM5208NA28443

IDV Type: IDC

Timeline

Start Date: 2008-04-16

Current End Date: 2015-12-31

Potential End Date: 2015-12-31 00:00:00

Last Modified: 2021-02-17

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