DOE's $29.3M SPRPMO A-E Services contract awarded to Vali Cooper International LLC
Contract Overview
Contract Amount: $29,272,085 ($29.3M)
Contractor: Vali Cooper International LLC
Awarding Agency: Department of Energy
Start Date: 2014-08-15
End Date: 2020-08-14
Contract Duration: 2,191 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Energy
Official Description: IGF::OT::IGF ARCHITECT-ENGINEER SERVICES FOR THE STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE (SPRPMO)
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130
Plain-Language Summary
Department of Energy obligated $29.3 million to VALI COOPER INTERNATIONAL LLC for work described as: IGF::OT::IGF ARCHITECT-ENGINEER SERVICES FOR THE STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE (SPRPMO) Key points: 1. Contract awarded for architect-engineer services supporting the Strategic Petroleum Reserve. 2. The contract utilized full and open competition after exclusion of sources. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The contract duration was 2191 days, spanning over six years. 5. The contract was awarded to a single vendor, Vali Cooper International LLC. 6. The contract value is approximately $29.3 million.
Value Assessment
Rating: fair
The contract's value of $29.3 million over six years for architect-engineer services appears reasonable for specialized support to the Strategic Petroleum Reserve. However, without specific deliverables or performance metrics, a detailed value-for-money assessment is challenging. Benchmarking against similar A-E contracts for large-scale infrastructure projects would provide better context for pricing and efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests an initial broad solicitation followed by a narrowing of the field. The fact that only one offer was received and awarded indicates limited competition at the final stage. This could be due to highly specialized requirements or a lack of interested bidders.
Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers as the government may have less leverage to negotiate favorable terms.
Public Impact
The primary beneficiaries are the Department of Energy and the Strategic Petroleum Reserve, ensuring continued operational support. Services delivered include architect and engineering expertise crucial for maintaining and potentially upgrading critical energy infrastructure. The geographic impact is centered around the Strategic Petroleum Reserve facilities, primarily located in Louisiana and Texas. The contract supports a specialized workforce of engineers and architects, contributing to the technical expertise within the energy sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition at the award stage raises concerns about potential price inflation and reduced incentive for cost efficiency.
- The Cost Plus Award Fee structure, while incentivizing performance, can lead to higher overall costs if not carefully managed and monitored.
- Lack of detailed performance data makes it difficult to assess the true value and effectiveness of the services rendered.
Positive Signals
- The contract was awarded through a competitive process, even if limited at the final stage, suggesting an effort to secure qualified services.
- The use of an award fee structure demonstrates an intent to reward high performance, potentially leading to better project outcomes.
- The long duration of the contract suggests a stable, ongoing need for these specialized services, indicating a strategic alignment with SPR objectives.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting critical infrastructure for national energy security. The Strategic Petroleum Reserve is a unique government asset requiring specialized architect and engineering expertise for its maintenance and modernization. Comparable spending benchmarks would involve other large-scale government infrastructure projects or specialized engineering support contracts within the energy sector.
Small Business Impact
The provided data does not indicate any small business set-aside provisions or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's Inspector General and relevant program management offices. Accountability measures are embedded in the Cost Plus Award Fee structure, which incentivizes performance. Transparency is generally maintained through contract award databases, though specific performance details may be less public.
Related Government Programs
- Strategic Petroleum Reserve Operations
- Department of Energy Engineering and Construction Contracts
- Architect-Engineer Services for Federal Facilities
Risk Flags
- Limited competition at award stage
- Potential for cost overruns in CPAF contracts if not managed
- Lack of detailed performance metrics in public data
Tags
energy, department-of-energy, strategic-petroleum-reserve, architect-engineer-services, definitive-contract, cost-plus-award-fee, full-and-open-competition, louisiana, engineering-services, infrastructure, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $29.3 million to VALI COOPER INTERNATIONAL LLC. IGF::OT::IGF ARCHITECT-ENGINEER SERVICES FOR THE STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE (SPRPMO)
Who is the contractor on this award?
The obligated recipient is VALI COOPER INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $29.3 million.
What is the period of performance?
Start: 2014-08-15. End: 2020-08-14.
