DOE Awards $86.3M Contract for Savannah River Mission Completion Task Order 4
Contract Overview
Contract Amount: $86,333,278 ($86.3M)
Contractor: Savannah River Mission Completion, LLC
Awarding Agency: Department of Energy
Start Date: 2022-06-27
End Date: 2024-09-30
Contract Duration: 826 days
Daily Burn Rate: $104.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER 4 - SALTSTONE DISPOSAL UNITS 8/9.
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $86.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC for work described as: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER 4 - SALTSTONE DISPOSAL UNITS 8/9. Key points: 1. The award focuses on critical remediation services at the Savannah River Site. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes performance. 4. This task order is part of a larger integrated mission completion effort.
Value Assessment
Rating: good
The contract is a Cost Plus Award Fee type, which allows for performance incentives. Benchmarking against similar remediation contracts is difficult without more detailed cost breakdowns, but the award amount appears reasonable for the scope of work.
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 ensures the government receives best value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely receiving a fair price for essential environmental remediation services.
Public Impact
Ensures continued progress on critical environmental cleanup at a major federal facility. Supports the long-term mission of nuclear materials management and waste disposal. Contributes to the economic activity in South Carolina through contract execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts.
- Complexity of the remediation work could lead to unforeseen challenges.
Positive Signals
- Full and open competition promotes cost efficiency.
- Award fee structure incentivizes contractor performance.
- Task order is part of a larger, established mission completion effort.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical area for federal agencies managing legacy sites. Spending in this sector is often substantial due to the complexity and long-term nature of cleanup operations.
Small Business Impact
The award was not set aside for small businesses, and the prime contractor is a large entity. There is no information provided on subcontracting opportunities for small businesses within this specific task order.
Oversight & Accountability
The Department of Energy's oversight is crucial for managing the performance and costs associated with this Cost Plus Award Fee contract. Regular reviews and audits will be necessary to ensure accountability and mission success.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost overrun potential
- Complexity of remediation tasks
- Dependence on contractor performance for award fee
- Long-term nature of environmental cleanup
Tags
remediation-services, department-of-energy, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $86.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC. THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT TASK ORDER 4 - SALTSTONE DISPOSAL UNITS 8/9.
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 $86.3 million.
What is the period of performance?
Start: 2022-06-27. End: 2024-09-30.
What specific performance metrics are tied to the award fee structure, and how are they measured?
The award fee structure is designed to incentivize contractor performance against specific objectives. While the exact metrics are not detailed here, they typically relate to schedule adherence, cost control, safety performance, and technical execution of the remediation tasks. The Department of Energy would have established clear criteria and a process for evaluating the contractor's performance against these metrics to determine the fee awarded.
What are the primary risks associated with the Saltstone Disposal Units 8/9 remediation, and how are they being mitigated?
Key risks include potential environmental releases, unforeseen geological conditions affecting disposal, and challenges in safely handling and disposing of radioactive waste. Mitigation strategies likely involve rigorous safety protocols, advanced monitoring technologies, contingency planning for unexpected subsurface conditions, and strict adherence to regulatory requirements for waste management and disposal.
How does the cost-plus-award-fee structure balance cost control with mission effectiveness for this complex task?
This contract type aims to balance cost control and mission effectiveness by providing a base fee plus an award amount tied to performance. The contractor is reimbursed for allowable costs, but the award fee is contingent on meeting or exceeding performance targets. This incentivizes the contractor to perform efficiently and effectively to maximize their total compensation, while the government retains some control through performance evaluation.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation 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 AWARD FEE (R)
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: $94,480,116
Exercised Options: $94,480,116
Current Obligation: $86,333,278
Actual Outlays: $85,342,487
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: 2022-06-27
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-05-06
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- This Award IS for the Savannah River Integrated Mission Completion Contract - Task Order 5 (saltstone Disposal Units 10-12) — $242.3M (Department of Energy)
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