DOE awards $19.18M for Savannah River mission completion, focusing on long-lead equipment for basin deinventory
Contract Overview
Contract Amount: $19,176,645 ($19.2M)
Contractor: Savannah River Mission Completion, LLC
Awarding Agency: Department of Energy
Start Date: 2023-05-15
End Date: 2027-10-31
Contract Duration: 1,630 days
Daily Burn Rate: $11.8K/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 10 ACCELERATED BASIN DEINVENTORY LONG LEAD EQUIPMENT ITEMS.
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $19.2 million to SAVANNAH RIVER MISSION COMPLETION, LLC for work described as: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 10 ACCELERATED BASIN DEINVENTORY LONG LEAD EQUIPMENT ITEMS. Key points: 1. The contract addresses critical long-lead equipment needs for the Savannah River Site's basin deinventory, a key step in nuclear site cleanup. 2. Awarded under full and open competition, this task order suggests a competitive environment for complex remediation services. 3. The cost-plus-award-fee structure incentivizes performance while allowing flexibility for unforeseen challenges in remediation. 4. The duration of over four years indicates a significant, multi-year effort required for the specified equipment procurement and integration. 5. This award is part of a larger, ongoing effort to manage and complete missions at the Savannah River Site, a major federal facility. 6. The contract's focus on 'long-lead equipment' highlights potential supply chain or manufacturing complexities inherent in nuclear decommissioning.
Value Assessment
Rating: good
The award amount of $19.18 million for long-lead equipment procurement appears reasonable given the specialized nature of nuclear site remediation and the extended performance period. Benchmarking against similar task orders for specialized equipment in complex environmental cleanup projects would provide further context. The cost-plus-award-fee (CPAF) pricing structure, while common in such high-risk, complex environments, requires careful monitoring to ensure cost control and that award fees are tied to demonstrable performance improvements and mission success.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the Department of Energy sought the best value from a range of potential providers for these critical long-lead items. This process is designed to foster price discovery and ensure that the government receives competitive pricing for specialized services.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective solutions are selected, maximizing the value of federal investment in site cleanup.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the advancement of nuclear site cleanup and risk reduction at the Savannah River Site. The services delivered involve the procurement and potential integration of specialized, long-lead equipment essential for the safe and efficient deinventory of nuclear basins. The geographic impact is concentrated at the Savannah River Site in South Carolina, a critical federal facility with national security and environmental implications. Workforce implications may include specialized engineering, procurement, and project management roles, potentially supporting local and regional economies through job creation and supply chain activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPAF contracts if performance targets are not met or if scope creep occurs.
- Delays in equipment delivery or integration could impact the overall timeline for basin deinventory and site remediation.
- Reliance on specialized manufacturers for long-lead items may introduce supply chain vulnerabilities.
- Ensuring robust oversight of award fee criteria is crucial to prevent contractor complacency and ensure taxpayer value.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market for these services.
- The CPAF structure incentivizes contractor performance and mission success.
- Focus on 'long-lead equipment' indicates proactive planning to address critical path items for site cleanup.
- The extended contract duration allows for thorough planning, procurement, and potential integration of complex systems.
Sector Analysis
The remediation services sector, particularly for nuclear sites, is a highly specialized and critical area within the broader environmental services industry. The Savannah River Site is one of the nation's largest and most complex nuclear materials sites, requiring significant and sustained federal investment. Spending in this sector is driven by legacy waste management, decommissioning of retired facilities, and environmental restoration. Comparable spending benchmarks would typically involve large-scale environmental remediation contracts at other Department of Energy or Department of Defense sites, often involving multi-billion dollar programs over decades.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Savannah River Mission Completion, LLC, may engage small businesses as subcontractors, the primary award itself is not designated for small business participation. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem supporting federal remediation efforts.
Oversight & Accountability
Oversight for this contract is primarily the responsibility of the Department of Energy, likely through its Savannah River Operations Office. The Cost-Plus-Award-Fee (CPAF) structure necessitates rigorous performance monitoring against defined criteria to justify award fees. Transparency is expected through contract reporting requirements and potentially public statements regarding progress at the Savannah River Site. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.
