Department of Energy's $81.7M contract for RPMS site survey awarded to Northstar Federal Services
Contract Overview
Contract Amount: $81,711,127 ($81.7M)
Contractor: Northstar Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2010-06-15
End Date: 2018-03-31
Contract Duration: 2,846 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 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.
Plain-Language Summary
Department of Energy obligated $81.7 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: 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. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2846 days indicates a long-term project with significant resource commitment. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns if not carefully managed. 4. The contract's focus on construction and integration of RPMS points to a critical infrastructure project. 5. Awarded to Northstar Federal Services, Inc., a review of their past performance is warranted. 6. The 'Other Heavy and Civil Engineering Construction' NAICS code suggests a large-scale construction component.
Value Assessment
Rating: fair
The contract value of $81.7 million over approximately 7.8 years represents a substantial investment. Benchmarking this against similar site survey and construction integration projects for large-scale systems is difficult without more specific project details. The CPFF structure, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require comparing the labor rates and overhead applied to industry standards for similar construction and integration services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources may have been excluded. The number of bidders is not specified, but this type of award can sometimes indicate a more limited pool of qualified contractors or specific circumstances that led to exclusions. The level of competition directly impacts price discovery; a more limited competition might result in less aggressive pricing compared to a truly open and unrestricted process.
Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain sources, potentially leading to a higher overall cost for the services rendered.
Public Impact
The Office of Business Services within the Department of Energy is the primary beneficiary, receiving services for the construction and integration of RPMS. The contract delivers essential site survey and integration services for a critical operational system. The geographic impact is likely localized to the sites requiring RPMS installation and integration. Workforce implications may include the need for specialized construction and integration personnel, potentially benefiting the engineering and construction sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPFF contract type introduces risk of cost overruns if not managed diligently.
- The 'exclusion of sources' in the competition method warrants scrutiny to ensure fair market access.
- Long contract duration (2846 days) increases the potential for scope creep and evolving requirements.
- Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the contractor's work.
Positive Signals
- Awarded through a competitive process, indicating an effort to secure market-based pricing.
- The contract addresses a clear need for infrastructure development and system integration within the Department of Energy.
- The contractor, Northstar Federal Services, Inc., has secured a significant award, suggesting some level of capability and past performance.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, a significant part of the U.S. economy. The project involves the construction and integration of Real Property Management Systems (RPMS), which are crucial for managing government facilities and assets. Spending in this sector is often driven by infrastructure upgrades, modernization efforts, and new construction projects. Comparable spending benchmarks would typically involve large-scale construction and IT integration projects for federal agencies, often running into tens or hundreds of millions of dollars.
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 or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Northstar Federal Services, Inc., would be responsible for its own workforce and any necessary procurement of goods or services, which could potentially involve small businesses depending on their business model and supply chain.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures would be defined within the contract terms, including deliverables, milestones, and payment schedules tied to performance. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Energy Facilities Management Contracts
- Federal Real Property Management Systems
- Construction and Integration Services for Government Agencies
- IT Infrastructure Projects
- Heavy Civil Engineering Projects
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition due to source exclusion
- Long contract duration increases risk of scope creep
- Lack of detailed performance metrics hinders oversight
Tags
department-of-energy, construction, it-integration, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, large-contract, northstar-federal-services, facility-management, rpms, site-survey, heavy-civil-engineering
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $81.7 million to 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.
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 $81.7 million.
What is the period of performance?
Start: 2010-06-15. End: 2018-03-31.
What is the track record of Northstar Federal Services, Inc. on similar government contracts, particularly those involving construction and system integration?
A thorough review of Northstar Federal Services, Inc.'s contract history is essential to assess their performance on similar projects. This includes examining past awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of disputes or contract terminations. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts and their ability to manage budgets effectively on large-scale construction and integration projects would provide critical insights into their capability to successfully execute this Department of Energy contract. Specific attention should be paid to projects with comparable complexity, duration, and technical requirements to gauge their suitability and identify potential risks.
How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar construction and integration services, and what are the associated risks?
The Cost Plus Fixed Fee (CPFF) pricing structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While offering flexibility for projects with uncertain scopes, it inherently carries a higher risk of cost overruns for the government compared to fixed-price contracts. Industry standards for construction and integration services often favor fixed-price or firm-fixed-price contracts when the scope is well-defined, as they incentivize efficiency and cost control. For a CPFF contract to be considered good value, the fixed fee must be reasonable relative to the effort and risk involved, and robust government oversight is crucial to scrutinize costs and prevent unnecessary expenditures. Benchmarking the fixed fee against similar contracts and ensuring stringent cost accounting standards are applied is vital.
What specific risks are associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, and how were these mitigated?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type suggests that while the agency intended to compete the contract, certain potential bidders were excluded from the process. This exclusion could stem from various reasons, such as specific technical requirements, past performance issues, or proprietary technology. The primary risk is that excluding qualified sources may limit competition, potentially leading to higher prices and reduced innovation. Mitigation strategies would involve a clear justification for the exclusions, ensuring that the remaining pool of bidders is sufficient to foster meaningful competition, and documenting the rationale thoroughly. Transparency regarding the reasons for exclusion is also important for accountability.
What are the expected outcomes and performance metrics for the RPMS site survey and integration, and how will success be measured?
The expected outcomes for this contract include the successful completion of site surveys for RPMS implementation and the subsequent construction and integration of these systems. Specific performance metrics are not detailed in the provided data but would typically encompass factors such as adherence to project timelines, successful system integration without significant defects, achievement of specified operational capabilities, and compliance with safety and environmental regulations during construction. Measuring success would likely involve a combination of milestone achievements, final system acceptance testing, post-implementation reviews, and potentially ongoing operational performance monitoring. Clear, measurable, achievable, relevant, and time-bound (SMART) objectives are crucial for effective performance management.
How does the total contract value of $81.7 million compare to historical spending on similar RPMS or facility management system projects within the Department of Energy or other federal agencies?
The total contract value of $81.7 million for RPMS site survey, construction, and integration is substantial and falls within the range of significant federal IT and construction projects. To provide a meaningful comparison, one would need to analyze historical spending data for similar projects within the Department of Energy and across other agencies. Factors such as the scale of facilities managed, the complexity of the RPMS being implemented, and the duration of the project heavily influence costs. Benchmarking against projects of similar scope, duration (2846 days), and technical requirements would reveal whether this contract represents a typical investment, an outlier, or potentially an area for cost-saving opportunities. Without specific comparable data, it's difficult to definitively assess value for money.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $85,099,662
Exercised Options: $85,099,662
Current Obligation: $81,711,127
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM5208NA28443
IDV Type: IDC
Timeline
Start Date: 2010-06-15
Current End Date: 2018-03-31
Potential End Date: 2021-02-17 00:00:00
Last Modified: 2021-02-17
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