DOE's $26.8M TREDS contract for Nevada Site Office awarded non-competitively to Nevada System of Higher Education
Contract Overview
Contract Amount: $26,824,054 ($26.8M)
Contractor: Nevada System of Higher Education
Awarding Agency: Department of Energy
Start Date: 2011-11-01
End Date: 2017-05-30
Contract Duration: 2,037 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: TECHNICAL RESEARCH, ENGINEERING, AND DEVELOPMENT SERVICES (TREDS) FOR NEVADA SITE OFFICE - NSO.
Place of Performance
Location: MERCURY, NYE County, NEVADA, 89023
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $26.8 million to NEVADA SYSTEM OF HIGHER EDUCATION for work described as: TECHNICAL RESEARCH, ENGINEERING, AND DEVELOPMENT SERVICES (TREDS) FOR NEVADA SITE OFFICE - NSO. Key points: 1. Contract awarded without competition, raising questions about potential cost savings and optimal resource allocation. 2. The contract's duration of over 2000 days suggests a long-term need for these R&D services. 3. Focus on physical, engineering, and life sciences R&D indicates specialized technical requirements. 4. The 'Cost No Fee' contract type may limit incentives for cost efficiency by the contractor. 5. Awarded to a state-level higher education system, suggesting a focus on academic research partnerships. 6. The contract's value, while significant, needs to be benchmarked against similar R&D service procurements.
Value Assessment
Rating: questionable
The 'Cost No Fee' contract type is unusual for a contract of this magnitude and duration, potentially lacking strong incentives for the contractor to manage costs effectively. Without competitive bidding, it is difficult to benchmark the pricing against market rates or alternative providers. The total value of over $26.8 million over approximately five years suggests a substantial investment in research and development services. Further analysis would require comparing the scope of work and deliverables to similar R&D contracts awarded through competitive processes to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process where multiple vendors would submit proposals, allowing for price and technical comparisons. The lack of competition means the government did not benefit from the potential for lower prices or innovative solutions that a competitive environment typically fosters. The rationale for a sole-source award would need to be thoroughly justified, often due to unique capabilities or circumstances.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.
Public Impact
The Nevada System of Higher Education benefits through funding for its research activities and personnel. The contract supports technical research, engineering, and development services crucial for the Department of Energy's mission. Geographic impact is primarily focused on Nevada, where the Nevada Site Office is located and research is likely conducted. Workforce implications include employment for researchers, engineers, and support staff within the higher education system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- The 'Cost No Fee' structure might disincentivize cost control by the contractor.
- Sole-source awards can limit opportunities for other capable research institutions or companies.
Positive Signals
- Award to a higher education institution can foster academic research and development.
- Contract supports critical R&D services for a key government agency.
- Long-term nature of the contract provides stability for research efforts.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. This is a broad category encompassing a wide range of scientific and technical endeavors. The Department of Energy is a significant investor in R&D across various scientific disciplines. Benchmarking this contract's value would involve comparing it to other large-scale R&D service contracts awarded by federal agencies, particularly those focused on similar scientific areas and with comparable durations and scopes of work.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). As a sole-source contract awarded to a large state system, there are likely no direct small business set-aside provisions. Subcontracting opportunities for small businesses would depend on the Nevada System of Higher Education's internal policies and the specific needs of the research projects, but are not explicitly mandated by the contract details provided.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The Inspector General's office for the Department of Energy would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is limited due to the non-competitive nature of the award; however, contract awards are generally publicly reported. Accountability would be measured against the defined scope of work and performance metrics, if any were established.
Related Government Programs
- Department of Energy Research and Development Programs
- National Laboratory Support Services
- University Research Partnerships
- Federal Science and Technology Funding
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-reimbursement contract without fee may reduce cost-control incentives.
- Limited transparency due to non-competitive nature.
Tags
research-and-development, department-of-energy, nevada, sole-source, cost-reimbursement, higher-education, technical-services, physical-sciences, engineering, life-sciences, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26.8 million to NEVADA SYSTEM OF HIGHER EDUCATION. TECHNICAL RESEARCH, ENGINEERING, AND DEVELOPMENT SERVICES (TREDS) FOR NEVADA SITE OFFICE - NSO.
Who is the contractor on this award?
The obligated recipient is NEVADA SYSTEM OF HIGHER EDUCATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $26.8 million.
What is the period of performance?
Start: 2011-11-01. End: 2017-05-30.
What specific research and development activities are encompassed by this contract?
The contract, titled 'TECHNICAL RESEARCH, ENGINEERING, AND DEVELOPMENT SERVICES (TREDS) FOR NEVADA SITE OFFICE - NSO,' focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While the specific projects are not detailed in the provided data, this broad classification suggests activities could range from fundamental scientific inquiry to applied engineering solutions relevant to the Department of Energy's mission. This might include areas like nuclear science, materials science, environmental remediation technologies, energy systems research, or advanced manufacturing processes. The Nevada Site Office's specific operational needs would dictate the precise nature of the R&D undertaken.
Why was this contract awarded on a sole-source basis instead of being competed?
The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'sole-source' award. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique intellectual property, specialized facilities, or a critical need that cannot be fulfilled by any other entity within the required timeframe. For this specific contract, the award to the Nevada System of Higher Education might suggest that the agency identified unique research capabilities or existing partnerships within the system that made it the only viable option. A formal justification for the sole-source award would be required by federal acquisition regulations.
How does the 'Cost No Fee' contract type impact contractor incentives and government oversight?
A 'Cost No Fee' (Cost) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the scope of work is uncertain or when the government wants to encourage maximum effort without the contractor bearing financial risk. For this contract, it means the Nevada System of Higher Education is reimbursed for its expenses related to the R&D services but does not earn a profit. This can incentivize the contractor to perform the work diligently to meet objectives, but it also places a greater burden on the government to meticulously monitor and audit costs to ensure they are reasonable, allocable, and allowable. Without a fee, the contractor has less financial incentive to control costs beyond what is necessary to complete the work.
What is the historical spending pattern for TREDS services at the Nevada Site Office?
The provided data only details a single contract for TREDS services awarded from November 1, 2011, to May 30, 2017, with a total value of $26,824,054.13. This represents a specific period and a specific award. To understand the historical spending pattern, one would need to examine procurement data for the Nevada Site Office over a longer timeframe, looking for previous or subsequent contracts for similar TREDS services. This would involve searching federal procurement databases for contracts awarded to the Nevada System of Higher Education or other entities performing similar R&D functions for the NSO. Without access to broader historical data, it's impossible to establish a trend or pattern beyond this single contract.
What are the potential risks associated with awarding a large R&D contract non-competitively?
Awarding a large R&D contract non-competitively, as seen with this $26.8 million TREDS contract, carries several potential risks. Firstly, the government may not achieve the best possible value for its money, as competition typically drives down prices and encourages innovation. Without bids from multiple sources, there's a risk of paying a higher price than necessary. Secondly, it limits the opportunity for other qualified research institutions or companies to demonstrate their capabilities and potentially offer superior solutions. Thirdly, the lack of a competitive process can sometimes mask inefficiencies or a lack of robust performance management, as the contractor may feel less pressure to excel compared to a competitive scenario. Finally, it can raise concerns about fairness and equal opportunity in government contracting.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: State of Nevada (UEI: 067808063)
Address: 2215 RAGGIO PKWY, RENO, NV, 89512
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,557,062
Exercised Options: $38,557,062
Current Obligation: $26,824,054
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $11,541,582
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-11-01
Current End Date: 2017-05-30
Potential End Date: 2017-05-30 00:00:00
Last Modified: 2019-06-04
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