Department of Energy awards $28M contract for security support services to Project Enhancement Corporation
Contract Overview
Contract Amount: $28,065,635 ($28.1M)
Contractor: Project Enhancement Corporation
Awarding Agency: Department of Energy
Start Date: 2016-08-01
End Date: 2022-04-30
Contract Duration: 2,098 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO ACQUIRE SECURITY RELATED SUPPORT SERVICES TO ASSIST THE DEPARTMENT OF ENERGY'S OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENT, HEALTH, SAFETY, AND SECURITY WITH THEIR MISSION ORIENTED
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $28.1 million to PROJECT ENHANCEMENT CORPORATION for work described as: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO ACQUIRE SECURITY RELATED SUPPORT SERVICES TO ASSIST THE DEPARTMENT OF ENERGY'S OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENT, HEALTH, SAFETY, AND SECURITY WITH THEIR MISSION ORIENTED Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 2100 days indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 4. The award was a Delivery Order, implying it was part of a larger contract vehicle. 5. The spending is categorized under Environmental Consulting Services, aligning with the Department of Energy's mission. 6. The contractor, Project Enhancement Corporation, has secured this significant award from the Department of Energy.
Value Assessment
Rating: fair
The total award amount of $28,065,634.63 over nearly six years suggests a substantial investment in security support services. Without specific performance metrics or benchmarks for similar services, it is difficult to definitively assess value for money. The Time and Materials pricing structure, while flexible, can lead to higher costs if not closely monitored for efficiency and necessity of hours billed. Benchmarking against other government contracts for similar security support services would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was a Delivery Order suggests it was likely placed against an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or similar vehicle. The number of bids received (2) is on the lower side for a full and open competition, which might suggest a specialized niche or limited number of qualified contractors.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through market forces. However, with only two bidders, the competitive pressure may have been less intense than in a scenario with numerous offers.
Public Impact
The Department of Energy's Office of the Associate Under Secretary for Environment, Health, Safety, and Security benefits from enhanced mission support. Security-related support services are delivered to aid the department's critical functions. The primary geographic impact is likely within the Department of Energy's operational areas, predominantly in Maryland. The contract supports specialized roles within the security and environmental health and safety sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not diligently managed.
- Low number of bidders (2) in a full and open competition may indicate limited market competition.
- The contract duration is long, requiring sustained oversight to ensure continued value.
Positive Signals
- Awarded through full and open competition, promoting market access.
- The contractor has secured a significant award, indicating capability.
- The services directly support a critical government function (DOE security).
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically environmental consulting and security support. The market for such services is competitive, with numerous firms offering specialized expertise to government agencies. Government spending in this area is driven by regulatory compliance, national security needs, and the operational requirements of agencies like the Department of Energy. Comparable spending benchmarks would involve analyzing other large-scale security and environmental consulting contracts awarded by federal agencies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this specific award. However, the prime contractor, Project Enhancement Corporation, may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their subcontracting plan and the nature of the services required.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. As a Delivery Order, it likely falls under a larger contract vehicle that may have its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.
Related Government Programs
- Department of Energy Security Services
- Environmental Consulting Services
- Federal Security Support Contracts
- Professional and Technical Services
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited competition indicated by only two bidders in a full and open process.
- Long contract duration requires sustained oversight.
Tags
department-of-energy, security-services, environmental-consulting, time-and-materials, full-and-open-competition, delivery-order, project-enhancement-corporation, maryland, professional-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $28.1 million to PROJECT ENHANCEMENT CORPORATION. IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO ACQUIRE SECURITY RELATED SUPPORT SERVICES TO ASSIST THE DEPARTMENT OF ENERGY'S OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENT, HEALTH, SAFETY, AND SECURITY WITH THEIR MISSION ORIENTED
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 $28.1 million.
What is the period of performance?
Start: 2016-08-01. End: 2022-04-30.
What is the track record of Project Enhancement Corporation with the Department of Energy and similar federal contracts?
Project Enhancement Corporation (PEC) has a history of receiving federal contracts, including those with the Department of Energy. Analyzing PEC's past performance on similar security support and environmental consulting contracts is crucial. This includes examining their on-time delivery rates, quality of work, and any past performance issues or awards. Understanding their experience with Time and Materials contracts and their ability to manage costs effectively under such structures is also important. A review of their contract history would reveal the scale and complexity of projects they have successfully managed for the government, providing context for their capability to execute this current $28 million award.
How does the awarded amount compare to similar security support services contracts within the federal government?
The $28 million award over approximately six years for security support services to the Department of Energy is a significant sum. To benchmark its value, comparisons should be made with other federal contracts for similar services, considering factors like contract duration, scope of work, and the specific agency's needs. For instance, contracts for physical security, cybersecurity support, or specialized environmental safety consulting awarded by agencies like the Department of Defense or Homeland Security could serve as benchmarks. The Time and Materials pricing structure also needs to be considered, as it can lead to variability in total cost compared to fixed-price contracts. A detailed analysis would require access to a broader dataset of comparable contracts to ascertain if the pricing is competitive.
What are the primary risks associated with this Time and Materials contract, and how are they mitigated?
The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and costs incurred, plus a fixed fee or percentage. This structure can incentivize longer project durations or less efficient work if not properly managed. Mitigation strategies employed by the Department of Energy would include establishing clear labor hour ceilings, requiring detailed progress reports, conducting regular audits of timesheets and expenses, and implementing strong contract surveillance by government personnel. Defining specific deliverables and performance standards, even within a T&M framework, helps ensure accountability and focus on outcomes rather than just effort.
Given the 'full and open competition' with only two bidders, what does this imply for price discovery and potential future competition?
A 'full and open competition' with only two bidders suggests that the market for these specific security support services may be concentrated among a limited number of qualified contractors. While the competition itself is a positive sign, having only two offers might mean that the competitive pressure on pricing was less intense than if there were multiple bidders. This could potentially lead to a higher-than-optimal price for the government. For future procurements, the Department of Energy might consider strategies to broaden the bidder pool, such as refining the requirement descriptions, exploring different contract vehicles, or actively seeking out and encouraging new entrants into the market to foster greater price discovery and potentially lower costs.
What is the historical spending pattern for security-related support services at the Department of Energy?
Analyzing historical spending patterns for security-related support services at the Department of Energy (DOE) is essential for understanding the agency's consistent needs and budget allocation for such functions. This would involve examining past contract awards for similar services over several fiscal years. Key metrics to review include the total annual expenditure on security support, the number and value of contracts awarded, the types of services procured (e.g., physical security, cybersecurity, threat assessment), and the primary contractors utilized. Understanding these trends can help identify any significant increases or decreases in spending, potential areas of cost savings, and the overall strategic importance DOE places on these 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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0008836
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $34,149,806
Exercised Options: $34,149,806
Current Obligation: $28,065,635
Actual Outlays: $9,226,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F0004T
IDV Type: FSS
Timeline
Start Date: 2016-08-01
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2022-07-22
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