Navarro Research and Engineering awarded $428.7M for IT, records management, and support services to DOE's Office of Legacy Management
Contract Overview
Contract Amount: $428,660,869 ($428.7M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2015-01-29
End Date: 2021-08-31
Contract Duration: 2,406 days
Daily Burn Rate: $178.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF LONG TERM SURVEILLANCE AND MAINTENANCE (LTS&M), INFORMATION TECHNOLOGY AND RECORDS MANAGEMENT, ASSET MANAGEMENT, BUSINESS, AND PROGRAM-WIDE SUPPORT SERVICES FOR THE OFFICE OF LEGACY MANAGEMENT.
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81501
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $428.7 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: IGF::OT::IGF LONG TERM SURVEILLANCE AND MAINTENANCE (LTS&M), INFORMATION TECHNOLOGY AND RECORDS MANAGEMENT, ASSET MANAGEMENT, BUSINESS, AND PROGRAM-WIDE SUPPORT SERVICES FOR THE OFFICE OF LEGACY MANAGEMENT. Key points: 1. Contract provides essential IT, records management, and program support, crucial for the long-term stewardship of legacy sites. 2. The contract's duration of over 6 years suggests a significant, ongoing need for these services. 3. Awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process with specific justifications. 4. The Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful monitoring of costs and award fees. 5. The significant value of the contract highlights the substantial investment in managing legacy environmental and operational data. 6. This contract supports critical functions related to environmental remediation and asset management for former federal sites.
Value Assessment
Rating: good
The contract value of $428.7 million over approximately six years represents a substantial investment in long-term legacy site management. While specific benchmarks for comparable IT and program support services for environmental legacy management are difficult to pinpoint due to the specialized nature of the work, the pricing structure (Cost Plus Award Fee) suggests a focus on performance-based outcomes. The agency's use of this contract type indicates a desire to incentivize high performance in a complex, long-term service delivery environment. Further analysis would require detailed cost breakdowns and comparison with similar contracts for environmental program support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, certain sources were excluded, likely due to specific requirements or prior performance. The number of bidders (8) indicates a degree of competition, but the exclusion of sources may limit the breadth of competition compared to a truly unrestricted full and open process. This approach can sometimes lead to higher prices if the excluded sources represent significant market players.
Taxpayer Impact: The exclusion of certain sources, even with 8 bidders, may have limited the potential for the most competitive pricing, potentially resulting in a higher cost to taxpayers than a fully unrestricted competition.
Public Impact
The primary beneficiaries are the Department of Energy's Office of Legacy Management and its mission to safely manage former federal sites. Services delivered include IT infrastructure, records management, asset management, and program-wide support, ensuring continuity and data integrity. The geographic impact is national, supporting the management of legacy sites across the United States. Workforce implications include the employment of personnel with expertise in IT, environmental science, records management, and program support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not rigorously managed.
- The 'Exclusion of Sources' in the competition may have limited the overall competitive pressure on pricing.
- Long-term nature of the contract requires sustained oversight to ensure continued value and performance.
- Dependence on a single contractor for critical IT and program support functions could pose a risk if performance degrades.
Positive Signals
- The contract addresses a critical, long-term government need for managing legacy environmental and operational liabilities.
- The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
- The award to Navarro Research and Engineering, Inc. suggests confidence in their capabilities for these specialized services.
- The significant duration indicates a stable, ongoing requirement, allowing for long-term planning and resource allocation.
Sector Analysis
This contract falls within the IT, professional services, and environmental remediation support sectors. The IT and records management components are standard for large government programs, while the asset and program-wide support services are tailored to the unique needs of managing legacy environmental sites. The overall market for such specialized environmental management and IT support is significant, driven by ongoing federal and state responsibilities for former industrial and defense sites. Benchmarking is challenging due to the integrated nature of IT, records, and program support for environmental legacy management.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large prime contract valued at over $400 million, it is unlikely to be directly performed by small businesses. However, the prime contractor, Navarro Research and Engineering, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the service delivery. The extent of small business subcontracting would depend on the contractor's subcontracting plan and the specific requirements of the work.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee structure necessitates close monitoring of costs, performance metrics, and the justification for award fees. Transparency is generally maintained through contract reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the DOE Office of Inspector General typically has oversight authority over DOE contracts to ensure efficiency and prevent fraud, waste, and abuse.
Related Government Programs
- Department of Energy Environmental Management Program
- Federal Records Management
- Legacy Site Cleanup Contracts
- Government IT Infrastructure Support
- Asset Management Services
Risk Flags
- Potential for cost creep in CPA contracts.
- Limited competition due to source exclusion.
- Long-term dependency on a single contractor.
- Need for sustained, rigorous oversight.
