DOE awards $69.3M task order to APTIM FEDERAL SERVICES for Los Alamos Ion Beam Facility decommissioning
Contract Overview
Contract Amount: $69,272,581 ($69.3M)
Contractor: Aptim Federal Services, LLC
Awarding Agency: Department of Energy
Start Date: 2023-07-27
End Date: 2028-06-30
Contract Duration: 1,800 days
Daily Burn Rate: $38.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: TASK ORDER FOR DEACTIVATION, DECOMMISSIONING, AND REMOVAL OF THE ION BEAM FACILITY LOCATED AT LOS ALAMOS NATIONAL LABORATORY IN LOS ALAMOS, NEW MEXICO.
Place of Performance
Location: LOS ALAMOS, LOS ALAMOS County, NEW MEXICO, 87545
Plain-Language Summary
Department of Energy obligated $69.3 million to APTIM FEDERAL SERVICES, LLC for work described as: TASK ORDER FOR DEACTIVATION, DECOMMISSIONING, AND REMOVAL OF THE ION BEAM FACILITY LOCATED AT LOS ALAMOS NATIONAL LABORATORY IN LOS ALAMOS, NEW MEXICO. Key points: 1. The contract focuses on the deactivation, decommissioning, and removal of a specialized scientific facility. 2. This task order is a significant component of broader site remediation efforts at Los Alamos. 3. The cost-plus-incentive-fee structure suggests a focus on performance and cost control. 4. The duration of the contract (5 years) indicates a complex and lengthy undertaking. 5. The award was made under full and open competition, implying a robust bidding process. 6. The specific nature of the work requires specialized technical expertise in hazardous material handling and facility demolition.
Value Assessment
Rating: good
Benchmarking the value of this specific task order is challenging due to its highly specialized nature. However, the total award amount of $69.3 million for a five-year decommissioning project at a national laboratory appears reasonable given the complexity and potential hazards involved. The cost-plus-incentive-fee (CPIF) contract type allows for flexibility while incentivizing cost savings and performance, which can lead to better value if managed effectively. Further analysis would require comparing it to similar, albeit rare, facility decommissioning projects at other national laboratories.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment for this specialized service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer their best value proposals.
Public Impact
The primary beneficiaries are the Department of Energy and Los Alamos National Laboratory, which will see the safe removal of a retired scientific asset. The services delivered include specialized deactivation, decommissioning, and removal of the Ion Beam Facility. The geographic impact is localized to Los Alamos, New Mexico, where the facility is situated. Workforce implications include the need for highly skilled labor in hazardous material handling, demolition, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPIF contracts if not closely monitored.
- Complexity of decommissioning specialized scientific equipment may lead to unforeseen challenges.
- Ensuring adequate safety protocols for hazardous material handling during removal.
Positive Signals
- Awarded under full and open competition, suggesting a fair and competitive process.
- The CPIF contract structure incentivizes contractor performance and cost efficiency.
- The long duration allows for thorough planning and execution of a complex task.
Sector Analysis
The remediation and decommissioning services sector is a critical part of the environmental services industry, particularly for government agencies managing legacy facilities. This contract falls within the broader environmental consulting and remediation market, which is substantial and driven by regulatory requirements and the need to manage aging infrastructure. Comparable spending benchmarks are difficult to establish due to the unique nature of national laboratory facilities, but large-scale environmental remediation projects can range from tens to hundreds of millions of dollars.
Small Business Impact
This contract was not set aside for small businesses and was awarded to APTIM FEDERAL SERVICES, LLC, a large business. There is no explicit mention of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes small businesses in its subcontracting plan.
Oversight & Accountability
Oversight for this task order will likely be managed by the Department of Energy's contracting officers and program managers at Los Alamos National Laboratory. The CPIF contract type necessitates close monitoring of costs and performance against established milestones and targets. Transparency will depend on the DOE's reporting practices for task orders of this nature. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Los Alamos National Laboratory Operations
- Environmental Remediation Services
- Decommissioning of Federal Facilities
- Department of Energy Site Management
Risk Flags
- Potential for cost overruns
- Schedule delays
- Unforeseen environmental hazards
- Safety compliance risks
Tags
remediation-services, department-of-energy, los-alamos, new-mexico, task-order, full-and-open-competition, cost-plus-incentive-fee, facility-decommissioning, environmental-services, national-laboratory
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $69.3 million to APTIM FEDERAL SERVICES, LLC. TASK ORDER FOR DEACTIVATION, DECOMMISSIONING, AND REMOVAL OF THE ION BEAM FACILITY LOCATED AT LOS ALAMOS NATIONAL LABORATORY IN LOS ALAMOS, NEW MEXICO.