Related Government Programs
- Savannah River Site Operations
- Nuclear Site Decommissioning
- Environmental Remediation Services
- Long-Lead Equipment Procurement
- Department of Energy Major Projects
Risk Flags
- Long-lead time item procurement risk
- Complex nuclear remediation environment
- Cost-plus-award-fee contract oversight
- Supply chain dependency for specialized equipment
Tags
department-of-energy, savannah-river-site, remediation-services, full-and-open-competition, delivery-order, cost-plus-award-fee, nuclear-cleanup, south-carolina, long-lead-equipment, environmental-restoration
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.2 million to SAVANNAH RIVER MISSION COMPLETION, LLC. THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 10 ACCELERATED BASIN DEINVENTORY LONG LEAD EQUIPMENT ITEMS.
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 $19.2 million.
What is the period of performance?
Start: 2023-05-15. End: 2027-10-31.
What is the track record of Savannah River Mission Completion, LLC in managing complex federal remediation contracts?
Savannah River Mission Completion, LLC (SRMC) was established to manage and execute the Savannah River Site (SRS) Integrated Mission Completion Contract. This contract, awarded in 2021, is a significant undertaking focused on completing the cleanup mission at SRS. SRMC is a joint venture comprising Fluor, Amentum, and Atkins Nuclear. Their collective experience includes extensive work in nuclear operations, environmental management, and large-scale project execution across various government facilities. While SRMC is relatively new as a specific entity for this contract, its parent companies have decades of experience in similar complex, high-risk environments. The performance on this specific task order, and the broader SRS contract, will be a key indicator of SRMC's capabilities in managing long-lead equipment procurement and integration for critical deinventory tasks.
How does the $19.18 million award compare to similar long-lead equipment procurements for nuclear site remediation?
Direct comparisons for 'long-lead equipment items' in nuclear basin deinventory are challenging due to the highly specialized nature of the equipment and the unique requirements of each site. However, the $19.18 million figure for this specific task order appears to be a focused investment on critical components rather than a full project cost. Larger contracts for overall site remediation or decommissioning can run into hundreds of millions or billions of dollars. The value of this award should be assessed in the context of the specific equipment's complexity, lead times for manufacturing, and its criticality to the overall mission schedule. Benchmarking against procurements for specialized pumps, vessels, or remote handling equipment at other DOE sites would provide a more granular comparison, but such data is often not publicly detailed.
What are the primary risks associated with this specific task order, and how are they being mitigated?
The primary risks associated with this task order revolve around the procurement and delivery of 'long-lead equipment items.' These include potential manufacturing delays, quality control issues with highly specialized components, and integration challenges once the equipment arrives at the Savannah River Site. Supply chain disruptions for rare materials or specialized manufacturing capabilities could also pose a risk. Mitigation strategies likely involve robust contract oversight by the Department of Energy, detailed performance specifications, stringent quality assurance protocols, and close collaboration between the contractor and key suppliers. The Cost-Plus-Award-Fee (CPAF) structure also incentivizes the contractor to manage these risks effectively to achieve performance targets and earn award fees, while the extended duration allows for more buffer time.
What is the expected impact of this task order on the overall mission effectiveness and timeline at the Savannah River Site?
This task order is critical for ensuring the timely progress of the basin deinventory mission at the Savannah River Site. By addressing the procurement of 'long-lead equipment items' early, it aims to prevent these items from becoming bottlenecks that could delay subsequent phases of the deinventory process. Successful and timely acquisition and integration of this equipment are expected to directly support the safe and efficient removal of nuclear materials from the basins. Failure to secure this equipment on schedule could lead to significant delays in the overall site cleanup timeline, potentially increasing long-term costs and extending the period of environmental risk. Therefore, this task order is a crucial enabler for achieving key mission objectives.
How has federal spending on Savannah River Site remediation evolved, and where does this $19.18M award fit in?
Federal spending on the Savannah River Site remediation has been substantial and ongoing for decades, reflecting the site's complex legacy of nuclear materials production and research. Annual appropriations for SRS cleanup activities typically range in the hundreds of millions of dollars, supporting a wide array of projects including waste management, facility deactivation and decommissioning, and environmental monitoring. This $19.18 million task order represents a specific, targeted investment within the broader remediation budget for a critical component of the basin deinventory mission. It is not indicative of a sudden surge or decline in overall spending but rather a necessary allocation to address a specific, time-sensitive need within a larger, multi-year program.
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: $25,708,493
Exercised Options: $25,708,493
Current Obligation: $19,176,645
Actual Outlays: $11,700,313
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: 2023-05-15
Current End Date: 2027-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-03-26
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