DOE awards $23.18M for Polish construction task order to Tech2 Solutions under full and open competition
Contract Overview
Contract Amount: $23,179,144 ($23.2M)
Contractor: Tech2 Solutions
Awarding Agency: Department of Energy
Start Date: 2016-10-03
End Date: 2023-01-31
Contract Duration: 2,311 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: IGF::OT::IGF POLAND TASK ORDER FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2, CONTRACT LINE ITEM NUMBER 1.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $23.2 million to TECH2 SOLUTIONS for work described as: IGF::OT::IGF POLAND TASK ORDER FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2, CONTRACT LINE ITEM NUMBER 1. Key points: 1. The contract value of $23.18 million is for design, integration, construction, communication, and engineering services. 2. Tech2 Solutions is the awardee, with the Department of Energy as the contracting agency. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process with specific source exclusions. 4. The project spans over 6 years, from October 2016 to January 2023.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar large-scale construction and engineering projects is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The award was made under 'Full and Open Competition After Exclusion of Sources'. While competitive, excluding sources may limit price discovery and potentially increase costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for international construction and engineering services. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Supports U.S. government objectives in Poland through construction and engineering services. The long duration of the contract suggests a significant, ongoing project. Potential for job creation and economic activity related to the project's execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Limited competition due to exclusion of sources may impact price.
- Long contract duration increases exposure to changing economic conditions.
Positive Signals
- Awarded under a competitive process.
- Services are critical for international operations.
Sector Analysis
This contract falls under the Other Heavy and Civil Engineering Construction sector. Spending in this sector can vary significantly based on infrastructure needs and geopolitical factors. The value is moderate for a multi-year international project.
Small Business Impact
The data does not indicate any specific subcontracting goals or awards to small businesses for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's long duration and international scope necessitate robust oversight from the Department of Energy to ensure performance, cost control, and adherence to contract terms.
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.
- Limited competition due to source exclusion.
- Long contract duration (over 6 years).
- International project location.
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 $23.2 million to TECH2 SOLUTIONS. IGF::OT::IGF POLAND TASK ORDER FOR DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATION AND ENGINEERING 2, CONTRACT LINE ITEM NUMBER 1.
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 $23.2 million.
What is the period of performance?
Start: 2016-10-03. End: 2023-01-31.
What specific factors led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The specific reasons for excluding sources are not detailed in the provided data. Typically, exclusions are based on factors like specialized capabilities, security requirements, or prior performance. Understanding these reasons is crucial to assess if the exclusion was justified and if it potentially limited competitive pricing, thereby impacting the overall value for taxpayers.
How does the Cost Plus Fixed Fee (CPFF) structure for this $23.18 million contract mitigate risks of cost overruns, and what oversight mechanisms are in place?
CPFF contracts aim to control costs by establishing a fixed fee for the contractor, incentivizing efficiency. However, the cost-reimbursement aspect still carries risk. Robust oversight by the Department of Energy is essential, including detailed cost reviews, performance monitoring, and audits, to ensure the contractor operates within budget and delivers the required services effectively.
What is the strategic importance of this construction and engineering task order in Poland for the Department of Energy, and how does its performance align with broader U.S. foreign policy objectives?
The strategic importance likely relates to supporting U.S. diplomatic, security, or energy-related initiatives in Poland. The project's successful and timely completion, as well as its cost-effectiveness, would reflect positively on U.S. commitment and capability. Performance metrics and alignment with stated objectives should be regularly assessed by the contracting agency.
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: 2
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: $24,400,971
Exercised Options: $24,400,971
Current Obligation: $23,179,144
Actual Outlays: $4,374,678
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: 2016-10-03
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2023-06-16
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