DOE's $28.2M Uranium Mill Tailings Remediation contract awarded to S & K Aerospace, LLC
Contract Overview
Contract Amount: $28,210,081 ($28.2M)
Contractor: S & K Aerospace, LLC
Awarding Agency: Department of Energy
Start Date: 2007-06-20
End Date: 2012-06-19
Contract Duration: 1,826 days
Daily Burn Rate: $15.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: MOAB TECHNICAL ASSISTANCE CONTRACT (TAC) SUPPORTING THE MOAB URANIUM MILL TAILINGS REMEDIATION ACTION (UMTRA) PROJECT
Place of Performance
Location: MOAB, GRAND County, UTAH, 84532
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $28.2 million to S & K AEROSPACE, LLC for work described as: MOAB TECHNICAL ASSISTANCE CONTRACT (TAC) SUPPORTING THE MOAB URANIUM MILL TAILINGS REMEDIATION ACTION (UMTRA) PROJECT Key points: 1. Contract awarded on a cost-plus basis, allowing for flexibility but requiring robust oversight. 2. The contractor, S & K Aerospace, LLC, has a track record with federal agencies. 3. Facilities Support Services sector, indicating a focus on operational and maintenance needs. 4. Long duration of 1826 days suggests a stable, long-term requirement for services. 5. The contract's value is moderate within the context of large federal remediation projects. 6. Geographic focus on Utah highlights specific environmental cleanup needs in that region.
Value Assessment
Rating: fair
The contract's cost-plus award fee structure necessitates careful monitoring to ensure value for money. Without detailed breakdowns of cost drivers and award fee criteria, a precise value assessment is challenging. Benchmarking against similar environmental remediation support contracts would provide further insight into pricing reasonableness. The total obligated amount of $28.2 million over approximately five years suggests a significant but not exceptionally high annual spend for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The rationale for this approach is not detailed in the provided data, but sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. Understanding the justification for bypassing full and open competition is crucial for assessing the procurement's efficiency.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.
Public Impact
The primary beneficiaries are the Department of Energy and its mission to remediate uranium mill tailings. Services delivered likely include technical assistance, project management, and operational support for the UMTRA project. The geographic impact is concentrated in Utah, addressing specific environmental cleanup challenges. Workforce implications include employment opportunities for personnel with expertise in environmental remediation and facilities support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced innovation.
- Cost-plus award fee structure requires diligent oversight to prevent cost overruns.
- Limited transparency on the specific services and performance metrics makes independent value assessment difficult.
Positive Signals
- Contract supports a critical environmental remediation mission for the Department of Energy.
- Long contract duration suggests a stable and predictable requirement, potentially leading to efficiencies.
- Award to a known contractor may indicate a level of trust and established working relationship.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a broad range of services including maintenance, operation, and management of government facilities. The specific context here is environmental remediation, a specialized niche within this sector. The UMTRA project itself is a significant federal undertaking aimed at cleaning up legacy uranium processing sites. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts managed by agencies like the EPA or Army Corps of Engineers.
Small Business Impact
The data indicates that small business participation (ss and sb flags) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The prime contractor's own subcontracting practices would determine any indirect impact on small businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. As a cost-plus award fee contract, rigorous monitoring of costs, performance against award fee criteria, and adherence to project milestones would be expected. Transparency is dependent on DOE's reporting practices and any Inspector General involvement would be triggered by specific concerns or audits related to waste, fraud, or abuse.
Related Government Programs
- Environmental Remediation Services
- Facilities Operations and Maintenance
- Uranium Mill Tailings Remediation Action (UMTRA) Project
- Department of Energy Support Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Cost-plus contract type requires stringent oversight to ensure value.
- Limited public data on specific performance metrics and outcomes.
Tags
department-of-energy, facilities-support-services, environmental-remediation, cost-plus-award-fee, definitive-contract, sole-source, utah, large-contract, technical-assistance, uranium-mill-tailings
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $28.2 million to S & K AEROSPACE, LLC. MOAB TECHNICAL ASSISTANCE CONTRACT (TAC) SUPPORTING THE MOAB URANIUM MILL TAILINGS REMEDIATION ACTION (UMTRA) PROJECT
Who is the contractor on this award?
