DOE's $4.5B Facilities Support Services contract awarded to Bechtel BWXT Idaho, LLC, spanning nearly 12 years
Contract Overview
Contract Amount: $4,526,264,054 ($4.5B)
Contractor: Bechtel Bwxt Idaho, LLC
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2011-09-30
Contract Duration: 4,368 days
Daily Burn Rate: $1.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ADVANCED MIXED TREATMENT PROJECT
Place of Performance
Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83415
State: Idaho Government Spending
Plain-Language Summary
Department of Energy obligated $4.53 billion to BECHTEL BWXT IDAHO, LLC for work described as: ADVANCED MIXED TREATMENT PROJECT Key points: 1. The contract's significant duration and value suggest a critical, long-term need for facilities support. 2. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 3. The award to a single entity, Bechtel BWXT Idaho, LLC, indicates a high degree of specialization or consolidation in this service area. 4. Facilities Support Services (NAICS 561210) are essential for the operation and maintenance of government installations. 5. The contract's performance period, from 1999 to 2011, provides a substantial historical data set for analysis. 6. The absence of small business set-aside flags suggests this contract was likely too large or specialized for smaller firms to compete effectively.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Award Fee (CPAF) structure, while common for complex services, can lead to cost overruns if not managed diligently. Comparing it to similar large-scale facilities support contracts would require access to detailed scope of work and pricing data. The total award amount of over $4.5 billion over nearly 12 years indicates a substantial investment, but the value-for-money assessment hinges on the successful delivery of services and achievement of award fee criteria.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple capable contractors had the opportunity to bid. The fact that it resulted in an award to Bechtel BWXT Idaho, LLC implies they offered the most advantageous proposal based on the evaluation criteria. The number of bidders is not specified, but full and open competition generally fosters a competitive environment that can lead to better pricing and innovation.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving service quality through market forces.
Public Impact
The primary beneficiaries are the Department of Energy and its various facilities, which receive essential operational and maintenance support. Services delivered likely include facility management, maintenance, repair, security, and potentially specialized technical support for research and development sites. The geographic impact is concentrated in Idaho, where the contractor is based and likely where the primary facilities supported are located. The contract supports a significant workforce, both directly employed by Bechtel BWXT Idaho, LLC and indirectly through subcontractors, contributing to the local and regional economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep in Cost Plus Award Fee contracts if performance metrics and oversight are not robust.
- Long-term nature of the contract could lead to contractor complacency if performance incentives are not consistently applied.
- Dependence on a single contractor for critical facilities support could pose risks if the contractor faces financial or operational difficulties.
Positive Signals
- Awarded under full and open competition, indicating a competitive process that likely yielded a strong offer.
- The significant duration suggests a proven track record and established relationship between the contractor and the agency.
- The Cost Plus Award Fee structure, when managed effectively, can incentivize high performance and achieve mission objectives.
Sector Analysis
Facilities Support Services (NAICS 561210) represent a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is critical for government agencies, research institutions, and large corporations. The market size for such services is substantial, with significant government spending allocated annually. This particular contract fits within the broader landscape of government contracting for essential operational support, often awarded to large, experienced firms capable of managing complex, multi-faceted operations.
Small Business Impact
The 'sb' (small business) flag is false, indicating that this contract was not set aside for small businesses. Given the substantial value and likely complexity of the services required for facilities support at a large government installation, it is probable that the scope of work was beyond the capacity of most small businesses. There is no explicit information on subcontracting plans, but large prime contractors are often required to have small business subcontracting goals.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring to ensure the contractor meets defined objectives and earns award fees appropriately. Transparency would be facilitated through contract reporting requirements and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Operations and Maintenance Contracts
- Government Facilities Management Services
- Large-Scale Service Contracts
- Cost-Plus Contract Types
- Long-Duration Government Contracts
Risk Flags
- Cost Plus Award Fee (CPAF) structure requires diligent oversight to control costs.
- Long contract duration may pose risks of complacency or performance degradation.
- Dependence on a single contractor for critical services.
- Potential for scope creep without strict change control.
