DOE awards $22.75M contract for West Valley Demonstration Project cleanup, with a 4-year performance period
Contract Overview
Contract Amount: $22,750,000 ($22.8M)
Contractor: West Valley Cleanup Alliance, LLC
Awarding Agency: Department of Energy
Start Date: 2026-01-16
End Date: 2030-01-16
Contract Duration: 1,461 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) PHASE 1B TASK ORDER 3
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45230
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $22.8 million to WEST VALLEY CLEANUP ALLIANCE, LLC for work described as: DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) PHASE 1B TASK ORDER 3 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. Performance period spans four years, indicating a significant, multi-year commitment to remediation services. 4. The awarding agency is the Department of Energy, Environmental Management, focusing on nuclear site cleanup. 5. The North American Industry Classification System (NAICS) code 562910 points to environmental remediation services. 6. The contract is a delivery order under a larger agreement, suggesting a phased approach to the project.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the scope of Task Order 3 within the larger WVDP Phase 1B. The Cost Plus Award Fee (CPAF) structure means the final cost can vary based on performance, making direct price comparisons difficult. However, the total award amount of $22.75 million for a four-year remediation effort suggests a moderate investment for a complex environmental project. Further analysis would require understanding the specific deliverables and comparing them to similar remediation contracts for nuclear sites.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the agency sought the best value from a wide range of potential contractors.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces and encourages a broader pool of qualified contractors to bid, potentially leading to more efficient use of public funds.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the safe and effective cleanup of the West Valley Demonstration Project site. Services delivered include environmental remediation, crucial for addressing legacy nuclear waste and contaminated materials. The geographic impact is localized to the West Valley site in New York, but the implications for nuclear waste management are national. Workforce implications include the creation or sustainment of jobs in specialized environmental remediation and project management fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) contract type requires robust oversight to ensure costs are reasonable and award fees are justified.
- The long performance period (4 years) necessitates ongoing monitoring to ensure progress and adherence to environmental standards.
- Lack of specific details on Task Order 3 makes it difficult to assess the precise value and risks associated with this particular delivery order.
Positive Signals
- Awarded under full and open competition, indicating a potentially competitive pricing environment.
- The Department of Energy's Environmental Management program has extensive experience managing complex cleanup projects.
- The contract is a delivery order, suggesting it is part of a well-defined, larger program with established objectives.
Sector Analysis
The environmental remediation sector is a critical component of the industrial landscape, particularly for government agencies managing legacy industrial sites. This contract falls within the broader environmental services industry, which includes hazardous waste management, site cleanup, and consulting. The market for such services is substantial, driven by regulatory requirements and the need to address historical environmental impacts. Comparable spending benchmarks would involve looking at other large-scale federal remediation projects, such as those managed by the EPA or DoD.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary contractor, West Valley Cleanup Alliance, LLC, is likely a larger entity. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract terms as presented. The impact on the small business ecosystem would depend on the subcontracting plans of the prime contractor.
Oversight & Accountability
Oversight for this contract will primarily fall under the Department of Energy's Environmental Management program. Given the nature of the work (nuclear site cleanup) and the CPAF contract type, rigorous oversight mechanisms are expected, including performance monitoring, cost tracking, and independent reviews. Accountability measures will be tied to the achievement of performance objectives and award fee criteria. Transparency will be facilitated through contract reporting requirements and potentially public communications from the DOE regarding project progress.
Related Government Programs
- Department of Energy Environmental Management
- West Valley Demonstration Project
- Nuclear Site Remediation
- Hazardous Waste Management
- Federal Cleanup Contracts
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays impacting overall project timelines.
- Need for stringent oversight due to CPAF contract type.
- Long performance period increases exposure to regulatory changes.
Tags
department-of-energy, environmental-management, west-valley-demonstration-project, remediation-services, cost-plus-award-fee, full-and-open-competition, delivery-order, new-york, nuclear-cleanup, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $22.8 million to WEST VALLEY CLEANUP ALLIANCE, LLC. DEPARTMENT OF ENERGY (DOE) ENVIRONMENTAL MANAGEMENT (EM) WEST VALLEY DEMONSTRATION PROJECT (WVDP) PHASE 1B TASK ORDER 3
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 $22.8 million.
