Department of Energy awards $37M engineering services contract to Professional Project Services, Inc

Contract Overview

Contract Amount: $36,957,037 ($37.0M)

Contractor: Professional Project Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2011-06-13

End Date: 2017-08-03

Contract Duration: 2,243 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL ENGINEERING SERVICES FOR OFFICE OF ENVIRONMENTAL MANAGEMENT

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Energy obligated $37.0 million to PROFESSIONAL PROJECT SERVICES, INC. for work described as: PROFESSIONAL ENGINEERING SERVICES FOR OFFICE OF ENVIRONMENTAL MANAGEMENT Key points: 1. Contract awarded through a broad agency announcement (BAA) call, indicating a potentially competitive process. 2. The contract duration of 2243 days (over 6 years) suggests a long-term need for these services. 3. The contract type is Time and Materials, which can pose risks if not managed closely. 4. The base award amount is $1,647,700, with the total obligated amount reaching over $36.9M. 5. The contractor, Professional Project Services, Inc., has secured a significant portion of the total obligated funds. 6. The contract was awarded to a single entity, Professional Project Services, Inc.

Value Assessment

Rating: fair

The total obligated amount of $36.9M over approximately six years for professional engineering services appears substantial. Benchmarking this against similar contracts for environmental management engineering services is difficult without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not meticulously monitored for labor hours and rates. The significant difference between the base award and the total obligated amount suggests substantial tasking and potential for growth, but also necessitates strong oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'Full and Open Competition' solicitation, which is the most desirable method for ensuring a wide range of potential offerors can compete. However, the specific mechanism used was a 'BPA Call' (Blanket Purchase Agreement Call), which implies that a pre-existing BPA was established through full and open competition, and then this specific call was made against it. The number of bidders for this specific call is not provided, which limits a detailed assessment of the competitive intensity.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the effectiveness of this benefit depends on the actual number of bids received and the rigor of the evaluation process.

Public Impact

The primary beneficiary of this contract is the Department of Energy's Office of Environmental Management, which receives essential engineering support. Services delivered include professional engineering expertise crucial for managing environmental remediation and cleanup projects. The geographic impact is likely concentrated in areas where the Department of Energy has environmental management responsibilities, primarily within Tennessee based on the 'ST' and 'SN' codes. The contract supports a workforce of engineers and technical professionals, contributing to specialized employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost escalation without diligent oversight.
Lack of specific bidder count for the BPA call makes it hard to gauge true competitive pressure.
Significant difference between base award and total obligated amount requires careful monitoring of scope creep and efficiency.

Positive Signals

Awarded under 'Full and Open Competition', suggesting a broad initial search for qualified contractors.
Long contract duration (over 6 years) indicates a sustained need and potential for stable service delivery.
Contract supports critical environmental management functions for the Department of Energy.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330). This sector is characterized by firms providing specialized engineering expertise for various government and private projects. The Department of Energy's Office of Environmental Management requires highly technical engineering support for complex cleanup and remediation efforts, often involving hazardous materials and large-scale infrastructure. Spending in this area is driven by regulatory requirements, legacy site management, and ongoing operational needs. Comparable spending benchmarks would typically involve other large-scale environmental engineering contracts awarded by federal agencies like the EPA or DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Professional Project Services, Inc., may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Given the Time and Materials nature, rigorous monitoring of labor hours, rates, and deliverables is crucial. Transparency is facilitated through contract award databases like FPDS. Accountability measures would involve performance reviews, adherence to contract terms, and potential penalties for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Department of Energy Operations Support
Engineering Consulting Contracts
Broad Agency Announcements (BAA)
Blanket Purchase Agreements (BPA)

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Long Contract Duration
Limited Competition Information for BPA Call

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $37.0 million to PROFESSIONAL PROJECT SERVICES, INC.. PROFESSIONAL ENGINEERING SERVICES FOR OFFICE OF ENVIRONMENTAL MANAGEMENT

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL PROJECT 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 $37.0 million.

What is the period of performance?

Start: 2011-06-13. End: 2017-08-03.

What is the track record of Professional Project Services, Inc. in performing similar large-scale engineering contracts for the Department of Energy or other federal agencies?

