DOE's $18.8M civil engineering contract awarded to Northstar Federal Services for Moldova site improvements
Contract Overview
Contract Amount: $18,766,791 ($18.8M)
Contractor: Northstar Federal Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2012-08-28
End Date: 2017-07-31
Contract Duration: 1,798 days
Daily Burn Rate: $10.4K/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: COMPETITIVE - MOLDOVA - GROUP 1 - 2 SITES GIURGIULESTI VC, LEUSENI VC - INSTALLATION DICCE CONSTRUCTION FOR INTERNATIONAL MATERIAL PROTECTION&COOPERATION - NA-25.
Plain-Language Summary
Department of Energy obligated $18.8 million to NORTHSTAR FEDERAL SERVICES, INC. for work described as: COMPETITIVE - MOLDOVA - GROUP 1 - 2 SITES GIURGIULESTI VC, LEUSENI VC - INSTALLATION DICCE CONSTRUCTION FOR INTERNATIONAL MATERIAL PROTECTION&COOPERATION - NA-25. Key points: 1. Contract value appears reasonable for the scope of international civil engineering and construction. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract duration of nearly five years indicates a significant, long-term project. 4. The cost-plus-fixed-fee structure may incentivize cost control while ensuring project completion. 5. This contract aligns with broader U.S. government efforts in international cooperation and material protection. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.
Value Assessment
Rating: good
The contract's total value of approximately $18.8 million for international construction services seems within a reasonable range for a multi-year project of this nature. Benchmarking against similar international infrastructure projects managed by the Department of Energy or other agencies would provide a more precise value-for-money assessment. The cost-plus-fixed-fee pricing structure, while common, requires careful monitoring to ensure costs do not escalate beyond initial projections.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had limitations, the final award was based on a competitive process. The number of bidders is not specified, but the 'full and open' designation suggests multiple entities had the opportunity to compete, which generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are likely the Department of Energy and potentially partner nations involved in international material protection and cooperation. The contract delivers construction services for site improvements at two international locations in Moldova. The geographic impact is focused on Giurgiulesti and Leuseni, Moldova. Workforce implications may include the hiring of construction personnel, engineers, and project managers, potentially both U.S. and local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
- Complexity of managing international projects, including logistical and geopolitical risks.
- Ensuring compliance with local regulations and labor laws in Moldova.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Long-term contract duration suggests a stable and predictable project execution.
- Focus on critical infrastructure for material protection aligns with national security interests.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure development. The Department of Energy often engages in construction projects related to its facilities, research, and international agreements. Comparable spending benchmarks would involve looking at other large-scale international construction or infrastructure development contracts managed by federal agencies, considering factors like project complexity, location, and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business. Further analysis would be needed to determine if Northstar Federal Services has subcontracting plans that would involve small businesses, which is crucial for ensuring broad economic participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Accountability measures would be tied to the contract's performance metrics and milestones. Transparency is facilitated through contract award databases, though detailed project progress reports may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facility Construction
- International Security Cooperation Programs
- Global Infrastructure Development Projects
- Defense Nuclear Nonproliferation Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Geopolitical risks associated with project location.
- Logistical complexities of international project execution.
- Ensuring compliance with dual regulatory environments (US and Moldova).
Tags
construction, department-of-energy, moldova, international-cooperation, civil-engineering, full-and-open-competition, cost-plus-fixed-fee, large-business, infrastructure, material-protection
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.8 million to NORTHSTAR FEDERAL SERVICES, INC.. COMPETITIVE - MOLDOVA - GROUP 1 - 2 SITES GIURGIULESTI VC, LEUSENI VC - INSTALLATION DICCE CONSTRUCTION FOR INTERNATIONAL MATERIAL PROTECTION&COOPERATION - 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 $18.8 million.
What is the period of performance?
Start: 2012-08-28. End: 2017-07-31.
What is the track record of Northstar Federal Services, Inc. with Department of Energy contracts?
Northstar Federal Services, Inc. has a history of performing contracts for the Department of Energy, including services related to construction and facility support. Analyzing their past performance ratings, any past performance issues or awards, and the types of projects they have successfully completed for DOE provides insight into their capability to handle the Moldova project. Specific details on their prior DOE engagements, including contract values and durations, would offer a clearer picture of their experience and reliability in executing similar scopes of work.
How does the cost-plus-fixed-fee structure compare to other contract types for similar international construction projects?
Cost-plus-fixed-fee (CPFF) contracts are common for complex projects where the scope is not fully defined at the outset or involves significant uncertainties, such as international construction. This structure allows the contractor to recover allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost growth if not managed diligently. For international projects, the added complexities of logistics, currency exchange, and local regulations often make CPFF a suitable, albeit closely monitored, choice.
What are the primary risks associated with managing construction projects in Moldova for the Department of Energy?
Key risks for this project include geopolitical instability in the region, potential changes in local regulations or permitting processes, currency fluctuations affecting costs, logistical challenges in transporting materials and personnel, and ensuring compliance with both U.S. federal procurement regulations and Moldovan labor and construction laws. Additionally, security concerns at the project sites and the potential for unforeseen site conditions common in civil engineering projects present significant risks that require robust mitigation strategies.
What is the historical spending pattern for similar international construction and civil engineering contracts by the Department of Energy?
The Department of Energy has historically allocated significant funds towards construction and infrastructure projects, both domestically and internationally, often related to its research facilities, energy infrastructure, and national security missions. Spending on international projects can fluctuate based on geopolitical priorities and specific cooperation agreements. Benchmarking this $18.8 million contract against other DOE international construction efforts would reveal if this represents a typical investment level for such projects or if it is an outlier in terms of scale or cost.
What are the implications of the 'Full and Open Competition After Exclusion of Sources' award type for cost and quality?
The 'Full and Open Competition After Exclusion of Sources' designation suggests that while there might have been initial limitations or specific requirements that excluded some potential bidders early on, the final award was made through a competitive process involving multiple interested parties. This approach aims to balance the need for specialized capabilities with ensuring broad competition. For taxpayers, this typically means a more competitive price than a sole-source award. For quality, a competitive process encourages contractors to offer their best technical solutions and performance to win the contract.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
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: $18,766,791
Exercised Options: $18,766,791
Current Obligation: $18,766,791
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $12,915,711
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEAM5208NA28443
IDV Type: IDC
Timeline
Start Date: 2012-08-28
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2021-02-25
More Contracts from 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 — $81.7M (Department of Energy)
- Design, Integration, Communications, Construction and Engineering Services in Romania for NA-25 — $28.3M (Department of Energy)
- Dicce-Second Line of Defense - Kyrgyzstan Sites for NA-25 — $22.6M (Department of Energy)
- 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 — $19.7M (Department of Energy)
- Ukraine Intergration (competition Under Dicee for NA-25 — $17.8M (Department of Energy)
View all Northstar Federal Services, Inc. federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)