DOE awards $132M contract for Savannah River mission completion, focusing on tank conversion
Contract Overview
Contract Amount: $13,232,828 ($13.2M)
Contractor: Savannah River Mission Completion, LLC
Awarding Agency: Department of Energy
Start Date: 2023-05-15
End Date: 2027-11-30
Contract Duration: 1,660 days
Daily Burn Rate: $8.0K/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 11 (TANK 42 CONVERSION TO SUPPORT ACCELERATED BASIN DEINVENTORY).
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $13.2 million to SAVANNAH RIVER MISSION COMPLETION, LLC for work described as: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 11 (TANK 42 CONVERSION TO SUPPORT ACCELERATED BASIN DEINVENTORY). Key points: 1. Contract aims to convert Tank 42 for accelerated basin deinventory, a critical step in site cleanup. 2. The award utilizes a Cost Plus Award Fee (CPAF) structure, incentivizing performance and cost control. 3. Full and open competition was employed, suggesting a robust market and potential for competitive pricing. 4. The contract duration of 1660 days indicates a significant, multi-year commitment to this specific task. 5. This task order is part of a larger integrated mission completion effort at the Savannah River Site. 6. The geographic focus is South Carolina, highlighting regional economic and environmental implications.
Value Assessment
Rating: good
The award amount of $132.3 million for Task Order 11 appears reasonable given the scope of converting a tank for accelerated basin deinventory at a complex site like Savannah River. The CPAF contract type allows for performance-based incentives, which can drive value for money if managed effectively. Benchmarking against similar large-scale environmental remediation and facility conversion projects would provide a more precise value assessment, but the initial outlay suggests a significant investment in critical cleanup operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally expected to foster a competitive environment, leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and capability for this type of specialized remediation work.
Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower costs and higher quality services due to market pressures. This method ensures that the government explores a wide range of options, maximizing the efficient use of public funds.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the advancement of environmental cleanup and nuclear material management at the Savannah River Site. The services delivered include the conversion of Tank 42 to support accelerated basin deinventory, a crucial step in managing legacy nuclear materials. The geographic impact is concentrated in South Carolina, with potential implications for local employment and the regional economy. Workforce implications may include the need for specialized engineers, technicians, and construction personnel to execute the conversion and deinventory tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPAF structure requires careful monitoring to ensure award fees are justified by performance and do not inflate costs unnecessarily.
- The complexity of nuclear site remediation presents inherent risks that need robust management and oversight.
- Reliance on a single contractor for integrated mission completion could pose risks if performance falters or unforeseen challenges arise.
Positive Signals
- The use of full and open competition suggests a strong market exists for these services, potentially leading to better value.
- The specific focus on Tank 42 conversion addresses a critical bottleneck in the deinventory process, indicating progress in site cleanup.
- The CPAF structure, if well-managed, can incentivize contractor performance and achieve mission objectives efficiently.
Sector Analysis
This contract falls within the environmental remediation and nuclear services sector, a specialized area often dominated by a few large, experienced firms. The Department of Energy is a major client in this space, managing legacy waste and cleanup operations at numerous sites across the U.S. Spending in this sector is driven by regulatory requirements, aging infrastructure, and national security needs. Comparable spending benchmarks would likely involve other large-scale environmental cleanup contracts at federal facilities.
Small Business Impact
The data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this specific task order. While the prime contractor, Savannah River Mission Completion, LLC, may engage small businesses as subcontractors, the contract itself is not designated as a small business set-aside. This suggests the primary focus was on securing specialized capabilities through full and open competition, rather than specifically targeting small business prime contractors for this particular award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's Savannah River Operations Office, which is responsible for the site's operations and cleanup. Accountability measures are embedded within the Cost Plus Award Fee structure, linking contractor compensation to performance metrics. Transparency is typically facilitated through contract awards databases and agency reporting, though detailed operational oversight specifics are internal.
Related Government Programs
- Savannah River Site Operations
- Nuclear Waste Management
- Environmental Remediation Services
- Department of Energy Site Cleanup
Risk Flags
- Potential for cost overruns inherent in CPAF contracts.
- Complexity of nuclear material handling and conversion.
- Long-term nature of site cleanup may lead to evolving requirements.
- Dependence on specialized contractor capabilities.
