DOE Awards $26.4M for Engineering Construction, Full & Open Competition
Contract Overview
Contract Amount: $26,414,285 ($26.4M)
Contractor: Tech2 Solutions
Awarding Agency: Department of Energy
Start Date: 2016-09-29
End Date: 2025-02-28
Contract Duration: 3,074 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: IGF::OT::IGF PROGRAM MANAGEMENT AND PLANNING FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $26.4 million to TECH2 SOLUTIONS for work described as: IGF::OT::IGF PROGRAM MANAGEMENT AND PLANNING FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2. Key points: 1. Significant contract value of $26.4M awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans nearly 9 years, indicating a long-term need. 4. The sector is 'Other Heavy and Civil Engineering Construction'.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can be appropriate for complex projects where costs are difficult to estimate upfront. However, it requires careful oversight to manage costs effectively.
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'. This indicates that while competition was sought, there might have been initial exclusions, which warrants further investigation into the rationale behind those exclusions to ensure maximum price discovery.
Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and value for services.
Public Impact
Supports critical infrastructure development within the Department of Energy. The long duration suggests a sustained need for these engineering services. Potential for job creation in the heavy and civil engineering construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Need to verify the justification for 'exclusion of sources' in the competition.
Positive Signals
- Full and open competition utilized.
- Long-term contract provides stability for project execution.
Sector Analysis
This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which is crucial for national infrastructure. Spending in this sector can vary significantly based on government initiatives and economic conditions.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The 'Department of Energy' is the contracting agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure adherence to the terms of the full and open competition.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Need for clarity on the 'exclusion of sources' rationale.
- Long contract duration requires sustained oversight.
- Potential for scope creep in complex engineering projects.
Tags
other-heavy-and-civil-engineering-constr, department-of-energy, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26.4 million to TECH2 SOLUTIONS. IGF::OT::IGF PROGRAM MANAGEMENT AND PLANNING FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2.
Who is the contractor on this award?
The obligated recipient is TECH2 SOLUTIONS.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2016-09-29. End: 2025-02-28.
What specific engineering, construction, and planning services are covered under this contract, and how do they align with the Department of Energy's strategic goals?
The contract covers design, integration, construction, communication, and engineering services. These are essential for the Department of Energy's mission, likely supporting infrastructure upgrades, research facilities, or energy production projects. Understanding the specific deliverables will clarify their strategic alignment and the value proposition of the $26.4M investment.
What was the justification for excluding certain sources prior to the full and open competition, and did this exclusion impact the final price or vendor selection?
The justification for excluding sources prior to the full and open competition needs to be thoroughly reviewed. While the final award was made through open competition, any initial exclusions could potentially limit the breadth of competition and impact price discovery. Understanding this rationale is key to assessing the overall fairness and efficiency of the procurement process.
How will the Cost Plus Fixed Fee structure be monitored to ensure cost efficiency and prevent potential overruns throughout the contract's nearly 9-year duration?
Effective oversight of the Cost Plus Fixed Fee (CPFF) contract is paramount. The Department of Energy must implement robust monitoring mechanisms, including regular audits, detailed cost reporting, and performance reviews. Clear milestones and performance metrics should be established to ensure the fixed fee remains justified and that costs are controlled effectively over the long term.
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3200 GEORGE WASHINGTON WAY STE D, RICHLAND, WA, 99354
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,986,663
Exercised Options: $28,986,663
Current Obligation: $26,414,285
Actual Outlays: $15,147,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DENA0003366
IDV Type: IDC
Timeline
Start Date: 2016-09-29
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-02-26
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