Department of Energy's $31.3M training contract awarded to Project Enhancement Corp. shows fair value
Contract Overview
Contract Amount: $31,298,837 ($31.3M)
Contractor: Project Enhancement Corporation
Awarding Agency: Department of Energy
Start Date: 2015-02-09
End Date: 2020-02-16
Contract Duration: 1,833 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) TRAINING SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $31.3 million to PROJECT ENHANCEMENT CORPORATION for work described as: IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) TRAINING SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15. Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and delivery order structure indicate a managed approach to service acquisition. 4. Performance context is provided by the specific training support for the Office of Secure Transportation. 5. The sector positioning is within environmental consulting services, supporting specialized government functions.
Value Assessment
Rating: good
The contract's total value of approximately $31.3 million over its period of performance appears reasonable when benchmarked against similar government training and consulting services. The pricing structure, based on labor hours, allows for flexibility and direct cost allocation. While specific per-unit cost data is not provided, the overall expenditure suggests a fair market price was likely achieved through the competitive bidding process.
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 two bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, two bidders generally provide sufficient market pressure to ensure a competitive outcome.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a level playing field and encourages multiple companies to offer their best pricing and services, leading to potentially lower overall costs.
Public Impact
The primary beneficiary is the Department of Energy's Office of Secure Transportation, which receives essential training support. The services delivered include specialized training crucial for the secure operations of the OST. The geographic impact is primarily within Maryland, where the contract was performed. Workforce implications include the provision of skilled trainers and support staff by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if training needs evolve significantly beyond initial requirements.
- Reliance on a single contractor for critical training could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contract duration of over 5 years suggests a stable and predictable service delivery.
- The contractor, Project Enhancement Corporation, has a track record of performing government contracts.
Sector Analysis
This contract falls within the Environmental Consulting Services sector, specifically focusing on specialized training for a government agency. The market for such niche training services is often characterized by a limited number of highly qualified providers. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of the training, but the overall value is consistent with large-scale government support service contracts.
Small Business Impact
There is no indication that this contract included a small business set-aside. The contractor, Project Enhancement Corporation, is likely a large business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but are a possibility depending on the contractor's strategy.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Training Programs
- Office of Secure Transportation Operations
- Federal Security Services Contracts
- Environmental Consulting Services
Risk Flags
- Contract Duration
- Contract Value
- Competition Level
Tags
department-of-energy, office-of-secure-transportation, training-support, environmental-consulting-services, full-and-open-competition, delivery-order, labor-hours, maryland, project-enhancement-corporation, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $31.3 million to PROJECT ENHANCEMENT CORPORATION. IGF::OT::IGF OFFICE OF SECURE TRANSPORTATION (NA-15) TRAINING SUPPORT SERVICES FOR OFFICE OF SECURE TRANSPORTATION - NA-15.
Who is the contractor on this award?
The obligated recipient is PROJECT ENHANCEMENT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $31.3 million.
What is the period of performance?
Start: 2015-02-09. End: 2020-02-16.
What is the track record of Project Enhancement Corporation in delivering similar training services?
Project Enhancement Corporation (PEC) has a history of performing various government contracts, including those involving training and support services. While specific details on past performance for the Office of Secure Transportation (OST) are not provided in this summary, PEC's general experience suggests a capability to manage and execute such requirements. A deeper dive into PEC's contract history with the Department of Energy and other agencies would reveal the extent and success of their prior training support engagements. Analyzing past performance evaluations and any reported issues would provide a more comprehensive understanding of their reliability and effectiveness in delivering similar services.
How does the value of this contract compare to other federal training support services?
The total contract value of approximately $31.3 million over five years places this award in the mid-to-large range for federal training support services. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity. Contracts for specialized security or operational training for agencies like the Department of Homeland Security or the Department of Defense could offer comparable metrics. Without specific details on the curriculum and delivery methods, a precise comparison is challenging. However, the value appears consistent with contracts requiring significant labor hours and specialized expertise for critical government functions.
What are the primary risks associated with this contract?
Key risks include potential performance deficiencies by the contractor, leading to gaps in critical training for the Office of Secure Transportation (OST). There's also a risk of cost overruns if labor hours are not managed efficiently or if unforeseen requirements emerge. Dependence on a single contractor for specialized training could create vulnerabilities if the contractor faces financial instability or operational disruptions. Furthermore, changes in OST's operational needs or security protocols could necessitate contract modifications, potentially impacting cost and schedule. Ensuring continuous alignment between training content and evolving security requirements is crucial.
How effective has Project Enhancement Corporation been in fulfilling its contractual obligations for this specific contract?
Assessing the effectiveness of Project Enhancement Corporation (PEC) in fulfilling its obligations for this specific contract requires access to performance reports, delivery records, and potentially feedback from the Department of Energy's Office of Secure Transportation (OST). The provided data indicates the contract was awarded in February 2015 and concluded in February 2020, suggesting it has been completed. Without specific performance metrics or post-award evaluations, a definitive judgment on effectiveness cannot be made. However, the contract's full duration suggests that the services were likely delivered to a satisfactory level to warrant its completion.
What are the historical spending patterns for training support services within the Department of Energy's Office of Secure Transportation?
Historical spending patterns for training support services within the Department of Energy's Office of Secure Transportation (OST) would reveal the agency's consistent investment in personnel development and operational readiness. This $31.3 million contract represents a significant, multi-year investment. Analyzing prior contracts awarded for similar services, their values, durations, and the contractors involved would provide context. Understanding whether spending has increased, decreased, or remained stable over time can indicate shifts in OST's priorities, operational tempo, or training methodologies. Such analysis is crucial for budgeting and strategic planning within the OST.
What is the impact of the 'labor hours' contract type on cost control and service delivery?
The 'labor hours' contract type, as used in this award, means the contractor is paid based on the number of hours worked by their employees at specified hourly rates. This type of contract offers flexibility, allowing the scope of work to adapt to evolving needs without requiring immediate contract modifications for every change. For the government, it ensures that personnel are paid for the actual time spent on tasks. However, it places a greater emphasis on the government's ability to closely monitor and manage the hours worked to prevent overcharging and ensure efficiency. Effective oversight is critical to control costs and ensure that the labor hours translate into productive service delivery aligned with the contract's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0006603
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 20300 CENTURY BOULEVARD, SUITE 175, GERMANTOWN, MD, 20874
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,426,612
Exercised Options: $49,426,612
Current Obligation: $31,298,837
Actual Outlays: $3,537,097
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS00F0004T
IDV Type: FSS
Timeline
Start Date: 2015-02-09
Current End Date: 2020-02-16
Potential End Date: 2020-02-16 00:00:00
Last Modified: 2021-01-23
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