DOE's $152M Fernald Waste Storage Contract Awarded to Waste Control Specialists LLC
Contract Overview
Contract Amount: $15,242,109 ($15.2M)
Contractor: Waste Control Specialists LLC
Awarding Agency: Department of Energy
Start Date: 2007-03-08
End Date: 2010-03-31
Contract Duration: 1,119 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS CONTRACT WAS COMPETITIVELY SOLICITED AND AWARDED BY FLOUR FERNALD, INC., AND SUBSEQUENTLY ASSIGNED TO THE U.S. DEPARTMENT OF ENERGY, TO WASTE CONTROL SPECIALISTS, LLC. THE CONTRACT PROVIDES FOR INTERIM STORAGE OF THE FERNALD CLOSURE PROJECT SILOS 1 & 2 WASTE, CONTAINS AN OPTION FOR SERVICES FOR THE PERMANENT DISPOSAL OF SILOS 1 &2 WASTE AND CONTAINS AN OPTION FOR SERVICES FOR PREPARATION AND LOADING OF SILOS 1 &2 WASTE CONTAINER FOR TRANSPORT.
Place of Performance
Location: ANDREWS, ANDREWS County, TEXAS, 79714
State: Texas Government Spending
Plain-Language Summary
Department of Energy obligated $15.2 million to WASTE CONTROL SPECIALISTS LLC for work described as: THIS CONTRACT WAS COMPETITIVELY SOLICITED AND AWARDED BY FLOUR FERNALD, INC., AND SUBSEQUENTLY ASSIGNED TO THE U.S. DEPARTMENT OF ENERGY, TO WASTE CONTROL SPECIALISTS, LLC. THE CONTRACT PROVIDES FOR INTERIM STORAGE OF THE FERNALD CLOSURE PROJECT SILOS 1 & 2 WASTE, CONTAINS AN OP… Key points: 1. Contract addresses interim storage and potential permanent disposal of waste from Fernald closure project silos. 2. Awarded through full and open competition, suggesting a potentially competitive pricing environment. 3. The contract duration of over 3 years indicates a significant, long-term commitment. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 5. The contractor, Waste Control Specialists LLC, is responsible for managing critical waste disposal services. 6. Geographic location in Texas (TX) is noted for the contractor's operations.
Value Assessment
Rating: fair
The contract value of $152.4 million for waste storage and potential disposal services needs further benchmarking against similar remediation projects. Without specific per-unit cost data or detailed service breakdowns, it's challenging to definitively assess value for money. The firm-fixed-price structure provides some cost predictability for the government, but the overall cost-effectiveness will depend on the actual volume and complexity of the waste handled and the successful execution of optional services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the competitive solicitation process suggests that the Department of Energy sought the best value from the market.
Taxpayer Impact: A competitive solicitation process is favorable for taxpayers as it is designed to drive down costs and ensure the government receives competitive pricing for essential services.
Public Impact
The primary beneficiaries are the U.S. Department of Energy and the public, through the safe management and disposal of hazardous waste from the Fernald Closure Project. Services include interim storage of waste from Silos 1 & 2, with options for permanent disposal and preparation for transport. The geographic impact is primarily related to the Fernald site closure activities and the contractor's operational base in Texas. Workforce implications may include employment opportunities for specialized personnel in waste management and remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if optional services are exercised and scope changes significantly.
- Dependence on contractor performance for safe and compliant waste handling and storage.
- Long-term environmental liability management requires robust oversight.
Positive Signals
- Awarded through full and open competition, indicating market engagement.
- Firm-fixed-price contract provides cost certainty for the base scope.
- Contractor has a defined role in a critical environmental remediation effort.
Sector Analysis
This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government agencies managing legacy industrial sites. The market for such services is specialized, involving companies with expertise in handling hazardous materials and complying with stringent regulatory requirements. Comparable spending benchmarks would typically be found in other Department of Energy or EPA superfund site cleanup contracts.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is unclear, and it's presumed that larger, specialized firms were the primary participants in this competitive solicitation.
Oversight & Accountability
Oversight of this contract would fall under the Department of Energy's contracting and program management offices. Accountability measures would include performance monitoring, adherence to contract terms, and compliance with environmental regulations. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Fernald Closure Project
- Department of Energy Environmental Management
- Hazardous Waste Management Contracts
- Superfund Site Remediation
Risk Flags
- Potential cost increases if optional services are exercised and scope expands.
- Reliance on contractor's expertise for safe and compliant waste handling.
- Need for robust government oversight to ensure performance and regulatory compliance.
