DOT Awards $73.8M Contract for N.S. Savannah Decommissioning to Nuclear Ship Support Services LLC

Contract Overview

Contract Amount: $73,773,060 ($73.8M)

Contractor: Nuclear Ship Support Services LLC

Awarding Agency: Department of Transportation

Start Date: 2021-03-23

End Date: 2026-03-31

Contract Duration: 1,834 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N.S. SAVANNAH DECOMMISSIONING & LICENSE TERMINATION (DECON-LT). (SEE SECTIONS B AND C FOR THE DETAILED DESCRIPTIONS OF THE REQUIREMENTS OF THIS CONTRACT)

Place of Performance

Location: SEABROOK, ROCKINGHAM County, NEW HAMPSHIRE, 03874

State: New Hampshire Government Spending

Plain-Language Summary

Department of Transportation obligated $73.8 million to NUCLEAR SHIP SUPPORT SERVICES LLC for work described as: N.S. SAVANNAH DECOMMISSIONING & LICENSE TERMINATION (DECON-LT). (SEE SECTIONS B AND C FOR THE DETAILED DESCRIPTIONS OF THE REQUIREMENTS OF THIS CONTRACT) Key points: 1. The contract focuses on the decommissioning and license termination of the N.S. Savannah. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract value is substantial at over $73.7 million. 4. This project falls under remediation services, a specialized sector.

Value Assessment

Rating: good

The contract value of $73.8M for decommissioning and license termination appears reasonable given the specialized nature of nuclear vessel deactivation. Benchmarking against similar complex environmental remediation projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple qualified bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition scenario.

Public Impact

Ensures the safe and environmentally sound decommissioning of a historic nuclear vessel. Supports the final closure of a unique maritime asset, the N.S. Savannah. Creates jobs in specialized remediation and nuclear services sectors. Addresses long-term environmental stewardship responsibilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex decommissioning projects.
Long project duration (over 5 years) increases risk exposure.
Reliance on a single contractor for a critical, specialized task.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type limits cost uncertainty.
Clear scope for decommissioning and license termination.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, specifically dealing with the complex and highly regulated decommissioning of a nuclear-powered vessel. Spending in this niche area is driven by regulatory requirements and the lifecycle management of specialized assets.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). This suggests the primary contractor is likely a larger entity, and opportunities for small businesses may be limited to subcontracting roles.

Oversight & Accountability

The Maritime Administration is responsible for overseeing this contract. Given the specialized nature and potential risks associated with nuclear decommissioning, robust oversight and regular progress reporting are crucial to ensure compliance and project success.

Related Government Programs

Remediation Services
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for unforeseen technical challenges in nuclear decommissioning.
Long project duration increases exposure to changing regulations or economic conditions.
Complexity of managing radioactive waste disposal.
Dependence on specialized expertise and equipment.
Ensuring long-term environmental safety post-decommissioning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $73.8 million to NUCLEAR SHIP SUPPORT SERVICES LLC. N.S. SAVANNAH DECOMMISSIONING & LICENSE TERMINATION (DECON-LT). (SEE SECTIONS B AND C FOR THE DETAILED DESCRIPTIONS OF THE REQUIREMENTS OF THIS CONTRACT)

Who is the contractor on this award?

The obligated recipient is NUCLEAR SHIP SUPPORT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $73.8 million.

What is the period of performance?

Start: 2021-03-23. End: 2026-03-31.

What are the key performance indicators (KPIs) for this decommissioning contract, and how will they be measured to ensure successful completion and taxpayer value?

Key performance indicators would likely include adherence to safety protocols, environmental compliance milestones, waste management efficiency, and timely completion of decommissioning phases. Measurement would involve regular site inspections, third-party audits, progress reports against a detailed schedule, and verification of regulatory approvals. Success hinges on meeting stringent safety and environmental standards while managing costs effectively within the firm fixed-price structure.

What specific risks are associated with the long-term storage and disposal of nuclear materials generated during the N.S. Savannah's decommissioning, and how are these risks mitigated?

Risks include potential environmental contamination, radiation exposure to workers, and secure long-term storage/disposal of radioactive waste. Mitigation strategies involve strict adherence to Nuclear Regulatory Commission (NRC) guidelines, specialized training for personnel, use of containment structures, robust radiation monitoring systems, and pre-approved disposal pathways with licensed facilities. The contract likely includes specific clauses addressing waste management and regulatory compliance.

How does the firm fixed-price contract structure incentivize efficiency and cost control for such a complex, long-term project like the N.S. Savannah's decommissioning?

A firm fixed-price contract incentivizes the contractor to manage costs tightly, as any overruns beyond the agreed price are absorbed by the contractor. This encourages efficient planning, resource allocation, and proactive risk management to avoid unexpected expenses. For the government, it provides cost certainty. However, it places the burden of managing unforeseen complexities on the contractor, potentially leading to scope disputes if not clearly defined.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 693JF720R000010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 93 LEDGE RD, SEABROOK, NH, 03874

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

Financial Breakdown

Contract Ceiling: $77,055,303

Exercised Options: $76,424,081

Current Obligation: $73,773,060

Actual Outlays: $68,705,768

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $54,430,183

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline