DOE's $181M contract for environmental management services awarded to Amentum Environment & Energy, Inc
Contract Overview
Contract Amount: $181,111,288 ($181.1M)
Contractor: Amentum Environment & Energy, Inc.
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2003-09-15
Contract Duration: 1,431 days
Daily Burn Rate: $126.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $181.1 million to AMENTUM ENVIRONMENT & ENERGY, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is substantial at 1431 days, indicating a long-term commitment to these services. 4. The contract was awarded by the Department of Energy, a key agency for environmental management. 5. The contract was awarded in Tennessee, indicating a specific geographic focus for these services. 6. The contractor, Amentum Environment & Energy, Inc., is a significant player in the environmental services sector.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement nature means actual costs could fluctuate. Comparing this to similar environmental management contracts would require access to detailed pricing structures and scope of work for those contracts. The initial award amount of $181,111,288 suggests a significant investment, and its value will ultimately be determined by the successful and cost-effective completion of the environmental management tasks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this significant environmental management contract. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.
Taxpayer Impact: The full and open competition process aims to ensure that taxpayers receive the best possible value by encouraging multiple companies to bid, driving down prices through market forces.
Public Impact
The primary beneficiaries are the Department of Energy and potentially the public through the effective management of environmental risks and cleanup activities. Services delivered likely include a range of environmental remediation, waste management, and compliance activities. The geographic impact is concentrated in Tennessee, where the contract is being executed. Workforce implications include job creation and utilization of specialized environmental professionals in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
- Limited competition (two bidders) may not have resulted in the most competitive pricing.
- The long duration of the contract requires sustained oversight to ensure performance and cost control.
Positive Signals
- Awarded through full and open competition, indicating a fair and accessible bidding process.
- The contractor, Amentum, is a specialized firm with experience in environmental services.
- The contract addresses critical environmental management needs for the Department of Energy.
Sector Analysis
The environmental services sector is a significant part of the government contracting landscape, encompassing remediation, waste management, and compliance. This contract fits within the broader category of government support services, specifically focusing on environmental stewardship and regulatory compliance. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup and management contracts awarded by agencies like the EPA or DoD.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the scale and specialized nature of environmental management services, it is common for such contracts to be awarded to large, experienced firms. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the project.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Accountability measures would be tied to the performance work statement and the terms of the Cost Plus Fixed Fee agreement. Transparency would be facilitated through contract award databases and potentially public reporting on environmental outcomes, though detailed cost breakdowns may be proprietary.
Related Government Programs
- Department of Energy Environmental Management Program
- Environmental Remediation Services
- Hazardous Waste Management Contracts
- Federal Facilities Cleanup Program
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Limited competition (two bidders) may impact price competitiveness.
- Long contract duration necessitates sustained performance monitoring.
Tags
environmental-services, department-of-energy, cost-plus-fixed-fee, full-and-open-competition, tennessee, large-contract, environmental-management, remediation, amentum-environment-energy-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $181.1 million to AMENTUM ENVIRONMENT & ENERGY, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AMENTUM ENVIRONMENT & ENERGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $181.1 million.
What is the period of performance?
Start: 1999-10-15. End: 2003-09-15.
What is the historical spending pattern for environmental management services by the Department of Energy in Tennessee?
Analyzing historical spending patterns for environmental management services by the Department of Energy (DOE) in Tennessee is crucial for contextualizing the $181 million award to Amentum Environment & Energy, Inc. While specific historical data for Tennessee alone is not provided in the abbreviated data, the DOE's Office of Environmental Management (EM) is responsible for cleaning up the nation's Cold War nuclear legacy. EM's budget typically runs into billions of dollars annually, with significant portions allocated to site cleanup and waste management across various states. Tennessee, particularly due to the Oak Ridge Reservation, has historically been a major focus for DOE's environmental activities. Previous contracts for similar services at Oak Ridge have been substantial, often awarded through competitive processes. Understanding the trend of spending in this region, including the types of services procured and the average contract values over the past decade, would help determine if this $181 million award represents an increase, decrease, or stable level of investment for environmental management in Tennessee.
