DOE Awards $43.2M for West Valley Cleanup, Task Order 2 to West Valley Cleanup Alliance
Contract Overview
Contract Amount: $43,217,208 ($43.2M)
Contractor: West Valley Cleanup Alliance, LLC
Awarding Agency: Department of Energy
Start Date: 2025-06-18
End Date: 2026-03-16
Contract Duration: 271 days
Daily Burn Rate: $159.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) TASK ORDER 2
Place of Performance
Location: WEST VALLEY, CATTARAUGUS County, NEW YORK, 14171
State: New York Government Spending
Plain-Language Summary
Department of Energy obligated $43.2 million to WEST VALLEY CLEANUP ALLIANCE, LLC for work described as: DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) TASK ORDER 2 Key points: 1. The contract focuses on remediation services for the West Valley Demonstration Project. 2. Competition was full and open, suggesting a competitive bidding process. 3. The award value is significant for the specific task order. 4. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 5. The project is located in New York.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee. This can lead to higher costs if not managed carefully, as the government bears the risk of cost overruns. Benchmarking against similar remediation contracts is needed for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer. The fixed fee component in the contract type needs careful negotiation to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for environmental remediation. The competitive nature of the award aims to secure reasonable pricing, but the Cost Plus Fixed Fee structure warrants oversight to control overall expenditure.
Public Impact
Environmental cleanup at a former nuclear fuel reprocessing site. Potential for long-term environmental benefits and site restoration. Job creation and economic activity in the Western New York region. Ensuring compliance with environmental regulations and safety standards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Limited duration of the task order may indicate phased approach or future competition.
- No specific small business participation mentioned.
Positive Signals
- Awarded under full and open competition.
- Addresses critical environmental remediation needs.
- Clear task order with defined end date.
Sector Analysis
This contract falls under environmental remediation services, a critical sector for government agencies managing legacy sites. Spending in this sector is often driven by regulatory requirements and long-term cleanup commitments. Benchmarks for similar remediation projects would provide further context.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed.
Oversight & Accountability
Oversight will be crucial given the Cost Plus Fixed Fee contract type to ensure costs are controlled and the fixed fee is justified. The Department of Energy's Environmental Management program typically has robust oversight mechanisms for such projects.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of explicit small business participation.
- Complexity of environmental remediation.
Tags
remediation-services, department-of-energy, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $43.2 million to WEST VALLEY CLEANUP ALLIANCE, LLC. DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) TASK ORDER 2
Who is the contractor on this award?
The obligated recipient is WEST VALLEY CLEANUP ALLIANCE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2025-06-18. End: 2026-03-16.
What is the historical cost performance of Cost Plus Fixed Fee contracts within DOE EM for similar remediation projects?
Historical data for Cost Plus Fixed Fee (CPFF) contracts in DOE EM for similar remediation projects is essential for evaluating value. CPFF contracts can be effective when scope is uncertain, but they shift cost risk to the government. Analyzing past projects' cost growth, fee realization, and final costs against initial estimates will reveal trends and inform whether this specific award represents good value or potential overspending.
What are the specific remediation challenges and associated risks at the West Valley site that justify the CPFF structure?
The West Valley Demonstration Project involves complex legacy waste and environmental contamination, presenting inherent technical and safety risks. The CPFF structure may be justified if the exact scope of work, unforeseen subsurface conditions, or hazardous material handling requirements are not fully defined at the outset. Understanding these specific challenges is key to assessing whether the chosen contract type adequately addresses the project's risk profile.
How effectively has West Valley Cleanup Alliance, LLC performed on previous DOE contracts, particularly regarding cost control and schedule adherence?
Assessing the past performance of West Valley Cleanup Alliance, LLC is critical for evaluating the effectiveness of this award. Reviewing their track record on similar government contracts, specifically focusing on their ability to manage costs within budget, adhere to project schedules, and meet quality standards, will provide insight into their likelihood of successful execution. Positive past performance suggests a higher probability of achieving project goals efficiently.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89303324REM000122
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 800 MAIN ST, LYNCHBURG, VA, 24504
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,030,000
Exercised Options: $53,030,000
Current Obligation: $43,217,208
Actual Outlays: $32,227,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303325DEM000121
IDV Type: IDC
Timeline
Start Date: 2025-06-18
Current End Date: 2026-03-16
Potential End Date: 2026-03-16 00:00:00
Last Modified: 2026-03-16
More Contracts from West Valley Cleanup Alliance, LLC
- Department of Energy (DOE) Environmental Management (EM) West Valley Demonstration Project (wvdp) Phase 1B Task Order 3 — $22.8M (Department of Energy)
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