DOE's $21.7M contract for property management services awarded to HII NUCLEAR INC
Contract Overview
Contract Amount: $21,746,488 ($21.7M)
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: $9.4K/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: REUSE AND PROPERTY MANAGEMENT - LM
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81501
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $21.7 million to HII NUCLEAR INC for work described as: REUSE AND PROPERTY MANAGEMENT - LM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2312 days indicates a long-term commitment for property management. 3. Awarded by the Department of Energy, focusing on remediation services. 4. The North American Industry Classification System (NAICS) code 562910 points to specific environmental remediation activities. 5. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract. 6. The contractor, HII NUCLEAR INC., has secured this significant award, indicating their capability in the sector.
Value Assessment
Rating: fair
Benchmarking the value of this $21.7 million contract for property and reuse management is challenging without more specific performance metrics or comparable contract data. The duration of over six years suggests a substantial scope of work. However, without details on the specific services rendered or the outcomes achieved, it's difficult to definitively assess value for money. Comparing the per-unit cost of services, if applicable, against industry standards would provide a clearer picture of its economic efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specifics of why sources were excluded are not provided, which could impact the level of competition achieved and potentially influence pricing. Further details on the exclusion criteria would be necessary for a complete assessment.
Taxpayer Impact: The exclusion of certain sources, even within a full and open competition framework, may have limited the number of competitive bids, potentially leading to less aggressive pricing for taxpayers.
Public Impact
The Department of Energy benefits from the management and potential reuse of its properties. Services include property management and remediation, contributing to environmental stewardship. The contract's geographic impact is primarily in Colorado, where the contractor is located. Workforce implications may include employment opportunities for personnel involved in property management and remediation activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the true value for money.
- The 'exclusion of sources' clause in the competition raises questions about the breadth of competition.
- Limited information on specific remediation activities and their environmental impact.
- The contract's duration without clear interim performance reviews could pose a risk if issues arise.
Positive Signals
- Awarded through a competitive process, indicating potential for cost-effectiveness.
- Long-term contract suggests a stable and ongoing need for these services.
- Contractor has secured a significant award, implying a level of trust and capability.
- Focus on property management and reuse aligns with government efficiency goals.
Sector Analysis
This contract falls within the environmental services and government property management sector. The remediation services sub-sector is critical for managing legacy environmental issues at federal sites. The Department of Energy, in particular, manages a vast portfolio of complex facilities requiring specialized environmental and property oversight. Comparable spending benchmarks would typically involve analyzing other large-scale environmental remediation and property management contracts awarded by federal agencies, considering factors like site complexity and regulatory requirements.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature and potential scale of property management and remediation services for a federal agency like the Department of Energy, it is likely that the prime contractor, HII NUCLEAR INC., is a large business. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's subcontracting plan and the specific needs of the project. Further analysis would be required to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is often facilitated through contract databases like FPDS-NG, which provide basic award information. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- Environmental Remediation Services
- Federal Property Management
- Department of Energy Contracts
- Defense Environmental Cleanup Program
- Superfund Program Contracts
Risk Flags
- Potential for cost overruns due to unforeseen environmental conditions.
- Risk of non-compliance with environmental regulations.
- Contract performance issues impacting project timelines.
- Limited transparency regarding the exclusion of sources in competition.
Tags
remediation-services, property-management, department-of-energy, hii-nuclear-inc, full-and-open-competition, delivery-order, environmental-services, colorado, long-term-contract, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $21.7 million to HII NUCLEAR INC. REUSE AND PROPERTY MANAGEMENT - 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 $21.7 million.
What is the period of performance?
Start: 2008-03-01. End: 2014-06-30.
What specific property management and remediation services were included in this $21.7 million contract?
The provided data indicates the contract is for 'REUSE AND PROPERTY MANAGEMENT - LM' and falls under NAICS code 562910, 'Remediation Services.' This suggests the scope likely encompassed activities such as managing the inventory and condition of government-owned properties, ensuring compliance with environmental regulations, performing site assessments, and potentially undertaking cleanup actions for contaminated areas. The 'LM' designation might refer to a specific site or program within the Department of Energy. Without the full contract statement of work, the precise details of services rendered remain unspecified, but the core functions would revolve around maintaining, monitoring, and remediating DOE-controlled real property assets.
How does the $21.7 million award value compare to similar property management and remediation contracts?
Comparing the $21.7 million award value requires context regarding the specific services, duration, and complexity of the work. Contracts for environmental remediation can vary significantly, from small site assessments to multi-billion dollar, multi-year cleanup efforts at major federal facilities. Property management contracts also differ based on the size and type of assets managed. For a contract spanning over six years (2008-2014), $21.7 million represents an average annual value of approximately $3.6 million. This figure appears moderate for large-scale federal environmental contracts but could be substantial for pure property management or smaller remediation projects. A more precise comparison would necessitate analyzing contracts with similar NAICS codes, agency, and geographic scope.
What are the key risks associated with this type of federal contract?
Key risks for this contract include potential cost overruns due to unforeseen environmental conditions requiring more extensive remediation than initially scoped. Performance risks involve the contractor's ability to meet stringent environmental standards and deadlines, potentially leading to regulatory non-compliance or penalties. There's also a risk of scope creep, where additional property management or remediation tasks are added without commensurate adjustments to budget or schedule. Furthermore, changes in environmental regulations or agency priorities could impact the contract's objectives. Finally, contractor performance issues, such as inadequate reporting or failure to achieve key milestones, represent a significant risk to the government.
What was the historical spending pattern for property management and remediation services by the Department of Energy prior to this award?
Historical spending patterns for the Department of Energy (DOE) in property management and remediation services are substantial, reflecting its mission to manage complex energy infrastructure and legacy nuclear sites. The DOE consistently ranks among the top federal agencies for environmental cleanup spending. Prior to this 2008 award, the DOE had ongoing, often multi-year, contracts for managing and remediating sites like the Hanford Site, Oak Ridge Reservation, and Rocky Flats. Spending in these areas typically fluctuates based on congressional appropriations, the identification of new environmental liabilities, and the progression of ongoing cleanup projects. Analyzing historical DOE budgets and contract awards for NAICS codes related to remediation and property management would reveal significant, often billions of dollars, annual expenditures in these domains.
What is the track record of HII NUCLEAR INC. in performing similar federal contracts?
HII Nuclear Inc., as part of Huntington Ingalls Industries (HII), has a significant track record in supporting government and defense sectors, including nuclear operations and environmental services. While specific details of their performance on this particular $21.7 million Department of Energy contract (2008-2014) are not detailed in the provided summary, HII generally holds numerous large federal contracts. Their experience often involves complex engineering, construction, and management services, particularly within the nuclear and defense industries. Assessing their broader track record would involve reviewing their portfolio of past federal awards, performance evaluations (e.g., CPARS), and any reported issues or successes in managing large-scale projects, especially those involving environmental compliance and property management.
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: $23,075,001
Exercised Options: $23,075,001
Current Obligation: $21,746,488
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: 2021-09-17
More Contracts from HII Nuclear Inc
- Technical, Project Management,& Administrative Services to Grand Junction Office for ITS Environmental Management and Restoration Services Mission — $243.3M (Department of Energy)
- Long Term Surveillance and Maintenance (ltsm) - EM — $123.1M (Department of Energy)
- Long Term Surveillance and Maintence (ltsm) - LM — $87.2M (Department of Energy)
- Legacy Management Support (LMS) Services — $84.7M (Department of Energy)
- Archives and Information Management (AIM) — $65.9M (Department of Energy)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)