DOE's $452.8M Paducah Site Remediation Contract Awarded to Paducah Remediation Services, LLC
Contract Overview
Contract Amount: $452,844,784 ($452.8M)
Contractor: Paducah Remediation Services, LLC
Awarding Agency: Department of Energy
Start Date: 2005-12-27
End Date: 2010-07-25
Contract Duration: 1,671 days
Daily Burn Rate: $271.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: INVESTIGATION AND REMEDIATION OF SPECIFIC AREAS AT THE PADUCAH GASEOUS DIFFUSION PLANT SITE(LAND SITES AND GROUNDWATER); REMOVAL OF LEGACY WASTE; FACILITY DECONTAMINATION AND DECOMMISSIONING (D&D); MAINTAIN AND TRANSFER THE DUF6 CYLINDERS INVENTORIES; AND OPERATING SITE WASTE STORAGE FACILITIES IN ACCORDANCE WITH ALL THE APPLICABLE LAWS, REGULATIONS, DOE DIRECTIVES, PERMITS, ORDERS, AND AGREEMENTS.
Place of Performance
Location: PADUCAH, MCCRACKEN County, KENTUCKY, 42002
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $452.8 million to PADUCAH REMEDIATION SERVICES, LLC for work described as: INVESTIGATION AND REMEDIATION OF SPECIFIC AREAS AT THE PADUCAH GASEOUS DIFFUSION PLANT SITE(LAND SITES AND GROUNDWATER); REMOVAL OF LEGACY WASTE; FACILITY DECONTAMINATION AND DECOMMISSIONING (D&D); MAINTAIN AND TRANSFER THE DUF6 CYLINDERS INVENTORIES; AND OPERATING SITE WASTE STO… Key points: 1. The contract focuses on environmental remediation, waste management, and decommissioning at the Paducah Gaseous Diffusion Plant. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which aligns costs with performance incentives. 4. The primary sector is Environmental Remediation Services, a critical area for government operations.
Value Assessment
Rating: good
The contract's total value of $452.8M over approximately 5 years suggests a significant investment in site cleanup. Benchmarking against similar large-scale environmental remediation contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'full and open competition after exclusion of sources' indicates a competitive bidding process was utilized, likely driving price discovery and ensuring a reasonable cost for the government. The specific exclusion criteria would need further review for full understanding.
Taxpayer Impact: The significant investment aims to address long-term environmental liabilities, potentially preventing future costs and ensuring public safety, thus representing a necessary taxpayer expenditure for environmental stewardship.
Public Impact
Ensures cleanup of hazardous materials at a former nuclear facility, protecting public health and the environment. Addresses legacy waste and decommissioning needs, reducing long-term government liability. Supports local economy through job creation and contract spending in Kentucky.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPIF contracts.
- Long-term environmental monitoring and management needs.
- Complexity of decommissioning nuclear facilities.
Positive Signals
- Clear focus on critical environmental remediation tasks.
- Competitive bidding process likely secured favorable pricing.
- Incentive fee structure encourages contractor performance.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, which involves complex cleanup operations at former industrial and government sites. Spending in this sector is often driven by regulatory requirements and long-term environmental stewardship goals.
Small Business Impact
The provided data does not indicate specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to assess small business involvement.
Oversight & Accountability
The Department of Energy (DOE) is responsible for overseeing this contract. Robust oversight mechanisms, including performance monitoring and financial audits, are crucial to ensure contractor compliance and effective use of funds.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Complexity of environmental remediation and decommissioning.
- Potential for unforeseen site conditions impacting cost and schedule.
- Long-term monitoring and maintenance requirements.
- Ensuring full compliance with evolving environmental regulations.
Tags
remediation-services, department-of-energy, ky, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $452.8 million to PADUCAH REMEDIATION SERVICES, LLC. INVESTIGATION AND REMEDIATION OF SPECIFIC AREAS AT THE PADUCAH GASEOUS DIFFUSION PLANT SITE(LAND SITES AND GROUNDWATER); REMOVAL OF LEGACY WASTE; FACILITY DECONTAMINATION AND DECOMMISSIONING (D&D); MAINTAIN AND TRANSFER THE DUF6 CYLINDERS INVENTORIES; AND OPERATING SITE WASTE STORAGE FACILITIES IN ACCORDANCE WITH ALL THE APPLICABLE LAWS, REGULATIONS, DOE DIRECTIVES, PERMITS, ORDERS, AND AGREEMENTS.
Who is the contractor on this award?
The obligated recipient is PADUCAH REMEDIATION SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $452.8 million.
What is the period of performance?
Start: 2005-12-27. End: 2010-07-25.
What specific remediation technologies are being employed, and how do they compare to industry best practices for similar contaminants?
The contract details remediation of specific areas, legacy waste, and facility decontamination. Without explicit information on the technologies used, a direct comparison to industry best practices is difficult. However, the scale and nature of the work suggest the use of established methods for hazardous waste removal, decontamination, and decommissioning, likely involving soil excavation, groundwater treatment, and controlled demolition.
What are the key performance indicators (KPIs) tied to the incentive fee structure, and how are they measured?
The contract is a Cost Plus Incentive Fee (CPIF), implying that the contractor's fee is adjusted based on performance against specific targets. While the exact KPIs are not detailed here, they likely relate to schedule adherence, cost control, environmental compliance, safety performance, and successful completion of remediation milestones. DOE would establish and monitor these metrics.
What is the projected long-term environmental impact and cost savings resulting from this remediation effort?
The primary goal is to mitigate environmental hazards and reduce long-term liability associated with the Paducah site. Successful remediation will prevent further contamination of soil and groundwater, safeguarding public health and ecosystems. While the upfront cost is substantial, it aims to avert potentially higher future costs related to environmental damage, regulatory fines, and ongoing monitoring if left unaddressed.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-RP24-04OH20179
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 702 JEFFERSON ST., PADUCAH, KY, 42002
Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $455,916,027
Exercised Options: $455,916,027
Current Obligation: $452,844,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2005-12-27
Current End Date: 2010-07-25
Potential End Date: 2010-07-25 00:00:00
Last Modified: 2024-07-31
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