DOE's $371.5M Hanford cleanup contract awarded to Central Plateau Cleanup Company, LLC for remediation services
Contract Overview
Contract Amount: $371,575,280 ($371.6M)
Contractor: Central Plateau Cleanup Company, LLC
Awarding Agency: Department of Energy
Start Date: 2021-01-24
End Date: 2021-09-30
Contract Duration: 249 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: HANFORD CENTRAL PLATEAU CLEANUP CONTRACT - IMPLEMENTATION PERIOD.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99352
Plain-Language Summary
Department of Energy obligated $371.6 million to CENTRAL PLATEAU CLEANUP COMPANY, LLC for work described as: HANFORD CENTRAL PLATEAU CLEANUP CONTRACT - IMPLEMENTATION PERIOD. Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. The duration of 249 days indicates a focused, short-term implementation period for specific cleanup tasks. 4. The contract is for remediation services, a critical but often complex and costly environmental undertaking. 5. The award amount of $371.5M represents a significant investment in environmental restoration. 6. The contract is a delivery order, implying it's part of a larger, potentially indefinite-delivery contract.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the overall contract it belongs to. However, the Cost Plus Award Fee structure suggests that the government aims to achieve good value by incentivizing contractor performance. The base fee plus award fee mechanism requires diligent monitoring to ensure costs are controlled and performance targets are met. Without more detailed performance data and comparison to similar remediation efforts at other DOE sites, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition and its impact on the final award.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the cleanup of hazardous waste at the Hanford site. Services delivered include remediation of contaminated soil and groundwater, waste management, and facility deactivation. The geographic impact is concentrated at the Hanford Site in Washington State, a critical national nuclear reservation. Workforce implications include employment for skilled environmental remediation professionals, engineers, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed rigorously, as the contractor is reimbursed for costs plus an award fee based on performance.
- The short duration of the delivery order (249 days) might indicate a specific, potentially high-risk phase of cleanup that requires close monitoring.
- The complexity of environmental remediation at a site like Hanford inherently carries risks of unforeseen conditions and cost increases.
Positive Signals
- Awarded through full and open competition, suggesting a fair and competitive selection process.
- The Cost Plus Award Fee structure provides incentives for the contractor to perform efficiently and effectively.
- The contract focuses on remediation services, addressing critical environmental cleanup needs.
Sector Analysis
The environmental remediation sector is a significant part of the federal contracting landscape, particularly for agencies like the Department of Energy managing legacy nuclear sites. The Hanford site is one of the most complex and expensive cleanup projects in the world. Spending in this sector is driven by regulatory requirements, environmental stewardship, and national security concerns related to nuclear materials. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by DOE or the EPA.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Typically, large federal contracts, especially those involving complex remediation, may have provisions for small business participation. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and costs are reasonable. The DOE Office of Inspector General would also have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Hanford Site Cleanup
- Department of Energy Environmental Management
- Nuclear Site Remediation
- Hazardous Waste Management Contracts
Risk Flags
- Cost Plus Award Fee contract requires diligent oversight to ensure value for money.
- Environmental remediation projects are inherently complex and prone to unforeseen challenges.
- Short duration of delivery order may indicate a specific, potentially high-risk phase.
Tags
department-of-energy, hanford-site, environmental-remediation, remediation-services, cost-plus-award-fee, full-and-open-competition, delivery-order, washington, large-contract, environmental-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $371.6 million to CENTRAL PLATEAU CLEANUP COMPANY, LLC. HANFORD CENTRAL PLATEAU CLEANUP CONTRACT - IMPLEMENTATION PERIOD.
Who is the contractor on this award?
The obligated recipient is CENTRAL PLATEAU CLEANUP COMPANY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $371.6 million.
What is the period of performance?
Start: 2021-01-24. End: 2021-09-30.
What is the historical spending trend for the Hanford Central Plateau Cleanup Contract, and how does this delivery order fit within that trend?
The provided data only details a single delivery order for the Hanford Central Plateau Cleanup Contract with a value of $371.5 million and a duration of 249 days. To understand the historical spending trend, one would need to examine the total contract value over its entire lifecycle, including previous contracts for the same scope of work and any subsequent delivery orders or modifications. The Department of Energy's historical contracting data for the Hanford site would reveal patterns of spending, the evolution of contract types, and the overall investment in cleanup efforts. This specific delivery order represents a portion of the overall cleanup investment, likely addressing a defined phase or set of tasks within the larger, multi-year remediation program at the Central Plateau.
