DOE's $12.2M contract for Mound Support awarded to HII NUCLEAR INC, highlighting remediation services
Contract Overview
Contract Amount: $12,252,807 ($12.3M)
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: $5.3K/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: MOUND SUPPORT
Place of Performance
Location: MIAMISBURG, MONTGOMERY County, OHIO, 45342
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $12.3 million to HII NUCLEAR INC for work described as: MOUND SUPPORT Key points: 1. Contract value of $12.2 million for remediation services. 2. Awarded to HII NUCLEAR INC, a significant player in the nuclear services sector. 3. Contract duration spans over 6 years, indicating a long-term need for these services. 4. The contract falls under Remediation Services (NAICS 562910), a critical area for environmental management. 5. Awarded under full and open competition after exclusion of sources, suggesting a specific justification for the competition type. 6. The contract was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
The contract value of $12.2 million for remediation services over approximately 6 years appears reasonable given the specialized nature of nuclear site cleanup. Benchmarking against similar large-scale environmental remediation contracts is challenging without more specific details on the scope of work. However, the duration suggests a substantial undertaking. The absence of detailed performance metrics makes a definitive value-for-money assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method indicates that while the competition was intended to be open, certain sources were excluded, likely due to specialized capabilities or prior involvement. The number of bidders is not specified, but the exclusion clause suggests a limited pool of qualified entities.
Taxpayer Impact: This procurement method, while allowing for competition, may limit the number of potential offerors, potentially impacting the most competitive pricing achievable for taxpayers.
Public Impact
The Department of Energy (DOE) benefits from specialized services to manage and remediate nuclear sites. Environmental remediation services are delivered at the Mound Plant in Ohio. The geographic impact is localized to the Mound Plant site in Ohio. Workforce implications include employment for specialized environmental remediation professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources may restrict price discovery.
- Long contract duration could lead to cost overruns if not managed effectively.
- Specialized nature of remediation requires highly skilled personnel, potentially leading to higher labor costs.
Positive Signals
- Award to HII NUCLEAR INC suggests a contractor with proven capabilities in a high-risk sector.
- The contract addresses critical environmental remediation needs for the Department of Energy.
- The duration indicates a commitment to resolving long-term environmental challenges.
Sector Analysis
The environmental remediation sector is a critical component of the energy and defense industries, dealing with the cleanup of contaminated sites. This contract falls within the broader environmental services market, which is characterized by specialized technical expertise and stringent regulatory compliance. Spending in this area is often driven by legacy issues from past industrial and government activities. Comparable spending benchmarks would depend on the specific type and scale of contamination being addressed.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly provided for this contract. Given the specialized nature of nuclear remediation, it is possible that large, experienced firms are primary awardees, with subcontracting opportunities for smaller, specialized firms being less prevalent or not mandated.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's internal oversight mechanisms and potentially the Inspector General's office, given the significant federal funding involved. Transparency is generally maintained through contract award databases and public reporting requirements, though specific performance details may be less accessible.
Related Government Programs
- Department of Energy Environmental Management Program
- Nuclear Site Cleanup Contracts
- Hazardous Waste Remediation Services
Risk Flags
- Limited competition due to exclusion of sources
- Potential for scope creep in long-term remediation projects
- Complexity of nuclear site remediation requires specialized expertise
Tags
department-of-energy, remediation-services, hii-nuclear-inc, mound-plant, ohio, full-and-open-competition-after-exclusion-of-sources, delivery-order, environmental-remediation, nuclear-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.3 million to HII NUCLEAR INC. MOUND SUPPORT
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 $12.3 million.
What is the period of performance?
Start: 2008-03-01. End: 2014-06-30.
What is the specific scope of work covered by this 'Mound Support' contract?
The 'Mound Support' contract, awarded to HII NUCLEAR INC by the Department of Energy, pertains to remediation services at the Mound Plant located in Ohio. While the provided data abbreviates the scope, such contracts typically involve the safe cleanup, decontamination, and disposal of radioactive and hazardous materials resulting from decades of nuclear weapons research and production. This can include demolition of facilities, soil and groundwater remediation, waste management, and long-term monitoring to ensure environmental safety and compliance with regulatory standards. The specific tasks would be detailed in the contract's statement of work, outlining the precise activities, timelines, and performance requirements.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost-effectiveness?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method is a nuanced approach. It begins with the intent of full and open competition but then specifies exclusions. This implies that while multiple sources were considered, only a subset of qualified contractors were eligible to bid. This exclusion might be based on specific technical capabilities, past performance, or security clearances necessary for the work. While it aims to ensure highly qualified bidders, it can potentially limit the breadth of competition compared to a truly unrestricted full and open competition. This limitation could, in some cases, lead to less aggressive pricing if the excluded sources would have offered more competitive bids. The justification for exclusion is critical in determining if this method truly served the government's best interest in achieving optimal value.
What are the key risks associated with long-term environmental remediation contracts like this one?
Long-term environmental remediation contracts carry several inherent risks. Firstly, scope creep is a significant concern; unforeseen contamination or complexities discovered during the cleanup process can lead to substantial cost increases and schedule delays. Secondly, technological risks exist, as remediation techniques may evolve, or existing methods might prove less effective than anticipated. Thirdly, regulatory risks are paramount, as environmental laws and standards can change, requiring adjustments to the cleanup strategy and potentially increasing costs. Finally, contractor performance risk is always present; ensuring the contractor maintains safety standards, meets deadlines, and adheres to quality requirements over an extended period requires robust oversight and management.
Can we benchmark the $12.2 million contract value against similar remediation projects?
Benchmarking the $12.2 million contract value for 'Mound Support' against similar remediation projects is challenging without more granular data on the specific scope of work, the type and volume of contaminants, and the complexity of the site. Large-scale environmental remediation projects, especially those involving nuclear materials, can vary dramatically in cost. For instance, cleanup at major former nuclear weapons production sites can run into billions of dollars over decades. Smaller, more contained projects might cost in the millions. The duration of this contract (over 6 years) suggests a substantial, multi-faceted effort. To perform a meaningful benchmark, one would need to compare it to contracts with similar contaminant profiles, site sizes, and remediation technologies employed.
What is HII NUCLEAR INC's track record in handling federal remediation contracts?
HII Nuclear Inc., a subsidiary of Huntington Ingalls Industries, has a significant presence in the nuclear services sector, including work related to naval nuclear propulsion and commercial nuclear power. Their experience likely extends to various aspects of nuclear operations, maintenance, and potentially decommissioning and remediation. Federal contracts in this domain require stringent safety protocols, security clearances, and specialized expertise. While specific details of their past remediation contracts with the Department of Energy or other agencies would require further investigation through federal procurement databases (like SAM.gov or FPDS), their parent company's scale and focus suggest a capacity to handle complex, high-stakes projects. Their track record would be assessed based on past performance reviews, contract completion history, and any documented issues or successes.
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: $13,179,741
Exercised Options: $13,179,741
Current Obligation: $12,252,807
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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