DOE's $53.3M Paducah Gaseous Diffusion Plant infrastructure contract awarded to Swift & Staley Inc
Contract Overview
Contract Amount: $53,310,879 ($53.3M)
Contractor: Swift & Staley Inc.
Awarding Agency: Department of Energy
Start Date: 2005-03-16
End Date: 2010-04-15
Contract Duration: 1,856 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: INFRASTRUCTURE SERVICES FOR PADUCAH GASEOUS DIFFUSION PLANT
Place of Performance
Location: PADUCAH, MCCRACKEN County, KENTUCKY, 42002
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $53.3 million to SWIFT & STALEY INC. for work described as: INFRASTRUCTURE SERVICES FOR PADUCAH GASEOUS DIFFUSION PLANT Key points: 1. Contract awarded for facilities support services at a major nuclear site. 2. The contract utilized full and open competition after exclusion of sources, indicating a specific justification for the procurement approach. 3. Performance-based contract type (Cost Plus Award Fee) incentivizes contractor performance. 4. The contract duration of 1856 days suggests a long-term need for these services. 5. The contract was awarded by the Department of Energy, a key agency in managing nuclear facilities. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar facilities support contracts at other Department of Energy sites. The Cost Plus Award Fee structure means the final cost could vary based on performance. However, the total award amount of $53.3 million over approximately five years suggests a significant investment in maintaining critical infrastructure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while competition was intended, certain sources were excluded, possibly due to specialized requirements or prior performance. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a more controlled competitive environment than a truly open bid.
Taxpayer Impact: This procurement approach may limit the potential for the lowest possible price due to a restricted bidder pool, potentially impacting taxpayer savings compared to a fully open competition.
Public Impact
The primary beneficiaries are the Department of Energy and its mission to manage nuclear facilities safely and efficiently. Services delivered include essential infrastructure maintenance and support for the Paducah Gaseous Diffusion Plant. The geographic impact is concentrated in Paducah, Kentucky, supporting the local economy through employment and services. Workforce implications include the potential for direct and indirect job creation in facilities management and support roles within the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' in the competition method warrants scrutiny to ensure it was fully justified and did not unduly limit competition.
- Cost Plus Award Fee contracts can sometimes lead to higher costs if performance metrics are not tightly controlled or if award fees are consistently maximized.
- The long contract duration could present risks if technology or operational needs change significantly over the five-year period.
Positive Signals
- The use of a performance-based contract structure (Cost Plus Award Fee) aims to incentivize efficient and effective service delivery.
- The contract was awarded to Swift & Staley Inc., suggesting they possess the necessary qualifications and experience for this specialized work.
- The Department of Energy's oversight is expected to ensure compliance and performance standards are met.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of managing large industrial and governmental sites, particularly those with specialized requirements like nuclear facilities. The market for such services is often characterized by a limited number of highly qualified contractors capable of meeting stringent safety and operational standards. Spending in this sector is driven by the need to maintain aging infrastructure and ensure the ongoing operation of essential government functions.
Small Business Impact
The contract details indicate that small business participation was not a primary focus, as the 'ss' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Swift & Staley Inc., is likely a larger entity, and the contract may not significantly contribute to the small business ecosystem unless specific subcontracting opportunities arise independently.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures are built into the Cost Plus Award Fee structure, which links a portion of the payment to performance outcomes. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facilities Management Contracts
- Nuclear Site Operations and Maintenance
- Infrastructure Support Services
- Government Facilities Maintenance
Risk Flags
- Justification for exclusion of sources requires review.
- Performance metrics for CPAF contract need close monitoring.
- Potential for cost overruns in CPAF structure.
- Long contract duration may not align with evolving needs.
Tags
infrastructure-services, facilities-support, department-of-energy, paducah-gaseous-diffusion-plant, swift-and-staley-inc, cost-plus-award-fee, definitive-contract, full-and-open-competition-after-exclusion-of-sources, kentucky, large-contract, nuclear-facilities, government-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $53.3 million to SWIFT & STALEY INC.. INFRASTRUCTURE SERVICES FOR PADUCAH GASEOUS DIFFUSION PLANT
Who is the contractor on this award?
The obligated recipient is SWIFT & STALEY INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $53.3 million.
What is the period of performance?
Start: 2005-03-16. End: 2010-04-15.
What is the track record of Swift & Staley Inc. with Department of Energy contracts, particularly for facilities support?
Swift & Staley Inc. has a history of performing services for the Department of Energy. While specific details on their track record for facilities support at the Paducah Gaseous Diffusion Plant require deeper analysis of past performance evaluations and contract history, their selection for this significant contract suggests they met the agency's requirements. A comprehensive review would involve examining past performance metrics, any documented issues or commendations, and their experience with similar large-scale, specialized government facilities. Understanding their prior success rates and any challenges encountered on similar projects would provide crucial context for assessing their capability and reliability in executing this current contract.
How does the awarded amount of $53.3 million compare to similar facilities support contracts at other DOE sites?
Comparing the $53.3 million award for infrastructure services at the Paducah Gaseous Diffusion Plant requires careful consideration of contract scope, duration, and the specific nature of the facility. Facilities support contracts at other Department of Energy sites can vary significantly in cost due to differences in plant size, age, operational complexity, and the specific services required (e.g., environmental remediation, security, maintenance). For instance, contracts at larger or more hazardous sites might command higher figures. Without a direct comparison of contracts with identical service lines and facility types, a precise benchmark is difficult. However, $53.3 million over approximately five years indicates a substantial, ongoing investment in maintaining critical infrastructure, which is typical for major government installations.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for facilities support?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract for facilities support revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections if the base cost-plus component is not tightly managed or if the award fee criteria are too easily met, leading to higher overall expenditures. Contractors may be incentivized to maximize award fees, potentially leading to scope creep or focusing on easily achievable performance metrics rather than the most critical operational needs. For the contractor, the risk lies in not meeting the performance standards required to earn the award fee, thus reducing their profit margin. Effective oversight and clearly defined, measurable performance metrics are crucial to mitigate these risks.
What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply for this contract?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a specific scenario where the agency initially intended full and open competition but later determined that certain sources needed to be excluded. This exclusion must be justified by specific criteria, such as unique capabilities, past performance, or national security considerations. It suggests that while multiple bidders were considered, the pool was narrowed based on predefined reasons. This approach aims to balance competition with the need for specialized expertise or to address specific program requirements that might not be met by all potential offerors. The justification for exclusion is critical for ensuring fairness and maximizing value for the government.
How has historical spending on facilities support services at the Paducah Gaseous Diffusion Plant trended over time?
Analyzing historical spending trends for facilities support services at the Paducah Gaseous Diffusion Plant is essential for understanding the long-term investment in the site and identifying any significant shifts in operational needs or contract values. Without access to specific historical spending data for this contract or similar services at the plant, a trend analysis cannot be performed. However, generally, spending on such services at aging government facilities can fluctuate based on infrastructure upgrades, decommissioning activities, or changes in regulatory requirements. A review of past contracts, their values, and durations would reveal whether spending has been consistent, increasing, or decreasing, providing context for the current $53.3 million award.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DERP2404OH20178
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 917 1/2 S 21ST ST, PADUCAH, KY, 42003
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $54,491,368
Exercised Options: $54,491,368
Current Obligation: $53,310,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2005-03-16
Current End Date: 2010-04-15
Potential End Date: 2010-04-15 00:00:00
Last Modified: 2023-03-30
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