The obligated recipient is S & K AEROSPACE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $28.2 million.
What is the period of performance?
Start: 2007-06-20. End: 2012-06-19.
What is the track record of S & K Aerospace, LLC with federal contracts, particularly in environmental remediation?
S & K Aerospace, LLC has a history of federal contracting, though specific details on their experience in environmental remediation are not provided in this data snippet. Their award for the MOAB Technical Assistance Contract (TAC) supporting the UMTRA project indicates involvement in this sector. Further research into their contract history, past performance reviews, and any awards or penalties associated with previous federal engagements would be necessary for a comprehensive assessment of their track record. Understanding their performance on similar projects, especially those involving complex environmental cleanup or facilities support, is key to evaluating their capability and reliability for this specific contract.
How does the pricing structure (Cost Plus Award Fee) compare to industry standards for similar environmental remediation contracts?
Cost Plus Award Fee (CPAF) contracts are common in federal contracting, particularly for services where the scope may evolve or is difficult to define precisely upfront, such as complex remediation projects. This structure allows for flexibility by reimbursing the contractor's actual costs while incentivizing performance through award fees tied to specific metrics. Compared to fixed-price contracts, CPAF can potentially lead to higher overall costs if not managed diligently, as it shifts some cost risk to the government. However, it can also ensure that the contractor is adequately resourced to achieve project goals. Benchmarking the fee structure, overhead rates, and profit margins against similar environmental remediation contracts awarded by agencies like the EPA or other DOE programs would be essential to determine if the pricing is competitive and reflects fair value for the services rendered.
What are the primary risks associated with a sole-source award for this type of environmental support contract?
The primary risk associated with a sole-source award for this environmental support contract is the potential for reduced price competition, which could lead to the government paying a higher price than if the contract had been competed. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the most cost-effective solutions. Additionally, sole-source awards can sometimes limit the government's access to innovative approaches or specialized expertise that might be offered by other qualified firms. Transparency regarding the justification for the sole-source designation is crucial; if it was awarded without a thorough market analysis or a clear, documented justification, it raises concerns about procurement integrity and potential inefficiencies.
How effective has the UMTRA project been historically, and how does this contract contribute to its overall success?
The Uranium Mill Tailings Remediation Action (UMTRA) project, managed by the Department of Energy, aims to address the environmental legacy of uranium ore processing from the mid-20th century. Historically, the project has involved significant efforts in site characterization, risk assessment, and the cleanup and disposal of radioactive and hazardous materials. The effectiveness of the project is typically measured by the successful remediation of sites to safe standards, protection of public health and the environment, and adherence to budgets and schedules. This specific contract, the MOAB TAC, supports the UMTRA project by providing essential technical assistance. Its contribution to overall success would depend on the quality of the technical support, project management, and operational assistance provided by S & K Aerospace, LLC in meeting the project's remediation goals.
What are the historical spending patterns for facilities support services related to environmental remediation at the Department of Energy?
Historical spending patterns for facilities support services related to environmental remediation at the Department of Energy are substantial, reflecting the agency's ongoing responsibility for managing legacy nuclear sites and waste. The DOE's Office of Environmental Management (EM) consistently represents a significant portion of the department's budget, with substantial allocations for cleanup activities, including technical assistance, site operations, and remediation services. Spending can fluctuate based on project lifecycles, regulatory requirements, and the identification of new cleanup needs. Contracts like the MOAB TAC, while specific in scope, are part of a larger ecosystem of spending aimed at addressing environmental liabilities across numerous sites nationwide. Analyzing broader DOE EM spending trends can provide context for the scale and duration of individual contracts within this sector.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: DE-RP30-07CC60012
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 63066 OLD HIGHWAY 93, SAINT IGNATIUS, MT, 59865
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $30,177,089
Exercised Options: $30,177,089
Current Obligation: $28,210,081
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-06-20
Current End Date: 2012-06-19
Potential End Date: 2018-09-13 00:00:00
Last Modified: 2019-08-21
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