DOE's $19.7M radiation portal system contract for Poland awarded to Northstar Federal Services

Contract Overview

Contract Amount: $19,736,889 ($19.7M)

Contractor: Northstar Federal Services, Inc.

Awarding Agency: Department of Energy

Start Date: 2010-07-02

End Date: 2017-04-30

Contract Duration: 2,494 days

Daily Burn Rate: $7.9K/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 DESIGN, CONSTRUCT, AND INTEGRATE FULLY FUNCTIONAL RADIATION PORTAL MONITOR AND COMMUNICATIONS SYSTEMS AT DESIGNATED SITES IN POLAND. IN SUPPORT OF SECOND LINE OF DEFENSE (SLD) PROGRAM FOR OFFICE OF INTERNATIONAL MATERIAL PROTECTION & COOP - NA-25.

Plain-Language Summary

Department of Energy obligated $19.7 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: TAS::89 0309::TAS DESIGN, CONSTRUCT, AND INTEGRATE FULLY FUNCTIONAL RADIATION PORTAL MONITOR AND COMMUNICATIONS SYSTEMS AT DESIGNATED SITES IN POLAND. IN SUPPORT OF SECOND LINE OF DEFENSE (SLD) PROGRAM FOR OFFICE OF INTERNATIONAL MATERIAL PROTECTION & COOP - NA-25. Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract duration of approximately 6.8 years suggests a long-term project with significant resource commitment. 3. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 4. The project supports the Second Line of Defense (SLD) program, aligning with international security initiatives. 5. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category. 6. The absence of small business set-aside indicates a focus on larger, specialized firms for this project.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its unique nature and international scope. The total award amount of $19.7 million over nearly seven years suggests a substantial investment. Without comparable projects for radiation portal systems in similar international security contexts, a precise value-for-money assessment is difficult. The cost-plus-fixed-fee structure, while common, requires careful oversight to ensure costs remain reasonable and the fixed fee is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that while the competition was intended to be open, specific circumstances led to the exclusion of certain potential bidders, or the initial solicitation was restricted. The number of bidders is not specified, but the 'exclusion of sources' phrasing suggests it may not have been as broad as a standard full and open competition. This could potentially limit price discovery compared to a truly unrestricted competition.

Taxpayer Impact: Taxpayers benefit from a competitive process, even with exclusions, as it aims to secure the best value. However, the exclusion of sources warrants scrutiny to ensure no viable competitors were unfairly barred, which could have led to higher costs.

Public Impact

The primary beneficiaries are the Department of Energy's Office of International Material Protection & Cooperation and the Polish government, enhancing radiation detection capabilities. The services delivered include the design, construction, and integration of radiation portal monitor and communications systems. The geographic impact is specific to designated sites within Poland, contributing to international security and non-proliferation efforts. The project likely involves specialized technical and construction workforce, potentially including both U.S. and local Polish labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
Complexity of international deployment and integration could lead to unforeseen challenges and delays.
Ensuring long-term maintenance and operational support for the systems in Poland.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Supports a critical national security program (Second Line of Defense).
Long contract duration allows for sustained focus and development of expertise.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, but its specific focus on radiation portal monitoring systems places it at the intersection of defense, security, and specialized engineering. The market for such systems is niche, driven by government security and non-proliferation needs. Comparable spending benchmarks are difficult to establish due to the specialized nature and international application, but large-scale infrastructure projects in the defense and security sectors often involve multi-million dollar investments.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the nature of the work required specialized capabilities likely held by larger firms. There is no explicit information on subcontracting plans for small businesses, but given the specialized nature of the technology and construction, it's possible that opportunities for small businesses might be limited to specific components or support services.

Oversight & Accountability

Oversight would primarily fall under the Department of Energy's program management and contracting offices. The Inspector General's office would have jurisdiction for audits and investigations. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be sensitive due to security implications.

