DOE Awards $80.7M Contract to Foster Wheeler for Environmental Services at Idaho Site
Contract Overview
Contract Amount: $80,710,949 ($80.7M)
Contractor: Foster Wheeler Environmental Corporation
Awarding Agency: Department of Energy
Start Date: 2000-05-15
End Date: 2006-03-06
Contract Duration: 2,121 days
Daily Burn Rate: $38.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Place of Performance
Location: IDAHO
State: Idaho Government Spending
Plain-Language Summary
Department of Energy obligated $80.7 million to FOSTER WHEELER ENVIRONMENTAL CORPORATION for work described as: Key points: 1. Contract value of $80.7 million over 6 years. 2. Full and open competition was utilized. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type. 4. Focus on environmental services, potentially a specialized sector.
Value Assessment
Rating: fair
The contract's fixed-price nature with economic price adjustment suggests an attempt to control costs while accounting for potential market fluctuations. Benchmarking against similar environmental service contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition generally promotes competitive pricing. The FPEPA clause, however, introduces a risk of price increases due to economic factors, potentially impacting the final cost discovered through competition.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the economic price adjustment could lead to higher-than-anticipated costs if inflation is significant.
Public Impact
Environmental cleanup services are critical for public health and safety. Long-term contracts can ensure continuity of essential services. Transparency in bidding processes is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may increase final cost.
- Contract duration is substantial (over 6 years).
Positive Signals
- Full and open competition utilized.
- Contract addresses critical environmental needs.
Sector Analysis
This contract falls within the environmental services sector, which is crucial for managing hazardous waste and remediating contaminated sites. Spending in this area is often driven by regulatory requirements and long-term cleanup needs.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Energy, suggesting oversight from a federal agency. The 'DEFINITIVE CONTRACT' designation implies a formal agreement with established terms and conditions.
Related Government Programs
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to EPA clause.
- Long contract duration may reduce flexibility.
- Lack of small business participation data.
- Specificity of environmental services not detailed.
Tags
department-of-energy, id, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $80.7 million to FOSTER WHEELER ENVIRONMENTAL CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is FOSTER WHEELER ENVIRONMENTAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $80.7 million.
What is the period of performance?
Start: 2000-05-15. End: 2006-03-06.
What specific environmental services are covered under this contract, and how do they align with the Department of Energy's mission at the Idaho site?
The contract likely covers a range of environmental remediation and management services, such as hazardous waste disposal, site assessment, and pollution control, directly supporting the DOE's responsibility for managing legacy nuclear weapons production sites and ensuring environmental safety and compliance at the Idaho National Laboratory Site.
What are the potential risks associated with the 'Economic Price Adjustment' clause in this fixed-price contract, and how might they impact the final cost to taxpayers?
The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in economic factors like labor costs, material prices, or inflation. This introduces uncertainty, as the final cost could exceed the initial $80.7 million if these economic indicators rise significantly, potentially leading to higher expenses for taxpayers than initially budgeted.
How effective was the 'Full and Open Competition' process in achieving competitive pricing and selecting the most capable contractor for these specialized environmental services?
While full and open competition is designed to foster competitive pricing and identify the best value, the effectiveness in this specific case depends on the number and quality of bids received. Without bid data, it's difficult to definitively assess if the competition drove optimal pricing or if Foster Wheeler's proposal represented the strongest technical and cost solution among qualified offerors.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Address: 3200 GEORGE WASHINGTON WA, RICHLAND, WA, 99352
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2000-05-15
Current End Date: 2006-03-06
Potential End Date: 2006-03-06 00:00:00
Last Modified: 2022-03-30
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