Department of Energy's $24M environmental consulting contract awarded to OSC TECHNICAL SOLUTIONS, LLC
Contract Overview
Contract Amount: $23,974,979 ($24.0M)
Contractor: OSC Technical Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2015-02-01
End Date: 2018-02-02
Contract Duration: 1,097 days
Daily Burn Rate: $21.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: NORTHWIND SOLUTIONS IGF::OT::IGF BASE - THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOR TECHNICAL, ENVIRONMENTAL, AND PROGRAM MANAGEMENT SUPPORT SERVICES - SBA REFERENCE #1087-14-407582
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $24.0 million to OSC TECHNICAL SOLUTIONS, LLC for work described as: NORTHWIND SOLUTIONS IGF::OT::IGF BASE - THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOR TECHNICAL, ENVIRONMENTAL, AND PROGRAM MANAGEMENT SUPPORT SERVICES - SBA REFERENCE #1087-14-407582 Key points: 1. Contract awarded for technical, environmental, and program management support services. 2. The contract duration was 3 years, ending in February 2018. 3. Awarded as a definitive contract with a Time and Materials pricing structure. 4. The contract was not competitively procured. 5. The agency responsible for this contract is the Department of Energy. 6. The North American Industry Classification System (NAICS) code is 541620 (Environmental Consulting Services).
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The total value of approximately $24 million over three years suggests a significant engagement. However, the Time and Materials pricing structure can sometimes lead to cost overruns if not managed diligently. Without comparable contract data for similar environmental consulting services at the Department of Energy, a precise value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning it was not open to competition from other qualified vendors. Sole-source awards are typically justified when only one vendor possesses the unique capabilities or resources required for the specific service. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that a competitive bidding process might have yielded.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government's ability to negotiate the best possible price was limited in this sole-source scenario.
Public Impact
The Department of Energy benefits from essential technical, environmental, and program management support services. These services are crucial for the agency's operational efficiency and regulatory compliance. The contract supports environmental consulting services, likely contributing to the agency's environmental stewardship and remediation efforts. The geographic impact is primarily within the operational areas of the Department of Energy, likely concentrated in Washington D.C. given the 'ST' and 'SN' codes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and limited innovation.
- Time and Materials contract type can be susceptible to cost escalation if not closely monitored.
- Limited transparency into the specific services rendered and their effectiveness due to sole-source nature.
Positive Signals
- Contract provided critical support services to a key federal agency.
- The duration of the contract suggests a stable and ongoing need for these services.
- Awarded to a single contractor, potentially indicating specialized expertise.
Sector Analysis
The environmental consulting services sector is a vital part of the professional services industry, supporting government agencies and private companies in navigating complex environmental regulations, conducting impact assessments, and managing remediation projects. The Department of Energy, with its extensive infrastructure and historical operations, represents a significant client for such services. Spending in this sector can fluctuate based on regulatory changes, infrastructure projects, and environmental cleanup initiatives. Comparable spending benchmarks would typically involve analyzing other large federal contracts for environmental consulting, often falling under NAICS code 541620.
Small Business Impact
This contract does not appear to have involved small business set-asides, as indicated by the 'sb' field being false. There is no information provided regarding subcontracting plans or performance related to small businesses. The absence of small business participation in this sole-source award means that opportunities for small businesses to contribute to these critical environmental services were not pursued through this specific contract.
Oversight & Accountability
Oversight for this contract would fall under the Department of Energy's internal procurement and program management offices. As a definitive contract, it is subject to standard federal acquisition regulations and oversight. Transparency into the specific deliverables and performance metrics is limited due to the sole-source nature and the lack of readily available public reporting on Time and Materials contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Environmental Remediation Services
- Program Management Support
- Technical Consulting Services
- Department of Energy Operations
Risk Flags
- Sole-source award limits competition.
- Time and Materials pricing structure carries cost overrun risk.
- Limited public data on specific services and performance.
Tags
environmental-consulting, department-of-energy, definitive-contract, time-and-materials, sole-source, program-management, technical-support, washington-dc, naics-541620, osc-technical-solutions-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $24.0 million to OSC TECHNICAL SOLUTIONS, LLC. NORTHWIND SOLUTIONS IGF::OT::IGF BASE - THE PURPOSE OF THIS CONTRACT IS TO PROVIDE FOR TECHNICAL, ENVIRONMENTAL, AND PROGRAM MANAGEMENT SUPPORT SERVICES - SBA REFERENCE #1087-14-407582
Who is the contractor on this award?
The obligated recipient is OSC TECHNICAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $24.0 million.
What is the period of performance?
Start: 2015-02-01. End: 2018-02-02.
What specific environmental consulting services were provided under this contract?
The contract description broadly states 'technical, environmental, and program management support services.' However, without more granular detail, it's difficult to ascertain the exact nature of the environmental consulting provided. This could range from environmental impact assessments, compliance monitoring, hazardous waste management, site remediation planning, to policy development. The NAICS code 541620 confirms the general category of environmental consulting. Further investigation into the contract's statement of work (SOW) or task orders would be necessary to understand the specific environmental challenges addressed and the solutions implemented by OSC TECHNICAL SOLUTIONS, LLC.
How does the $24 million contract value compare to similar environmental consulting contracts at the Department of Energy?
Comparing the $24 million value requires access to a broader dataset of Department of Energy (DOE) contracts for environmental consulting services (NAICS 541620) over a similar timeframe (2015-2018). Without this comparative data, it's challenging to definitively state if this contract was high, low, or average in value. However, $24 million over three years ($8 million annually) represents a substantial engagement, suggesting a significant scope of work. Factors influencing value include the complexity of environmental issues, the geographic spread of DOE facilities requiring support, and the specific expertise demanded. A comprehensive benchmark would involve analyzing contract size, duration, and service scope across multiple DOE solicitations and awards in this sector.
What were the risks associated with the Time and Materials (T&M) pricing structure for this contract?
The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed with rigorous oversight, this can incentivize longer project durations or less efficient work, as the contractor is compensated for hours worked. For the government, this necessitates strong contract administration to monitor labor hours, material costs, and overall project progress to ensure that costs remain reasonable and aligned with the intended scope. The absence of a fixed ceiling or a clear deliverable-based payment schedule increases the government's exposure to escalating costs.
What is the track record of OSC TECHNICAL SOLUTIONS, LLC in providing environmental consulting services to the federal government?
Information regarding the specific track record of OSC TECHNICAL SOLUTIONS, LLC for this particular contract is limited within the provided data. As the award was sole-source, it implies a specific justification for selecting this vendor, potentially based on prior performance or unique qualifications. To assess their track record comprehensively, one would need to examine past performance evaluations, any debriefings from previous solicitations, and other federal contracts awarded to OSC TECHNICAL SOLUTIONS, LLC. Understanding their history with similar environmental consulting projects, their performance ratings, and their ability to manage budgets and timelines would provide crucial insights into their reliability and effectiveness.
How did the sole-source nature of this award impact the Department of Energy's ability to achieve its environmental program goals?
The sole-source award limits the potential for innovation and cost savings that might have arisen from a competitive bidding process. While the chosen contractor, OSC TECHNICAL SOLUTIONS, LLC, was deemed capable of meeting the requirements, the lack of competition means the Department of Energy (DOE) may not have benefited from the widest array of solutions or the most cost-effective approaches available in the market. This could potentially impact the pace or efficiency of achieving environmental program goals if alternative, more innovative, or less expensive methods existed but were not considered due to the procurement method. However, if OSC TECHNICAL SOLUTIONS, LLC possessed truly unique and essential capabilities, the sole-source award might have been necessary to ensure critical support was secured without delay.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc (UEI: 076630334)
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,500,000
Exercised Options: $24,500,000
Current Obligation: $23,974,979
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-02-01
Current End Date: 2018-02-02
Potential End Date: 2018-02-16 00:00:00
Last Modified: 2018-02-16
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