Who is the contractor on this award?
The obligated recipient is APTIM FEDERAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $69.3 million.
What is the period of performance?
Start: 2023-07-27. End: 2028-06-30.
What is APTIM FEDERAL SERVICES, LLC's track record with the Department of Energy and similar decommissioning projects?
APTIM FEDERAL SERVICES, LLC has a significant history of performing environmental, engineering, and construction services for various government agencies, including the Department of Energy. Their portfolio often includes complex projects involving hazardous waste management, site remediation, and facility decommissioning. While specific details on their past performance on projects identical to the Los Alamos Ion Beam Facility decommissioning are not provided in this data, their general experience suggests they possess the requisite capabilities. A deeper dive into their contract history with DOE, including past performance evaluations and any reported issues on similar projects, would be necessary for a comprehensive assessment of their track record.
How does the $69.3 million cost compare to similar facility decommissioning projects at national laboratories?
Directly comparing the $69.3 million cost is challenging due to the unique nature of scientific facilities like the Ion Beam Facility and the varying scope of decommissioning work. Projects at national laboratories can involve highly specialized equipment, radioactive or hazardous materials, and extensive safety protocols, driving up costs. Generally, large-scale decommissioning efforts at sites like Oak Ridge or Hanford have involved costs ranging from tens to hundreds of millions of dollars, depending on the size and complexity of the facility. This award appears to be within a reasonable range for a multi-year, complex decommissioning task at a national laboratory, assuming the scope is accurately defined and managed.
What are the primary risks associated with this decommissioning task order?
The primary risks associated with this task order include technical challenges related to the specialized nature of the Ion Beam Facility's equipment and infrastructure, potential for unforeseen hazardous material discoveries, and schedule delays. Cost overruns are also a risk, particularly with Cost Plus Incentive Fee (CPIF) contracts, if cost controls are not rigorously maintained. Safety risks associated with handling potentially hazardous materials and performing demolition activities are paramount. Furthermore, ensuring compliance with all environmental regulations throughout the decommissioning process presents a significant risk if not managed meticulously.
How effective is the Cost Plus Incentive Fee (CPIF) contract structure likely to be for this project?
The CPIF contract structure is often employed for complex projects where the final costs are difficult to estimate precisely at the outset, such as decommissioning specialized facilities. It aims to balance flexibility with cost control by establishing target costs and fee structures that incentivize the contractor to meet or beat targets. If the target costs and incentive metrics are well-defined and achievable, the CPIF structure can be effective in promoting efficiency and cost savings. However, it requires robust government oversight to ensure that the contractor's efforts to reduce costs do not compromise safety or quality. The success of the CPIF structure here will depend heavily on the clarity of the performance metrics and the diligence of the DOE's oversight.
What is the historical spending trend for remediation and decommissioning services at Los Alamos National Laboratory?
Historical spending trends for remediation and decommissioning services at Los Alamos National Laboratory (LANL) have generally been substantial, reflecting the site's long history as a hub for nuclear research and development. LANL has ongoing environmental management programs that encompass a wide range of activities, including waste management, soil and groundwater remediation, and the decommissioning of retired facilities. While specific annual spending figures for decommissioning alone are not provided, the overall environmental cleanup budget for LANL typically runs into tens or hundreds of millions of dollars annually. This task order represents a significant, but likely not unprecedented, investment in addressing a specific legacy asset.
What are the implications of awarding this task order under 'full and open competition' with three bidders?
Awarding this task order under 'full and open competition' with three bidders suggests a healthy level of competition for this specialized service. It implies that the government broadly advertised the requirement and received multiple proposals from qualified contractors. Having three bidders generally provides a good basis for price discovery and allows the government to select the offer that represents the best value, considering both cost and technical factors. While more bidders could potentially drive prices lower, three is often considered a sufficient number to ensure meaningful competition and prevent a situation where only one or two firms dominate the market for such services.
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 › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,272,581
Exercised Options: $69,272,581
Current Obligation: $69,272,581
Actual Outlays: $11,067,860
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $320,674
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303320DEM000038
IDV Type: IDC
Timeline
Start Date: 2023-07-27
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2026-03-31
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