DOE's $123M long-term surveillance contract awarded to HII Nuclear Inc. for remediation services
Contract Overview
Contract Amount: $123,125,336 ($123.1M)
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: $53.3K/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 MAINTENANCE (LTSM) - EM
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81501
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $123.1 million to HII NUCLEAR INC for work described as: LONG TERM SURVEILLANCE AND MAINTENANCE (LTSM) - EM Key points: 1. Contract value represents a significant investment in long-term environmental management. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Contract duration of over 2 years indicates a need for sustained service delivery. 4. The specific nature of remediation services points to complex environmental challenges. 5. Awardee's experience in nuclear services is a key factor in performance. 6. Geographic focus on Colorado highlights regional environmental priorities.
Value Assessment
Rating: good
The contract value of $123.1 million over its period of performance appears reasonable for long-term surveillance and maintenance of complex environmental sites. Benchmarking against similar large-scale remediation contracts is challenging without more specific service details, but the award to a single entity suggests a comprehensive approach. The duration of the contract implies a stable, predictable cost structure over time, which can be advantageous for long-term planning and budgeting.
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 that while the competition was broad, there might have been specific justifications for excluding certain sources initially. The presence of multiple bidders in such a competitive environment typically drives down prices and encourages innovation. The final award suggests HII Nuclear Inc. offered the best value proposition among the qualified competitors.
Taxpayer Impact: This level of competition is generally favorable for taxpayers, as it increases the likelihood of securing services at a competitive price and promotes efficiency.
Public Impact
The primary beneficiaries are the Department of Energy and potentially the public through the safe management of environmental hazards. Services delivered include long-term surveillance and maintenance, crucial for environmental remediation projects. The geographic impact is concentrated in Colorado, addressing specific site needs. Workforce implications include employment opportunities for skilled personnel in environmental remediation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen environmental conditions arise.
- Dependence on a single contractor for critical long-term maintenance could pose risks if performance degrades.
- Scope creep could increase the overall cost beyond initial projections.
Positive Signals
- Award to an experienced contractor (HII Nuclear Inc.) suggests a higher likelihood of successful performance.
- Long-term nature of the contract allows for specialized knowledge development and efficiency gains.
- Full and open competition indicates a robust selection process, likely resulting in a fair price.
Sector Analysis
This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government agencies managing legacy industrial and nuclear sites. The market for such specialized services is often dominated by a few large, experienced contractors capable of handling complex, long-term projects. Spending in this sector is driven by regulatory requirements and the need to mitigate environmental risks, often involving substantial, multi-year commitments.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While HII Nuclear Inc. is likely a large business, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized support services. The prime contractor's subcontracting plan, if applicable, would detail these opportunities and their impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Environmental Remediation Services
- Nuclear Site Management
- Long-Term Maintenance Contracts
- Department of Energy Contracts
- Federal Remediation Programs
Risk Flags
- Contract duration exceeds 2 years
- Awarded under 'Full and Open Competition After Exclusion of Sources'
Tags
department-of-energy, remediation-services, long-term-surveillance-and-maintenance, hii-nuclear-inc, full-and-open-competition, colorado, environmental-management, nuclear-services, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $123.1 million to HII NUCLEAR INC. LONG TERM SURVEILLANCE AND MAINTENANCE (LTSM) - EM
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 $123.1 million.
What is the period of performance?
Start: 2008-03-01. End: 2014-06-30.
What is the track record of HII Nuclear Inc. in managing similar long-term surveillance and maintenance contracts for the Department of Energy or other federal agencies?
HII Nuclear Inc., a subsidiary of Huntington Ingalls Industries, has a significant presence in the nuclear services sector, including work for the Department of Energy. Their experience often encompasses complex projects related to naval nuclear propulsion and environmental remediation. While specific details on past LTSM contracts require deeper investigation into their portfolio, their established role in the nuclear industry suggests a capacity to handle such long-term, critical maintenance and surveillance tasks. Past performance reviews and contract histories available through federal procurement databases would provide a more granular assessment of their success rates, on-time delivery, and adherence to budget on comparable projects.
How does the awarded value of $123.1 million compare to the estimated cost or budget for this specific long-term surveillance and maintenance requirement?
Without access to the government's independent cost estimates or the contractor's detailed proposal, a direct comparison of the awarded value to the budget is not possible from the provided data alone. However, the fact that the contract was awarded under full and open competition suggests that the final price was deemed competitive and represented good value. The duration of the contract (over two years) implies that the $123.1 million is spread across this period, making the annual cost significantly lower. Further analysis would require comparing this contract's unit costs for specific services (if identifiable) against industry benchmarks or similar DOE contracts.
What are the primary risks associated with a long-term surveillance and maintenance contract of this nature, and how are they being mitigated?
Key risks include potential cost overruns due to unforeseen environmental conditions, contractor performance degradation over a long period, and scope creep. Mitigation strategies typically involve robust contract language with clear performance metrics, incentives for efficiency, and penalties for non-performance. The Department of Energy's oversight mechanisms, including regular reviews and inspections, are crucial for monitoring progress and addressing issues proactively. The selection of an experienced contractor like HII Nuclear Inc. also serves as a risk-reduction measure, assuming their past performance is strong. Contingency planning for unexpected events is also a standard practice in such contracts.
What specific remediation services are included under this contract, and what is their expected impact on environmental safety?
The provided data categorizes the contract under 'Remediation Services' (nd: Remediation Services) and specifies 'LONG TERM SURVEILLANCE AND MAINTENANCE (LTSM)'. This suggests the contract likely involves monitoring the condition of remediated sites, ensuring containment systems remain effective, performing routine checks, and potentially undertaking minor corrective actions to maintain the integrity of the remediation efforts. The expected impact on environmental safety is significant, as it ensures that previously contaminated areas remain stable and do not pose ongoing risks to human health or the environment. This prevents re-contamination and ensures the long-term success of the initial remediation investments.
How has federal spending on remediation services, particularly by the Department of Energy, trended over the past decade, and where does this contract fit within that trend?
Federal spending on remediation services, especially by agencies like the Department of Energy (DOE) which manages legacy nuclear and industrial sites, has historically been substantial and relatively consistent due to ongoing cleanup requirements and regulatory mandates. While specific decade-long trend data for DOE's remediation spending isn't provided here, it's generally understood to be a significant portion of their budget. This $123 million contract, awarded in 2008 and ending in 2014, represents a mid-sized commitment within the broader context of DOE's extensive environmental management mission. It reflects the ongoing need for long-term stewardship of complex sites, a consistent feature of federal environmental programs.
What does the contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process and potential bidder pool?
This contract type indicates that the initial solicitation was intended for full and open competition. However, specific sources were excluded before the final award. This exclusion could be due to various reasons, such as national security concerns, specific technical requirements that only a limited number of entities could meet, or prior contractual relationships that justified limiting the initial pool. While it suggests a broader competition than a sole-source award, the exclusion of certain entities might limit the ultimate number of bidders and potentially impact the price discovery process compared to a truly unrestricted full and open competition. The justification for exclusion would be detailed in the contract's procurement file.
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 (UEI: 967362331)
Address: 105 TECHNOLOGY DR STE 190, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $130,268,599
Exercised Options: $130,268,599
Current Obligation: $123,125,336
Contract Characteristics
Commercial Item: COMMERCIAL ITEM 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: 2021-09-16
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