DOE's $68.5M Hanford nuclear site analytical services contract awarded to ATL International, Inc

Contract Overview

Contract Amount: $68,471,714 ($68.5M)

Contractor: Advanced Technologies and Laboratories (ATL) International, Inc.

Awarding Agency: Department of Energy

Start Date: 2009-11-20

End Date: 2015-11-21

Contract Duration: 2,192 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE SCOPE OF THIS CONTRACT IS TO PERFORM THE ANALYTICAL SERVICES PRODUCTION FUNCTIONS OF RECEIVING, HANDLING, ANALYZING, STORING SAMPLES, PERFORMING SPECIAL TESTS AND REPORTING THE RESULTS OF THESE ANALYSES AND TESTS TO THE CONTRACTORS OF DEPARTMENT OF ENERGY OFFICES AT THE HANFORD NUCLEAR SITE NEAR RICHLAND, WASHINGTON.

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99354

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $68.5 million to ADVANCED TECHNOLOGIES AND LABORATORIES (ATL) INTERNATIONAL, INC. for work described as: THE SCOPE OF THIS CONTRACT IS TO PERFORM THE ANALYTICAL SERVICES PRODUCTION FUNCTIONS OF RECEIVING, HANDLING, ANALYZING, STORING SAMPLES, PERFORMING SPECIAL TESTS AND REPORTING THE RESULTS OF THESE ANALYSES AND TESTS TO THE CONTRACTORS OF DEPARTMENT OF ENERGY OFFICES AT THE HANFO… Key points: 1. Contract focused on critical analytical services for nuclear site operations and sample management. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. Performance-based contract type (Cost Plus Award Fee) incentivizes contractor efficiency and quality. 4. Long duration (6 years) indicates a stable, long-term need for these essential functions. 5. Geographic concentration in Washington State highlights regional focus for nuclear site support. 6. Contractor's role is vital for environmental monitoring and regulatory compliance at Hanford.

Value Assessment

Rating: good

The contract's total value of approximately $68.5 million over six years averages to about $11.4 million annually. This figure appears reasonable for specialized analytical services at a large, complex federal site like Hanford, which requires extensive testing and sample handling. Benchmarking against similar large-scale environmental analytical contracts for federal sites would provide a more precise value-for-money assessment, but the scale and scope suggest a significant but potentially justified investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources were excluded, possibly due to security or specialized capability requirements. The presence of multiple bidders (4 indicated) suggests a competitive market for these services, which generally benefits price discovery and can lead to more favorable terms for the government. The specific nature of the exclusion of sources warrants further investigation to understand its impact on the breadth of competition.

Taxpayer Impact: The full and open competition, despite source exclusions, likely resulted in a more competitive pricing environment than a sole-source award, potentially saving taxpayer dollars. A competitive process helps ensure that the government is not overpaying for these critical analytical services.

Public Impact

The Department of Energy benefits from reliable analytical services essential for managing the Hanford Nuclear Site. The public benefits from environmental safety and regulatory compliance ensured by the accurate analysis of nuclear materials and waste. The workforce in the Richland, Washington area benefits from employment opportunities within the specialized field of nuclear site support services. The contract supports the ongoing environmental remediation and stewardship efforts at one of the nation's most complex nuclear facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Environmental Remediation and Nuclear Services sector, a specialized area focused on managing and cleaning up sites with historical nuclear activity. The market for such services is relatively niche, dominated by a few large government contractors with the requisite expertise, security clearances, and infrastructure. Spending in this sector is often driven by long-term federal mandates for environmental cleanup and site closure, making contracts lengthy and substantial. Comparable spending benchmarks would likely be found in other Department of Energy or Department of Defense cleanup contracts.

Small Business Impact

This contract was not set aside for small businesses and the contractor, Advanced Technologies and Laboratories (ATL) International, Inc., is not typically classified as a small business. There is no explicit indication of small business subcontracting requirements within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal, though large prime contractors often engage small businesses for specialized support services, which could be a secondary effect.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers responsible for the Hanford site. Given the nature of the work, the Inspector General's office for the Department of Energy likely has jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is typically managed through contract reporting requirements and public disclosures related to the Hanford site's operations and environmental status.

