Proposals for $175M Paducah Infrastructure Support Services Contract are Due in Late September

The Department of Energy (DOE), Environmental Management Office (DOE-EM) issued the final solicitation for the Paducah Infrastructure Support Services (PAD ISS) contract earlier this month.

The solicitation is a total Small Business (SB) Set-aside with proposals due September 30, 2024. The Department intends to award a single hybrid Cost-Plus Award Fee contract with Indefinite Delivery Indefinite Quantity (IDIQ), Firm Fixed Price (FFP) and Cost Reimbursement (CR) Contract Line Items (CLINS). The period of performance includes a three-year base period and a single two-year option. The government estimates annual funding at $35M for FY 2025 - 2029 with an estimated $175M overall value. However, earned Award Fees could increase the final value.

A historical comparison of the contract requirements reveals only minor changes. The Department reorganized the structure of the Scope of Work and added Engineering, Software Licensing and Telecommunication Long-Distance Services, Engineering and Lease requirements. Additionally, the past nine years, the NAICS Code size standard increased to $47.5M.

 

Contract History

The incumbent, Swift & Staley, Inc., began services at Paducah in 2000 as a subcontractor under Bechtel Jacobs Company, Inc.'s Management and Integration contract. In 2004 the Department changed the procurement to a SB Set-aside, and the June 2005 award to Swift & Staley became the first Small Business Prime Contract awarded by the DOE-EM. Afterwards, the firm successfully bid on the follow-on contract in 2010 under NAICS Code 561210 with $30M SB size standard.

In October 2014, the Department issued the second recompete, again under NAICS Code 561210 but with $38.5M SB size standard. The agency awarded contract DEEM0003733 to Swift & Staley in June 2015 for $177,244,409 for a 3-year base period and a two-year option expiring in July 2020.

In February 2020, the DOE-EM issued a follow-on solicitation 89303319REM000057 under NAICS 561210 with a SB size standard of $41.5M. In December, the agency awarded contract 89303321DEM000056 to Swift and Staley, Inc. However, following an SBA sized standard protest, the SBA ruled that the Swift & Staley was not certified as a SB under NAICS Code 561210, but was certified as a HUBZone business. Swift & Staley filed an complaint with the U. S. Court of Appeals, but the court upheld the SBA ruling in December 2022 prohibiting the Department from issuing the award and Notice to Proceed.

Therefore, DOE cancelled the solicitation because of the time already elapsed between the solicitation release and proposal submissions and the ensuing economic environmental changes during that time, including those from COVID-19, which could impact the original proposal values. The agency then extended the incumbent contract through July 31, 2024 with the caveat  “or until a new contractor is selected.” In May 2024, the government extended the incumbent contract again through May 31, 2025 with potential to continue through November 2025. 

The follow-on solicitation was issued earlier this month, under NAICS 561210 with a size standard of $47M.

Contract Activity

Incumbent contract spending steadily increased from FY 2015 to 2020, then declined by half in 2021 likely due to COVID-19 impacts. Although activity rebounded somewhat in FY 2022, it still failed to reach the 2020 levels and dipped again in FY 2023. Fiscal Year 2024 spending has already surpassed last year’s by 12%. Total obligations to date are $379M, averaging about an annual $42M rate over the 9-year period. 

The Federal Acquisition Regulations requires large prime contractors to submit a subcontracting plan when a federal contract is expected to exceed $750K. While the subcontracting plan for the incumbent contract is not available, Swift & Staley has awarded 142 subcontracts with a combined $70M value to date. 

What Contractors Need to Know

The incumbent has more than 25 years’ experience with this contract and will likely be difficult to unseat. Nevertheless, companies with innovative processes and cost-saving ideas should not count themselves out. Since the government intends to award the new contract on a best-value basis, a solid organizational structure with strategic teaming arrangements, robust Past Performance profiles and compelling Key Personnel Resumes are critical. Contractors and potential subcontractors should also ensure they are certified under the procurement's NAICS Code, especially considering the nature of previous protests. Contractors should carefully read the solicitation and subsequent amendments for the latest updates. GovWin subscribers can follow the procurement under Opportunity 185012. Non-subscribers should visit GovWin.com for a free demonstration.