EnergySolutions LLC contract for waste disposal saw significant spending, exceeding $14.6 million over its term
Contract Overview
Contract Amount: $14,695,721 ($14.7M)
Contractor: Energysolutions, LLC
Awarding Agency: Department of Energy
Start Date: 2004-07-08
End Date: 2013-06-29
Contract Duration: 3,278 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WASTE DISPOSAL
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84101
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $14.7 million to ENERGYSOLUTIONS, LLC for work described as: WASTE DISPOSAL Key points: 1. The contract's value suggests a substantial need for waste disposal services within the Department of Energy. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract duration was lengthy, spanning nearly nine years, which could impact price stability and contractor performance. 4. Fixed-price contracts generally offer cost certainty but may limit flexibility for unforeseen issues. 5. The geographic focus on Utah is noted, implying a specific operational area for these services. 6. The absence of small business set-asides suggests larger firms were primary participants or the contract scope did not lend itself to set-asides.
Value Assessment
Rating: fair
Benchmarking the value of this waste disposal contract is challenging without specific service volume data. However, a nearly $15 million spend over nine years for specialized waste disposal suggests a significant operational requirement. The firm fixed-price structure provides cost predictability for the government. Without comparable contract data for similar waste volumes and types, a precise value-for-money assessment is difficult, but the duration and total value indicate a substantial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of two bidders, as indicated by the data, points to a moderate level of competition. While not a large number of bidders, it is sufficient to provide some price discovery and encourage competitive pricing. The government likely benefited from receiving multiple offers, allowing for comparison and selection of the most advantageous proposal.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the best value.
Public Impact
The Department of Energy benefits from reliable waste disposal services, crucial for its operational continuity and environmental compliance. The contract supports the management and disposal of potentially hazardous or specialized waste materials generated by government operations. The primary geographic impact is in Utah, where the services were rendered. The contract likely supported a workforce involved in waste management, transportation, and disposal operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency or reduced incentive for innovation over time.
- Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency and effectiveness.
- Firm fixed-price contracts can sometimes lead to disputes if unforeseen circumstances arise that significantly impact costs.
Positive Signals
- Awarded through full and open competition, indicating a fair and accessible bidding process.
- The firm fixed-price contract type offers budget certainty for the government.
- The contract was awarded to a single entity, suggesting a clear line of accountability for service delivery.
Sector Analysis
The waste disposal sector is critical for various industries, including government operations, ensuring compliance with environmental regulations and safe handling of materials. This contract falls within the broader environmental services market, which is substantial. Government contracts for waste management are common, often involving specialized requirements due to the nature of materials handled. Benchmarking against other government waste disposal contracts would require detailed analysis of service scope and volume.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary contractor, EnergySolutions, LLC, likely handled the majority of the work. The absence of small business participation could mean that the contract's scope was too large or specialized for small business capabilities, or that opportunities for subcontracting were not prioritized or mandated.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Energy. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver services as agreed. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General's office for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Energy Environmental Management Contracts
- Federal Waste Management Services
- Hazardous Waste Disposal Contracts
- Department of Defense Waste Disposal
Risk Flags
- Long contract duration
- Limited competition data provided
- Lack of specific performance metrics
Tags
waste-disposal, department-of-energy, energy-solutions-llc, firm-fixed-price, full-and-open-competition, utah, environmental-services, hazardous-waste, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14.7 million to ENERGYSOLUTIONS, LLC. WASTE DISPOSAL
Who is the contractor on this award?
The obligated recipient is ENERGYSOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2004-07-08. End: 2013-06-29.
What was the specific nature of the waste being disposed of under this contract?
The provided data indicates the contract was for 'WASTE DISPOSAL' (d: 'WASTE DISPOSAL'). However, it does not specify the exact nature or type of waste. Given the contracting agency is the Department of Energy, the waste could potentially include hazardous materials, radioactive waste, industrial byproducts, or general refuse generated from research, development, or operational activities. A more detailed analysis of the contract's statement of work or associated documentation would be necessary to ascertain the precise nature of the waste handled.
How does the per-year spending compare to similar waste disposal contracts within the federal government?
The contract's total value was approximately $14.7 million over a duration of 3278 days (roughly 9 years). This averages to about $1.63 million per year. Comparing this to similar contracts requires access to a database of federal waste disposal contracts with detailed scope and volume information. Without such comparative data, it's difficult to definitively state whether this spending level is high, low, or average. Factors like the type of waste, volume, disposal methods required, and geographic location significantly influence contract costs.
What were the key performance indicators (KPIs) for EnergySolutions, LLC under this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or performance metrics established for EnergySolutions, LLC. Typically, government contracts include clauses outlining performance standards, delivery schedules, quality requirements, and compliance with safety and environmental regulations. Failure to meet these KPIs could result in penalties or contract termination. A thorough review of the contract's statement of work and any performance reports would be needed to identify the specific KPIs and assess the contractor's performance against them.
Were there any contract modifications or change orders issued during the contract period?
The provided data does not explicitly detail contract modifications or change orders. However, for a contract spanning nearly nine years, it is common for modifications to occur to adjust scope, funding, or timelines based on evolving needs or unforeseen circumstances. Such modifications would typically be documented and approved by the contracting officer. Without access to the contract's amendment history, it's impossible to confirm the extent of any modifications.
What is the track record of EnergySolutions, LLC with Department of Energy contracts?
EnergySolutions, LLC has a history of contracting with the Department of Energy, particularly in areas related to waste management and environmental services. This specific contract, valued at over $14.6 million and spanning from 2004 to 2013, demonstrates a significant engagement. Their broader portfolio often includes complex projects involving the cleanup and disposal of legacy nuclear materials and hazardous waste. A comprehensive assessment would involve reviewing their performance across multiple contracts, including any awards, penalties, or disputes.
What is the potential environmental risk associated with the waste disposal services provided?
The potential environmental risk is directly tied to the nature of the waste being disposed of. If the contract involved hazardous or radioactive materials, improper handling, transportation, or disposal could lead to soil, water, or air contamination, posing risks to ecosystems and human health. EnergySolutions, as a specialized contractor, would be expected to adhere to stringent federal and state environmental regulations (e.g., RCRA, CERCLA) and employ best practices to mitigate these risks. The Department of Energy's oversight would be critical in ensuring compliance and safety.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Energy Solutions Performance Strategies Inc. (UEI: 078891647)
Address: 605 N 5600 W, SALT LAKE CITY, UT, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,695,721
Exercised Options: $14,695,721
Current Obligation: $14,695,721
Parent Contract
Parent Award PIID: DEAM2498OH20053
IDV Type: IDC
Timeline
Start Date: 2004-07-08
Current End Date: 2013-06-29
Potential End Date: 2013-06-29 00:00:00
Last Modified: 2012-12-13
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