What is the period of performance?
Start: 2026-01-16. End: 2030-01-16.
What is the track record of West Valley Cleanup Alliance, LLC in managing similar environmental remediation projects for the federal government?
Information regarding the specific track record of West Valley Cleanup Alliance, LLC in managing federal environmental remediation projects is not detailed in the provided data. As a limited liability company, its history and prior performance would need to be independently verified through federal procurement databases (like SAM.gov) or agency performance reports. However, the fact that they were awarded this significant contract suggests they met the Department of Energy's pre-qualification criteria, which typically include demonstrated experience, financial stability, and technical capability in handling complex projects. Further investigation into their past performance on similar contracts, especially those involving nuclear or hazardous waste, would be crucial for a comprehensive risk assessment.
How does the $22.75 million award compare to the overall budget or historical spending for the West Valley Demonstration Project?
The provided data only specifies the award amount for Task Order 3 ($22.75 million) and its duration (4 years). To compare this to the overall budget or historical spending for the West Valley Demonstration Project (WVDP), one would need access to the WVDP's comprehensive budget documents and historical expenditure reports. The WVDP is a long-term, multi-phase project involving significant costs for decommissioning and waste management. This $22.75 million delivery order represents a specific component of Phase 1B. Without the total project budget or annual spending figures for WVDP, it's impossible to determine if this award is a significant portion of the overall funding or aligns with historical spending trends. It is likely one of many task orders contributing to the larger project's financial picture.
What are the key performance indicators (KPIs) and award fee criteria for this Cost Plus Award Fee (CPAF) contract?
The specific Key Performance Indicators (KPIs) and award fee criteria for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided summary data. For a CPAF contract, these criteria are typically outlined in the contract's Statement of Work (SOW) and Performance Work Statement (PWS). They usually relate to project milestones, quality of work, schedule adherence, safety performance, and cost control. The 'award fee' portion allows the government to provide additional compensation above the base cost if the contractor exceeds performance expectations defined by these KPIs. Robust oversight by the Department of Energy would involve regularly assessing the contractor's performance against these criteria to determine the appropriate award fee.
What are the potential risks associated with the four-year performance period for environmental remediation services?
The four-year performance period for environmental remediation services presents several potential risks. Firstly, unforeseen site conditions or complexities in the contamination could lead to schedule delays and cost overruns, potentially exceeding the initial $22.75 million award if not managed effectively. Secondly, changes in environmental regulations or DOE policies during the contract term could necessitate scope adjustments, impacting both cost and timeline. Thirdly, contractor performance degradation over a long period is a risk, requiring continuous monitoring. Finally, the long duration increases the exposure to market fluctuations in labor and material costs. The CPAF structure aims to mitigate some performance risks by incentivizing the contractor, but diligent government oversight remains critical.
How does the NAICS code 562910 (Remediation Services) typically align with the scope of work for nuclear site cleanup projects like WVDP?
The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is highly relevant and appropriate for nuclear site cleanup projects such as the West Valley Demonstration Project (WVDP). This code encompasses establishments primarily engaged in cleaning up contaminated sites to environmental standards. This includes activities like site assessment, soil and groundwater remediation, hazardous waste treatment and disposal, and demolition of contaminated structures. While nuclear cleanup involves specialized radiological hazards beyond typical environmental remediation, the core activities of containment, removal, treatment, and disposal of hazardous substances fall squarely under the definition of remediation services. Therefore, this NAICS code accurately categorizes the primary function of the contract.
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 AWARD FEE (R)
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: $389,321,041
Exercised Options: $389,321,041
Current Obligation: $22,750,000
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: 2026-01-16
Current End Date: 2030-01-16
Potential End Date: 2030-01-16 00:00:00
Last Modified: 2026-03-24
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