DOE awards $53.8M occupational health services contract to Hanford Environmental Health Foundation
Contract Overview
Contract Amount: $53,795,394 ($53.8M)
Contractor: Hanford Environmental Health Foundation
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2010-08-23
Contract Duration: 3,965 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: AWARD OF PERFORMANCE BASED COST REIMBURSEMENT PLUS PERFORMANCE FEE CONTRACT FOR OCCUPATIONAL HEALTH SERVICES AT THE HANFORD SITE
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99352
Plain-Language Summary
Department of Energy obligated $53.8 million to HANFORD ENVIRONMENTAL HEALTH FOUNDATION for work described as: AWARD OF PERFORMANCE BASED COST REIMBURSEMENT PLUS PERFORMANCE FEE CONTRACT FOR OCCUPATIONAL HEALTH SERVICES AT THE HANFORD SITE Key points: 1. Contract awarded for occupational health services at Hanford Site. 2. Long duration (nearly 11 years) with significant value. 3. Performance-based cost-plus-award-fee structure incentivizes contractor performance. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract's cost-plus-award-fee structure allows for flexibility but can lead to higher costs if performance targets are not well-defined or achieved. Benchmarking against similar health service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specific nature of services may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are used to procure essential occupational health services, with the potential for cost savings through performance incentives, but also risk of overspending if not managed effectively.
Public Impact
Ensures health and safety of workers at the sensitive Hanford Site. Long-term commitment to a critical service area. Potential for cost overruns or savings based on contractor performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration increases risk of cost escalation.
- Performance-based structure requires robust oversight.
Positive Signals
- Full and open competition utilized.
- Performance incentives align contractor goals with agency needs.
Sector Analysis
This contract falls under healthcare services, specifically ambulatory health care. Spending in this sector is driven by the need for specialized medical support, particularly in unique environments like nuclear sites. Benchmarks are highly variable based on service scope and location.
Small Business Impact
The data indicates no small business participation in this contract. This could be due to the specialized nature of the services required or the size of the contract, which may be prohibitive for smaller businesses.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. The performance-based nature requires diligent monitoring of contractor performance against established metrics to ensure value for taxpayer money.
Related Government Programs
- All Other Miscellaneous Ambulatory Health Care Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Long contract duration (nearly 11 years).
- No small business participation.
- Cost-plus-award-fee structure requires strong oversight.
- Potential for undefined scope creep over the contract's life.
Tags
all-other-miscellaneous-ambulatory-healt, department-of-energy, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $53.8 million to HANFORD ENVIRONMENTAL HEALTH FOUNDATION. AWARD OF PERFORMANCE BASED COST REIMBURSEMENT PLUS PERFORMANCE FEE CONTRACT FOR OCCUPATIONAL HEALTH SERVICES AT THE HANFORD SITE
Who is the contractor on this award?
The obligated recipient is HANFORD ENVIRONMENTAL HEALTH FOUNDATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $53.8 million.
What is the period of performance?
Start: 1999-10-15. End: 2010-08-23.
What specific performance metrics were used to determine award fees, and how effectively did they align with the agency's goals for occupational health at Hanford?
The effectiveness of the performance metrics is crucial for a cost-plus-award-fee contract. Without detailed insight into the specific metrics (e.g., incident rates, response times, employee satisfaction), it's challenging to assess how well they truly incentivized the desired outcomes for occupational health services at the Hanford Site and ensured optimal value.
Given the nearly 11-year duration, what mechanisms were in place to mitigate the risk of cost creep and ensure the services remained relevant and efficient over time?
Long-duration contracts inherently carry risks of cost escalation and service obsolescence. Robust oversight, regular contract reviews, and mechanisms for adjusting service scope or pricing based on evolving needs and market conditions would be essential to mitigate these risks and ensure continued efficiency and value for the taxpayer.
How did the full and open competition process ensure a competitive price for these specialized occupational health services, considering the unique demands of the Hanford Site?
While full and open competition is a positive indicator, the specialized nature of occupational health services at a site like Hanford might limit the pool of qualified bidders. The agency's evaluation process and negotiation strategies would be key to ensuring that the competition resulted in a fair and competitive price, rather than just a technically compliant award.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 3090 GEORGE WASHINGTON WAY, RICHLAND, WA, 04
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,003,842
Exercised Options: $36,003,842
Current Obligation: $53,795,394
Timeline
Start Date: 1999-10-15
Current End Date: 2010-08-23
Potential End Date: 2010-08-23 00:00:00
Last Modified: 2010-08-25
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