DOE's $91M PEI Services Contract with Keylogic Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $91,117,033 ($91.1M)
Contractor: Keylogic, LLC
Awarding Agency: Department of Energy
Start Date: 2009-11-16
End Date: 2016-06-30
Contract Duration: 2,418 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Engineering Services
Official Description: PROJECT EXECUTION AND INTEGRATION (PEI) SERVICES
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $91.1 million to KEYLOGIC, LLC for work described as: PROJECT EXECUTION AND INTEGRATION (PEI) SERVICES Key points: 1. The contract awarded to Keylogic, LLC for Project Execution and Integration (PEI) Services totaled over $91 million. 2. Competition was described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 3. The contract type 'COST PLUS AWARD FEE' can lead to cost overruns if not managed tightly. 4. The sector is Engineering Services, with a significant spend over its duration.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure, while allowing flexibility, can incentivize higher costs. Benchmarking against similar engineering services contracts is difficult without detailed performance data and award fee payouts.
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 excluded, potentially limiting the pool of bidders and impacting price discovery.
Taxpayer Impact: The significant expenditure of $91 million raises questions about whether taxpayers received the best possible value given the competitive landscape.
Public Impact
Taxpayers funded a substantial $91 million for engineering services over nearly 7 years. The contract's duration and cost structure warrant a review to ensure efficiency and effectiveness. The specific nature of 'Project Execution and Integration' services impacts federal agency operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Cost Plus Award Fee structure can inflate costs
- Long contract duration (2418 days)
Positive Signals
- Contract awarded to a single vendor, potentially indicating specialized capabilities
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for government infrastructure and project management. Spending benchmarks vary widely based on project scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and the Cost Plus Award Fee structure suggest a need for robust oversight to ensure cost control and performance.
Related Government Programs
- Engineering Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for limited competition
- Cost Plus Award Fee structure risks
- Lack of small business participation noted
- Long contract duration
Tags
engineering-services, department-of-energy, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $91.1 million to KEYLOGIC, LLC. PROJECT EXECUTION AND INTEGRATION (PEI) SERVICES
Who is the contractor on this award?
The obligated recipient is KEYLOGIC, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $91.1 million.
What is the period of performance?
Start: 2009-11-16. End: 2016-06-30.
What was the rationale for excluding certain sources in a 'full and open' competition, and did this exclusion impact the final price?
The rationale for excluding sources in a 'full and open competition after exclusion of sources' typically involves specific technical requirements or past performance criteria that only a subset of vendors can meet. This exclusion can limit the competitive pool, potentially leading to higher prices than if a broader range of vendors were considered. Without detailed documentation on the exclusion criteria and the bidding process, it's difficult to definitively assess the price impact.
How effectively was the Cost Plus Award Fee structure managed to control costs and incentivize desired outcomes?
The effectiveness of a Cost Plus Award Fee (CPAF) structure hinges on clear performance metrics and diligent oversight. While CPAF allows for flexibility and incentivizes contractor performance, it also carries the risk of cost escalation if award criteria are too broad or if the government's monitoring is insufficient. A thorough review would examine the specific award fee criteria, the contractor's performance against those criteria, and the total cost incurred versus the projected budget.
What was the overall value proposition of this $91 million contract in terms of project execution and integration outcomes for the Department of Energy?
Assessing the value proposition requires evaluating the successful completion of PEI services against the contract's objectives and cost. Key metrics would include whether projects were delivered on time, within budget (considering the CPAF structure), and met the technical requirements. Without specific performance reports and project outcomes, it's challenging to quantify the precise value delivered for the $91 million investment.
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-SO26-08000662
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2567 UNIVERSITY AVE # 5000, MORGANTOWN, WV, 26505
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $102,685,415
Exercised Options: $102,685,415
Current Obligation: $91,117,033
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-11-16
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2019-09-24
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