DOE's $104M Program Management Services Contract Awarded to Leonardo Technologies Inc
Contract Overview
Contract Amount: $103,873,912 ($103.9M)
Contractor: Leonardo Technologies, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-11-16
End Date: 2016-06-30
Contract Duration: 2,418 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROGRAM AND PERFORMANCE MANAGEMENT (PPM) SERVICES
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $103.9 million to LEONARDO TECHNOLOGIES, INC. for work described as: PROGRAM AND PERFORMANCE MANAGEMENT (PPM) SERVICES Key points: 1. The Department of Energy (DOE) awarded a significant contract for Program and Performance Management (PPM) services. 2. Leonardo Technologies, Inc. secured this contract, indicating their competitive standing in the engineering services sector. 3. The contract's duration and cost warrant scrutiny for efficiency and value for taxpayer money. 4. The 'Full and Open Competition After Exclusion of Sources' method suggests a specific justification for limiting initial bidders.
Value Assessment
Rating: fair
The contract's cost-plus award fee structure can incentivize performance but may lead to higher costs if not managed tightly. Benchmarking against similar large-scale program management contracts is needed to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' indicates that while competition was sought, certain sources were initially excluded. This method can impact price discovery and potentially limit the most competitive offers from entering the pool.
Taxpayer Impact: The substantial value of this contract means that ensuring cost-effectiveness and efficient service delivery is crucial for maximizing taxpayer benefit.
Public Impact
Taxpayers are funding essential program and performance management services for the Department of Energy. The contract's duration of over 2000 days suggests a long-term commitment to these services. The specific nature of 'Program and Performance Management' implies a role in overseeing and optimizing DOE initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure
- Limited competition method
- Long contract duration
Positive Signals
- Awarded by Department of Energy
- Services for program management
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for government operations and infrastructure. Spending in this area is often substantial, requiring careful oversight to ensure efficient allocation of public funds.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are handling these complex program management services. Further analysis would be needed to determine subcontracting opportunities for small businesses.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method requires clear justification and documentation to ensure accountability. Regular performance reviews and audits are essential to oversee this contract effectively.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost-plus award fee structure may inflate costs.
- Limited competition method raises concerns about price discovery.
- Long contract duration requires sustained oversight.
- Lack of transparency in performance metrics for award fees.
Tags
engineering-services, department-of-energy, wv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $103.9 million to LEONARDO TECHNOLOGIES, INC.. PROGRAM AND PERFORMANCE MANAGEMENT (PPM) SERVICES
Who is the contractor on this award?
The obligated recipient is LEONARDO TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $103.9 million.
What is the period of performance?
Start: 2009-11-16. End: 2016-06-30.
What specific performance metrics were used to determine award fees, and how effectively did Leonardo Technologies, Inc. meet them?
The effectiveness of the Cost Plus Award Fee (CPAF) structure hinges on clearly defined, measurable performance metrics tied to program objectives. Without insight into these specific metrics and Leonardo's performance against them, it's difficult to ascertain if the award fees truly reflect exceptional value or simply met minimum requirements. This lack of transparency can obscure whether taxpayers received optimal outcomes for the funds disbursed.
What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this limit competitive pricing?
The exclusion of sources, even in a process termed 'full and open' post-exclusion, raises questions about the breadth of competition achieved. If legitimate, highly competitive firms were excluded without clear, documented justification, it could have artificially constrained the bidding pool. This potentially led to a less competitive pricing environment and may have resulted in higher costs for the government than a truly open competition would have yielded.
How does the total contract value and duration compare to industry benchmarks for similar program management services, and what is the projected return on investment?
Comparing the $104 million contract value over approximately eight years to industry benchmarks for similar program management services is crucial for assessing value. If the cost per year or per service unit significantly exceeds comparable private sector or government contracts, it suggests potential overspending. A clear articulation of the return on investment, demonstrating how these services contributed to achieving DOE's strategic goals and saving costs elsewhere, is essential for justifying the expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SO26-08000663
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: HC 331, BANNOCK, OH, 43972
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $105,108,710
Exercised Options: $105,108,710
Current Obligation: $103,873,912
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-11-16
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2025-07-01
More Contracts from Leonardo Technologies, Inc.
- Activities Under This Work Area Shall Include Both Quick Response and Standard Response Services to Consult, Collect Information, Review, Plan, Develop, Recommend, and Implement Appropriate Actions Required to Assist in Developing Strategic, Program — $9.3M (Department of Energy)
- Provide Support for the Research, Development and Demonstration (RD&D) Mission and Vision of Fecm With Planning, Analysis, Systems Engineering, and Related Services Support — $6.1M (Department of Energy)
- Provide the Office of Strategic Planning, Analysis & Engagement (FE-26) With Support for the Research, Development and Demonstration (RD&D) Mission and Vision of FE With Planning, Analysis, Systems Engineering, and Related Services Support — $4.7M (Department of Energy)
- Provide the Office for Resource Sustainability and FE-323 With Support for the Research, Development and Demonstration (RD&D) Mission and Vision of FE With Planning, Analysis, Systems Engineering, and Related Services Support — $3.9M (Department of Energy)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)