DOE's $87M contract for long-term surveillance and maintenance awarded to HII NUCLEAR INC
Contract Overview
Contract Amount: $87,152,378 ($87.2M)
Contractor: HII Nuclear Inc
Awarding Agency: Department of Energy
Start Date: 2008-03-01
End Date: 2014-06-30
Contract Duration: 2,312 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: LONG TERM SURVEILLANCE AND MAINTENCE (LTSM) - LM
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81501
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $87.2 million to HII NUCLEAR INC for work described as: LONG TERM SURVEILLANCE AND MAINTENCE (LTSM) - LM Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract duration of 2312 days suggests a significant, long-term commitment for surveillance and maintenance. 3. The award to HII NUCLEAR INC. positions them as a key player in DOE's remediation services. 4. The contract's value of over $87 million warrants scrutiny for cost-effectiveness over its lifespan. 5. The 'Remediation Services' NAICS code points to critical environmental cleanup and management activities. 6. The contract type 'Combination' suggests a complex scope of work involving multiple service categories.
Value Assessment
Rating: fair
Benchmarking the value of this $87 million contract is challenging without specific performance metrics and comparable remediation service contracts. The duration of over 6 years suggests a substantial investment. However, without detailed cost breakdowns or performance data, it's difficult to definitively assess value for money. The contract's focus on long-term surveillance and maintenance implies ongoing operational costs that need careful management to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The number of bidders is not specified, but the exclusion of sources could impact the diversity of proposals received and potentially influence pricing dynamics.
Taxpayer Impact: While the competition was not fully open, the exclusion of sources might have led to a less competitive pricing environment than a truly open bid. Taxpayers benefit from a competitive process, but the extent of savings is uncertain without knowing the number of bidders and the rationale for exclusions.
Public Impact
The Department of Energy benefits from the continued surveillance and maintenance of facilities, ensuring operational safety and environmental compliance. This contract supports critical remediation services, likely involving the management and cleanup of hazardous materials or sites. The geographic impact is centered in Colorado, where the services are being performed. The contract likely supports a specialized workforce in nuclear and environmental remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the long-term nature and complexity of remediation services.
- Risk of contractor performance issues impacting critical surveillance and maintenance operations.
- The 'exclusion of sources' clause warrants further investigation into its justification and impact on competition.
Positive Signals
- Awarded through a competitive process, suggesting potential for cost efficiency.
- Long-term contract provides stability for service delivery and planning.
- Focus on surveillance and maintenance indicates a commitment to ongoing operational integrity.
Sector Analysis
The contract falls within the 'Remediation Services' sector, a critical component of the environmental services industry. This sector is characterized by specialized expertise, stringent regulatory oversight, and often involves long-term, high-value contracts. The market size for environmental remediation is substantial, driven by government mandates for cleanup of contaminated sites and ongoing industrial activities. This contract with the Department of Energy represents a significant engagement within this specialized niche.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the nature and scale of the contract, it is possible that larger firms are the primary awardees, with potential subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's internal procurement and program management offices. Inspector General jurisdiction would likely apply to ensure accountability and prevent fraud, waste, and abuse. Transparency is generally facilitated through contract award databases and public reporting requirements, though specific performance details may be sensitive.
Related Government Programs
- Department of Energy Environmental Management
- Nuclear Facility Decommissioning
- Hazardous Waste Management
- Site Remediation Contracts
Risk Flags
- Long-term contract duration may increase risk of cost escalation or scope creep.
- Competition level ('after exclusion of sources') warrants further scrutiny for potential impact on price discovery.
- Remediation services can involve complex environmental and safety risks.
Tags
department-of-energy, remediation-services, surveillance-and-maintenance, long-term-contract, full-and-open-competition-after-exclusion-of-sources, hii-nuclear-inc, colorado, environmental-services, nuclear-industry, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $87.2 million to HII NUCLEAR INC. LONG TERM SURVEILLANCE AND MAINTENCE (LTSM) - LM
Who is the contractor on this award?
