Interior Department's $12.7M Engineering Services Contract Awarded to Concurrent Technologies Corp

Contract Overview

Contract Amount: $12,757,094 ($12.8M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of the Interior

Start Date: 2003-02-15

End Date: 2010-09-30

Contract Duration: 2,784 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15905

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $12.8 million to CONCURRENT TECHNOLOGIES CORP for work described as: Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Long duration of 2784 days suggests a sustained need for engineering services. 3. Awarded as a sole-source contract, raising questions about price competitiveness. 4. The contract falls under engineering services, a broad category with varying market rates. 5. Performance period spans from 2003 to 2010, providing historical context for value assessment. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the broad 'engineering services' category. The cost-plus-fixed-fee structure inherently carries more risk for the government compared to fixed-price contracts, as costs can escalate. Without comparable sole-source awards for similar engineering services within the Department of the Interior during that period, it's difficult to definitively assess if the pricing was optimal. However, the extended duration and the nature of the services suggest a significant investment.

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 among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means there was no direct price comparison with other potential providers, which can limit the government's ability to secure the most favorable pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the competitive pressure that drives down prices.

Public Impact

The Department of the Interior benefits from sustained engineering support for its operations. Services delivered likely encompass a range of engineering disciplines crucial for departmental functions. The contract's geographic impact is centered in Pennsylvania, where the contractor is located. Workforce implications include employment opportunities for engineers and support staff at Concurrent Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type introduces risk of cost escalation.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Extended contract duration may indicate a lack of market exploration for more cost-effective solutions.
Absence of small business participation limits opportunities for smaller, potentially innovative firms.

Positive Signals

Concurrent Technologies Corp. likely provided specialized engineering expertise to the Department of the Interior.
The long duration suggests a stable and reliable partnership, potentially leading to efficient service delivery.
The contract fulfilled a specific, ongoing need within the Department of the Interior.
The fixed-fee component of the contract provides some level of cost certainty for the government.

Sector Analysis

The engineering services sector is diverse, encompassing a wide range of specialized disciplines. Contracts in this area often support government infrastructure, research and development, and operational needs. The market size for federal engineering services is substantial, with numerous firms competing for various types of contracts. This specific award to Concurrent Technologies Corp. fits within the broader landscape of federal agencies procuring specialized technical expertise to support their missions.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract were likely limited. The absence of a small business focus could mean that larger, established firms dominated the service provision, potentially impacting the broader small business ecosystem that relies on federal contracting.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers and program managers within the Department of the Interior. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including regular reporting and performance reviews. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior Engineering Contracts
Federal Engineering Services Procurement
Cost-Plus-Fixed-Fee Contracts
Sole-Source Federal Awards

Risk Flags

Sole-source award
Cost-plus contract type
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.8 million to CONCURRENT TECHNOLOGIES CORP. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2003-02-15. End: 2010-09-30.

What specific engineering services did Concurrent Technologies Corp. provide under this contract?

The provided data indicates the contract falls under NAICS code 541330, which is 'Engineering Services.' This is a broad category that can encompass a wide array of specialized services, including civil, mechanical, electrical, environmental, and structural engineering, as well as project management and consulting. Without more specific contract details or task orders, it is impossible to determine the exact nature of the engineering services rendered. However, given the awarding agency is the Department of the Interior, these services likely supported the agency's mission-critical infrastructure, resource management, or environmental protection initiatives.

How does the $12.7 million contract value compare to similar engineering services contracts awarded by the Department of the Interior during that period?

Comparing this $12.7 million contract value to similar Department of the Interior (DOI) engineering services contracts awarded between 2003 and 2010 requires access to historical federal procurement databases. However, as a sole-source award over a long duration (2784 days, approximately 7.6 years), this represents a significant investment. Sole-source awards often bypass the competitive bidding process, which can sometimes lead to higher prices than if the contract had been competed. Without comparative data on competed contracts for similar services, it's difficult to definitively state if this represented good or poor value. The cost-plus-fixed-fee structure also adds a layer of complexity to value assessment, as actual costs could have varied.

What were the justifications for awarding this contract on a sole-source basis?

Sole-source contract awards are typically justified when only one responsible source is available or capable of providing the required services. Common justifications include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when a specific contractor has already invested significantly in specialized equipment or knowledge for a particular project. For this contract with Concurrent Technologies Corp., the specific justification from the Department of the Interior is not provided in the data. However, such justifications are usually documented and approved through formal processes to ensure fair and reasonable procurement practices, even in the absence of competition.

What is the typical risk associated with Cost Plus Fixed Fee (CPFF) contracts, and how might it apply here?

Cost Plus Fixed Fee (CPFF) contracts are used when the scope of work is not precisely defined, and there's a degree of uncertainty in the costs involved. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If costs escalate beyond initial estimates, the government pays more. This contrasts with fixed-price contracts where the contractor bears more risk for cost overruns. In this case, the CPFF structure for engineering services suggests that the Department of the Interior accepted the risk of potentially higher costs in exchange for flexibility in service delivery or access to specialized expertise. The fixed fee provides some predictability regarding the contractor's profit margin.

How has federal spending on engineering services evolved since this contract was awarded?

Federal spending on engineering services has generally seen fluctuations influenced by economic conditions, national priorities, and specific agency needs. Since the period of this contract (2003-2010), there has been a continued demand for engineering expertise across various sectors, including infrastructure, defense, energy, and technology. Agencies like the Department of the Interior consistently require engineering support for managing public lands, water resources, and infrastructure projects. While specific year-over-year spending figures vary, the overall trend indicates a sustained and significant federal investment in engineering services to support government operations and national objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,807,251

Exercised Options: $12,757,094

Current Obligation: $12,757,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: IND03PC60077

IDV Type: IDC

Timeline