Related Government Programs

Department of Energy - International Security Programs
Second Line of Defense (SLD) Program
Radiation Detection and Monitoring Systems
International Security Cooperation
Heavy and Civil Engineering Construction Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Complexity of international deployment and integration.
Limited competition due to 'exclusion of sources' clause.
Long-term sustainment and maintenance challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $19.7 million to NORTHSTAR FEDERAL SERVICES, INC.. TAS::89 0309::TAS DESIGN, CONSTRUCT, AND INTEGRATE FULLY FUNCTIONAL RADIATION PORTAL MONITOR AND COMMUNICATIONS SYSTEMS AT DESIGNATED SITES IN POLAND. IN SUPPORT OF SECOND LINE OF DEFENSE (SLD) PROGRAM FOR OFFICE OF INTERNATIONAL MATERIAL PROTECTION & COOP - NA-25.

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 $19.7 million.

What is the period of performance?

Start: 2010-07-02. End: 2017-04-30.

What is the track record of Northstar Federal Services, Inc. in delivering similar international security or construction projects?

Assessing Northstar Federal Services, Inc.'s track record requires a review of their past performance on government contracts, particularly those involving international deployments, complex construction, and specialized security equipment. Information on their past performance, including client feedback, project completion success rates, and any history of contract disputes or terminations, would be crucial. Without specific data on their prior experience with radiation portal systems or similar international security infrastructure projects, it is difficult to definitively assess their capability and reliability for this particular contract. A review of federal procurement databases and contract award histories would provide more insight into their performance trends and suitability for this role.

How does the cost-plus-fixed-fee structure compare to other pricing models for similar international security system deployments?

The Cost-Plus-Fixed-Fee (CPFF) pricing structure used for this contract is common for projects where the scope of work is not fully defined at the outset or involves significant uncertainties, such as international deployments and integration of complex systems. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure aims to incentivize the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to cost overruns if not managed diligently. Alternative models like Firm-Fixed-Price (FFP) offer greater cost certainty for the government but are less suitable for high-risk or undefined scopes. Cost-Plus-Incentive-Fee (CPIF) could offer stronger cost control incentives by adjusting the fee based on performance against cost targets.

What are the key risks associated with deploying radiation portal monitoring systems in an international context like Poland?

Key risks associated with deploying radiation portal monitoring systems internationally include logistical challenges in transportation and installation, potential for damage during transit, and the need for specialized training for local personnel. Geopolitical factors and differing regulatory environments can also pose risks. Furthermore, ensuring the systems are compatible with existing infrastructure and communication networks is critical. Technical risks involve the reliability and accuracy of the equipment in diverse environmental conditions and the potential for cyber threats to communication systems. Finally, long-term maintenance and sustainment in a foreign country require robust support plans and agreements to ensure operational readiness.

What is the historical spending pattern for the Second Line of Defense (SLD) program and similar international security initiatives by the Department of Energy?

Analyzing historical spending for the Second Line of Defense (SLD) program and related international security initiatives by the Department of Energy (DOE) is essential for context. This involves examining annual budget allocations, contract awards, and program expenditures over several fiscal years. Understanding the typical funding levels, the types of contracts awarded (e.g., R&D, procurement, services), and the geographic distribution of these initiatives provides insight into the program's scale and priorities. Significant fluctuations in spending could indicate shifts in policy, threat assessments, or program effectiveness. Comparing this contract's value ($19.7M) against the historical average spending for SLD or similar DOE international cooperation efforts would help determine if it represents a typical investment or an outlier.

How does the 'full and open competition after exclusion of sources' procurement method impact potential cost savings for the government?

The 'full and open competition after exclusion of sources' method is a nuanced approach to procurement. While it aims for broad competition, the 'exclusion of sources' element implies that certain potential offerors were deliberately not solicited or were disqualified early in the process. This exclusion could stem from specific technical requirements, national security concerns, or previous performance issues. If the exclusion was justified and did not unduly limit the pool of qualified bidders, it could still lead to competitive pricing. However, if the exclusion was overly restrictive or poorly justified, it might reduce the number of viable competitors, potentially leading to less aggressive bidding and higher costs for the government compared to a truly unrestricted full and open competition.

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: $19,736,889

Exercised Options: $19,736,889

Current Obligation: $19,736,889

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM5208NA28443

IDV Type: IDC

Timeline