Vector Resource Inc. awarded $47.7M for administrative support, with a significant portion spent in the final year
Contract Overview
Contract Amount: $47,754,662 ($47.8M)
Contractor: Vector Resource Inc
Awarding Agency: Department of Energy
Start Date: 2016-12-07
End Date: 2022-12-14
Contract Duration: 2,198 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF TASK ORDER TO PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE UPO
Place of Performance
Location: OAK RIDGE, KNOX County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $47.8 million to VECTOR RESOURCE INC for work described as: IGF::OT::IGF TASK ORDER TO PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE UPO Key points: 1. Contract value of $47.7M over six years suggests a substantial need for ongoing administrative support. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. A notable portion of the contract's value appears to have been utilized in the latter part of its term. 4. The 'Time and Materials' pricing structure can introduce cost variability if not closely managed. 5. The contract's duration and value place it within a significant spending category for administrative services. 6. The primary agency is the Department of Energy, suggesting a focus on supporting its administrative functions.
Value Assessment
Rating: fair
The total award of $47.7M over approximately six years averages to about $7.9M annually. Without specific benchmarks for similar administrative support contracts within the Department of Energy or across government, it's challenging to definitively assess value for money. The 'Time and Materials' pricing model, while flexible, can lead to higher costs if not managed with strict oversight on labor hours and rates. The significant spending in the final year warrants further investigation to understand if it reflects increased needs or potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 4 bids indicates a degree of competition. However, the number of bidders alone doesn't guarantee optimal price discovery; the specific nature of the requirements and the bidding strategies employed by the contractors are also critical factors. Further analysis would be needed to determine if the competition was robust enough to drive the most competitive pricing.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for services rendered.
Public Impact
The primary beneficiary is the Department of Energy, which receives essential technical and administrative support. Services delivered include general management consulting and administrative support, crucial for the agency's operations. The contract's impact is primarily concentrated within the Department of Energy's administrative infrastructure. Workforce implications are likely internal to the contractor, Vector Resource Inc., and potentially involve specialized administrative and consulting personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep due to Time and Materials pricing structure if not rigorously monitored.
- Concentration of spending in the final year could indicate scope changes or delayed execution.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
- The 'Administrative Management and General Management Consulting Services' NAICS code is broad, potentially masking specific service efficiencies or inefficiencies.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- A multi-year contract indicates a stable, ongoing need for the services provided.
- The contractor, Vector Resource Inc., has secured a significant contract, implying a level of established capability.
- The contract duration of nearly six years suggests a successful working relationship and consistent service delivery.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is characterized by a wide range of service providers, from large consulting firms to specialized small businesses. Government spending in this area is substantial, supporting various agency functions. Benchmarking would require comparing this contract's value and scope against similar administrative support contracts awarded to other agencies or within the Department of Energy itself.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Vector Resource Inc., is not identified as a small business in the provided data. The absence of small business participation goals or subcontracting plans means this contract does not directly contribute to the small business ecosystem through mandated set-asides.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Department of Energy, responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Accountability measures are inherent in the contract's performance requirements and the 'Time and Materials' payment structure, which requires detailed reporting of labor hours and costs. Transparency is generally facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- General Services Administration (GSA) Schedules
- Professional Services Schedule (PSS)
- Department of Energy Administrative Support Contracts
- Management and Consulting Services Contracts
Risk Flags
- Potential for cost overruns due to T&M pricing
- Concentrated spending in the final contract year warrants investigation
- Lack of detailed performance metrics in provided data
- Broad NAICS code may obscure specific service effectiveness
Tags
administrative-support, management-consulting, department-of-energy, vector-resource-inc, time-and-materials, full-and-open-competition, professional-services, federal-contract, tennessee, us-government-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $47.8 million to VECTOR RESOURCE INC. IGF::OT::IGF TASK ORDER TO PROVIDE TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE UPO
Who is the contractor on this award?
The obligated recipient is VECTOR RESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $47.8 million.
What is the period of performance?
Start: 2016-12-07. End: 2022-12-14.
What was the specific nature of the technical and administrative support provided by Vector Resource Inc. under this contract?
The provided data indicates the contract was for 'Technical and Administrative Support to the UPO' (Unusual, Pending, or Other). The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' suggests the support likely encompassed a range of activities such as program management assistance, logistical support, data analysis, policy development support, and general administrative functions. Without access to the specific task orders or statements of work, the precise nature of the support remains generalized. However, given the Department of Energy context, it could involve supporting specific programs, regulatory compliance, or internal operational efficiencies.
How does the spending pattern, particularly the concentration in the final year, compare to typical contract execution for similar services?
The data shows a significant portion of the $47.7M award was spent towards the end of the contract's nearly six-year term (2198 days duration). Typically, spending on administrative support contracts is expected to be more evenly distributed over the contract's life, reflecting ongoing operational needs. A concentration of spending in the final year could suggest several possibilities: a ramp-up in services required towards the end of a program, a delay in the initiation or full utilization of services, or potentially a surge in activity related to contract closeout or transition. Without comparative data on similar contracts' spending profiles, it's difficult to definitively label this pattern as typical or atypical, but it warrants further investigation into the underlying reasons for the late-term spending.
What is the typical cost range for administrative management and general management consulting services for a federal agency of the Department of Energy's size?
Determining a precise 'typical' cost range for administrative management and general management consulting services for an agency like the Department of Energy is complex due to the variability in scope, duration, and specific requirements. However, contracts under NAICS code 541611 can range from tens of thousands to tens of millions of dollars annually, depending on the complexity and scale of support needed. For a large federal agency, annual spending on such services can easily reach several million dollars. The $47.7M total award over nearly six years, averaging approximately $7.9M per year, places this contract within a significant but not necessarily outlier range for comprehensive administrative support at a major federal department. Benchmarking against publicly available data for similar large-scale support contracts would provide a more concrete comparison.
What are the potential risks associated with the 'Time and Materials' (T&M) contract type for this administrative support service?
The primary risk associated with a 'Time and Materials' (T&M) contract type, like the one awarded to Vector Resource Inc., is the potential for cost overruns if not managed diligently. In a T&M contract, the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the actual cost of materials. This structure provides flexibility but lacks the cost certainty of fixed-price contracts. Risks include the contractor potentially billing for excessive hours, inefficient work, or inflated material costs. Effective oversight by the government, including detailed review of timesheets, verification of work performed, and adherence to pre-negotiated labor rates, is crucial to mitigate these risks and ensure value for money.
How many other contracts has Vector Resource Inc. held with the Department of Energy or other federal agencies for similar administrative support services?
To assess Vector Resource Inc.'s track record, one would need to consult federal procurement databases such as the Federal Procurement Data System (FPDS) or USAspending.gov. These platforms allow users to search for contracts awarded to a specific entity. Based on the provided data, Vector Resource Inc. was awarded this specific task order valued at $47.7M. Further research would be required to determine the extent of their contracting history with the Department of Energy and other federal agencies, the types of services rendered in those other contracts, and their performance history on those awards. A pattern of successful contract performance across multiple awards would indicate a reliable contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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-0010068
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 417 STATE ST, ERIE, PA, 16501
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $49,754,545
Exercised Options: $49,754,545
Current Obligation: $47,754,662
Actual Outlays: $20,425,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F0004U
IDV Type: FSS
Timeline
Start Date: 2016-12-07
Current End Date: 2022-12-14
Potential End Date: 2022-12-14 00:00:00
Last Modified: 2023-09-29
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