Tags
department-of-energy, facilities-support-services, bechtel-bwxt-idaho-llc, cost-plus-award-fee, full-and-open-competition, large-contract, long-duration, idaho, government-services, operations-and-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.53 billion to BECHTEL BWXT IDAHO, LLC. ADVANCED MIXED TREATMENT PROJECT
Who is the contractor on this award?
The obligated recipient is BECHTEL BWXT 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 $4.53 billion.
What is the period of performance?
Start: 1999-10-15. End: 2011-09-30.
What was the specific scope of services provided under this $4.5 billion contract?
The contract, awarded to Bechtel BWXT Idaho, LLC, falls under NAICS code 561210 for Facilities Support Services. While the exact scope is not detailed in the provided data, such contracts typically encompass a wide array of services essential for the operation and maintenance of government facilities. This often includes routine and preventive maintenance, repairs, custodial services, groundskeeping, security, waste management, and potentially specialized technical support related to the agency's mission (e.g., laboratory support for the Department of Energy). The significant award value and duration suggest a comprehensive suite of services critical to the functioning of the supported DOE installations, likely involving complex infrastructure management and operational continuity.
How did Bechtel BWXT Idaho, LLC's performance compare to expectations under the Cost Plus Award Fee (CPAF) structure?
Assessing Bechtel BWXT Idaho, LLC's performance under the CPAF structure requires access to the award fee determinations made by the Department of Energy throughout the contract's life (1999-2011). CPAF contracts incentivize contractors by allowing them to earn a base fee plus an award fee based on performance against pre-defined criteria. To evaluate performance, one would need to examine the agency's evaluations of the contractor's success in areas such as cost control, schedule adherence, quality of services, safety, and mission support. Without these specific evaluations, it's impossible to definitively state how well the contractor performed relative to the award fee criteria and whether they achieved maximum award fees.
What were the primary risks associated with this large, long-term facilities support contract?
Several risks are inherent in a large, long-term facilities support contract like this one. Firstly, the Cost Plus Award Fee (CPAF) structure, while incentivizing, carries a risk of cost escalation if the award fee criteria are not tightly managed or if the base fee is too high relative to the scope. Secondly, the long duration (nearly 12 years) increases the risk of contractor complacency or a decline in service quality over time if performance management falters. Thirdly, dependence on a single contractor for critical infrastructure support creates a significant risk if the contractor experiences financial instability, operational failures, or major labor disputes. Finally, the complexity of managing diverse facilities support services across potentially multiple sites presents logistical and oversight challenges.
How does the $4.5 billion total award value compare to similar facilities support contracts within the Department of Energy or other federal agencies?
The $4.5 billion total award value over nearly 12 years for facilities support services is substantial, placing it among the larger contracts in this category. To provide a precise comparison, one would need to analyze the average contract values for similar NAICS codes (like 561210) awarded by the Department of Energy and other agencies over comparable timeframes. However, it is reasonable to infer that this contract represents a significant portion of the agency's spending on operational support for its installations, particularly if it covered major research or production facilities. Contracts of this magnitude are typically awarded to large, established government service providers with extensive experience and resources.
What was the historical spending trend for facilities support services at the Department of Energy leading up to and during this contract period?
Analyzing the historical spending trend for facilities support services at the Department of Energy (DOE) would require accessing historical budget and contract data prior to and during the 1999-2011 period. This contract's $4.5 billion value suggests a significant and sustained commitment to outsourcing or managing these essential services. Understanding the trend would involve looking at whether DOE's spending on facilities support has generally increased, decreased, or remained stable over time, and whether this contract represented a consolidation of previously fragmented services or an expansion of outsourced support. Factors like facility modernization, changes in agency mission, and broader government contracting trends would influence these spending patterns.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 1955 FREMONT, IDAHO FALLS, ID, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $153,808,761
Exercised Options: $153,808,761
Current Obligation: $4,526,264,054
Timeline
Start Date: 1999-10-15
Current End Date: 2011-09-30
Potential End Date: 2012-01-12 00:00:00
Last Modified: 2012-01-12
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