DOE's $33.7M environmental consulting contract awarded to North Wind Portage, Inc. shows fair value with moderate competition
Contract Overview
Contract Amount: $33,735,106 ($33.7M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Energy
Start Date: 2010-07-02
End Date: 2016-01-01
Contract Duration: 2,009 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TAS::89 0251::TAS CARLSBAD FIELD OFFICE TECHNICAL ASSISTANCE CONTRACT
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88220
Plain-Language Summary
Department of Energy obligated $33.7 million to NORTH WIND PORTAGE, INC. for work described as: TAS::89 0251::TAS CARLSBAD FIELD OFFICE TECHNICAL ASSISTANCE CONTRACT Key points: 1. The contract provided essential environmental consulting services for the Carlsbad Field Office. 2. Competition was robust, with four bidders vying for the contract, suggesting a healthy market. 3. The time and materials pricing structure warrants scrutiny for potential cost overruns. 4. Performance duration of nearly six years indicates a stable, long-term need for these services. 5. The contract's value falls within a reasonable range for similar environmental consulting services. 6. No small business set-aside was applied, suggesting a focus on specialized capabilities.
Value Assessment
Rating: fair
The total award amount of $33.7 million over its period of performance suggests a moderate level of spending for specialized environmental consulting. Benchmarking against similar contracts for environmental remediation and technical assistance within the Department of Energy (DOE) indicates that the pricing, while not exceptionally low, appears to be within a reasonable range. The time and materials (T&M) contract type, however, introduces inherent risks for cost control, as the final price is dependent on actual labor hours and material costs incurred. Without detailed breakdowns of labor rates and material markups, a precise value-for-money assessment is challenging, but the overall expenditure seems aligned with the scope of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a competitive environment for this type of specialized environmental consulting service. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The fact that four firms participated implies that the market for these services is sufficiently developed to support multiple capable providers.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The active bidding process encourages contractors to offer their best pricing to secure the work.
Public Impact
The primary beneficiaries are the Department of Energy's Carlsbad Field Office, which received critical technical assistance for environmental management. Services delivered included environmental consulting, technical assistance, and support for regulatory compliance. The geographic impact is concentrated in New Mexico, specifically around the Carlsbad Field Office operations. The contract supported a workforce of technical experts and consultants in the environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as it directly links payment to hours worked and materials used.
- Lack of specific performance metrics in the provided data makes it difficult to quantitatively assess the contractor's efficiency and effectiveness.
- The contract duration of nearly six years, while indicating stability, could also suggest a lack of flexibility to re-evaluate needs or seek more innovative solutions if market conditions change.
Positive Signals
- Awarded under full and open competition, ensuring a broad range of potential contractors could compete, likely leading to better pricing and quality.
- The participation of four bidders indicates a healthy level of competition within the environmental consulting market for this type of service.
- The contract was awarded to North Wind Portage, Inc., suggesting a contractor with the necessary qualifications and experience for complex environmental tasks.
Sector Analysis
The environmental consulting sector is a significant part of the professional services industry, supporting government agencies and private companies in navigating complex environmental regulations, remediation, and compliance. This contract falls within the broader category of environmental services, which includes areas like hazardous waste management, site assessment, and regulatory affairs. The Department of Energy, with its extensive history of managing legacy environmental issues at various sites, is a major client in this sector. Spending in this area is often driven by regulatory requirements and the need for specialized expertise that may not be available in-house.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope of work likely required specialized expertise or resources that were more readily available from larger, established firms in the environmental consulting industry. Consequently, there may be limited direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The absence of a small business set-aside means the primary focus was on securing the most capable provider through open competition.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Energy's Carlsbad Field Office. 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 award databases and public reporting, although detailed internal performance reviews are not usually public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Technical Assistance Contracts
- Department of Energy Consulting Services
- Hazardous Waste Management
- Regulatory Compliance Support
Risk Flags
- Time and Materials Pricing
- Potential for Cost Overruns
- Limited Performance Metrics Provided
Tags
department-of-energy, environmental-consulting, technical-assistance, new-mexico, full-and-open-competition, delivery-order, time-and-materials, north-wind-portage-inc, carlsbad-field-office, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $33.7 million to NORTH WIND PORTAGE, INC.. TAS::89 0251::TAS CARLSBAD FIELD OFFICE TECHNICAL ASSISTANCE CONTRACT
Who is the contractor on this award?
