DOE Awards $194M Facilities Support Contract to Kaiser Hill LLC Under Full and Open Competition
Contract Overview
Contract Amount: $193,958,593 ($194.0M)
Contractor: Kaiser Hill LLC
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2000-06-30
Contract Duration: 259 days
Daily Burn Rate: $748.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE
Sector: Other
Place of Performance
Location: GREENWOOD VILLAGE, ARAPAHOE County, COLORADO, 80111
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $194.0 million to KAISER HILL LLC for work described as: Key points: 1. The contract value of $194 million for facilities support services is substantial. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Incentive) carries inherent risk for cost overruns. 4. The sector is facilities support services, a common area for government spending.
Value Assessment
Rating: fair
The contract value of $194 million is significant for facilities support services. Benchmarking against similar contracts is difficult without more specific service details, but the scale suggests a major operational requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers as it aims to secure the best value through market forces.
Public Impact
Taxpayers benefit from a competitive bidding process for essential government services. The large contract value highlights significant government investment in facilities management. The specific services provided under this contract will impact various government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) contracts can lead to higher costs if not managed carefully.
- The relatively short duration (259 days) might indicate a specific project or transition phase, potentially limiting long-term value realization.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- The contract addresses essential facilities support services.
Sector Analysis
Facilities support services are crucial for the operational efficiency of government agencies. Spending in this sector can vary widely based on the size and scope of agency facilities, with benchmarks often tied to square footage and service complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would focus on ensuring Kaiser Hill LLC meets performance standards and manages costs effectively under the CPIF structure, particularly given the short contract duration.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns.
- Lack of detail on specific services makes comprehensive value assessment challenging.
- Short contract duration may limit long-term strategic benefits.
- No indication of small business participation.
Tags
facilities-support-services, department-of-energy, co, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $194.0 million to KAISER HILL LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is KAISER HILL LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $194.0 million.
What is the period of performance?
Start: 1999-10-15. End: 2000-06-30.
What specific facilities support services were included in this $194 million contract, and how do they align with the Department of Energy's operational needs?
The contract likely encompassed a range of services such as maintenance, repair, custodial, security, and potentially specialized technical support for Department of Energy facilities. The alignment would depend on the specific sites and infrastructure managed by the agency, ensuring operational continuity and safety.
What were the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement, and how were they designed to manage risk and ensure value?
CPIF contracts typically set target costs and target profits, with adjustments based on performance against pre-defined metrics. KPIs might include response times, quality of service, and cost savings. The incentive structure would aim to reward the contractor for exceeding targets while sharing the risk of cost overruns.
How did the full and open competition process ensure that Kaiser Hill LLC's bid represented the best value for the government, considering the CPIF structure?
Full and open competition allowed multiple qualified vendors to submit proposals, fostering a competitive environment. The evaluation process would have assessed not only price but also technical approach, past performance, and the reasonableness of the proposed cost and fee structure, ensuring the selected offer provided the best overall value.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE (V)
Contractor Details
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $-105,488
Exercised Options: $-10,757,747
Current Obligation: $193,958,593
Timeline
Start Date: 1999-10-15
Current End Date: 2000-06-30
Potential End Date: 2000-06-30 00:00:00
Last Modified: 2012-07-26
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