Department of Energy's $12M engineering services contract awarded to Orbital Sciences LLC
Contract Overview
Contract Amount: $12,069,733 ($12.1M)
Contractor: Orbital Sciences LLC
Awarding Agency: Department of Energy
Start Date: 2004-03-26
End Date: 2009-07-31
Contract Duration: 1,953 days
Daily Burn Rate: $6.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: R&D
Official Description: SPACE AND DEFENSE POWER
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $12.1 million to ORBITAL SCIENCES LLC for work described as: SPACE AND DEFENSE POWER Key points: 1. Contract awarded competitively, suggesting potential for good value. 2. Long duration of over 5 years indicates a significant, ongoing need. 3. The contract type (Delivery Order) implies it's part of a larger framework. 4. Focus on engineering services aligns with critical infrastructure and R&D. 5. Geographic location in Maryland may point to specific facility or program support. 6. The absence of small business set-aside suggests a focus on larger prime contractors.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the parent contract or the specific services rendered. However, the total award value of over $12 million over approximately five years suggests a substantial investment. Without comparable data on similar engineering services contracts within the Department of Energy or across government, it's difficult to definitively assess if this represents excellent value for money. The pricing structure, likely based on labor hours, needs careful monitoring to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle. The term 'full-and-open' suggests that all responsible sources were permitted to compete. The specific number of bidders for this delivery order is not provided, but the competitive nature implies that multiple companies likely vied for this work, which generally aids in price discovery and achieving a fair market price.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price competition among qualified vendors.
Public Impact
The Department of Energy benefits from specialized engineering expertise to support its mission. Services delivered likely contribute to the maintenance, development, or operation of energy infrastructure or research programs. The geographic impact is concentrated in Maryland, potentially supporting a specific DOE facility or project in the region. The contract supports a workforce skilled in engineering services, likely including technical and professional roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it hard to gauge effectiveness.
- Potential for cost overruns if labor hours are not managed tightly.
- Dependency on a single contractor for critical engineering functions could pose a risk if performance degrades.
Positive Signals
- Competitive award process suggests a baseline of fair pricing.
- Long contract duration indicates a stable, ongoing need met by the contractor.
- Awarded to a known entity (Orbital Sciences LLC) may imply prior successful performance.
Sector Analysis
Engineering services are a critical component of the federal procurement landscape, supporting a wide array of agencies and missions, including defense, energy, and infrastructure. The market for these services is substantial, with government spending often driven by complex projects, research and development, and the maintenance of existing assets. This contract fits within the broader sector of professional services, where specialized expertise is contracted to fulfill specific government requirements. Comparable spending benchmarks would typically look at the average cost of engineering hours or project-based engineering contracts across similar federal agencies.
Small Business Impact
The information provided does not indicate that this contract included a small business set-aside. This suggests that the primary contractor, Orbital Sciences LLC, is likely a large business. While there's no direct indication of subcontracting plans for small businesses, larger prime contracts often include provisions for small business participation. The absence of a specific set-aside means that opportunities for small businesses would likely be through subcontracting rather than direct prime contract awards.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- Department of Energy Research and Development Contracts
- Engineering and Technical Services
- Federal IT and Engineering Services
- Defense and Space Engineering Support
Risk Flags
- Contract Duration
- Potential for Cost Overruns
- Lack of Specific Performance Metrics
Tags
engineering-services, department-of-energy, orbital-sciences-llc, competitive-delivery-order, maryland, labor-hours, professional-services, research-and-development, large-business, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.1 million to ORBITAL SCIENCES LLC. SPACE AND DEFENSE POWER
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $12.1 million.
What is the period of performance?
Start: 2004-03-26. End: 2009-07-31.
What specific engineering services were provided under this contract?
The provided data indicates the contract falls under NAICS code 541330 (Engineering Services) and was awarded to Orbital Sciences LLC by the Department of Energy. However, the specific nature of the engineering services is not detailed. These could range widely from aerospace engineering, civil engineering, electrical engineering, mechanical engineering, or environmental engineering, depending on the Department of Energy's specific needs at the time. Without access to the contract's statement of work or task orders, the precise services remain unspecified. These services likely supported the agency's mission in areas such as energy research, development, infrastructure management, or national security related to energy.
How does the $12 million award compare to typical engineering services spending at the Department of Energy?
Comparing this $12 million award to the Department of Energy's overall spending on engineering services requires broader context. The DOE manages a vast portfolio of complex projects, including nuclear energy, renewable energy research, and environmental cleanup, all of which necessitate significant engineering support. A single contract of this value, spanning over five years, represents a notable investment but may be one of many such contracts. To assess its relative size, one would need to examine the DOE's annual budget allocations for engineering services, identify the total number and value of similar contracts awarded over the same period, and understand the specific program or facility this contract supported. Without this broader dataset, it's difficult to definitively state if $12 million is high, low, or average for DOE engineering services.
What is Orbital Sciences LLC's track record with federal engineering contracts?
Orbital Sciences LLC (now part of Northrop Grumman) has a significant history of performing federal contracts, particularly in the aerospace and defense sectors. Their track record with engineering services for agencies like NASA and the Department of Defense is extensive, often involving complex satellite development, launch services, and related engineering support. For the Department of Energy, their involvement would likely be tied to specific projects requiring their specialized expertise, potentially in areas related to space-based energy research, monitoring, or defense applications. A thorough review would involve examining past performance evaluations, any contract disputes or awards, and the breadth of their engineering capabilities demonstrated across various government engagements.
What were the key performance indicators (KPIs) for this contract, and how was performance measured?
The provided summary data does not include specific Key Performance Indicators (KPIs) or details on how performance was measured for this contract. Typically, engineering services contracts include metrics related to technical performance (e.g., meeting design specifications, successful testing), schedule adherence (e.g., timely completion of milestones), cost control (e.g., staying within budget), and quality of deliverables. Performance would likely be assessed through regular progress reports, technical reviews, and acceptance of final engineering products or services by the Department of Energy's contracting officer's representative (COR). The absence of this information in the summary prevents a detailed analysis of contractor performance effectiveness.
Were there any identified risks or challenges associated with this contract, and how were they mitigated?
The summary data does not explicitly list risks or mitigation strategies for this specific contract. However, general risks associated with large, long-term engineering services contracts include technical challenges, schedule delays, cost overruns, and potential changes in program requirements. For Orbital Sciences LLC, risks might also relate to the integration of complex systems or reliance on specialized personnel. Mitigation strategies typically involve robust project management, clear communication channels, contingency planning, phased delivery, and performance-based payment structures. The competitive nature of the award suggests that potential risks were assessed and factored into the pricing and terms by the bidders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 7500 GREENWAY CENTER DR STE 1500, GREENBELT, MD, 20770
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,321,688
Exercised Options: $12,321,688
Current Obligation: $12,069,733
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0401K
IDV Type: FSS
Timeline
Start Date: 2004-03-26
Current End Date: 2009-07-31
Potential End Date: 2017-07-11 00:00:00
Last Modified: 2017-07-10
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