The obligated recipient is NORTH WIND PORTAGE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $33.7 million.
What is the period of performance?
Start: 2010-07-02. End: 2016-01-01.
What is the track record of North Wind Portage, Inc. with federal contracts, particularly within the Department of Energy?
North Wind Portage, Inc. has a history of performing federal contracts, including those with the Department of Energy. While specific details on past performance metrics for this particular contract are not provided, their ability to secure this award suggests they met the technical and experience requirements set forth by the DOE. Federal contract databases often track past performance evaluations, which would provide a more granular view of their reliability, quality of work, and adherence to schedules and budgets on previous engagements. Further investigation into their contract history, including any awards or penalties, would offer a clearer picture of their overall track record.
How does the $33.7 million award compare to other environmental consulting contracts awarded by the DOE during the same period?
The $33.7 million total award for this environmental consulting contract over its performance period (approximately 2010-2016) appears to be within a moderate range for large-scale, long-term environmental support services required by the Department of Energy. DOE manages numerous sites with complex environmental legacies, often necessitating multi-year contracts for remediation, monitoring, and technical assistance. Contracts of this nature can range from tens of millions to hundreds of millions of dollars, depending on the scope, complexity, and duration. Without a direct comparison of contract scope and specific services, it's challenging to definitively state if this represents high or low value, but it aligns with the typical scale of significant environmental support required by the agency.
What are the primary risks associated with a Time and Materials (T&M) contract for environmental consulting services?
The primary risk associated with Time and Materials (T&M) contracts, like the one awarded to North Wind Portage, Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the cost of materials used. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. For environmental consulting, risks include unexpected site conditions requiring more extensive analysis, extended labor needs for data collection or reporting, and potentially inflated material costs. Effective oversight, detailed timesheet verification, and clear task definitions are crucial to mitigate these risks and ensure value for money.
How effective was the competition level (4 bidders) in driving down costs for this specific contract?
With four bidders participating in the full and open competition for this environmental consulting contract, the level of competition was likely effective in driving down costs to a reasonable degree. A larger number of bidders generally increases the pressure on each firm to submit a more competitive price to win the contract. While we don't have the specific bid amounts, the presence of multiple qualified firms suggests that the Department of Energy had options and could negotiate from a position of strength. This competitive dynamic helps ensure that the awarded price reflects market rates and avoids the premium often associated with sole-source or limited-bid scenarios.
What is the historical spending trend for environmental consulting services at the Carlsbad Field Office?
Historical spending trends for environmental consulting services at the Carlsbad Field Office (CF) are likely characterized by consistent, significant investment due to the nature of the Waste Isolation Pilot Plant (WIPP) and related operations. The DOE's Carlsbad Field Office is responsible for managing transuranic waste disposal and associated environmental programs, which inherently require ongoing technical and consulting support. Spending in this area would fluctuate based on regulatory changes, operational needs, and specific project requirements, but a baseline level of funding for environmental compliance, monitoring, and technical assistance is expected. This $33.7 million contract represents a substantial portion of that spending over its nearly six-year duration, indicating a sustained need for these specialized services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0001679
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc (UEI: 076630334)
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,735,106
Exercised Options: $33,735,106
Current Obligation: $33,735,106
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS10F0353M
IDV Type: FSS
Timeline
Start Date: 2010-07-02
Current End Date: 2016-01-01
Potential End Date: 2016-01-01 00:00:00
Last Modified: 2020-06-30
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