Department of Energy awards $13.3M contract for administrative support services to Project Enhancement Corporation
Contract Overview
Contract Amount: $13,263,595 ($13.3M)
Contractor: Project Enhancement Corporation
Awarding Agency: Department of Energy
Start Date: 2004-07-01
End Date: 2008-09-30
Contract Duration: 1,552 days
Daily Burn Rate: $8.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TECHNICAL, ANALYTICAL, ENGINEERING, AND ADMINISTRATIVE SUPPORT SERVICES TO OFFICE OF CORPORATE PERFORMANCE ASSESSMENT
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $13.3 million to PROJECT ENHANCEMENT CORPORATION for work described as: TECHNICAL, ANALYTICAL, ENGINEERING, AND ADMINISTRATIVE SUPPORT SERVICES TO OFFICE OF CORPORATE PERFORMANCE ASSESSMENT Key points: 1. Contract provides essential administrative and management consulting services to the Office of Corporate Performance Assessment. 2. The contract was awarded on a competitive basis, suggesting potential for good value. 3. The duration of the contract (over 4 years) indicates a need for sustained support. 4. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 5. The small business set-aside status is false, meaning large businesses were eligible. 6. The contract was awarded by the Department of Energy, indicating a focus on energy sector management.
Value Assessment
Rating: fair
The contract value of $13.3 million over approximately 4 years suggests an average annual spend of around $3.3 million. Without specific benchmarks for similar administrative support contracts within the Department of Energy or comparable agencies, it is difficult to definitively assess value for money. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not closely monitored for efficiency and necessity of hours billed. Further analysis would require comparison with industry standards for management consulting services and the specific deliverables expected.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating it was competed under a broader contract vehicle. The data specifies 'no' bidders, which is unusual for a competitive award and might indicate an error in the data or a very specific scenario where only one bid was technically responsive or submitted. Typically, competitive awards involve multiple bidders, fostering price discovery and potentially leading to better pricing for the government. The lack of detailed competition information here makes a definitive assessment challenging.
Taxpayer Impact: A competitive award process, even with limited visible bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions. However, if the 'no' bidders figure is accurate, it raises questions about the effectiveness of the competition strategy and could imply a missed opportunity for broader price discovery.
Public Impact
The Office of Corporate Performance Assessment within the Department of Energy benefits from enhanced analytical and administrative capabilities. Services delivered include technical, analytical, engineering, and administrative support, crucial for evaluating corporate performance. The geographic impact is primarily within the Department of Energy's operational areas, likely concentrated in Maryland where the contract was awarded. Workforce implications include the potential for employment of consultants and administrative staff by Project Enhancement Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it reimburses actual labor hours and costs.
- The reported 'no' bidders for a competitive delivery order is a significant anomaly that warrants further investigation into the procurement process.
- Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the true effectiveness and value of the services.
Positive Signals
- The contract was awarded competitively, suggesting that multiple vendors had the opportunity to bid, potentially leading to a more favorable outcome.
- The contract duration of over 4 years indicates a stable and ongoing need for these services, suggesting a recognized value by the agency.
- The contractor, Project Enhancement Corporation, has secured a significant award, indicating a level of trust and capability recognized by the Department of Energy.
Sector Analysis
This contract falls within the Management and General Management Consulting Services sector (NAICS code 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational improvements. The Department of Energy, like many large federal agencies, relies on such services to manage complex operations, assess performance, and ensure accountability. The market for these services is competitive, with numerous large and small businesses offering specialized consulting capabilities. The value of this contract is moderate within the broader context of federal IT and professional services spending.
Small Business Impact
The contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award. While this contract does not directly involve small business subcontracting opportunities based on the provided data, the absence of a small business set-aside indicates that the primary awardee is likely a larger entity. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, but it highlights the competitive landscape for professional services where large firms often dominate.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Energy responsible for corporate performance assessment. The Time and Materials (T&M) nature of the contract necessitates close monitoring of labor hours, rates, and the necessity of the work performed to ensure cost control and prevent overruns. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Management Consulting Services
- Federal Administrative Support Contracts
- Office of Corporate Performance Assessment Support
- Time and Materials Contract Management
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Lack of clarity on the 'no' bidders for a competitive delivery order.
- Need for robust oversight to ensure efficient use of taxpayer funds.
Tags
department-of-energy, administrative-support, management-consulting, project-enhancement-corporation, competitive-delivery-order, time-and-materials, office-of-corporate-performance-assessment, maryland, professional-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.3 million to PROJECT ENHANCEMENT CORPORATION. TECHNICAL, ANALYTICAL, ENGINEERING, AND ADMINISTRATIVE SUPPORT SERVICES TO OFFICE OF CORPORATE PERFORMANCE ASSESSMENT
Who is the contractor on this award?
The obligated recipient is PROJECT ENHANCEMENT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2004-07-01. End: 2008-09-30.
What is the track record of Project Enhancement Corporation with the Department of Energy and other federal agencies?
Project Enhancement Corporation (PEC) has a history of securing contracts with various federal agencies, including the Department of Energy. Analyzing PEC's past performance requires delving into contract databases to identify previous awards, their values, durations, and any performance reviews or past performance information. For this specific Department of Energy contract, PEC was awarded a significant sum over a multi-year period, suggesting a positive working relationship or a competitive bid that met agency needs. Further investigation into PEC's broader federal contracting portfolio would reveal their experience across different agencies and service types, providing a more comprehensive understanding of their capabilities and reliability as a government contractor.
How does the $13.3 million contract value compare to similar administrative support contracts awarded by the Department of Energy?
The $13.3 million contract value for administrative, analytical, and engineering support services over approximately four years represents a moderate annual spend of around $3.3 million. To benchmark this effectively, one would need to compare it against other contracts for similar services awarded by the Department of Energy or other agencies with comparable operational complexities. Factors such as the specific scope of work, the level of expertise required (e.g., engineering vs. basic administrative support), and the duration of the contract are crucial for a fair comparison. Without access to a detailed database of comparable contracts, it's challenging to definitively state whether this represents excellent, fair, or concerning value. However, the competitive nature of the award suggests an attempt to achieve market-based pricing.
What are the primary risks associated with a Time and Materials (T&M) contract of this nature and value?
The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor hours and materials used, plus a fixed fee or profit margin. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the Department of Energy, risks include paying for unnecessary hours, inflated labor rates, or excessive material costs. Effective oversight, including detailed review of timesheets, validation of labor categories and rates, and clear definition of 'level of effort' or 'not-to-exceed' clauses, is crucial to mitigate these risks and ensure the government receives good value for its investment.
How effective is the Department of Energy's oversight for administrative support contracts, particularly those using T&M pricing?
The effectiveness of the Department of Energy's oversight for administrative support contracts, especially T&M agreements, can vary. Federal agencies are mandated to implement robust oversight mechanisms, including contract surveillance, performance monitoring, and financial reviews. For T&M contracts, this typically involves the Contracting Officer's Representative (COR) diligently tracking contractor performance, verifying invoices, and ensuring that the work performed aligns with the contract's objectives and the estimated level of effort. The Department of Energy, like other large agencies, has established procedures and training for CORs. However, the sheer volume of contracts and the complexity of some services can strain oversight resources, potentially leading to gaps if not adequately staffed and prioritized. Past IG reports or agency audits related to contract management could provide specific insights into DOE's oversight effectiveness.
What is the historical spending pattern for administrative and management consulting services within the Department of Energy?
Historical spending on administrative and management consulting services by the Department of Energy (DOE) is substantial, reflecting the agency's complex mission and the need for specialized expertise. The DOE frequently procures services related to strategic planning, performance assessment, regulatory compliance, and operational efficiency. While specific historical figures for this exact category (NAICS 541611) would require detailed data analysis, it's evident that the DOE allocates significant resources to external consultants to supplement internal capabilities. Spending patterns can fluctuate based on agency priorities, budget allocations, and specific program needs. Analyzing trends over several fiscal years would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify key contractors and service areas that receive the most funding.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 20300 CENTURY BOULEVARD, SUITE 175, GERMANTOWN, MD, 06
Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,263,595
Exercised Options: $13,263,595
Current Obligation: $13,263,595
Parent Contract
Parent Award PIID: GS10F0102K
IDV Type: FSS
Timeline
Start Date: 2004-07-01
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2010-02-23
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