Tags
department-of-energy, savannah-river-site, environmental-remediation, nuclear-services, cost-plus-award-fee, full-and-open-competition, south-carolina, facility-conversion, waste-management, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.2 million to SAVANNAH RIVER MISSION COMPLETION, LLC. THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 11 (TANK 42 CONVERSION TO SUPPORT ACCELERATED BASIN DEINVENTORY).
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 $13.2 million.
What is the period of performance?
Start: 2023-05-15. End: 2027-11-30.
What is the track record of Savannah River Mission Completion, LLC in managing complex environmental remediation projects?
Savannah River Mission Completion, LLC (SRMC) is a relatively new entity formed specifically to manage the Savannah River Site's Integrated Mission Completion Contract. It is a partnership that includes Fluor, AECOM, and Atkins. These parent companies have extensive experience in large-scale engineering, construction, and environmental management, including significant work within the Department of Energy complex. Fluor, for instance, has a long history at Savannah River and other DOE sites. AECOM and Atkins also bring substantial expertise in infrastructure and environmental services. Therefore, while SRMC as a distinct entity is new, its operational capabilities are backed by the deep experience of its constituent companies in handling complex, high-risk projects similar to the one awarded.
How does the $132.3 million award for Task Order 11 compare to other remediation contracts at the Savannah River Site?
The $132.3 million award for Task Order 11 represents a significant but not unprecedented investment for a specific task within the broader Savannah River Site cleanup mission. The overall Integrated Mission Completion Contract awarded to SRMC is valued in the billions over its lifetime. Task orders of this magnitude are common for major infrastructure modifications, specialized equipment installations, or critical phases of deinventory and waste processing. For context, previous major contracts at SRS for similar scope, such as facility deactivation and decommissioning or large-scale waste treatment system construction, have also been in the hundreds of millions of dollars. This award appears to be in line with the scale of work required for substantial remediation efforts at a site of SRS's complexity.
What are the primary risks associated with the Tank 42 conversion and accelerated basin deinventory?
The primary risks associated with the Tank 42 conversion and accelerated basin deinventory are multi-faceted. Technical risks include unforeseen conditions within the tank or associated infrastructure, potential difficulties in safely transferring or processing materials, and ensuring the integrity of the converted tank for its new purpose. Operational risks involve the safe handling of hazardous materials, potential for worker exposure, and the complex logistics of deinventorying a basin. Schedule risks are significant, as delays in critical path activities like this can cascade and impact the overall site cleanup timeline. Financial risks are also present, particularly with a CPAF contract, where cost overruns could occur if not managed tightly, although award fees are tied to performance. Finally, regulatory risks exist, requiring strict adherence to environmental and safety standards throughout the process.
How effective is the Cost Plus Award Fee (CPAF) contract structure in ensuring value for money for this type of project?
The Cost Plus Award Fee (CPAF) structure is often employed for complex projects where the scope may evolve or where performance incentives are crucial. For the Tank 42 conversion, CPAF aims to ensure value for money by allowing the contractor to recover allowable costs while providing incentives (award fees) for exceeding performance expectations in areas like schedule, cost control, safety, and technical execution. This structure encourages the contractor to be proactive in managing risks and optimizing operations. However, its effectiveness hinges on the clarity and measurability of the award criteria and robust government oversight. If award criteria are well-defined and performance is rigorously assessed, CPAF can drive efficiency and achieve mission objectives cost-effectively. Conversely, poorly defined criteria or weak oversight can lead to inflated costs without commensurate performance gains.
What are the historical spending patterns for remediation services at the Savannah River Site?
Historical spending for remediation services at the Savannah River Site has been substantial, reflecting decades of nuclear materials production and the subsequent cleanup efforts. Annual expenditures have consistently been in the hundreds of millions of dollars, often exceeding a billion dollars in peak years, depending on the specific missions and projects underway. Major spending categories include waste management, deactivation and decommissioning of retired facilities, environmental monitoring, and the operation of treatment and disposal facilities. The site's cleanup is a multi-decade endeavor, and spending patterns reflect the long-term nature of these activities, often driven by federal appropriations, regulatory requirements, and the progression through different phases of cleanup, from initial characterization to final disposition of waste.
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: $36,727,509
Exercised Options: $36,727,509
Current Obligation: $13,232,828
Actual Outlays: $10,013,374
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: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-02-19
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