Interior's $12.1M Engineering Services Contract with Concurrent Technologies Corp. Lacked Competition

Contract Overview

Contract Amount: $12,092,282 ($12.1M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of the Interior

Start Date: 2007-05-02

End Date: 2011-05-01

Contract Duration: 1,460 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: R&D

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $12.1 million to CONCURRENT TECHNOLOGIES CORP for work described as: R&D Key points: 1. Significant spending on engineering services for departmental offices. 2. Sole-source award raises questions about price discovery and value. 3. Long contract duration (4 years) with cost-plus-fixed-fee structure. 4. No small business participation noted in this specific award.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the $12.1M price reflects fair market value for engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition on this $12.1M contract means taxpayers may have paid a premium compared to a competitively awarded contract.

Public Impact

Taxpayers funded $12.1 million for engineering services without competitive bidding. The Department of the Interior's internal operations were supported by this contract. Long-term engagement (4 years) suggests ongoing needs for these engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long contract duration

Positive Signals

Services provided to Departmental Offices

Sector Analysis

Engineering services are crucial for government operations, including infrastructure, research, and development. Spending benchmarks vary widely by agency and specific service, but competitive procurement is standard practice to ensure value.

Small Business Impact

This specific contract award did not involve small businesses. Further analysis would be needed to determine if small businesses are generally excluded from similar engineering service contracts within the Department of the Interior.

Oversight & Accountability

The 'NOT COMPETED' status suggests a waiver of standard competitive procedures. Oversight should ensure such waivers are justified and that the pricing remains reasonable despite the lack of competition.

Related Government Programs

Engineering Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Sole-source award
Cost-plus contract type
Long contract duration
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.1 million to CONCURRENT TECHNOLOGIES CORP. R&D

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 $12.1 million.

What is the period of performance?

Start: 2007-05-02. End: 2011-05-01.

What was the justification for not competing this $12.1M engineering services contract?

The provided data does not include the specific justification for the sole-source award. Typically, agencies cite reasons such as urgency, unique capabilities, or lack of available sources. Without this information, it's impossible to fully assess the necessity of bypassing competition for these engineering services.

How does the Cost Plus Fixed Fee structure impact the risk of cost overruns in this contract?

Cost Plus Fixed Fee (CPFF) contracts share cost risks between the government and the contractor. While the contractor's profit is fixed, they are incentivized to control costs to maximize their return on investment. However, if costs escalate significantly, the government bears the brunt, making oversight crucial to prevent excessive spending.

What is the potential impact of a 4-year contract duration on service relevance and cost-effectiveness?

A 4-year duration can provide stability and continuity for essential services. However, it also risks locking the government into potentially outdated technologies or methodologies if the sector evolves rapidly. Furthermore, longer contracts may reduce the agency's flexibility to adapt to changing needs or to seek more competitive pricing over time.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

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

Financial Breakdown

Contract Ceiling: $12,092,283

Exercised Options: $12,092,282

Current Obligation: $12,092,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: IND06PC60092

IDV Type: IDC

Timeline