DOE Awards $22.5M for Kyrgyz Republic Defense Sites, Primarily Construction
Contract Overview
Contract Amount: $22,550,048 ($22.6M)
Contractor: Northstar Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-03-01
End Date: 2015-12-24
Contract Duration: 2,489 days
Daily Burn Rate: $9.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: DICCE-SECOND LINE OF DEFENSE - KYRGYZSTAN SITES FOR NA-25
Plain-Language Summary
Department of Energy obligated $22.6 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: DICCE-SECOND LINE OF DEFENSE - KYRGYZSTAN SITES FOR NA-25 Key points: 1. Contract awarded to Northstar Federal Services, Inc. for critical defense infrastructure. 2. Significant duration of nearly 7 years suggests complex, long-term project needs. 3. The 'Other Heavy and Civil Engineering Construction' NAICS code indicates a focus on physical infrastructure. 4. While competitive, the specific delivery order nature warrants scrutiny of price discovery.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Benchmarking against similar construction projects for international defense infrastructure is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting multiple bids were considered. However, the fixed fee structure within a cost-plus model requires careful oversight to ensure competitive pricing and prevent contractor inefficiencies.
Taxpayer Impact: Taxpayer funds are allocated for international defense support, with the primary impact being the cost of construction and associated services.
Public Impact
Supports U.S. national security interests by establishing defense capabilities in a strategic location. Involves significant construction and engineering work, potentially impacting local economies in Kyrgyzstan. Requires careful management of funds to ensure project completion within budget and scope.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Long contract duration increases risk of scope creep and cost escalation.
- International project location may present logistical and geopolitical risks.
Positive Signals
- Competitive award process indicates potential for cost savings.
- Clear objective of supporting national defense.
Sector Analysis
This contract falls under the 'Other Heavy and Civil Engineering Construction' sector. Spending in this area is often project-specific and influenced by geopolitical needs and infrastructure development priorities.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Energy is the contracting agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure, monitor project progress, and ensure adherence to the fixed fee agreement.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- International project location
- Potential for cost escalation
- Limited visibility into specific services
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 $22.6 million to NORTHSTAR FEDERAL SERVICES, INC.. DICCE-SECOND LINE OF DEFENSE - KYRGYZSTAN SITES 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 $22.6 million.
What is the period of performance?
Start: 2009-03-01. End: 2015-12-24.
What specific construction and engineering services are included in this contract, and how do they align with the stated defense objectives?
The contract falls under NAICS code 237990 (Other Heavy and Civil Engineering Construction). While the specific services aren't detailed, this typically includes building infrastructure like facilities, roads, and utilities necessary for defense operations. The alignment with defense objectives would depend on the precise nature of the 'DICCE-SECOND LINE OF DEFENSE' initiative in Kyrgyzstan.
What are the primary risks associated with a Cost Plus Fixed Fee contract for international construction projects of this magnitude?
Key risks include potential cost overruns if the 'cost' component is not tightly controlled, contractor inefficiency incentivized by the fee structure, and challenges in managing international logistics, labor, and regulatory environments. The fixed fee itself could be disproportionate to the actual effort if not carefully negotiated.
How effectively does the competitive delivery order process ensure value for money in this specific context?
A competitive delivery order suggests that multiple vendors vied for this specific task order, which generally promotes better pricing. However, the underlying contract type (Cost Plus Fixed Fee) requires robust oversight to ensure the 'cost' element doesn't inflate excessively, thereby diminishing the value achieved through competition.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 3
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: $22,550,048
Exercised Options: $22,550,048
Current Obligation: $22,550,048
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM5208NA28443
IDV Type: IDC
Timeline
Start Date: 2009-03-01
Current End Date: 2015-12-24
Potential End Date: 2015-12-24 00:00:00
Last Modified: 2021-02-11
More Contracts from Northstar Federal Services, Inc.
- TAS::89 0309::TAS Ukraine Work - NEW Delivery Order Under Master Contract Na28443-Rcs-Group 8& 9, Phase I Labor & Travel for Site Survey of Construction and Integration of Rpms for Office of Business Services - Sc-Obs — $81.7M (Department of Energy)
- Design, Integration, Communications, Construction and Engineering Services in Romania for NA-25 — $28.3M (Department of Energy)
- TAS::89 0309::TAS Design, Construct, and Integrate Fully Functional Radiation Portal Monitor and Communications Systems AT Designated Sites in Poland. in Support of Second Line of Defense (SLD) Program for Office of International Material Protection & Coop - NA-25 — $19.7M (Department of Energy)
- Competitive - Moldova - Group 1 - 2 Sites Giurgiulesti VC, Leuseni VC - Installation Dicce Construction for International Material Protection&cooperation - NA-25 — $18.8M (Department of Energy)
- Ukraine Intergration (competition Under Dicee for NA-25 — $17.8M (Department of Energy)
View all Northstar Federal Services, Inc. federal contracts →
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)