DOE's $2.83B Hanford River Corridor Cleanup Contract Awarded to Washington Closure Hanford LLC
Contract Overview
Contract Amount: $2,830,923,899 ($2.8B)
Contractor: Washington Closure Hanford LLC
Awarding Agency: Department of Energy
Start Date: 2005-03-23
End Date: 2016-09-30
Contract Duration: 4,209 days
Daily Burn Rate: $672.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: RIVER CORRIDOR CLEAN UP
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $2.83 billion to WASHINGTON CLOSURE HANFORD LLC for work described as: RIVER CORRIDOR CLEAN UP Key points: 1. Significant investment in environmental remediation at Hanford site. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract type (Cost Plus Incentive Fee) may lead to cost overruns if not managed closely. 4. Long duration (over 10 years) indicates a complex, multi-year project.
Value Assessment
Rating: fair
The contract value of $2.83 billion over 10 years is substantial. Benchmarking is difficult without specific details on the scope of work and remediation complexity, but the duration suggests a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Incentive Fee structure can sometimes lead to higher final costs than fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for a critical environmental cleanup effort. The competitive award aims for efficiency, but the CPIF structure requires careful oversight to control costs.
Public Impact
Addresses long-standing environmental contamination at the Hanford site. Supports regional economic activity through contract employment and subcontracts. Demonstrates federal commitment to environmental stewardship and nuclear site cleanup.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to CPIF contract type.
- Long contract duration may obscure initial cost estimates.
- Complexity of remediation tasks can be underestimated.
Positive Signals
- Awarded through full and open competition.
- Addresses a significant environmental hazard.
- Contractor has a specific focus on Hanford remediation.
Sector Analysis
This contract falls under environmental remediation services, a specialized sector within government contracting. Spending in this area is driven by regulatory requirements and historical site contamination, with significant federal investment often required for large-scale cleanups.
Small Business Impact
The data does not indicate specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract's long duration and CPIF structure necessitate robust oversight from the Department of Energy to ensure cost control, adherence to scope, and effective remediation progress.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Long contract duration (over 10 years) increases risk of scope creep and cost escalation.
- Complexity of Hanford site remediation is inherently high.
- Lack of specific small business participation data.
- Performance data against KPIs not readily available in provided summary.
Tags
remediation-services, department-of-energy, wa, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.83 billion to WASHINGTON CLOSURE HANFORD LLC. RIVER CORRIDOR CLEAN UP
Who is the contractor on this award?
The obligated recipient is WASHINGTON CLOSURE HANFORD LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.83 billion.
What is the period of performance?
Start: 2005-03-23. End: 2016-09-30.
What specific remediation activities are included in the $2.83 billion contract, and how do these align with the estimated costs for similar complex environmental cleanup projects?
The contract covers the cleanup of the Hanford site's river corridor, a vast and complex area with significant radioactive and chemical contamination. Detailed breakdowns of specific tasks like waste retrieval, soil and groundwater remediation, and facility deactivation are crucial for comparison. Benchmarking against other large-scale federal environmental cleanup contracts, considering factors like contaminant types, volume, and regulatory requirements, would provide a clearer picture of cost-effectiveness.
How effectively has the Cost Plus Incentive Fee (CPIF) structure managed costs and incentivized performance for this specific contract, given its long duration and significant value?
The CPIF structure aims to balance contractor risk and government cost control by providing incentives for meeting cost, schedule, and performance targets. For this long-term, high-value contract, the effectiveness hinges on clearly defined metrics and diligent oversight. Regular reviews of performance against targets, analysis of incentive fee payouts, and comparison of actual costs to baseline estimates are essential to determine if the CPIF has successfully driven efficiency or contributed to cost growth.
What are the key performance indicators (KPIs) used to measure the success of the River Corridor Cleanup, and how has the contractor performed against these metrics over the contract's lifespan?
Measuring the success of a large-scale environmental cleanup requires a suite of KPIs, likely including progress in waste removal, reduction in contaminant levels in soil and water, completion of deactivation and decommissioning of facilities, and adherence to safety and environmental regulations. Performance against these KPIs would be documented in contract performance reports. Analyzing these reports would reveal the contractor's effectiveness in achieving the cleanup objectives within the agreed-upon parameters.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DERP04RL14655
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 720 PARK BLVD, BOISE, ID, 83712
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,063,259,564
Exercised Options: $3,063,259,564
Current Obligation: $2,830,923,899
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-03-23
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2018-09-20
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