DoD awards $23M energy support contract to Concurrent Technologies Corp for Marine Corps services

Contract Overview

Contract Amount: $22,959,570 ($23.0M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-04-29

Contract Duration: 947 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD IS FOR ENERGY SUPPORT SERVICES FOR THE MARINE CORPS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to CONCURRENT TECHNOLOGIES CORP for work described as: THIS AWARD IS FOR ENERGY SUPPORT SERVICES FOR THE MARINE CORPS Key points: 1. Contract focuses on essential energy support services for the Marine Corps. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of nearly 3 years indicates a significant, ongoing need for these services. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. Contractor, Concurrent Technologies Corp, has secured this significant award. 6. Services are concentrated in the District of Columbia.

Value Assessment

Rating: good

The contract value of approximately $23 million over a period of roughly 3 years suggests a substantial investment in energy support services. Benchmarking this against similar energy support contracts for large military branches would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control. Without specific per-unit cost data or direct comparisons to similar service contracts, a definitive value assessment is challenging, but the competitive award process implies a degree of market-driven pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific award. While more bidders would typically indicate stronger price discovery, full and open competition is the most robust method for ensuring a fair and competitive marketplace.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible price and value through a broad solicitation process, minimizing the risk of overpayment due to limited options.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, receiving critical energy support services. Services delivered are essential for the operational readiness and infrastructure of Marine Corps facilities. The geographic impact is concentrated in the District of Columbia, where the services will be rendered. This contract supports the defense sector's infrastructure and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for critical energy infrastructure support.
Geographic concentration may limit broader market engagement for future needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive pricing environment.
Long-term contract duration indicates a stable and reliable service provider.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to energy infrastructure and support. The market for such services is substantial within the federal government, particularly for defense agencies requiring robust and reliable energy solutions. Comparable spending benchmarks would involve analyzing other large-scale energy support contracts awarded to engineering firms by the Department of Defense or other federal entities. The $23 million award is a significant, but not unprecedented, sum for specialized engineering services over a multi-year period.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. The prime contractor, Concurrent Technologies Corp, may engage small businesses as subcontractors at its discretion, but this is not a requirement of the award itself. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Marine Corps Base Operations Support
Department of Defense Energy Management Programs
Federal Facilities Energy Infrastructure Contracts
Engineering and Technical Services Contracts

Risk Flags

Potential for scope creep impacting fixed-price budget.
Concentration of critical services in a single geographic area.
Contractor performance risk for essential infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to CONCURRENT TECHNOLOGIES CORP. THIS AWARD IS FOR ENERGY SUPPORT SERVICES FOR THE MARINE CORPS

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-04-29.

What is the track record of Concurrent Technologies Corp in delivering similar energy support services to the Department of Defense or other federal agencies?

Concurrent Technologies Corporation (CTC) has a significant history of supporting the Department of Defense (DoD) and other federal agencies with a wide range of technical and engineering services. While specific details on their energy support service contracts for the Marine Corps are not immediately available in this data, CTC is known for its work in areas such as advanced manufacturing, cybersecurity, and research and development. They often partner with government entities on complex projects. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations, contract history databases (like FPDS or SAM.gov), and client testimonials related to energy infrastructure management and support would be necessary. Their general reputation suggests they are a capable contractor for complex technical requirements.

How does the awarded amount of $23 million compare to similar energy support contracts for military branches of comparable size and scope?

The $23 million award for energy support services over approximately 3 years represents a significant investment. To benchmark this effectively, we would need to compare it against contracts for similar services (e.g., facility energy management, power generation support, energy efficiency initiatives) awarded to other military branches like the Army or Air Force, or even other large federal agencies. Factors such as the specific scope of work (e.g., maintenance, new installations, consulting), geographic location (which can affect labor and material costs), and the duration of the contract are crucial for a fair comparison. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if $23 million is high, low, or average. However, for a multi-year, firm-fixed-price contract supporting a major military branch, this figure appears within a plausible range for specialized engineering and support services.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential cost overruns if the scope of work expands beyond the initial estimates, despite the firm-fixed-price structure. There's also a risk of service disruption if the contractor fails to perform adequately, impacting Marine Corps operations. Dependence on a single contractor for critical energy infrastructure could pose a vulnerability. Mitigation strategies likely include robust contract management and oversight by the Department of the Navy, clear performance metrics and deliverables, and contingency planning for service continuity. The firm-fixed-price nature itself acts as a primary risk mitigation tool for the government by transferring cost overrun risk to the contractor. Regular performance reviews and defined termination clauses would further address performance risks.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific energy support service requirement?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For energy support services, where requirements can sometimes be complex and subject to unforeseen conditions, FFP places the burden of cost control and managing unforeseen issues on the contractor. This incentivizes the contractor to be efficient and accurate in their initial pricing and execution. If the scope is indeed stable, FFP provides budget certainty for the government and encourages the contractor to deliver services within the agreed-upon price. However, if the scope proves volatile, FFP can lead to disputes or the contractor building in significant contingency into their price, potentially inflating the cost.

What are the historical spending patterns for energy support services within the Department of the Navy or the Marine Corps, and how does this award fit in?

Historical spending patterns for energy support services within the Department of the Navy (DoN) and the Marine Corps are substantial, driven by the vast infrastructure and operational needs of these branches. The DoN, in particular, has been investing in energy resilience, efficiency, and modernization. This $23 million award fits within the broader context of ongoing efforts to ensure reliable energy for military installations. Analyzing past awards for similar services, such as base operations support, utility management, and renewable energy integration projects, would reveal trends in contract values, durations, and types of services procured. This specific award appears to be a component of the larger, continuous investment the DoN makes in maintaining and improving its energy infrastructure across various locations, including the District of Columbia.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,264,694

Exercised Options: $22,959,570

Current Obligation: $22,959,570

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $15,079,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU112

IDV Type: IDC

Timeline