The obligated recipient is HII NUCLEAR INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $87.2 million.
What is the period of performance?
Start: 2008-03-01. End: 2014-06-30.
What is the historical spending pattern for long-term surveillance and maintenance contracts by the Department of Energy?
Analyzing historical spending for LTSM contracts by the Department of Energy (DOE) requires a review of past contract awards within similar categories and agencies. Typically, DOE manages numerous long-term contracts related to the stewardship of legacy nuclear sites and ongoing remediation efforts. These contracts often span many years and involve significant financial commitments, reflecting the complex and enduring nature of environmental cleanup and facility maintenance. Historical data would likely show a consistent allocation of resources towards these critical functions, with spending levels influenced by site-specific needs, regulatory changes, and federal budget appropriations. Understanding these patterns helps in assessing the current contract's scale relative to past investments and identifying trends in service providers and contract durations.
How does the awarded amount of $87 million compare to similar long-term surveillance and maintenance contracts in the federal government?
The $87 million award for long-term surveillance and maintenance (LTSM) by the Department of Energy (DOE) is a substantial figure, indicative of a significant and lengthy service requirement. To benchmark this value, one would compare it against other federal LTSM contracts, particularly those managed by agencies with similar environmental or infrastructure responsibilities, such as the Environmental Protection Agency (EPA) or the Department of Defense (DoD) for base operations. Factors like contract duration, scope of services (e.g., hazardous material management, facility upkeep, security), and geographic location play a crucial role in determining contract value. Without specific details on comparable contracts, it's difficult to provide a precise comparison, but an $87 million contract over approximately six years suggests a high level of complexity and criticality.
What are the key performance indicators (KPIs) typically associated with remediation services contracts like this one?
Key performance indicators (KPIs) for remediation services contracts are designed to ensure the effective and safe management of contaminated sites and facilities. Common KPIs include adherence to environmental regulations and permit requirements, timely completion of remediation milestones, effectiveness of containment and cleanup technologies, minimization of environmental impact during operations, and compliance with safety protocols to protect workers and the public. For long-term surveillance and maintenance, KPIs might also focus on the integrity of monitoring systems, the prompt identification and reporting of any environmental excursions, and the efficient management of resources to prevent degradation of site conditions. Performance is often measured against baseline conditions and established cleanup standards.
What is the track record of HII NUCLEAR INC. in performing similar federal contracts?
HII Nuclear Inc., a subsidiary of Huntington Ingalls Industries, has a significant track record in supporting the U.S. nuclear industry, including extensive work with the Navy's nuclear fleet and commercial nuclear power plants. Their expertise often encompasses complex engineering, maintenance, and operational support services. For federal contracts, particularly those involving nuclear facilities or environmental remediation, HII Nuclear's background suggests a strong capability in managing high-risk, technically demanding projects. A thorough review of their contract history with agencies like the Department of Energy would reveal specific performance data, past project successes, and any instances of contract disputes or challenges, providing a clearer picture of their reliability and effectiveness in executing similar government work.
What are the potential risks associated with a long-term surveillance and maintenance contract for remediation services?
Long-term surveillance and maintenance (LTSM) contracts for remediation services carry several inherent risks. One primary risk is the potential for unforeseen environmental conditions or changes in regulatory requirements over the contract's extended duration, which could necessitate scope adjustments and cost increases. Contractor performance degradation over time is another concern, potentially leading to lapses in monitoring or maintenance, which could compromise site safety and environmental protection. Furthermore, the long-term nature can make it challenging to accurately forecast future costs and resource needs, increasing the risk of budget overruns. Technological obsolescence in monitoring or containment systems could also become an issue, requiring upgrades. Finally, ensuring consistent oversight and accountability from the contracting agency over many years requires sustained focus and resources.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc
Address: 105 TECHNOLOGY DR STE 190, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $89,408,489
Exercised Options: $89,408,489
Current Obligation: $87,152,378
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM0107LM00060
IDV Type: IDC
Timeline
Start Date: 2008-03-01
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2024-04-04
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