What specific architect and engineering services were provided under this contract, and how did they contribute to the SPR's mission?
The contract provided essential architect and engineering (A-E) services for the Strategic Petroleum Reserve Project Management Office (SPRPMO). These services likely encompassed a range of activities critical to maintaining and potentially upgrading the SPR's vast infrastructure, which includes storage facilities, pipelines, and associated systems. This could involve design, planning, construction oversight, technical studies, and environmental assessments. The contribution to the SPR's mission is direct: ensuring the operational readiness and integrity of the nation's emergency crude oil supply. Without specific task orders or performance reports, the precise nature and impact of these services remain generalized, but they are fundamental to the SPR's role in mitigating disruptions to the U.S. energy supply.
How does the $29.3 million contract value compare to similar architect-engineer contracts for large federal infrastructure projects?
Benchmarking the $29.3 million contract value requires comparison with similar architect-engineer (A-E) services for large federal infrastructure projects, particularly those involving critical national assets. Contracts for major defense installations, large-scale transportation projects (like airport expansions or bridge construction), or significant upgrades to federal research facilities can offer comparative data. However, the SPR's unique nature as a strategic energy reserve means direct comparisons might be limited. Generally, A-E services for projects of this scale, spanning multiple years, can range from tens to hundreds of millions of dollars, depending on complexity, scope, and duration. The value here appears moderate for a six-year engagement supporting a critical national asset, suggesting a focused scope or a competitive award, though further analysis of specific deliverables would be needed for a definitive comparison.
What were the key performance indicators (KPIs) or award criteria used in the Cost Plus Award Fee structure for Vali Cooper International LLC?
The Cost Plus Award Fee (CPAF) contract structure implies that Vali Cooper International LLC's performance was evaluated against pre-defined criteria, and a portion of the total contract price was contingent upon achieving certain performance levels. While the specific KPIs are not detailed in the provided data, typical award criteria for A-E services in such contexts often include factors like schedule adherence, cost control (within the 'cost plus' aspect), quality of deliverables (designs, reports, recommendations), responsiveness to government needs, and overall project management effectiveness. The 'award fee' component would be determined by a government evaluation of how well the contractor met or exceeded these criteria, allowing for incentive-based compensation. Without access to the contract's Performance Work Statement (PWS) or award fee determination documents, the exact metrics remain unknown.
What is the historical spending pattern for architect-engineer services related to the Strategic Petroleum Reserve?
Analyzing historical spending patterns for SPR architect-engineer (A-E) services would involve examining contract awards over previous years. This contract, awarded in August 2014 and ending in August 2020, represents a significant period of A-E support. To understand the pattern, one would look at the frequency, value, and duration of prior A-E contracts for the SPR. Were there similar large, multi-year contracts, or was support typically procured through smaller, more frequent task orders? Understanding this history can reveal trends in infrastructure investment, modernization efforts, and the government's approach to securing specialized engineering expertise for the SPR. Significant fluctuations might indicate periods of major upgrades or maintenance cycles versus routine operational support.
Given the 'Full and Open Competition After Exclusion of Sources' designation, what does this imply about the initial solicitation and bidder pool?
The designation 'Full and Open Competition After Exclusion of Sources' suggests a multi-stage procurement process. Initially, the government likely issued a broad solicitation (Request for Proposal or similar) under full and open competition, inviting all responsible sources to submit proposals. However, for reasons specified in the Federal Acquisition Regulation (FAR), certain sources may have been excluded from further consideration at a later stage, or perhaps the initial pool of respondents was narrowed significantly based on specific qualifications or requirements. This could occur if, for example, only a few firms possessed the highly specialized expertise or security clearances required for the SPR project. While it started as open competition, the 'exclusion of sources' aspect indicates that the final competition was more limited, potentially impacting the number of final bidders and the overall competitive pressure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Solicitation ID: DE-SOL-0005649
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 126 TERRA BELLA BLVD STE B, COVINGTON, LA, 70433
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $38,456,355
Exercised Options: $38,456,355
Current Obligation: $29,272,085
Actual Outlays: $2,460,066
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,400,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-08-15
Current End Date: 2020-08-14
Potential End Date: 2020-08-14 00:00:00
Last Modified: 2022-05-31
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