Over $60M Awarded for Environmental Consulting Services to Professional Project Services, Inc. by the Department of Energy
Contract Overview
Contract Amount: $60,234,696 ($60.2M)
Contractor: Professional Project Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2013-02-01
End Date: 2020-04-27
Contract Duration: 2,642 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF PADUCAH ENVIRONMENTAL TECHNICAL SERVICES TASK ORDER
Place of Performance
Location: PADUCAH, MCCRACKEN County, KENTUCKY, 42001
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $60.2 million to PROFESSIONAL PROJECT SERVICES, INC. for work described as: IGF::OT::IGF PADUCAH ENVIRONMENTAL TECHNICAL SERVICES TASK ORDER Key points: 1. The contract value of over $60 million indicates a significant investment in environmental consulting services. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of approximately 7 years (from Feb 2013 to Apr 2020) allowed for long-term project execution. 4. The task order structure implies flexibility in addressing evolving environmental needs. 5. The primary service category is Environmental Consulting Services, crucial for regulatory compliance and remediation. 6. The award was made to a single contractor, Professional Project Services, Inc., highlighting their role in this specific engagement.
Value Assessment
Rating: good
Benchmarking the value of this $60.2 million contract over its 7-year period requires detailed comparison with similar environmental consulting contracts awarded by the Department of Energy and other federal agencies. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not managed diligently, but it also offers flexibility for projects with uncertain scopes. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for ensuring fair market prices and fostering innovation. The presence of 6 bids (no) suggests a healthy level of interest and competition for this environmental consulting requirement.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through competitive bidding and ensuring that the government receives the best value for its investment.
Public Impact
The Department of Energy and its facilities benefit from expert environmental consulting services, ensuring compliance with environmental regulations. Services delivered likely include environmental assessments, site remediation planning, hazardous waste management, and regulatory support. The geographic impact is primarily focused on Kentucky (ST: KY, SN: KENTUCKY), where the contractor's services were likely deployed. The contract supports a workforce of environmental consultants and project managers, contributing to specialized employment in the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation under Time and Materials pricing if not closely monitored.
- Long contract duration could lead to vendor lock-in if not managed with performance reviews.
- Dependence on a single contractor for a significant duration may limit flexibility for future environmental strategies.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Multiple bids received (6), indicating broad market interest and potential for quality service.
- Contract addresses critical environmental consulting needs for a major federal agency.
Sector Analysis
Environmental consulting services represent a significant segment of the professional services market, driven by regulatory requirements and corporate responsibility. Federal agencies, particularly those with extensive infrastructure and historical operations like the Department of Energy, are major clients. Spending in this sector is influenced by environmental legislation, remediation needs, and the complexity of industrial operations. Comparable spending benchmarks would involve analyzing other large-scale environmental support contracts awarded to firms specializing in site assessment, remediation, and compliance.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Professional Project Services, Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that opportunities for small businesses may be limited unless they are part of the prime contractor's subcontracting team.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. The 'Delivery Order' nature of the award suggests it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework, which often have established oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Environmental Remediation Services
- Environmental Consulting Services
- Professional Services Contracts
- Department of Energy Contracts
- Federal Environmental Compliance
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Long contract duration may limit flexibility for future service providers or approaches.
- Need for robust oversight to ensure efficient performance and prevent scope creep.
Tags
environmental-consulting, department-of-energy, professional-project-services-inc, full-and-open-competition, time-and-materials, delivery-order, kentucky, federal-contract, environmental-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $60.2 million to PROFESSIONAL PROJECT SERVICES, INC.. IGF::OT::IGF PADUCAH ENVIRONMENTAL TECHNICAL SERVICES TASK ORDER
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 $60.2 million.
What is the period of performance?
Start: 2013-02-01. End: 2020-04-27.
What is the track record of Professional Project Services, Inc. with federal contracts, particularly with the Department of Energy?
Professional Project Services, Inc. (PPS) has a history of securing federal contracts, including significant awards from the Department of Energy. Analyzing their past performance on similar environmental consulting and remediation projects is crucial. This includes examining contract completion rates, any past performance issues or disputes, and their ability to meet technical requirements and deadlines. A review of their federal contracting history would reveal their experience level and reliability in handling large-scale, complex environmental tasks for government agencies. Their sustained engagement with the DOE suggests a level of trust and proven capability in meeting the agency's environmental needs.
How does the awarded amount of $60.2 million compare to typical federal spending on environmental consulting services?
The $60.2 million awarded to Professional Project Services, Inc. over approximately seven years is a substantial sum, placing it among significant federal contracts for environmental consulting. Typical federal spending on such services can vary widely based on agency needs, project scope, and duration. For instance, large-scale environmental remediation projects at sites like Superfund locations or military bases can easily reach tens or hundreds of millions of dollars. Contracts for ongoing compliance, assessment, and planning services might be smaller but more numerous. This specific award appears to be a considerable investment, suggesting a comprehensive or long-term environmental support requirement for the Department of Energy.
What are the key risks associated with a 'Time and Materials' contract of this magnitude and duration?
The primary risk with a 'Time and Materials' (T&M) contract, especially one valued at over $60 million and spanning seven years, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs, plus a fee. If project scopes are not tightly defined, or if work is inefficiently performed, costs can escalate beyond initial expectations. Effective oversight, detailed tracking of labor hours, and robust change management processes are critical to mitigate these risks. The Department of Energy would need strong project management to ensure that the 'materials' and 'time' billed are reasonable, allocable, and necessary for the defined scope of work.
How effective has the Department of Energy been in managing environmental consulting contracts awarded through full and open competition?
The effectiveness of the Department of Energy (DOE) in managing environmental consulting contracts awarded through full and open competition is generally considered robust, given the agency's mission and the complexity of its operations. Full and open competition is designed to ensure fair pricing and access to a wide range of qualified contractors. The DOE's success hinges on its ability to clearly define requirements, evaluate proposals rigorously, and provide diligent contract oversight. While specific performance data for every contract isn't publicly detailed, the DOE's consistent need for these services and its adherence to competitive procurement processes suggest a functional approach to managing these significant investments. Challenges can arise, but the competitive framework provides a strong foundation for achieving value.
What is the historical spending pattern for environmental consulting services within the Department of Energy?
Historical spending patterns for environmental consulting services within the Department of Energy (DOE) reflect the agency's significant environmental liabilities and ongoing operational needs. The DOE manages numerous legacy sites with contamination issues, requiring substantial and continuous investment in assessment, remediation, and compliance. Spending in this category has historically been high and is influenced by federal environmental laws (like CERCLA and RCRA), congressional appropriations, and the pace of site cleanup activities. The DOE often utilizes large, multi-year contracts, including task orders under IDIQ vehicles, to address these complex and long-term environmental challenges across its vast network of facilities.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0004011
Offers Received: 6
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $63,667,877
Exercised Options: $61,735,356
Current Obligation: $60,234,696
Actual Outlays: $4,118,827
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS10F0198K
IDV Type: FSS
Timeline
Start Date: 2013-02-01
Current End Date: 2020-04-27
Potential End Date: 2020-04-27 00:00:00
Last Modified: 2023-06-28
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