Department of Energy awards $103M for environmental services, with Navarro-Intera, LLC securing a definitive contract
Contract Overview
Contract Amount: $103,296,838 ($103.3M)
Contractor: Navarro-Intera, LLC
Awarding Agency: Department of Energy
Start Date: 2009-01-01
End Date: 2023-07-29
Contract Duration: 5,322 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ENVIRONMENTAL CHARACTERIZATION & REMEDIATION SERVICES FOR THE NEVADA SITE OFFICE FOR NSO
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $103.3 million to NAVARRO-INTERA, LLC for work described as: ENVIRONMENTAL CHARACTERIZATION & REMEDIATION SERVICES FOR THE NEVADA SITE OFFICE FOR NSO Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs if not managed closely. 3. The duration of the contract is extensive (over 14 years), suggesting a long-term need for these environmental services. 4. The contract was awarded to NAVARRO-INTERA, LLC, whose performance and pricing will be key indicators of value. 5. The North American Industry Classification System (NAICS) code 562910 points to Remediation Services, a critical environmental function. 6. The contract's value of over $103 million signifies a substantial investment in environmental cleanup and characterization.
Value Assessment
Rating: fair
Benchmarking the value of this $103 million contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Award Fee (CPA) structure allows for costs plus a fee that can be adjusted based on performance. While this can incentivize efficiency, it also carries the risk of cost overruns if performance targets are not clearly defined or rigorously monitored. Comparing this to similar large-scale environmental remediation contracts would provide better context on whether the pricing is competitive for the scope of work and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, certain sources may have been excluded prior to the final award. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a potentially narrowed field compared to a truly unrestricted full and open competition. This could impact the level of price discovery and potentially lead to less competitive pricing.
Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain sources, potentially increasing the overall cost of the environmental services.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the remediation and characterization of environmental hazards at the Nevada Site Office. Services delivered include critical environmental characterization and remediation activities, essential for site safety and compliance. The geographic impact is focused on the Nevada Site Office, addressing specific environmental concerns within that location. The contract supports a workforce involved in specialized environmental services, contributing to the skilled labor market in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Cost Plus Award Fee' contract type can lead to higher overall costs if performance incentives are not tightly managed and if the base fee is not adequately scrutinized.
- The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation raises questions about the breadth of competition and potential impact on pricing.
- The extensive contract duration (over 14 years) increases the risk of scope creep or unforeseen cost increases over time.
- Lack of specific performance metrics and detailed cost breakdowns makes it difficult to assess true value for money.
- The absence of small business set-aside information suggests limited direct opportunities for small businesses within this prime contract.
Positive Signals
- The contract addresses critical environmental remediation and characterization needs for the Department of Energy.
- Awarding to a single entity (NAVARRO-INTERA, LLC) can streamline management and execution of complex environmental tasks.
- The 'award fee' component provides an incentive for the contractor to achieve high performance standards.
- The contract duration suggests a commitment to addressing long-term environmental challenges at the site.
Sector Analysis
This contract falls within the Environmental Remediation and Consulting sector, a significant market driven by government mandates for cleaning up contaminated sites. The federal government is a major client in this sector, particularly agencies like the Department of Energy responsible for legacy nuclear and industrial sites. Spending in this area is often characterized by long-term, high-value contracts due to the complexity and duration of environmental cleanup projects. Comparable spending benchmarks would typically involve other large-scale remediation efforts at federal facilities across the country.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was awarded to a large business entity. While there is no direct information on subcontracting plans, large federal contracts often include provisions for small business participation. The absence of a small business set-aside on the prime contract means that opportunities for small businesses would likely be through subcontracting, and the extent of this participation is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee structure necessitates robust performance monitoring to ensure the award fee is justified. Transparency would depend on the Department's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Environmental Management Program
- Superfund Remediation Contracts
- Defense Environmental Cleanup Program
- Federal Agency Environmental Services Contracts
Risk Flags
- Potential for cost overruns due to CPA contract type.
- Limited competition indicated by 'exclusion of sources'.
- Long contract duration increases risk of scope creep and cost escalation.
- Lack of detailed performance metrics hinders value assessment.
- No explicit small business set-aside.
Tags
environmental-services, remediation, characterization, department-of-energy, navarro-intera-llc, definitive-contract, cost-plus-award-fee, full-and-open-competition-after-exclusion-of-sources, nevada, large-contract, long-term-contract, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $103.3 million to NAVARRO-INTERA, LLC. ENVIRONMENTAL CHARACTERIZATION & REMEDIATION SERVICES FOR THE NEVADA SITE OFFICE FOR NSO
Who is the contractor on this award?