Tags
department-of-energy, waste-management, hazardous-waste, remediation-services, firm-fixed-price, full-and-open-competition, interim-storage, permanent-disposal, texas, federal-contract, environmental-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $15.2 million to WASTE CONTROL SPECIALISTS LLC. THIS CONTRACT WAS COMPETITIVELY SOLICITED AND AWARDED BY FLOUR FERNALD, INC., AND SUBSEQUENTLY ASSIGNED TO THE U.S. DEPARTMENT OF ENERGY, TO WASTE CONTROL SPECIALISTS, LLC. THE CONTRACT PROVIDES FOR INTERIM STORAGE OF THE FERNALD CLOSURE PROJECT SILOS 1 & 2 WASTE, CONTAINS AN OPTION FOR SERVICES FOR THE PERMANENT DISPOSAL OF SILOS 1 &2 WASTE AND CONTAINS AN OPTION FOR SERVICES FOR PREPARATION AND LOADING OF SILOS 1 &2 WASTE CONTAINER FOR TRANSPORT.
Who is the contractor on this award?
The obligated recipient is WASTE CONTROL SPECIALISTS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2007-03-08. End: 2010-03-31.
What is the historical spending trend for waste management and disposal services at the Fernald site prior to this contract?
Historical spending data for waste management and disposal at the Fernald site prior to March 2007, when this contract was awarded, would provide crucial context for evaluating the $152.4 million value. Analyzing previous expenditures on interim storage, treatment, and disposal would reveal trends in cost escalation, the effectiveness of prior contracts, and the overall financial commitment to the Fernald Closure Project. Without this historical data, it is difficult to ascertain if this contract represents a significant increase, decrease, or stable level of spending for these critical services. Understanding past spending patterns is essential for assessing the long-term financial planning and resource allocation by the Department of Energy for site remediation.
How does the per-unit cost of waste storage under this contract compare to similar contracts for siloed waste at other DOE sites?
A direct comparison of per-unit costs for waste storage under this contract to similar contracts at other Department of Energy (DOE) sites is challenging without specific unit cost breakdowns. The $152.4 million contract value is an aggregate figure. To perform a meaningful benchmark, one would need data on the volume and type of waste stored (e.g., cubic meters, tons, hazard classification) and the corresponding price per unit. If such granular data were available, it could be compared against contracts for managing similar waste streams (e.g., high-level radioactive waste, transuranic waste) from other DOE facilities like Hanford or Savannah River. Differences in waste characteristics, regulatory environments, and logistical challenges can significantly impact per-unit costs, making direct comparisons complex but valuable for assessing value for money.
What are the specific risks associated with the optional services for permanent disposal and preparation for transport?
The optional services for permanent disposal and preparation for transport introduce several potential risks. For permanent disposal, risks include the availability and capacity of final disposal facilities, potential changes in disposal regulations, and the long-term stability of the chosen disposal method. The cost and complexity of preparing waste containers for transport can also be underestimated, leading to schedule delays and cost increases if unforeseen issues arise with the waste form or container integrity. Furthermore, exercising these options extends the contract's scope and duration, increasing the government's financial exposure and reliance on the contractor's continued performance and expertise in a highly regulated field.
What is Waste Control Specialists LLC's track record in managing large-scale hazardous waste remediation projects for the federal government?
Waste Control Specialists LLC (WCS) has a significant track record in managing large-scale hazardous waste projects, particularly in Texas. They operate a large facility in Andrews County, Texas, which handles low-level radioactive waste, hazardous waste, and other industrial waste streams. WCS has been involved in various projects, including those related to the cleanup of legacy nuclear sites. Evaluating their specific performance on federal contracts, including adherence to schedules, budget management, safety records, and regulatory compliance, would require a detailed review of past contract performance evaluations (e.g., CPARS reports) and any documented issues or successes. Their experience suggests capability, but specific performance metrics on comparable federal remediation projects are key to a full assessment.
How does the firm-fixed-price contract type potentially impact the government's ability to manage cost fluctuations for unforeseen issues?
A firm-fixed-price (FFP) contract type, like the one used here, generally shifts the risk of cost overruns to the contractor. This means the government pays a set price for the defined scope of work. While this provides budget certainty for the base contract, it can limit the government's flexibility if unforeseen issues arise that necessitate changes to the scope or require additional work not originally anticipated. In such cases, the government might need to issue contract modifications, potentially at a higher cost than if the contract had included more flexible pricing mechanisms or contingency allowances. The contractor is incentivized to control costs to maximize profit, but significant unforeseen problems could lead to disputes or contractor requests for equitable adjustments.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Valhi Holding Company (UEI: 829718506)
Address: 9998 HWY 176 W, ANDREWS, TX, 19
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,711,409
Exercised Options: $20,711,409
Current Obligation: $15,242,109
Timeline
Start Date: 2007-03-08
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2013-04-29
More Contracts from Waste Control Specialists LLC
- 89303323FEM400374 for Department of Energy (DOE) Office of Environmental Management Consolidated Business Center (emcbc) Removal of DOE Transuranic (TRU) Waste From Storage and Staging for Loading AT Waste Control Specialists LLC (WCS — $12.1M (Department of Energy)
- Transuranic Greater Than Class C Waste Storage - This Task Order Provides Interim Storage, Monitoring, and Management of UP to Seventy Four (74) Shipping Containers of DOE Tru/Gtcc Waste AT the Contractor's Facility in Andrews, Texas. This IS an — $10.2M (Department of Energy)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)