DOE's $243M Environmental Services Contract with HII Nuclear Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $243,257,278 ($243.3M)
Contractor: HII Nuclear Inc
Awarding Agency: Department of Energy
Start Date: 2002-03-05
End Date: 2008-03-10
Contract Duration: 2,197 days
Daily Burn Rate: $110.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TECHNICAL, PROJECT MANAGEMENT,& ADMINISTRATIVE SERVICES TO GRAND JUNCTION OFFICE FOR ITS ENVIRONMENTAL MANAGEMENT AND RESTORATION SERVICES MISSION
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81503
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $243.3 million to HII NUCLEAR INC for work described as: TECHNICAL, PROJECT MANAGEMENT,& ADMINISTRATIVE SERVICES TO GRAND JUNCTION OFFICE FOR ITS ENVIRONMENTAL MANAGEMENT AND RESTORATION SERVICES MISSION Key points: 1. Significant contract value of $243.3 million over six years. 2. Awarded through full and open competition, suggesting market availability of services. 3. Cost Plus Award Fee (CPAF) contract type allows for performance incentives. 4. Focus on environmental management and restoration services for the Grand Junction Office.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for performance-based incentives, potentially driving efficiency. Benchmarking against similar environmental remediation contracts would provide further insight into value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by leveraging market forces to drive down costs and improve service quality.
Public Impact
Ensures continued environmental cleanup and restoration at the Grand Junction Office. Supports critical government functions related to environmental stewardship. Provides long-term employment and economic activity within the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of six years may pose long-term budget planning challenges.
- CPAF structure requires careful monitoring of award fee criteria to ensure fair and justified payments.
Positive Signals
- Full and open competition suggests a competitive bidding process.
- Focus on environmental restoration addresses a key government responsibility.
Sector Analysis
This contract falls within the environmental services sector, specifically remediation. Spending in this area is driven by regulatory requirements and historical land use. Benchmarks for similar large-scale environmental contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of Energy's oversight is crucial for managing the CPAF structure and ensuring the contractor meets environmental restoration objectives effectively and efficiently.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration
- Cost Plus Award Fee structure
- Lack of small business awardee
- Potential for cost overruns
Tags
remediation-services, department-of-energy, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $243.3 million to HII NUCLEAR INC. TECHNICAL, PROJECT MANAGEMENT,& ADMINISTRATIVE SERVICES TO GRAND JUNCTION OFFICE FOR ITS ENVIRONMENTAL MANAGEMENT AND RESTORATION SERVICES MISSION
Who is the contractor on this award?
The obligated recipient is HII NUCLEAR INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $243.3 million.
What is the period of performance?
Start: 2002-03-05. End: 2008-03-10.
What were the key performance metrics used to determine award fees under this CPAF contract, and how effectively did they align with the mission's goals?
The specific performance metrics for award fees are not detailed in the provided data. However, for a CPAF contract in environmental remediation, typical metrics would include adherence to schedules, budget performance, safety compliance, quality of work, and successful completion of restoration milestones. Effective metrics would directly tie to the successful and cost-efficient execution of the Grand Junction Office's environmental management and restoration mission.
Given the six-year duration and CPAF structure, what are the primary risks associated with cost overruns or performance shortfalls?
The primary risks include potential cost overruns if project complexities are underestimated or if the award fee structure incentivizes higher costs without commensurate value. Performance shortfalls risk delays in environmental restoration, potential regulatory non-compliance, and reputational damage for the agency. The CPAF structure, while incentivizing performance, also requires robust oversight to prevent 'gold-plating' or unnecessary expenditures to maximize award fees.
How does the $243.3 million expenditure compare to the estimated cost of achieving the environmental restoration mission objectives, and what is the projected long-term value?
Without a baseline estimate for the total mission cost or a detailed cost-benefit analysis, it's difficult to definitively assess the $243.3 million expenditure. However, the full and open competition suggests a competitive price was secured. The long-term value lies in the successful remediation of environmental hazards, ensuring public safety, and restoring land for future use, which are critical but often hard-to-quantify benefits.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 990 SO. PUBLIC ROAD, LAFAYETTE, CO, 80026
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $268,013,421
Exercised Options: $266,986,106
Current Obligation: $243,257,278
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-03-05
Current End Date: 2008-03-10
Potential End Date: 2008-03-10 00:00:00
Last Modified: 2018-10-02
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