DOE's $133M Paducah Plant Infrastructure Contract Awarded to Swift & Staley Inc
Contract Overview
Contract Amount: $133,337,280 ($133.3M)
Contractor: Swift & Staley Inc.
Awarding Agency: Department of Energy
Start Date: 2009-12-16
End Date: 2015-11-30
Contract Duration: 2,175 days
Daily Burn Rate: $61.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: INFRASTRUCTURE SERVICES FOR PADUCAH GASEOUS DIFFUSION PLANT
Place of Performance
Location: KEVIL, MCCRACKEN County, KENTUCKY, 42053
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $133.3 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 the Paducah Gaseous Diffusion Plant. 2. Swift & Staley Inc. secured the definitive contract. 3. The contract type is Cost Plus Award Fee. 4. Competition was full and open after exclusion of sources. 5. The contract duration is 2175 days.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for performance-based incentives. However, without detailed cost breakdowns and performance metrics, assessing the value for money is challenging. Benchmarking against similar facilities support contracts is difficult due to unique plant operations.
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 a competitive process but with specific source exclusions. This method aims for price discovery but the exclusions might limit the full competitive landscape.
Taxpayer Impact: The significant investment of $133 million for infrastructure services impacts taxpayers by funding essential operations and maintenance for a critical national facility.
Public Impact
Ensures continued operation and maintenance of the Paducah Gaseous Diffusion Plant. Supports national security and energy infrastructure. Creates and sustains jobs in the Kentucky region.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns if not managed tightly.
- Exclusion of sources in competition may limit optimal pricing.
- Long contract duration requires ongoing oversight.
Positive Signals
- Full and open competition ensures a degree of market responsiveness.
- Contract aims to maintain critical infrastructure.
- Performance incentives are built into the fee structure.
Sector Analysis
Facilities Support Services (NAICS 561210) are crucial for the operation of large industrial and governmental sites. Spending in this sector can vary widely based on the scale and complexity of the facility. This contract represents a significant investment in maintaining a unique and critical national asset.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of Energy, as the contracting agency, is responsible for oversight. The 'Cost Plus Award Fee' structure necessitates robust performance monitoring and financial auditing to ensure accountability and prevent waste.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition due to source exclusions.
- Lack of transparency in specific performance metrics for award fee.
- Long contract duration requires sustained oversight.
Tags
facilities-support-services, department-of-energy, ky, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $133.3 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 $133.3 million.
What is the period of performance?
Start: 2009-12-16. End: 2015-11-30.
What specific performance metrics are tied to the award fee, and how are they measured to ensure optimal value for the government?
The effectiveness of the Cost Plus Award Fee structure hinges on clearly defined, measurable, and achievable performance metrics. These metrics should align with the critical operational needs of the Paducah Gaseous Diffusion Plant, covering areas like safety, environmental compliance, operational efficiency, and facility maintenance. Robust government oversight is essential to ensure accurate measurement and fair assessment of award fees, thereby driving contractor performance and maximizing value for taxpayer dollars.
How did the exclusion of certain sources impact the competitive landscape and the final negotiated price for these infrastructure services?
The 'exclusion of sources' clause in the competition method suggests that while the process was intended to be full and open, specific entities were not permitted to bid. This limitation could potentially reduce the number of competitive offers received, possibly leading to a less aggressive pricing environment. A thorough review of the justification for excluding sources and the resulting bid analysis would be necessary to determine the extent of this impact on the final price and overall value.
What is the long-term strategy for managing infrastructure at the Paducah Gaseous Diffusion Plant beyond this contract's duration?
This contract covers infrastructure services through November 2015. Understanding the Department of Energy's long-term asset management plan for the Paducah Gaseous Diffusion Plant is crucial. This includes plans for modernization, decommissioning, or continued operation, and how future contracts will align with these strategic objectives to ensure sustained operational effectiveness and responsible stewardship of taxpayer investments.
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: DE-RP30-09CC40021
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 761 VETERANS AVE, KEVIL, KY, 42053
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $161,013,322
Exercised Options: $148,546,200
Current Obligation: $133,337,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-16
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2023-04-25
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