Tags
it-services, records-management, program-support, environmental-remediation, department-of-energy, office-of-legacy-management, cost-plus-award-fee, limited-competition, navarro-research-and-engineering, long-term-contract, federal-contract, us-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $428.7 million to NAVARRO RESEARCH AND ENGINEERING, INC.. IGF::OT::IGF LONG TERM SURVEILLANCE AND MAINTENANCE (LTS&M), INFORMATION TECHNOLOGY AND RECORDS MANAGEMENT, ASSET MANAGEMENT, BUSINESS, AND PROGRAM-WIDE SUPPORT SERVICES FOR THE OFFICE OF LEGACY MANAGEMENT.
Who is the contractor on this award?
The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $428.7 million.
What is the period of performance?
Start: 2015-01-29. End: 2021-08-31.
What is the track record of Navarro Research and Engineering, Inc. with the Department of Energy and similar contracts?
Navarro Research and Engineering, Inc. has a significant history of working with the Department of Energy, particularly in areas related to environmental management, legacy site support, and technical services. Their involvement in large-scale contracts, such as this one for the Office of Legacy Management, suggests a proven capability to handle complex, long-term government requirements. Prior performance reviews and contract histories would provide a more detailed understanding of their performance on specific projects, including adherence to schedules, budget management, and quality of deliverables. Their sustained presence in this sector indicates a generally positive track record, though specific details on past issues or exceptional performance would require deeper investigation into individual contract data.
How does the value of this contract compare to similar IT and program support services for environmental legacy management?
Directly comparing the $428.7 million value of this contract to 'similar' IT and program support services for environmental legacy management is challenging due to the highly specialized and integrated nature of the work. Contracts for environmental remediation and management often include a broad scope of services, encompassing technical, scientific, IT, and administrative support. The value reflects the long-term commitment (over 6 years) and the critical nature of managing vast amounts of data and infrastructure related to former federal sites. While general IT support contracts might be benchmarked against industry standards, the environmental legacy component adds a unique complexity and cost factor. The Department of Energy's specific requirements for data integrity, long-term record keeping, and site stewardship likely contribute to the overall contract value, making direct comparisons with less specialized contracts difficult.
What are the primary risks associated with a Cost Plus Award Fee (CPA) contract of this magnitude?
The primary risks associated with a Cost Plus Award Fee (CPA) contract of this magnitude ($428.7 million) revolve around cost control and the potential for contractor inefficiency if not managed properly. In a CPA structure, the contractor is reimbursed for allowable costs plus a fee that is composed of a base fee and an award fee. The award fee is contingent upon meeting or exceeding specific performance objectives. The risk for the government is that costs could escalate beyond initial projections if performance objectives are not clearly defined, measurable, and rigorously monitored. There's also a risk that the contractor might focus on achieving award fee criteria at the expense of other critical, but less incentivized, aspects of the contract. Effective oversight, clear performance metrics, and strong contract administration are crucial to mitigate these risks and ensure value for money.
How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' approach aims to balance the benefits of competition with specific agency needs or justifications for excluding certain potential bidders. While it is more competitive than a sole-source award, it is inherently less competitive than unrestricted 'Full and Open Competition.' The value for taxpayers depends heavily on the rationale for excluding sources and the number of remaining bidders. If the exclusion is well-justified (e.g., based on unique capabilities, security requirements, or prior performance issues with excluded entities) and there are still multiple capable bidders, it can lead to competitive pricing. However, if significant market players are excluded without strong justification, it could limit price discovery and potentially lead to higher costs for taxpayers compared to a scenario with broader competition.
What are the implications of the contract's long duration (over 6 years) for program continuity and contractor performance?
The long duration of this contract (approximately 6 years, 2406 days) offers significant benefits for program continuity and allows the contractor to develop deep expertise in the specific needs of the Office of Legacy Management. This stability can lead to more efficient operations and a better understanding of the complex data and systems involved. For the contractor, a long-term contract provides a predictable revenue stream, potentially encouraging investment in specialized resources and personnel. However, a long duration also necessitates robust oversight mechanisms to ensure that performance does not degrade over time and that the contract remains aligned with evolving agency needs. Regular performance reviews and opportunities to re-evaluate the contract's structure or scope are important to maintain value and adapt to changing requirements.
What is the significance of the 'Remediation Services' North American Industry Classification System (NAICS) code?
The NAICS code '562910 - Remediation Services' indicates that the primary business activity associated with this contract involves the cleanup or restoration of property or the environment. For the Department of Energy's Office of Legacy Management, this code is highly relevant as it signifies the contract's role in managing the environmental consequences and physical assets of former energy production and research facilities. This includes activities such as hazardous waste management, site assessment, decontamination, and long-term environmental monitoring. The code suggests that a significant portion of the services, beyond just IT and program support, may involve direct or indirect contributions to environmental remediation efforts, underscoring the critical mission of the Office of Legacy Management.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0002716
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 669 EMORY VALLEY RD, OAK RIDGE, TN, 37830
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $443,414,993
Exercised Options: $443,414,993
Current Obligation: $428,660,869
Actual Outlays: $97,085,927
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-01-29
Current End Date: 2021-08-31
Potential End Date: 2021-08-31 00:00:00
Last Modified: 2024-02-27
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