DOE awards $19.5M task order for Hanford cleanup, extending CPCC contract through 2027

Contract Overview

Contract Amount: $19,507,426 ($19.5M)

Contractor: Central Plateau Cleanup Company, LLC

Awarding Agency: Department of Energy

Start Date: 2024-10-01

End Date: 2027-09-30

Contract Duration: 1,094 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 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

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99352

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $19.5 million to CENTRAL PLATEAU CLEANUP COMPANY, LLC for work described as: 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 Key points: 1. This task order represents a continuation of services under the larger Central Plateau Cleanup Contract (CPCC). 2. The contract type is Cost Plus Fixed Fee, indicating that costs are reimbursed and a fixed fee is paid. 3. The duration of this task order is approximately three years, aligning with the end of the fiscal year 2027. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The task order is for Remediation Services, a critical component of the Hanford site's environmental cleanup mission. 6. The contractor, Central Plateau Cleanup Company, LLC, is responsible for executing this task order. 7. The task order is being issued as an undefinitized task order, implying initial work may commence before final terms are fully settled.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can sometimes lead to higher costs if not closely managed, as contractor incentives are tied to cost reimbursement plus a fee. Benchmarking this specific task order's value is challenging without detailed cost breakdowns and comparison to similar remediation efforts at other DOE sites. However, the fixed fee component aims to provide some cost control. The overall value will depend on the efficient execution of the remediation tasks and the final negotiated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders and the evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages innovative solutions from a wider pool of contractors.

Public Impact

The primary beneficiaries are the Department of Energy and the public, through the continued progress in environmental remediation at the Hanford site. Services delivered include critical remediation activities necessary for the cleanup of nuclear waste and contaminated materials. The geographic impact is focused on the Hanford site in Washington State, a key location for nuclear materials management and cleanup. Workforce implications include the continued employment of skilled personnel in environmental remediation, engineering, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The undefinitized nature of the task order could present initial risks if not promptly definitized, potentially leading to cost overruns if terms are not clearly established.
Cost Plus Fixed Fee contracts require robust oversight to ensure efficiency and prevent unnecessary costs, as the contractor is reimbursed for expenses plus a fee.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The task order is part of a larger, established contract (CPCC), suggesting continuity and experience in managing complex cleanup operations.
The fixed fee component in the contract type provides a defined profit margin, which can help in cost management compared to purely cost-plus-award-fee structures.

Sector Analysis

The Department of Energy's Hanford site is a massive complex with a long history of nuclear material production and cleanup. Remediation services are a significant sector within the federal contracting landscape, particularly for agencies managing legacy nuclear sites. Spending in this sector is driven by regulatory requirements, environmental stewardship, and long-term site closure goals. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts at sites like Savannah River or Oak Ridge.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific task order. This suggests that the prime contractor, Central Plateau Cleanup Company, LLC, is likely a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this task order and if the prime contractor has a robust small business subcontracting plan.

Oversight & Accountability

Oversight for this task order will fall under the Department of Energy's existing contract management framework for the CPCC. This likely includes regular progress reviews, financial audits, and performance monitoring. The Inspector General's office for the Department of Energy would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract. Transparency is typically managed through contract reporting requirements and public-facing information portals for federal spending.

Related Government Programs

Hanford Site Cleanup
Department of Energy Environmental Management
Nuclear Waste Management
Federal Remediation Services

Risk Flags

Undefinitized Task Order
Cost Plus Fixed Fee Contract Type
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $19.5 million to CENTRAL PLATEAU CLEANUP COMPANY, LLC. 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

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 $19.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2027-09-30.

What is the historical spending pattern for the Central Plateau Cleanup Contract (CPCC) and how does this task order fit within that trend?

