EPA awards $14.38M for R&D facility support, raising questions on value and competition

Contract Overview

Contract Amount: $14,380,956 ($14.4M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2009-07-01

End Date: 2014-05-31

Contract Duration: 1,795 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL RESEARCH AND FACILITY OPERATIONS SUPPORT SERVICES.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.4 million to APTIM FEDERAL SERVICES, LLC for work described as: TECHNICAL RESEARCH AND FACILITY OPERATIONS SUPPORT SERVICES. Key points: 1. Contract value appears reasonable for specialized R&D support over a 5-year period. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 4. Performance occurred over five years ago, limiting direct comparison to current market rates. 5. The contractor has experience in federal facility operations and support services. 6. The North American Industry Classification System (NAICS) code indicates a focus on physical and engineering R&D. 7. The contract was awarded by the Environmental Protection Agency (EPA). 8. The contract was a definitive contract, suggesting a single award.

Value Assessment

Rating: fair

The contract's total value of $14.38 million over nearly five years averages to approximately $2.88 million annually. This figure seems within a reasonable range for specialized technical research and facility operations support services, especially considering the complexity often associated with EPA facilities. However, without specific details on the scope of services provided and the labor mix, a precise value-for-money assessment is challenging. Benchmarking against similar EPA contracts for facility operations and R&D support would provide a clearer picture of whether the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests that while competition was present, it may not have been extensive. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bids could imply barriers to entry for other firms or a niche market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bids received, the potential for significant cost savings might have been limited compared to a scenario with numerous competing proposals.

Public Impact

The primary beneficiaries are likely the scientists and researchers at the EPA facilities who receive uninterrupted operational support. Services delivered include the maintenance and operation of specialized research facilities, ensuring their readiness for scientific endeavors. The geographic impact is concentrated in Virginia, where the EPA facilities supported by this contract are located. Workforce implications include the employment of technical staff, facility managers, and support personnel by the contractor, APTIM FEDERAL SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractors to increase costs to maximize their fixed fee, requiring stringent oversight.
Limited competition (2 bids) may have resulted in a higher price than if more firms had competed.
The contract ended in 2014, making it difficult to assess current market value and performance without historical data.

Positive Signals

Awarded under full and open competition, which is a positive signal for market fairness.
The contractor, APTIM FEDERAL SERVICES, LLC, has a history of performing federal contracts, suggesting some level of established capability.
The contract duration of nearly five years indicates a stable, long-term need for these services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for facility operations and support services for government R&D centers is specialized, requiring expertise in maintaining complex equipment and environments. Comparable spending benchmarks would involve looking at other federal agencies' contracts for similar facility management and technical support at their research installations. The size of this contract, at $14.38 million, is moderate within the broader federal R&D support services market.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement, as the 'sb' field is false. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is unclear, and it does not appear to have been structured to prioritize small business engagement.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Environmental Protection Agency's contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring would be crucial to ensure costs remained reasonable and aligned with the fixed fee. Transparency would depend on the EPA's reporting practices and any public disclosures made regarding contract performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal R&D Facility Operations Support
Environmental Research and Technology Services
EPA Contract Vehicles
Cost-Plus Contract Management
Government Facility Maintenance

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited number of bids received may indicate a lack of robust competition, potentially impacting price.
Contract performance concluded in 2014, limiting direct applicability of current market benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.4 million to APTIM FEDERAL SERVICES, LLC. TECHNICAL RESEARCH AND FACILITY OPERATIONS SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2009-07-01. End: 2014-05-31.

What was the specific scope of 'TECHNICAL RESEARCH AND FACILITY OPERATIONS SUPPORT SERVICES' provided under this contract?

The provided data indicates the contract was for 'TECHNICAL RESEARCH AND FACILITY OPERATIONS SUPPORT SERVICES.' While the exact scope is not detailed, this typically encompasses a range of activities crucial for maintaining and operating research facilities. These services often include facility maintenance and repair, utility management, environmental health and safety compliance, logistical support for research activities, security, and potentially specialized technical assistance related to the research equipment and infrastructure. For the EPA, this could involve supporting laboratories, testing facilities, and pilot plants used for environmental science research. A more granular understanding of the Statement of Work (SOW) would be necessary to fully define the services rendered.

How did APTIM FEDERAL SERVICES, LLC's past performance influence the award of this contract?

The provided data does not include specific details on APTIM FEDERAL SERVICES, LLC's past performance evaluations or how they factored into the award decision for this particular contract. However, federal agencies typically assess a contractor's past performance as a significant factor in source selection. This involves reviewing previous contract performance, including quality of work, timeliness, cost control, and customer satisfaction. Given that APTIM FEDERAL SERVICES, LLC is a federal contractor, it is reasonable to assume they have a performance record that the EPA would have reviewed. A positive track record on similar facility operations or R&D support contracts would likely have strengthened their proposal.

What were the key performance metrics and deliverables expected from APTIM FEDERAL SERVICES, LLC?

The available data does not specify the key performance metrics (KPIs) or deliverables for this contract. Typically, for facility operations and support services, KPIs might include response times for maintenance requests, uptime of critical research equipment, energy efficiency targets, safety incident rates, and compliance with environmental regulations. Deliverables would likely involve regular performance reports, maintenance logs, safety audits, and potentially project-specific reports related to research support activities. The specific metrics and deliverables would have been detailed in the contract's Statement of Work (SOW) and any associated Performance Work Statement (PWS).

Were there any significant cost variances or overruns during the performance of this contract?

The provided data does not contain information regarding cost variances or overruns during the performance of this contract. As a Cost Plus Fixed Fee (CPFF) contract, the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. While the fixed fee is predetermined, the total cost can fluctuate. Monitoring cost variances is a critical aspect of oversight for CPFF contracts. Without access to the contract's financial performance reports or audit findings, it is impossible to determine if there were significant deviations from the estimated costs.

How does the $14.38 million total contract value compare to other EPA contracts for similar services during the 2009-2014 period?

Comparing the $14.38 million total contract value to other EPA contracts for similar services between 2009 and 2014 requires access to historical federal procurement databases and specific contract details. However, as an average annual value of approximately $2.88 million, this contract appears to be of moderate size for specialized facility operations and R&D support. Larger contracts might involve comprehensive management of entire research campuses, while smaller ones could focus on specific equipment or building systems. The EPA operates numerous research facilities, and contract values would vary significantly based on the size, complexity, and specific needs of each location. A detailed market analysis of EPA's procurement history during that period would be needed for a precise comparison.

What is the significance of the contract type being 'Cost Plus Fixed Fee' (CPFF) in terms of risk and oversight?

The Cost Plus Fixed Fee (CPFF) contract type is significant because it shifts a substantial portion of the cost risk to the government. The contractor is reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee. This fixed fee represents the contractor's profit and is not subject to change regardless of the final cost of the contract. While the fixed fee provides the contractor with an incentive to control costs (as they don't earn more profit by spending more), the government bears the risk of cost overruns. Consequently, CPFF contracts require robust government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor is performing efficiently and effectively to achieve the contract objectives.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRCI0810962

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC (UEI: 080821711)

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,443,574

Exercised Options: $19,315,575

Current Obligation: $14,380,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline