DOE's $32.8M Environmental, Health, and Safety Technical Support Contract Awarded to Project Enhancement Corporation

Contract Overview

Contract Amount: $32,841,855 ($32.8M)

Contractor: Project Enhancement Corporation

Awarding Agency: Department of Energy

Start Date: 2016-07-12

End Date: 2021-10-31

Contract Duration: 1,937 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF NUCLEAR SAFETY AND ENVIRONMENT, SAFETY&HEALTH TECHNICAL SUPPORT SERVICES TO SUPPORT THE OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENTAL, HEALTH, SAFETY AND SECURITY OFFICE (AU).

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $32.8 million to PROJECT ENHANCEMENT CORPORATION for work described as: IGF::OT::IGF NUCLEAR SAFETY AND ENVIRONMENT, SAFETY&HEALTH TECHNICAL SUPPORT SERVICES TO SUPPORT THE OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENTAL, HEALTH, SAFETY AND SECURITY OFFICE (AU). Key points: 1. Contract provides critical technical support for environmental, health, and safety programs. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Duration of over 1900 days indicates a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. Small business participation was not a stated requirement. 6. Geographic focus appears to be Maryland, based on the award notice. 7. The North American Industry Classification System (NAICS) code points to environmental consulting services.

Value Assessment

Rating: fair

The contract value of $32.8 million over approximately five years suggests a significant investment in specialized technical support. Benchmarking this against similar contracts for environmental, health, and safety consulting services is challenging without more specific service details. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently, as it directly reimburses labor hours and material costs. Without detailed performance metrics or comparisons to industry benchmarks for specific tasks, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' designation, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria are not provided.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for competitive pricing than sole-source or limited solicitations, potentially leading to cost savings for taxpayers.

Public Impact

The Office of the Associate Under Secretary for Environmental, Health, Safety and Security (AU) at the Department of Energy benefits from specialized technical expertise. Services delivered include technical support crucial for maintaining safety and environmental compliance. The primary geographic impact is within Maryland, where the award notice indicates the contract will be performed. The contract supports a workforce of technical experts providing specialized knowledge to the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Environmental Consulting Services sector, categorized under NAICS code 541620. This sector encompasses firms that provide expertise in environmental assessment, compliance, remediation, and safety management. The Department of Energy, with its extensive facilities and complex operations, frequently requires such specialized support to manage environmental liabilities and ensure regulatory adherence. Comparable spending in this sector often involves significant investments in technical studies, risk assessments, and compliance monitoring, reflecting the high stakes associated with environmental and safety regulations.

Small Business Impact

The award notice indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). This means the competition was open to all responsible sources, regardless of size. Consequently, there are no explicit subcontracting goals for small businesses mandated by this specific award. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, though larger prime contractors may still engage small businesses as subcontractors if it aligns with their business strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers responsible for the Office of the Associate Under Secretary for Environmental, Health, Safety and Security. The Time and Materials (T&M) nature of the contract necessitates rigorous oversight of labor hours, rates, and material costs to ensure compliance with contract terms and prevent overspending. Transparency is facilitated through contract award notices and reporting requirements, though detailed performance data may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

department-of-energy, environmental-consulting, health-and-safety, technical-support, time-and-materials, full-and-open-competition, maryland, naics-541620, project-enhancement-corporation, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $32.8 million to PROJECT ENHANCEMENT CORPORATION. IGF::OT::IGF NUCLEAR SAFETY AND ENVIRONMENT, SAFETY&HEALTH TECHNICAL SUPPORT SERVICES TO SUPPORT THE OFFICE OF THE ASSOCIATE UNDER SECRETARY FOR ENVIRONMENTAL, HEALTH, SAFETY AND SECURITY OFFICE (AU).

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 $32.8 million.

What is the period of performance?

Start: 2016-07-12. End: 2021-10-31.

What is the track record of Project Enhancement Corporation with the Department of Energy and similar federal contracts?

Information regarding Project Enhancement Corporation's specific track record with the Department of Energy or other federal agencies is not detailed in the provided award notice. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Federal procurement databases and past performance information repositories would be the primary sources for this analysis. Without this data, it's difficult to gauge their experience level and reliability for delivering complex environmental, health, and safety technical support services.

How does the $32.8 million contract value compare to similar environmental consulting services procured by the federal government?

The $32.8 million contract value over approximately five years for environmental, health, and safety technical support is a substantial award. However, direct comparisons are difficult without knowing the precise scope of work, specific deliverables, and the level of expertise required. Federal agencies, particularly those with large operational footprints like the Department of Energy, often procure multi-million dollar contracts for environmental compliance, safety management, and technical consulting. Benchmarking would involve analyzing contracts with similar NAICS codes (541620) and service descriptions across different agencies. The T&M nature also influences cost structure, making direct comparisons to fixed-price contracts less meaningful.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract of this magnitude ($32.8 million) is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the cost of materials. If the contractor's labor hours are not efficiently managed, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. Effective oversight, detailed tracking of hours and expenses, and clear definition of 'materials' are crucial to mitigate these risks. Without stringent management, the government bears a significant portion of the cost risk.

How effective is 'full and open competition' when only two bidders participate?

Full and open competition is designed to maximize the number of potential bidders and foster robust price discovery. When only two bidders participate, the level of competition is reduced compared to scenarios with numerous offers. While it still provides a competitive environment and is preferable to sole-source awards, it may not yield the most aggressive pricing or the widest range of innovative solutions. The government relies on the competition between these two entities to drive value. The effectiveness is further influenced by the specific requirements of the solicitation and the evaluation criteria used to select the winning bid.

What are the historical spending patterns for environmental, health, and safety technical support at the Department of Energy?

Historical spending patterns for environmental, health, and safety (EHS) technical support at the Department of Energy (DOE) are likely substantial, given the agency's mission and the nature of its facilities. The DOE manages numerous sites with complex environmental legacies and ongoing operational safety requirements. Annual spending on EHS consulting and technical support can fluctuate based on specific site cleanup needs, regulatory changes, and infrastructure projects. Analyzing past DOE budgets and contract awards for NAICS code 541620 and related service categories would reveal trends, identify major contract vehicles, and highlight key service providers over time.

What are the implications of the contract being performed in Maryland?

The indication that the contract will be performed in Maryland suggests a focus on supporting DOE operations or facilities within that geographic region. This could involve environmental assessments, safety compliance reviews, or technical guidance for DOE sites or offices located in Maryland. For the local economy, it implies potential job creation or business opportunities for local technical support personnel and related services. It also means that the direct oversight and management of the contract activities will likely be conducted by DOE personnel based in or responsible for that area.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesEnvironmental 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-SOL0009194

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: $52,655,233

Exercised Options: $50,848,025

Current Obligation: $32,841,855

Actual Outlays: $8,951,665

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F0004T

IDV Type: FSS

Timeline

Start Date: 2016-07-12

Current End Date: 2021-10-31

Potential End Date: 2021-10-31 00:00:00

Last Modified: 2022-01-10

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