Assessing the track record of Professional Project Services, Inc. requires a review of their past performance on federal contracts. This includes examining contract histories for on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. For a contract of this magnitude ($36.9M) and duration (over 6 years), the Department of Energy would have likely conducted a past performance evaluation as part of the source selection process. A deeper dive into their contract awards, task orders, and any associated performance evaluations or CPARS (Contractor Performance Assessment Reporting System) reports would provide a clearer picture of their capabilities and reliability in delivering complex engineering services, particularly within the environmental management domain.

How does the per-unit cost or overall value of this contract compare to similar engineering services contracts awarded by the Department of Energy or other agencies for environmental management?

Directly comparing the value of this $36.9M contract requires detailed knowledge of the specific services rendered, the complexity of the environmental management tasks, and the prevailing market rates for engineering expertise in the relevant geographic area (Tennessee). The contract type, Time and Materials (T&M), makes direct cost comparisons challenging as it is driven by labor hours and rates rather than a fixed scope. To benchmark effectively, one would need to analyze the average labor rates billed by Professional Project Services, Inc. against industry standards and compare the total cost per engineering hour or per project milestone against similar T&M contracts for environmental engineering. Without access to detailed task orders and specific service breakdowns, a precise value-for-money assessment relative to market benchmarks is difficult.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific environmental engineering service, and what mitigation strategies are in place?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can be exacerbated if work is inefficient, scope creep occurs without proper controls, or labor rates are not competitive. For environmental engineering services, risks include unforeseen site conditions requiring more extensive labor, extended project timelines, and the need for specialized, potentially costly, materials or equipment. Mitigation strategies typically involve robust oversight by the contracting officer's representative (COR), detailed tracking and verification of all labor hours and expenses, clear definition and management of the level of effort, and strong negotiation of labor rates. The Department of Energy would need stringent project management and financial controls to ensure this T&M contract delivers value.

How effective has the 'Full and Open Competition' process been in ensuring competitive pricing and optimal resource allocation for the Department of Energy's environmental management engineering needs

The 'Full and Open Competition' designation suggests that the initial solicitation for the Blanket Purchase Agreement (BPA) was widely advertised, aiming to attract a broad range of qualified offerors. This process is designed to foster competition, which theoretically leads to better pricing and service options for the government. However, the fact that this specific award was made via a 'BPA Call' means the competition occurred within the framework of the pre-established BPA. The effectiveness of the competition for this specific call depends heavily on how many entities held the BPA and how many responded to this particular call. If only one or a few entities held the BPA, the competitive pressure for this specific call might be less intense than a standalone full and open competition. The Department of Energy's internal processes for managing the BPA and soliciting calls are key to realizing the benefits of competition.

What is the historical spending pattern for professional engineering services related to environmental management within the Department of Energy, and how does this $36.9M contract fit into that trend

Analyzing the historical spending patterns for professional engineering services within the Department of Energy's Office of Environmental Management is crucial for context. This involves examining annual expenditures on similar contracts over the past 5-10 years. Factors to consider include the total budget allocated to environmental management, the proportion dedicated to engineering and technical support, and the average size and duration of contracts awarded. This $36.9M contract, spanning over six years, represents a significant, long-term investment. Its size and duration suggest it addresses substantial, ongoing environmental management needs. Understanding whether this level of spending is consistent with, higher than, or lower than historical averages for similar services will indicate whether this contract represents a typical allocation of resources or a notable shift in spending priorities or contract strategies.

What are the potential implications for workforce development and the availability of specialized engineering talent, given the long duration and significant value of this contract?

A contract of this magnitude ($36.9M) and duration (over 6 years) awarded to Professional Project Services, Inc. for environmental engineering services can have notable implications for workforce development. It signals a sustained demand for specialized engineering skills, potentially leading the contractor to hire and train new personnel or retain existing staff dedicated to this project. This can contribute to job creation within the engineering sector, particularly in areas related to environmental remediation and management. Furthermore, it may influence the development of specialized training programs or academic curricula aligned with the skills required for such complex projects. The long-term nature of the contract provides stability for the workforce involved, but also raises questions about the contractor's strategy for talent acquisition and retention over the project's lifecycle.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 BETHEL VALLEY ROAD, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,818,576

Exercised Options: $42,818,576

Current Obligation: $36,957,037

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DESC0002373

IDV Type: BPA

Timeline