How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar environmental services?
The Cost Plus Fixed Fee (CPFF) contract structure, used for the $181 million Department of Energy (DOE) environmental management contract, is one of several options available for complex services where the exact costs are difficult to predict upfront. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. Other common contract types for similar services include: Fixed-Price (FP) contracts, where the price is set regardless of actual costs, offering maximum cost certainty for the government but shifting risk to the contractor; Cost Plus Incentive Fee (CPIF) contracts, which adjust the fee based on performance against cost, schedule, or technical targets; and Cost Plus Award Fee (CPAF) contracts, where the fee is determined by the government's subjective assessment of performance. For environmental services, CPFF is often chosen when the scope of work involves significant unknowns, such as in hazardous waste remediation, where unforeseen conditions can arise. While it offers flexibility, it requires robust government oversight to manage costs effectively.
What is Amentum Environment & Energy, Inc.'s track record with the Department of Energy and similar environmental contracts?
Amentum Environment & Energy, Inc. (and its predecessor entities) has a significant track record with the Department of Energy (DOE) and in managing large-scale environmental contracts. Amentum is a major government contractor specializing in mission-critical services, including environmental management, infrastructure, and energy solutions. The company has been involved in numerous complex projects for the DOE, often related to nuclear cleanup, waste management, and site remediation at various government facilities. For instance, Amentum has held prime contracts at sites like the Savannah River Site and the Hanford Site, which are among the most challenging environmental cleanup operations in the U.S. Their experience typically involves managing large workforces, complex technical challenges, stringent regulatory requirements, and substantial budgets. Evaluating their specific performance on past DOE contracts, including adherence to cost, schedule, and safety performance metrics, would provide further insight into their capabilities and reliability for this $181 million Tennessee contract. Publicly available contract award data and performance reviews, where accessible, can offer a more detailed assessment.
What are the potential risks associated with a Cost Plus Fixed Fee contract for environmental management?
The Cost Plus Fixed Fee (CPFF) contract structure for environmental management, like the $181 million award to Amentum Environment & Energy, Inc., presents several potential risks. A primary risk is cost escalation; while the fee is fixed, the 'cost' portion is reimbursable. If the contractor's actual costs exceed initial estimates due to unforeseen site conditions, inefficient operations, or scope creep, the total contract value can increase significantly. This necessitates strong government oversight to scrutinize incurred costs and ensure they are allowable and reasonable. Another risk is the potential for reduced contractor incentive to innovate or find efficiencies beyond what is necessary to meet the minimum requirements, as their profit is guaranteed by the fixed fee. Furthermore, the complexity of environmental projects means that defining and controlling the scope of work can be challenging, potentially leading to disputes over what constitutes an allowable cost versus a change in scope. Ensuring robust performance metrics and clear deliverables is critical to mitigate these risks and ensure the government receives value for its investment.
How does the competition level (2 bidders) impact the government's ability to secure favorable pricing for this contract?
The competition level for this $181 million Department of Energy (DOE) contract, with only two bidders (Amentum Environment & Energy, Inc. and one other), presents a moderate level of price discovery for the government. While full and open competition theoretically allows any qualified firm to bid, the actual number of responsive bidders is a key determinant of market competitiveness. With only two bidders, the government has less leverage to negotiate aggressively on price compared to a scenario with multiple, competing offers. Each bidder knows they have a significant chance of winning, which can reduce the pressure to offer the absolute lowest price. This situation increases the importance of the government's evaluation criteria, ensuring that the selection is based not only on price but also on technical merit, past performance, and overall value. A more robust competition, with three or more bidders, would typically drive prices down further as companies vie more intensely for the award. Therefore, while the process was open, the limited number of participants may have resulted in a higher-than-optimal price for the taxpayer.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Timeline
Start Date: 1999-10-15
Current End Date: 2003-09-15
Potential End Date: 2003-09-15 00:00:00
Last Modified: 2011-06-22
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