HII NUCLEAR INC awarded $12M for Environmental Surveillance, Education, and Research (ESER) by the Department of Energy
Contract Overview
Contract Amount: $11,980,678 ($12.0M)
Contractor: HII Nuclear Inc
Awarding Agency: Department of Energy
Start Date: 2006-01-01
End Date: 2010-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENVIRONMENTAL SURVEILLANCE, EDUCATION, AND RESEARCH (ESER)
Place of Performance
Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83402
State: Idaho Government Spending
Plain-Language Summary
Department of Energy obligated $12.0 million to HII NUCLEAR INC for work described as: ENVIRONMENTAL SURVEILLANCE, EDUCATION, AND RESEARCH (ESER) Key points: 1. Contract awarded through full and open competition after exclusion of sources, suggesting a deliberate decision to limit initial bidders. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not closely monitored. 3. Duration of 1825 days (5 years) indicates a long-term commitment to the ESER program. 4. The North American Industry Classification System (NAICS) code 541710 points to significant investment in R&D activities. 5. The contract value of approximately $12 million over five years suggests a moderate annual spend for specialized research services. 6. The award was made by the Department of Energy, indicating a focus on energy-related environmental research and development.
Value Assessment
Rating: fair
The contract value of $11,980,677.85 over five years averages to approximately $2.4 million annually. Benchmarking this against similar R&D contracts in environmental science is challenging without more specific data on the scope of work. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure requires robust oversight to ensure value for money and prevent unnecessary expenditures. Without detailed performance metrics or comparisons to other similar contracts, assessing the overall value proposition is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was intended, specific sources were excluded from the initial bidding process. The number of bidders is not specified, but the 'exclusion of sources' suggests a non-standard competitive approach. This could be due to specific technical requirements, prior relationships, or strategic decisions by the agency. The limited competition may impact price discovery and potentially lead to higher costs compared to a truly open and unrestricted competition.
Taxpayer Impact: Taxpayers may face higher costs due to the limited competitive pool. The exclusion of potential bidders could mean that the government did not receive the most cost-effective proposals available in the broader market.
Public Impact
The primary beneficiaries are likely the Department of Energy and its research initiatives, focusing on environmental surveillance, education, and research. The services delivered are expected to advance scientific understanding and potentially inform policy related to environmental issues. The geographic impact is centered around the Department of Energy's operations, with potential for broader national implications depending on the research outcomes. Workforce implications include employment for scientists, researchers, and support staff involved in the ESER program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
- Limited competition ('after exclusion of sources') may result in suboptimal pricing.
- The specific scope of 'Environmental Surveillance, Education, and Research' is broad and requires clear performance metrics to ensure accountability.
Positive Signals
- Awarded by the Department of Energy, a primary agency for energy and environmental research.
- Long contract duration (5 years) suggests a stable and important program.
- The contract is for R&D, indicating investment in innovation and future solutions.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers physical, engineering, and life sciences. The Environmental Surveillance, Education, and Research (ESER) program is likely a component of the Department of Energy's broader mission to understand and manage environmental impacts related to energy production and consumption. Comparable spending in this niche R&D area can vary widely based on the specific scientific focus, but federal investment in environmental science and technology is substantial across multiple agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, HII NUCLEAR INC, may still engage small businesses as subcontractors based on their own procurement strategies and the nature of the work required for the ESER program.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is earned appropriately. Transparency would be facilitated through contract reporting mechanisms and potentially public disclosures of research outcomes. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Research and Development Programs
- Environmental Monitoring and Assessment Contracts
- Scientific Research Services
- Energy Sector Environmental Impact Studies
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Limited competition due to 'exclusion of sources' may impact price competitiveness.
- Broad scope of 'Environmental Surveillance, Education, and Research' requires stringent performance monitoring.
Tags
department-of-energy, research-and-development, environmental-surveillance, cost-plus-fixed-fee, full-and-open-competition-after-exclusion-of-sources, hii-nuclear-inc, idaho, federal-contract, science-and-technology, environmental-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.0 million to HII NUCLEAR INC. ENVIRONMENTAL SURVEILLANCE, EDUCATION, AND RESEARCH (ESER)
Who is the contractor on this award?
The obligated recipient is HII NUCLEAR INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2006-01-01. End: 2010-12-31.
What is the track record of HII NUCLEAR INC with the Department of Energy, particularly on similar R&D contracts?
Assessing HII NUCLEAR INC's track record with the Department of Energy (DOE) requires a review of their past performance on similar contracts. Information on previous awards, contract values, performance evaluations, and any disputes or terminations would be crucial. Specifically, their experience with Cost Plus Fixed Fee (CPFF) contracts and R&D in environmental science would be key indicators. A history of successful project completion, adherence to budget, and positive performance reviews would suggest a lower risk profile for this current ESER contract. Conversely, past issues could signal potential challenges in execution or cost management. Without access to specific performance data or a comprehensive contract history database, a definitive assessment of their track record is limited.
How does the annual value of this ESER contract compare to other DOE R&D investments in environmental science?
The annual value of this contract is approximately $2.4 million ($11.98M / 5 years). To benchmark this against other DOE R&D investments, one would need to analyze the DOE's overall budget allocation for environmental science and R&D over the contract period. This would involve identifying comparable programs and contracts, noting their scope, duration, and funding levels. If the DOE funds numerous similar environmental R&D initiatives, this contract's value might represent a standard investment. However, if it's significantly higher or lower than comparable efforts, it could indicate unique program scope, higher costs, or potentially a more efficient approach. A detailed comparison requires access to the DOE's historical spending data across its various R&D portfolios.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this ESER program?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a guaranteed profit margin regardless of the final cost. This can disincentivize the contractor from aggressively controlling expenses, as higher costs (within allowable limits) do not reduce their profit. For the ESER program, this means the total cost to the government could exceed initial projections if the contractor's spending is not meticulously monitored and justified. Effective oversight, clear definition of allowable costs, and robust performance metrics are essential to mitigate this risk and ensure the government receives value for its investment.
What specific environmental research areas does the ESER program aim to address, and what are the expected outcomes?
The provided data only specifies the program name as 'ENVIRONMENTAL SURVEILLANCE, EDUCATION, AND RESEARCH (ESER)'. Without further details on the contract's Statement of Work (SOW), the specific environmental research areas are unknown. ESER could encompass a wide range of topics, such as monitoring pollutants, studying climate change impacts, developing remediation technologies, or advancing educational initiatives in environmental science. Expected outcomes would similarly vary, potentially including scientific publications, policy recommendations, improved monitoring techniques, or enhanced public understanding of environmental issues. A detailed review of the SOW and any associated performance work statements would be necessary to identify the precise objectives and anticipated results of this contract.
How does the 'exclusion of sources' in the competition process impact the government's ability to secure competitive pricing?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the competition was not a sole-source award, certain potential bidders were deliberately excluded. This limits the pool of offerors, potentially reducing the intensity of competition. When fewer companies compete, there is less pressure on each bidder to offer the lowest possible price to win the contract. The government might have excluded sources based on specific technical capabilities, security requirements, or other strategic reasons. However, this limitation can hinder price discovery and may result in the government paying more than it would have in a truly open competition where all qualified vendors could participate.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 990 S PUBLIC RD UNIT A, LAFAYETTE, CO, 02
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,512,986
Exercised Options: $12,512,986
Current Obligation: $11,980,678
Timeline
Start Date: 2006-01-01
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2014-11-25
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