DOE Awards $49.8M Contract for Radioactive Material Remediation in Utah
Contract Overview
Contract Amount: $49,787,470 ($49.8M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-10-01
End Date: 2023-09-30
Contract Duration: 364 days
Daily Burn Rate: $136.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SCOPE OF TASK ORDER NO. 89303322FEM400262 INCLUDES EXCAVATION AND CONDITIONING OF THE TAILINGS PILE'S RESIDUAL RADIOACTIVE MATERIAL (RRM), AND DISPOSAL CELL ACTIVITIES, INCLUDING PLACEMENT OF OVER 1M TONS RRM AND DEBRIS.
Place of Performance
Location: MOAB, GRAND County, UTAH, 84532
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $49.8 million to NORTH WIND PORTAGE, INC. for work described as: SCOPE OF TASK ORDER NO. 89303322FEM400262 INCLUDES EXCAVATION AND CONDITIONING OF THE TAILINGS PILE'S RESIDUAL RADIOACTIVE MATERIAL (RRM), AND DISPOSAL CELL ACTIVITIES, INCLUDING PLACEMENT OF OVER 1M TONS RRM AND DEBRIS. Key points: 1. Significant contract value for environmental remediation services. 2. Competition method suggests potential for price discovery. 3. Risk associated with handling radioactive material and large volumes. 4. Sector: Environmental Services/Defense (DOE related).
Value Assessment
Rating: good
The contract is firm-fixed-price, which is generally favorable for the government in managing costs. The award amount appears reasonable given the scope of work involving over 1 million tons of material.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, specific criteria limited the pool of eligible bidders, potentially impacting the ultimate price discovery.
Taxpayer Impact: The firm-fixed-price structure aims to control costs, but the limited competition might have prevented achieving the lowest possible price for taxpayers.
Public Impact
Protects public health and the environment by managing hazardous radioactive materials. Supports critical Department of Energy cleanup missions. Creates jobs and economic activity in Utah through contract execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Handling of radioactive materials requires strict safety protocols.
- Large volume of material increases logistical complexity.
- Limited competition could lead to higher costs than fully open bids.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Experienced contractor likely involved in remediation.
- Addresses a long-term environmental liability for the government.
Sector Analysis
This contract falls within the environmental remediation sector, often associated with government agencies like the Department of Energy managing legacy waste. Spending in this area is driven by regulatory requirements and historical cleanup needs.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large remediation effort.
Oversight & Accountability
The contract is firm-fixed-price, which aids in cost oversight. The Department of Energy's oversight will be crucial to ensure proper handling, disposal, and adherence to safety and environmental regulations.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for environmental contamination.
- Worker safety during radioactive material handling.
- Logistical complexity of large-scale material movement.
- Regulatory compliance risks.
- Cost overruns if unforeseen conditions arise.
- Limited competition may impact final price.
Tags
remediation-services, department-of-energy, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $49.8 million to NORTH WIND PORTAGE, INC.. SCOPE OF TASK ORDER NO. 89303322FEM400262 INCLUDES EXCAVATION AND CONDITIONING OF THE TAILINGS PILE'S RESIDUAL RADIOACTIVE MATERIAL (RRM), AND DISPOSAL CELL ACTIVITIES, INCLUDING PLACEMENT OF OVER 1M TONS RRM AND DEBRIS.
Who is the contractor on this award?
The obligated recipient is NORTH WIND PORTAGE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $49.8 million.
What is the period of performance?
Start: 2022-10-01. End: 2023-09-30.
What specific criteria led to the exclusion of sources in this 'Full and Open Competition After Exclusion of Sources' award?
The specific criteria for excluding sources are not detailed in the provided data. Typically, such exclusions are based on unique capabilities, specialized equipment, security clearances, or prior experience directly relevant to the highly specific nature of the work, such as handling residual radioactive material and large-scale disposal cell construction.
What are the primary risks associated with the excavation and conditioning of residual radioactive material (RRM)?
The primary risks include potential environmental contamination if containment fails, worker exposure to radiation requiring stringent safety protocols and monitoring, and logistical challenges in safely transporting and disposing of over one million tons of RRM and debris. Ensuring compliance with all federal and state environmental regulations is paramount.
How does the firm-fixed-price contract structure impact the government's ability to ensure cost-effectiveness for this remediation project?
The firm-fixed-price structure provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This is beneficial for budgeting. However, the effectiveness in ensuring cost-effectiveness hinges on the initial price negotiation and the level of competition; limited competition might mean the initial price was not as low as it could have been under broader competition.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,787,470
Exercised Options: $49,787,470
Current Obligation: $49,787,470
Actual Outlays: $49,762,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303322DEM000073
IDV Type: IDC
Timeline
Start Date: 2022-10-01
Current End Date: 2023-09-30
Potential End Date: 2024-08-02 00:00:00
Last Modified: 2024-07-31
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