Related Government Programs

Risk Flags

Tags

department-of-energy, hanford-site, analytical-services, environmental-remediation, cost-plus-award-fee, full-and-open-competition, nuclear-facility-support, washington-state, large-contract, long-term-contract, remediation-services, advanced-technologies-and-laboratories

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $68.5 million to ADVANCED TECHNOLOGIES AND LABORATORIES (ATL) INTERNATIONAL, INC.. THE SCOPE OF THIS CONTRACT IS TO PERFORM THE ANALYTICAL SERVICES PRODUCTION FUNCTIONS OF RECEIVING, HANDLING, ANALYZING, STORING SAMPLES, PERFORMING SPECIAL TESTS AND REPORTING THE RESULTS OF THESE ANALYSES AND TESTS TO THE CONTRACTORS OF DEPARTMENT OF ENERGY OFFICES AT THE HANFORD NUCLEAR SITE NEAR RICHLAND, WASHINGTON.

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGIES AND LABORATORIES (ATL) INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $68.5 million.

What is the period of performance?

Start: 2009-11-20. End: 2015-11-21.

What is the track record of Advanced Technologies and Laboratories (ATL) International, Inc. with the Department of Energy and similar federal contracts?

Advanced Technologies and Laboratories (ATL) International, Inc. has a history of performing services for the Department of Energy, particularly in areas related to laboratory analysis, technical support, and site operations. Their involvement at the Hanford site, as indicated by this contract, suggests a demonstrated capability to handle complex, high-security federal projects. A deeper dive into their contract history would reveal the number and value of previous awards, performance ratings, and any significant issues or accolades received from federal agencies. This context is crucial for assessing their reliability and expertise in fulfilling the current contract's demanding requirements.

How does the annual cost of this contract compare to similar analytical services at other federal nuclear sites?

The annual average cost of approximately $11.4 million for this contract needs to be benchmarked against similar services at other federal nuclear sites like Oak Ridge, Los Alamos, or Savannah River. Factors such as the specific types of analyses required, the volume of samples, the complexity of the materials, and the prevailing labor and operational costs in different regions will influence these comparisons. Without specific data on comparable contracts, it's difficult to definitively state if this represents excellent or fair value. However, the specialized nature of nuclear site analytical services generally commands higher costs due to stringent safety, security, and quality control requirements.

What are the primary risks associated with the 'Cost Plus Award Fee' (CPAF) contract type in this context?

The primary risk with a CPAF contract, especially for complex analytical services at a nuclear site, is the potential for cost overruns if the award fee criteria are not tightly defined and rigorously assessed. While CPAF aims to incentivize performance, it can lead to higher overall costs compared to fixed-price contracts if the base fee and award fee components are not managed effectively. There's also a risk that the contractor might focus on achieving easily measurable award fee metrics rather than addressing more complex, long-term performance challenges. Robust government oversight and clear, objective performance standards are essential to mitigate these risks and ensure true value for taxpayer money.

How effective has the 'Full and Open Competition After Exclusion of Sources' been in ensuring competitive pricing for this contract?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing is nuanced. While 'full and open' implies a broad solicitation, the 'exclusion of sources' inherently limits the pool of potential bidders. The degree to which this exclusion narrowed the competition and potentially impacted pricing depends on the rationale for exclusion and the number of bidders that remained. If the excluded sources represented significant potential competitors, the final price might be higher than if the competition had been entirely unrestricted. Analyzing the number of bids received (4 in this case) and comparing the final award price to pre-negotiated estimates or historical data would provide insight into the pricing outcomes.

What are the historical spending patterns for analytical services at the Hanford site, and how does this contract fit within them?

Historical spending on analytical services at the Hanford site has likely been substantial and consistent, reflecting the ongoing need for environmental monitoring, waste characterization, and operational support. This $68.5 million contract, spanning six years, represents a significant but potentially stable portion of that historical spending. Understanding prior contract values, durations, and awarded contractors for similar services would reveal trends in cost, competition, and contractor performance. This contract appears to continue a long-standing requirement, suggesting that the spending level is aligned with the site's enduring operational and environmental management needs.

What are the potential implications of the contract's long duration (6 years) on contractor performance and innovation?

A six-year contract duration provides stability and allows the contractor to develop deep expertise and efficient processes for the analytical services at Hanford. This can lead to improved performance and cost savings over time. However, such long durations also carry risks. Without active contract management and performance incentives, there's a potential for complacency, reduced focus on innovation, or a decline in service quality as the contract matures. The CPAF structure aims to mitigate this by rewarding performance, but continuous government oversight and periodic reviews are crucial to ensure the contractor remains motivated and adaptable throughout the contract's life.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DERP2709RV15051

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 20010 CENTURY BLVD STE 500, GERMANTOWN, MD, 20874

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $84,174,243

Exercised Options: $84,174,243

Current Obligation: $68,471,714

Actual Outlays: $-189,750

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2009-11-20

Current End Date: 2015-11-21

Potential End Date: 2015-11-21 00:00:00

Last Modified: 2015-10-21

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