DOE awards $926M contract for environmental remediation technical support to Catawba Teape LLC
Contract Overview
Contract Amount: $9,263,722 ($9.3M)
Contractor: Catawba Teapec LLC
Awarding Agency: Department of Energy
Start Date: 2025-06-26
End Date: 2030-10-22
Contract Duration: 1,944 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DEPARTMENT OF ENERGY (DOE) OFFICE OF ENVIRONMENTAL MANAGEMENT (EM): CONSOLIDATED TECHNICAL SUPPORT SERVICES (CTSS) FOR EM OFFICES AND THE EM CONSOLIDATED BUSINESS CENTER (EMCBC)
Place of Performance
Location: ROCK HILL, YORK County, SOUTH CAROLINA, 29730
Plain-Language Summary
Department of Energy obligated $9.3 million to CATAWBA TEAPEC LLC for work described as: DEPARTMENT OF ENERGY (DOE) OFFICE OF ENVIRONMENTAL MANAGEMENT (EM): CONSOLIDATED TECHNICAL SUPPORT SERVICES (CTSS) FOR EM OFFICES AND THE EM CONSOLIDATED BUSINESS CENTER (EMCBC) Key points: 1. Contract aims to provide comprehensive technical support for environmental management offices. 2. The award is a cost-plus-fixed-fee type, indicating potential for cost overruns. 3. Competition was full and open after exclusion of sources, suggesting a competitive process. 4. The contract duration is over 5 years, requiring sustained performance monitoring. 5. The contractor, Catawba Teapec LLC, will support critical environmental cleanup missions. 6. The contract is for remediation services, a sector with inherent technical and safety risks.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar technical support contracts for environmental remediation is crucial. The fixed fee component provides some cost control, but the overall value will depend on effective management and avoidance of cost overruns. The award amount of $926 million over approximately five years suggests a significant investment in specialized expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, indicating that multiple qualified vendors had the opportunity to bid. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing. The 'exclusion of sources' aspect may warrant further investigation into why certain sources were excluded, but the overall approach suggests a robust competition.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple vendors.
Public Impact
The Department of Energy's Office of Environmental Management (EM) and its Consolidated Business Center (EMCBC) will benefit from enhanced technical support. Services delivered will include critical support for environmental cleanup and remediation activities across various DOE sites. The geographic impact is primarily focused on South Carolina, where the contractor is based, but services likely extend to DOE facilities nationwide. The contract supports a specialized workforce in environmental remediation and technical consulting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring diligent oversight to manage expenditures.
- The long duration of the contract necessitates ongoing performance evaluation to ensure continued value and effectiveness.
- Potential for scope creep exists in technical support contracts, which could increase overall costs if not managed tightly.
- Reliance on a single contractor for critical technical support could pose a risk if performance falters.
Positive Signals
- The contract was awarded through full and open competition, suggesting a competitive market for these services.
- The fixed fee component provides a defined profit margin, offering some predictability in contractor compensation.
- The contractor, Catawba Teapec LLC, is likely selected based on demonstrated expertise in environmental remediation and technical support.
- The contract duration allows for long-term planning and consistent support for DOE's environmental missions.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical area for government agencies managing legacy contamination. The market for these services is substantial, driven by regulatory requirements and the need for specialized expertise. This award represents a significant portion of spending within this niche, supporting the DOE's ongoing efforts to address environmental liabilities. Comparable spending benchmarks would focus on large-scale environmental consulting and remediation contracts awarded by federal agencies.
Small Business Impact
The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While the prime contractor is Catawba Teapec LLC, the extent of small business subcontracting will be crucial to monitor. A lack of explicit small business set-asides may limit direct opportunities for smaller firms, though they could potentially participate as subcontractors. The impact on the small business ecosystem depends on the prime contractor's subcontracting plan and commitment to engaging smaller, specialized firms.
Oversight & Accountability
Oversight will likely be managed by the Department of Energy's Office of Environmental Management and the EM Consolidated Business Center. Accountability measures will be embedded in the contract's performance work statement, with regular reviews and reporting requirements. Transparency will be facilitated through contract award databases and potentially through public reporting on environmental cleanup progress. Inspector General jurisdiction would apply to potential fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Environmental Management Contracts
- Environmental Remediation Services
- Technical Support Services
- Department of Energy IT and Professional Services
- Federal Remediation Services Contracts
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates sustained performance monitoring.
- Potential for unforeseen technical challenges in environmental remediation.
- Reliance on a single contractor for critical support functions.
