DOE's $4.3B Idaho Cleanup Project Awarded to CH2M WG IDAHO LLC Under Full and Open Competition
Contract Overview
Contract Amount: $4,289,792,714 ($4.3B)
Contractor: CH2M WG Idaho LLC
Awarding Agency: Department of Energy
Start Date: 2005-03-23
End Date: 2016-05-31
Contract Duration: 4,087 days
Daily Burn Rate: $1.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: IDAHO CLEANUP PROJECT AT THE INL
Place of Performance
Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83415
State: Idaho Government Spending
Plain-Language Summary
Department of Energy obligated $4.29 billion to CH2M WG IDAHO LLC for work described as: IDAHO CLEANUP PROJECT AT THE INL Key points: 1. Significant investment in environmental remediation services. 2. CH2M WG IDAHO LLC secured a large, long-term contract. 3. Full and open competition suggests potential for competitive pricing. 4. The project falls within the broader environmental services sector.
Value Assessment
Rating: good
The contract value of $4.3 billion over 11 years is substantial. Benchmarking against similar large-scale environmental remediation contracts is difficult due to the unique nature and scale of the Idaho National Laboratory site cleanup.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Taxpayer funds are being utilized for a critical environmental cleanup effort, with the competitive process aiming to ensure efficient use of these funds.
Public Impact
Environmental cleanup of a major federal facility. Long-term commitment of resources for site remediation. Potential for job creation and economic activity in Idaho.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns.
- Complexity of remediation may lead to unforeseen challenges.
- Reliance on a single prime contractor for a large scope.
Positive Signals
- Competitive award process.
- Focus on critical environmental protection.
- Potential for technological advancements in remediation.
Sector Analysis
This contract falls under environmental remediation services, a sector critical for managing legacy industrial sites. Spending in this sector can vary significantly based on government priorities and the number of active cleanup sites.
Small Business Impact
The provided data does not indicate specific subcontracting opportunities for small businesses on this contract. Large, complex projects often involve significant subcontracting, but the extent of small business participation is not detailed here.
Oversight & Accountability
The Department of Energy is responsible for overseeing this cleanup project. The long duration and significant value necessitate robust oversight mechanisms to ensure progress, cost control, and adherence to environmental regulations.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration (11 years)
- Contract type (CPIF)
- Complexity of remediation services
- Large contract value
Tags
remediation-services, department-of-energy, id, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.29 billion to CH2M WG IDAHO LLC. IDAHO CLEANUP PROJECT AT THE INL
Who is the contractor on this award?
The obligated recipient is CH2M WG IDAHO LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $4.29 billion.
What is the period of performance?
Start: 2005-03-23. End: 2016-05-31.
What were the key performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) contract to ensure project success and cost efficiency?
The CPIF structure likely included target costs, incentive fees for meeting or exceeding performance goals (e.g., schedule, cost savings, environmental outcomes), and potential penalties for falling short. Specific metrics would be detailed in the contract, focusing on milestones, waste reduction, and safety, aiming to align contractor incentives with government objectives for efficient and effective cleanup.
How did the competitive bidding process account for the long-term, complex nature of the Idaho cleanup, and were there specific evaluation criteria for technical expertise and risk management?
The full and open competition likely involved rigorous evaluation of bidders' technical proposals, past performance, and demonstrated ability to manage complex, long-term environmental remediation projects. Criteria would have emphasized risk mitigation strategies, innovative approaches to cleanup, and a proven track record in similar large-scale operations to ensure the selected contractor possessed the necessary expertise and a viable plan.
What is the projected long-term environmental impact and taxpayer value derived from this $4.3 billion investment in the Idaho National Laboratory cleanup?
The primary value is the long-term environmental remediation and risk reduction at the INL site, protecting public health and ecosystems. Taxpayer value is realized through the competitive award process, aiming for cost-effective cleanup, and the ultimate restoration of the site. The success of the project will be measured by the degree of contamination reduction and the prevention of future environmental harm.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE RESTORATION ACTIVITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 151 NORTH RIDGE AVENUE, IDAHO FALLS, ID, 83402
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $4,713,648,604
Exercised Options: $4,713,648,604
Current Obligation: $4,289,792,714
Actual Outlays: $12,342,410
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-03-23
Current End Date: 2016-05-31
Potential End Date: 2016-05-31 00:00:00
Last Modified: 2019-10-30
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