EPA's $34M R&D Support Contract Awarded to Pegasus Technical Services Under Full and Open Competition

Contract Overview

Contract Amount: $33,989,001 ($34.0M)

Contractor: Pegasus Technical Services, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2015-09-30

End Date: 2021-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OFFICE OF RESEARCH AND DEVELOPMENT RISK MANAGEMENT AND ECOLOGICAL EXPOSURE RESEARCH SUPPORT SERVICES IGF::OT::IGF

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45219

State: Ohio Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $34.0 million to PEGASUS TECHNICAL SERVICES, INC for work described as: OFFICE OF RESEARCH AND DEVELOPMENT RISK MANAGEMENT AND ECOLOGICAL EXPOSURE RESEARCH SUPPORT SERVICES IGF::OT::IGF Key points: 1. The contract, valued at $33.99 million, supports research and development in physical, engineering, and life sciences. 2. Pegasus Technical Services, Inc. secured the award through full and open competition after exclusion of sources. 3. The contract duration spans from September 30, 2015, to March 29, 2021, with a Cost Plus Fixed Fee pricing structure. 4. The North American Industry Classification System (NAICS) code 541712 indicates a focus on R&D services. 5. The awarding agency is the Environmental Protection Agency (EPA).

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency. Pricing assessment requires comparison with similar R&D support service contracts to determine if the fixed fee and overall cost are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process that aimed to solicit bids from a broad range of qualified contractors. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently by securing services at a reasonable cost.

Public Impact

Supports critical environmental research and development initiatives by the EPA. Ensures access to specialized scientific and technical expertise for government projects. The contract's duration and scope suggest a significant, ongoing need for these services. Potential for innovation and scientific advancement stemming from the funded research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The 'Exclusion of Sources' clause warrants understanding to ensure true breadth of competition.
Long contract duration may require periodic review to ensure continued relevance and value.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Supports vital R&D for the Environmental Protection Agency.
Contractor has a history of performance, implied by the award.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. Spending in this sector is crucial for scientific advancement and addressing complex societal challenges, with benchmarks varying widely based on the specific research area and agency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Analysis of the prime contractor's size and any subcontracting opportunities for small businesses would be necessary to assess their participation.

Oversight & Accountability

The Environmental Protection Agency is the awarding and oversight agency. Oversight would involve monitoring contract performance, expenditures, and adherence to terms, particularly given the CPFF structure and extended duration.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Contract type (CPFF) can pose cost control challenges.
Potential for scope creep in long-term R&D contracts.
Need to verify the extent of competition achieved under 'Exclusion of Sources'.
Limited visibility into specific R&D outcomes and their direct impact.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $34.0 million to PEGASUS TECHNICAL SERVICES, INC. OFFICE OF RESEARCH AND DEVELOPMENT RISK MANAGEMENT AND ECOLOGICAL EXPOSURE RESEARCH SUPPORT SERVICES IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PEGASUS TECHNICAL SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-03-29.

What specific R&D areas were prioritized under this contract, and how did they align with EPA's strategic goals?

The contract supports 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. Specific R&D areas would be detailed in the contract's statement of work. Alignment with EPA's strategic goals would require reviewing the agency's research priorities and how this contract's objectives contribute to those broader objectives, such as environmental protection, climate change mitigation, or public health.

How does the fixed fee component of the CPFF contract compare to industry standards for similar R&D support services?

Assessing the competitiveness of the fixed fee requires benchmarking against similar contracts awarded by government agencies or in the private sector for comparable R&D support services. Factors like the complexity of the research, required expertise, and contractor overhead influence fee structures. A detailed cost analysis and comparison with market rates are essential to determine if the fee represents fair value.

What mechanisms were in place to ensure effective performance and accountability from Pegasus Technical Services throughout the contract's duration?

Effective performance and accountability are typically ensured through regular progress reports, performance metrics defined in the contract, site visits, and formal reviews by the EPA contracting officer's representative. For CPFF contracts, rigorous financial oversight is also critical to track costs and ensure they remain within budgeted limits and are reasonable and allocable to the contract.

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 › Natural Resources and Environment R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-CI-14-00019

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 46 E HOLLISTER STREET, CINCINNATI, OH, 45219

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $51,573,595

Exercised Options: $39,093,815

Current Obligation: $33,989,001

Actual Outlays: $207,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline