DOE awards $241M task order to Savannah River Mission Completion for site remediation

Contract Overview

Contract Amount: $241,280,356 ($241.3M)

Contractor: Savannah River Mission Completion, LLC

Awarding Agency: Department of Energy

Start Date: 2022-02-27

End Date: 2022-06-26

Contract Duration: 119 days

Daily Burn Rate: $2.0M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SAVANNAH RIVER SITE INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER TWO - IMPLEMENTATION

Place of Performance

Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802

State: South Carolina Government Spending

Plain-Language Summary

Department of Energy obligated $241.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC for work described as: SAVANNAH RIVER SITE INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER TWO - IMPLEMENTATION Key points: 1. Contract awarded under full and open competition, indicating a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. The value of $241M for 119 days suggests a high daily burn rate. 4. The NAICS code 562910 points to environmental remediation services, a critical but complex sector.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable. Without detailed cost breakdowns, it's difficult to assess if the $241M is a fair price for the services rendered over 119 days.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the specific pricing mechanisms within the Cost Plus Fixed Fee structure need scrutiny to ensure optimal price discovery.

Taxpayer Impact: Taxpayer funds are being used for environmental remediation, a necessary but potentially costly government function. Ensuring competitive pricing and efficient execution is key to minimizing taxpayer burden.

Public Impact

Environmental cleanup at a major federal site is crucial for public safety and ecological health. The significant funding allocated highlights the scale and complexity of the remediation efforts. Transparency in cost reporting and project milestones is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Department of Energy's Savannah River Site requires extensive environmental remediation. Spending in this sector is often high due to the technical complexity and long-term nature of cleanup operations.

Small Business Impact

The data indicates this contract was awarded to Savannah River Mission Completion, LLC. There is no explicit information on small business participation in this specific task order.

Oversight & Accountability

The Department of Energy is responsible for overseeing this contract. Robust oversight is necessary to manage the Cost Plus Fixed Fee structure and ensure efficient use of funds.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-energy, sc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $241.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC. SAVANNAH RIVER SITE INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER TWO - IMPLEMENTATION

Who is the contractor on this award?

The obligated recipient is SAVANNAH RIVER MISSION COMPLETION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $241.3 million.

What is the period of performance?

Start: 2022-02-27. End: 2022-06-26.

What specific remediation activities are included in this task order, and how do they justify the $241M cost?

The task order focuses on 'Implementation' of the Integrated Mission Completion Contract. Specific activities would likely involve site characterization, waste treatment, decontamination, and demolition of facilities. The high cost reflects the hazardous nature of the materials, the specialized equipment and personnel required, and the stringent regulatory compliance needed for environmental remediation at a large federal site like SRS.

What are the primary risks associated with a Cost Plus Fixed Fee contract for environmental remediation?

The primary risks include potential cost overruns if the fixed fee is insufficient to cover unforeseen complexities, or contractor inefficiency if the fee is too high relative to the effort. For the government, there's a risk of paying more than necessary if cost controls are weak. For the contractor, there's a risk of reduced profit if costs exceed estimates significantly, potentially impacting motivation.

How does the short duration (119 days) for a $241M award impact the assessment of effectiveness?

The short duration for such a substantial award suggests this task order represents a specific phase or set of critical activities within a larger contract. Assessing overall effectiveness requires understanding the scope of work completed within this period and how it contributes to the broader mission completion goals. It implies intensive, focused work rather than long-term operations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 109 RAMSEY PL, LYNCHBURG, VA, 24501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $268,114,997

Exercised Options: $268,114,997

Current Obligation: $241,280,356

Actual Outlays: $239,187,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303322DEM000068

IDV Type: IDC

Timeline

Start Date: 2022-02-27

Current End Date: 2022-06-26

Potential End Date: 2022-06-26 00:00:00

Last Modified: 2025-07-14

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