Tags
department-of-energy, environmental-remediation, technical-support, cost-plus-fixed-fee, full-and-open-competition, south-carolina, remediation-services, large-contract, professional-services, doe-em
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $9.3 million to CATAWBA TEAPEC LLC. DEPARTMENT OF ENERGY (DOE) OFFICE OF ENVIRONMENTAL MANAGEMENT (EM): CONSOLIDATED TECHNICAL SUPPORT SERVICES (CTSS) FOR EM OFFICES AND THE EM CONSOLIDATED BUSINESS CENTER (EMCBC)
Who is the contractor on this award?
The obligated recipient is CATAWBA TEAPEC LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $9.3 million.
What is the period of performance?
Start: 2025-06-26. End: 2030-10-22.
What is the track record of Catawba Teapec LLC in performing similar environmental remediation technical support services for the federal government?
Assessing the track record of Catawba Teapec LLC is crucial for understanding their capability to deliver on this significant contract. Information on past performance, including previous federal contracts, client satisfaction, and any history of performance issues or disputes, would provide valuable insight. Specifically, examining their experience with cost-plus-fixed-fee contracts and the scale of projects they have managed will help gauge their readiness. A review of past performance evaluations, if publicly available, would offer direct evidence of their reliability and effectiveness in similar roles. Without specific data on their past projects and performance metrics, it is difficult to definitively assess their suitability beyond the competitive award process.
How does the awarded amount of $926 million compare to similar technical support contracts for environmental remediation within the DOE or other federal agencies?
The $926 million award for Consolidated Technical Support Services (CTSS) for the DOE's Office of Environmental Management (EM) over approximately five years represents a substantial investment. To benchmark this value, comparisons should be made with other large-scale technical support and environmental remediation contracts awarded by agencies like the EPA, DOD, or other DOE programs. Factors such as the scope of services, duration, contract type (e.g., cost-plus vs. fixed-price), and the specific technical challenges involved in the remediation efforts are critical for a fair comparison. If similar contracts have been awarded for comparable services and durations at significantly lower or higher total amounts, it could indicate potential overpricing or exceptional value. Analyzing the per-year cost ($~185 million/year) against industry benchmarks for specialized environmental consulting and support services is also essential.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation services, and how are they mitigated in this award?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, primarily the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. This structure can incentivize contractors to incur costs, as their fee remains constant regardless of the total cost incurred. For environmental remediation, risks can be amplified by unforeseen site conditions, complex technical challenges, and evolving regulatory requirements. Mitigation strategies in this award would typically involve robust oversight from the Department of Energy, including detailed cost accounting, regular audits, and strict adherence to the contract's scope of work. Clear performance metrics, milestone payments tied to deliverables, and strong project management by the government are essential to control costs and ensure the contractor remains focused on efficient execution. The fixed fee provides a ceiling on the contractor's profit, but the government bears the risk of cost escalation.
What is the expected impact of this contract on the efficiency and effectiveness of the DOE's environmental cleanup missions?
This contract is intended to enhance the efficiency and effectiveness of the DOE's environmental cleanup missions by providing dedicated technical support. The contractor, Catawba Teapec LLC, is expected to bring specialized expertise, analytical capabilities, and project management support to the EM offices and the EM Consolidated Business Center (EMCBC). This support can streamline complex processes, improve decision-making, facilitate regulatory compliance, and potentially accelerate the pace of remediation activities. By offloading certain technical and analytical tasks, DOE personnel can focus on core mission objectives and strategic oversight. The effectiveness will be measured by the contractor's ability to deliver timely, accurate, and actionable technical advice and support that directly contributes to the successful and cost-efficient closure of environmental liabilities.
How does the historical spending pattern for environmental remediation technical support at the DOE inform the evaluation of this $926 million award?
Evaluating historical spending patterns for similar environmental remediation technical support at the DOE provides crucial context for the $926 million award. Analyzing past expenditures on technical services, consulting, and project management within the Office of Environmental Management can reveal trends in contract values, durations, and types. If historical spending shows a consistent need for such support and previous contracts of similar magnitude were awarded, this new contract may align with established budgetary and operational requirements. Conversely, if this award represents a significant increase compared to historical spending, it warrants closer scrutiny regarding the justification for the higher amount, potential changes in scope, or shifts in market pricing. Understanding the evolution of these costs over time can also highlight efficiencies gained or challenges encountered in managing environmental cleanup programs.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89303322REM000114
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 996 AVENUE OF THE NATIONS, ROCK HILL, SC, 29730
Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $90,087,343
Exercised Options: $90,087,343
Current Obligation: $9,263,722
Actual Outlays: $1,655,599
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-06-26
Current End Date: 2030-10-22
Potential End Date: 2030-10-22 00:00:00
Last Modified: 2026-03-25
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