The Central Plateau Cleanup Contract (CPCC) is a significant, multi-billion dollar contract managed by the Department of Energy (DOE) for the cleanup of the Hanford Site. Historical spending under the CPCC has been substantial, reflecting the immense scale and complexity of the cleanup mission. This specific task order, valued at approximately $19.5 million, represents a relatively small portion of the overall CPCC budget. It appears to be a continuation or specific allocation of funds for a defined period (Task Order 6) within the broader contract. Analyzing historical spending trends for the CPCC would involve examining annual obligations and expenditures over the life of the contract, looking for patterns in funding allocation across different cleanup activities and task orders. This task order's value suggests it's for a specific, defined scope of work, likely related to the Manhattan Project National Park Program, rather than a major new cleanup initiative.

How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in terms of cost control and value for money compared to other contract types for similar remediation services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty, as is common in complex remediation projects. While CPFF provides flexibility, it can present challenges for cost control. The contractor has less incentive to minimize costs compared to fixed-price contracts, as their fee is fixed regardless of the final cost. However, the fixed fee itself acts as a ceiling on profit. Value for money in CPFF contracts heavily relies on robust government oversight, clear performance metrics, and effective negotiation of the fee. Compared to fixed-price contracts, CPFF may lead to higher final costs if not managed diligently. Conversely, compared to pure cost-plus contracts (Cost Plus Percentage of Cost), CPFF is generally preferred as it removes the incentive to inflate costs to increase profit.

What are the key performance indicators (KPIs) or metrics used to assess the success of the Central Plateau Cleanup Company, LLC under the CPCC, and how are they monitored?

While specific KPIs for Task Order 6 are not detailed in the provided data, the success of the Central Plateau Cleanup Company, LLC (CPCC) under the broader CPCC contract is typically assessed through a Performance Evaluation and Payment System (PEPS). This system usually includes metrics related to safety performance, environmental compliance, schedule adherence, cost control, and the successful completion of specific cleanup milestones. The Department of Energy (DOE) monitors these KPIs through regular progress reports submitted by the contractor, site inspections, independent verification of work, and performance reviews. Contractually, the DOE will evaluate the contractor's performance against these established metrics to determine payment, including the fixed fee. Any deviations or failures to meet KPIs can result in penalties, reduced fee, or corrective action plans.

What is the significance of issuing this task order as an 'Undefinitized Task Order' and what are the associated risks?

Issuing a task order as 'Undefinitized' (often referred to as an Undefinitized Contract Action or UCA) means that the contractor is authorized to begin work before the final terms, conditions, and price have been fully negotiated and agreed upon by both parties. This is typically done when there is an urgent need to proceed. The primary risk associated with an undefinitized task order is that the final negotiated price could be higher than initially anticipated, potentially leading to cost overruns for the government. There's also a risk that the scope of work or specific requirements might change during the negotiation process. To mitigate these risks, agencies usually have policies requiring prompt definitization (finalizing the contract) within a specified timeframe, often with limitations on the amount of work that can be performed before definitization. For taxpayers, the risk is a potentially higher expenditure than if the contract had been fully defined upfront.

What is the role of Central Plateau Cleanup Company, LLC (CPCC) in the broader Hanford Site cleanup mission, and how does this task order contribute?

Central Plateau Cleanup Company, LLC (CPCC) is the prime contractor responsible for a significant portion of the environmental cleanup activities at the Hanford Site, specifically focusing on the Central Plateau region. This region contains numerous contaminated facilities and waste sites resulting from decades of nuclear weapons production. Their mission involves safely managing, treating, and disposing of radioactive and hazardous waste, as well as decontaminating and decommissioning facilities. Task Order 6, related to the Manhattan Project National Park Program (MAPR), likely involves specific support services or infrastructure work that aligns with the broader cleanup goals, potentially related to preserving historical aspects of the site or facilitating public access and education in a safe manner. While not a direct waste treatment task, it contributes to the overall mission by supporting related programs and ensuring the site's complex history is managed alongside its cleanup.

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 FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $53,264,647

Exercised Options: $53,264,647

Current Obligation: $19,507,426

Actual Outlays: $6,745,680

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $335,098

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