How does the Cost Plus Award Fee (CPAF) structure typically impact contractor performance and cost control in environmental remediation contracts?
The Cost Plus Award Fee (CPAF) structure is designed to reimburse the contractor for allowable costs incurred while also providing an incentive for superior performance through an award fee. In environmental remediation, where scope can be uncertain and unforeseen conditions are common, CPAF allows for flexibility in cost reimbursement. The 'award fee' component is earned based on the government's assessment of the contractor's performance against pre-defined criteria, such as meeting schedules, quality standards, safety targets, and cost management. This incentivizes the contractor to go beyond minimum requirements. However, effective cost control relies heavily on the government's ability to establish clear, measurable performance metrics and to diligently monitor costs and performance. Without rigorous oversight and well-defined criteria, CPAF contracts can sometimes lead to higher costs than fixed-price contracts if the award fee becomes a de facto entitlement rather than a true incentive for exceptional performance.
What are the key risks associated with environmental remediation contracts of this magnitude and complexity?
Environmental remediation contracts, especially at sites like Hanford, carry significant risks. These include technical risks, such as encountering unexpected contamination, geological challenges, or the need for novel cleanup technologies. Schedule risks are also prevalent due to the complexity and potential for delays caused by unforeseen issues or regulatory changes. Cost risks are substantial, as remediation activities can be highly unpredictable, leading to budget overruns. Furthermore, there are safety risks associated with handling hazardous materials and operating complex equipment. Finally, there are regulatory and political risks, as environmental laws and public scrutiny can impact project scope and timelines. The CPAF structure attempts to mitigate some cost and performance risks through incentives, but the inherent complexity of the work remains a primary risk factor.
What is the typical duration and value range for similar environmental remediation contracts awarded by the Department of Energy?
Environmental remediation contracts awarded by the Department of Energy (DOE) vary widely in duration and value, depending on the scope of work, the site's complexity, and the specific phase of cleanup. Contracts can range from short-term, task-specific delivery orders lasting months to multi-billion dollar, decade-long prime contracts. For large-scale site cleanup, such as at Hanford, major contracts often span many years and can total billions of dollars. The $371.5 million value and 249-day duration of this specific delivery order suggest it is a focused effort within a larger, ongoing remediation program. Comparable contracts for major cleanup activities at sites like Fernald, Rocky Flats, or Savannah River often involve similar or even larger financial commitments over extended periods.
How does the 'Remediation Services' NAICS code (562910) inform our understanding of the contract's objectives and potential challenges?
The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' specifically identifies the primary business activity of the contractor. This code encompasses establishments primarily engaged in cleaning up sites, such as soil and groundwater remediation, and managing hazardous and non-hazardous waste. For this contract, it confirms the core objective is the cleanup of contaminated environmental media. This classification highlights potential challenges inherent in remediation, including the need for specialized expertise in environmental science and engineering, compliance with stringent environmental regulations (e.g., RCRA, CERCLA), the management of hazardous materials, and the potential for long-term monitoring and maintenance. It signals that the contract likely involves complex technical processes and significant regulatory oversight.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
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
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 106 NEWBERRY ST SW, AIKEN, SC, 29801
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $397,155,910
Exercised Options: $397,155,910
Current Obligation: $371,575,280
Actual Outlays: $126,989,528
Subaward Activity
Number of Subawards: 193
Total Subaward Amount: $56,912,747
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303320DEM000030
IDV Type: IDC
Timeline
Start Date: 2021-01-24
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-09-17
More Contracts from Central Plateau Cleanup Company, LLC
- Hanford Central Plateau Cleanup Contract - Task Order 4 - END States & Base OPS. This Task Order IS Issued AS an Undefinitized Task Order Pursuant to Clause H.49, Task Ordering Procedure. Notice-To-Proceed Shall BE Effective on October 1, 2021 — $1.7B (Department of Energy)
- Hanford Central Plateau Cleanup Contract - Task Order 7 - END States & Base OPS. This Task Order IS Issued AS an Undefinitized Task Order Pursuant to Clause H.49, Task Ordering Procedure. Notice-To-Proceed and a Not-To-Exceed Value of $98,000,000 — $820.6M (Department of Energy)
- Hanford Central Plateau Cleanup Contract (cpcc) Task Order 6 - Manhattan Project National Park Program (mapr) This Task Order IS Issued AS an Undefinitized Task Order Pursuant to Clause H.49, Task Ordering Procedure. Notice to Proceed and a Not-T — $19.5M (Department of Energy)
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