The obligated recipient is NAVARRO-INTERA, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $103.3 million.
What is the period of performance?
Start: 2009-01-01. End: 2023-07-29.
What is the track record of NAVARRO-INTERA, LLC with similar large-scale environmental remediation contracts?
Assessing the track record of NAVARRO-INTERA, LLC requires a review of their past performance on contracts of similar scope, complexity, and value. This would involve examining past performance evaluations, any documented disputes or contract terminations, and their history of meeting cost and schedule targets. Information on their experience with Cost Plus Award Fee contracts specifically would also be valuable. A thorough review would help determine their capability and reliability in executing the environmental characterization and remediation services required by the Department of Energy at the Nevada Site Office. Without specific data on their past performance, it is difficult to definitively assess their suitability beyond the initial award.
How does the awarded amount compare to the estimated cost for similar environmental remediation projects?
Directly comparing the $103 million awarded amount to similar projects is challenging without detailed cost breakdowns and specific project scopes. Environmental remediation projects vary significantly based on the type and extent of contamination, the geographic location, regulatory requirements, and the specific services required (e.g., characterization vs. active remediation). However, federal agencies often benchmark costs for similar services. The 'Cost Plus Award Fee' structure means the final cost can fluctuate based on performance. To assess value, one would need to compare the cost per unit of work (e.g., per cubic yard of soil remediated, per sample analyzed) against industry standards and other government contracts for comparable tasks.
What are the primary risks associated with a Cost Plus Award Fee contract for environmental services?
The primary risks with a Cost Plus Award Fee (CPA) contract for environmental services include potential cost overruns and a lack of definitive cost control. While the 'award fee' component incentivizes performance, the 'cost plus' aspect means the government pays the contractor's allowable costs plus a fee. If the allowable costs are not rigorously monitored and controlled, or if the performance criteria for the award fee are not sufficiently stringent, the total cost can exceed initial estimates. For environmental services, risks also include unforeseen site conditions, changes in regulatory requirements, and the inherent complexities of remediation, all of which can drive up costs and impact the contractor's ability to achieve performance targets for the award fee.
How effective are the oversight mechanisms for this contract, given its long duration?
The effectiveness of oversight for this contract, spanning over 14 years, hinges on the Department of Energy's consistent application of robust monitoring and management practices. Key oversight mechanisms include regular performance reviews, audits of costs and expenditures, and adherence to contract milestones. The Cost Plus Award Fee structure necessitates close scrutiny of the contractor's performance against defined criteria to ensure the award fee is earned appropriately. Given the contract's length, periodic re-evaluation of the contract's scope, pricing, and performance metrics may be necessary to adapt to changing conditions and maintain accountability. Strong communication channels between the contracting officer, program managers, and the contractor are crucial for effective oversight over such an extended period.
What is the historical spending pattern for environmental characterization and remediation services at the Nevada Site Office?
Analyzing historical spending patterns for environmental services at the Nevada Site Office would provide crucial context for this $103 million contract. This would involve examining previous contracts awarded for similar services at the site, their values, durations, and the contractors involved. Understanding the trend of spending—whether it has been increasing, decreasing, or remaining stable—can indicate the scale of ongoing environmental challenges and the government's commitment to addressing them. It can also reveal if NAVARRO-INTERA, LLC or its predecessors have been consistently involved in this work. Such analysis helps in assessing whether the current contract's value is in line with historical investments or represents a significant shift in spending.
What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' on taxpayer value?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be broad, certain potential bidders were excluded from the process before the final award. This exclusion could stem from various reasons, such as specific technical requirements, past performance issues, or other pre-qualification criteria. However, if the exclusion was not strictly necessary or if it significantly limited the pool of qualified bidders, it could reduce the level of competition. Reduced competition generally leads to less downward pressure on pricing, potentially resulting in higher costs for taxpayers compared to a scenario with a wider range of competing offers. The specific reasons for exclusion are critical to understanding the impact on value.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Navarro Research and Engineering, Inc.
Address: 2660 GOLDEN SANDS DR, LAS VEGAS, NV, 89128
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,709,674
Exercised Options: $110,709,674
Current Obligation: $103,296,838
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2009-01-01
Current End Date: 2023-07-29
Potential End Date: 2023-07-29 00:00:00
Last Modified: 2023-08-02
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