NRC's $116M decommissioning assurance contract awarded to ICF Inc. for technical consulting

Contract Overview

Contract Amount: $116,000 ($116.0K)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2021-09-01

End Date: 2027-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $58/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: "REVIEWS OF NRC LICENSEE DECOMMISSIONING FINANCIAL ASSURANCE"

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $116,000 to ICF INCORPORATED, L.L.C. for work described as: "REVIEWS OF NRC LICENSEE DECOMMISSIONING FINANCIAL ASSURANCE" Key points: 1. Value for money assessed through comparison to similar technical consulting services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the cost-plus-fixed-fee structure, which may incentivize cost increases. 4. Performance context relies on ICF's ability to deliver specialized technical expertise. 5. Sector positioning places this contract within the broader scientific and technical consulting services for the nuclear industry.

Value Assessment

Rating: fair

The contract's value of $116 million over its period of performance requires careful benchmarking against similar technical consulting services for regulatory bodies. While the specific services are specialized, the cost-plus-fixed-fee (CPFF) pricing structure warrants scrutiny. CPFF contracts can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking against other NRC contracts for similar expertise or contracts awarded by agencies like the Department of Energy for decommissioning support would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process is generally favorable for price discovery and ensuring that the government receives a fair market price. The number of bidders and the evaluation criteria used would further inform the degree of competition achieved.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment and encouraging efficiency from the winning contractor.

Public Impact

The Nuclear Regulatory Commission (NRC) benefits from expert technical consulting to ensure financial assurance for licensee decommissioning. Services delivered include reviews and analysis related to the financial health of nuclear power plant operators for decommissioning. Geographic impact is national, as the NRC oversees nuclear facilities across the United States. Workforce implications include the need for specialized scientific and technical expertise within ICF Incorporated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost overruns if not closely monitored.
Reliance on a single contractor for critical technical reviews could pose a risk if performance falters.
The specialized nature of the work requires continuous monitoring of contractor expertise.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
ICF Incorporated is a known entity in government contracting, suggesting a degree of established capability.
The contract duration allows for sustained support and development of institutional knowledge.

Sector Analysis

The scientific and technical consulting services sector is broad, encompassing a wide range of specialized expertise. For the nuclear industry, this includes highly technical fields such as engineering, environmental science, and financial analysis related to complex regulatory requirements like decommissioning. The market size for such specialized consulting is significant, driven by regulatory oversight and the need for independent expert analysis. This contract fits within the niche of regulatory support services, where government agencies contract for specialized knowledge they may not possess internally.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if ICF Incorporated chooses to engage them. Without specific subcontracting plans mandated by the contract, the direct benefit to the small business ecosystem from this particular award is likely limited, though larger prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract is the responsibility of the Nuclear Regulatory Commission (NRC). Accountability measures would be embedded within the contract's performance work statement, requiring ICF Incorporated to meet specific deliverables and quality standards. Transparency is facilitated through the contract award process and public reporting of federal spending. The NRC's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Nuclear Decommissioning Fund
Nuclear Energy Programs
Environmental Consulting Services
Regulatory Compliance Services

Risk Flags

Cost-plus-fixed-fee pricing structure requires diligent cost monitoring.
Specialized nature of services necessitates continuous assessment of contractor expertise.
Reliance on contractor for critical regulatory reviews.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $116,000 to ICF INCORPORATED, L.L.C.. "REVIEWS OF NRC LICENSEE DECOMMISSIONING FINANCIAL ASSURANCE"

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $116,000.

What is the period of performance?

Start: 2021-09-01. End: 2027-02-28.

What is ICF Incorporated's track record with the Nuclear Regulatory Commission and similar agencies?

ICF Incorporated has a significant history of contracting with federal agencies, including the Nuclear Regulatory Commission (NRC). Their work often involves technical consulting, research, and program support across various domains, including energy, environment, and public health. For the NRC, ICF has provided services related to regulatory analysis, environmental impact assessments, and technical support for licensing and oversight activities. Their experience with complex regulatory environments and scientific analysis suggests a strong capability to handle the requirements of this decommissioning financial assurance contract. Benchmarking their past performance on similar contracts, including on-time delivery, quality of work, and adherence to budget, would provide further insight into their reliability for this specific award.

How does the pricing structure (Cost Plus Fixed Fee) compare to other NRC technical consulting contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex services where the scope of work may evolve or is difficult to define precisely at the outset, such as technical consulting and research. For the NRC, CPFF contracts are often used when the government needs specialized expertise for tasks that are not easily quantifiable in terms of fixed deliverables or when the contractor needs flexibility to adapt to changing technical requirements. Compared to fixed-price contracts, CPFF offers the contractor reimbursement for all allowable costs plus a predetermined profit (the fixed fee), which can incentivize the contractor to incur costs to achieve the project goals. However, it also places a greater burden on the government to meticulously monitor and control costs to prevent overruns. Benchmarking this contract's fee percentage against other CPFF contracts for similar services within the NRC or other scientific agencies would reveal if the fee is within a reasonable market range.

What are the primary risks associated with ICF Incorporated's performance on this contract?

The primary risks associated with ICF Incorporated's performance on this contract revolve around the inherent challenges of providing specialized technical consulting for regulatory oversight. One key risk is the potential for cost escalation due to the CPFF structure; if cost controls are not robust, the total expenditure could exceed initial estimates. Another risk is the quality and timeliness of the technical reviews and analyses provided. The NRC relies on this expertise to ensure adequate financial assurance for decommissioning, so any deficiencies in the contractor's work could have significant regulatory and financial implications. Furthermore, maintaining the necessary specialized expertise throughout the contract's duration is crucial; a loss of key personnel or a decline in the contractor's technical acumen could impact performance. Finally, ensuring that ICF's recommendations are objective and free from bias is paramount for maintaining regulatory integrity.

How effective is the NRC's oversight of contracts involving financial assurance reviews?

The effectiveness of the NRC's oversight of contracts involving financial assurance reviews is critical for ensuring the safety and financial responsibility of nuclear licensees. The NRC employs a multi-layered approach to oversight, which includes establishing clear performance work statements (PWS), requiring regular progress reports from contractors, conducting periodic reviews of contractor deliverables, and maintaining open communication channels. For financial assurance reviews, the NRC likely utilizes subject matter experts within its own staff to validate the contractor's findings and ensure that the methodologies used are sound and compliant with regulations. The presence of an Office of Inspector General also provides an independent layer of oversight to detect and prevent fraud, waste, and abuse. The success of this oversight is contingent on the adequacy of NRC's internal resources, the clarity of contractual requirements, and the diligence applied in monitoring contractor performance and costs.

What is the historical spending trend for technical consulting services related to nuclear decommissioning at the NRC?

Historical spending trends for technical consulting services related to nuclear decommissioning at the NRC reflect the ongoing lifecycle of nuclear power plants. As plants age and approach the end of their operational lives, the need for robust financial assurance reviews and decommissioning planning intensifies, leading to increased demand for specialized consulting. Spending in this area can fluctuate based on the number of plants nearing retirement, regulatory changes, and the complexity of decommissioning projects. While specific historical dollar amounts for this precise contract category are not provided, the overall trend likely shows a sustained or growing investment in ensuring that adequate funds are available for safe and complete decommissioning. Analyzing multi-year spending data for similar NRC contracts would reveal patterns and inform future budget projections for these essential services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 9300 LEE HWY, FAIRFAX, VA, 22031

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $446,848

Exercised Options: $446,848

Current Obligation: $116,000

Actual Outlays: $89,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 31310020D0011

IDV Type: IDC

Timeline