DOE Awards $12.1M for TRU Waste Transportation Services to CAST Specialty Transportation Inc

Contract Overview

Contract Amount: $12,105,345 ($12.1M)

Contractor: Cast Specialty Transportation Inc

Awarding Agency: Department of Energy

Start Date: 2007-03-14

End Date: 2010-09-30

Contract Duration: 1,296 days

Daily Burn Rate: $9.3K/day

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Transportation

Official Description: HIS IS A FIRM FIXED PRICE TASK ORDER WITH COST REIMBURSABLE LINE ITEMS. THE CONTRACTOR SHALL PROVIDE THE BASIC TRANSPORTATION SERVICES AND ADDITIONAL TRANSPORTATION SERVICES AS SPECIFIED IN CONTRACT NO. DE-AM-07CC20004, SECTION B.2.1 "BASE PERIOD TRU WASTE TRANSPORTATION SERVICES" FOR THE PERIOD SPECIFIED BELOW. THIS TASK ORDER IS SUBJECT TO THE TERMS AND CONDITIONS OF CONTRACT NO. DE-AM30-07CC20005.

Place of Performance

Location: CARLSBAD, EDDY County, NEW MEXICO, 88221

State: New Mexico Government Spending

Plain-Language Summary

Department of Energy obligated $12.1 million to CAST SPECIALTY TRANSPORTATION INC for work described as: HIS IS A FIRM FIXED PRICE TASK ORDER WITH COST REIMBURSABLE LINE ITEMS. THE CONTRACTOR SHALL PROVIDE THE BASIC TRANSPORTATION SERVICES AND ADDITIONAL TRANSPORTATION SERVICES AS SPECIFIED IN CONTRACT NO. DE-AM-07CC20004, SECTION B.2.1 "BASE PERIOD TRU WASTE TRANSPORTATION SERVICES… Key points: 1. Contract awarded for specialized freight trucking services for nuclear waste. 2. The contract involves a combination of fixed-price and cost-reimbursable line items. 3. Services are to be performed in New Mexico. 4. The contract duration is approximately 3.6 years.

Value Assessment

Rating: fair

The contract uses a combination of firm-fixed-price and cost-reimbursable elements, which can introduce complexity in cost control. Pricing assessment is difficult without detailed cost breakdowns for the different service types.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMBINATION (TWO OR MORE)', suggesting a mix of procurement methods. The specific competition method is not detailed, impacting the ability to assess price discovery and potential for overpayment.

Taxpayer Impact: The total value of $12.1 million represents taxpayer funds allocated for essential waste management services. The effectiveness of the pricing structure will determine the ultimate taxpayer impact.

Public Impact

Ensures critical transportation services for nuclear waste are maintained. Supports the Department of Energy's mission in managing hazardous materials. Potential for cost overruns due to the cost-reimbursable components. Geographic concentration of services in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the specialized freight trucking sector, specifically for hazardous materials. Benchmarks for similar long-distance, specialized trucking contracts are highly variable due to the unique nature of the cargo and regulatory requirements.

Small Business Impact

There is no explicit indication of small business participation or subcontracting requirements within the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract is subject to the terms and conditions of a parent contract (DE-AM30-07CC20005), suggesting existing oversight mechanisms. However, the specific oversight for this task order, especially concerning the cost-reimbursable portions, is not detailed.

Related Government Programs

Risk Flags

Tags

specialized-freight-except-used-goods-tr, department-of-energy, nm, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $12.1 million to CAST SPECIALTY TRANSPORTATION INC. HIS IS A FIRM FIXED PRICE TASK ORDER WITH COST REIMBURSABLE LINE ITEMS. THE CONTRACTOR SHALL PROVIDE THE BASIC TRANSPORTATION SERVICES AND ADDITIONAL TRANSPORTATION SERVICES AS SPECIFIED IN CONTRACT NO. DE-AM-07CC20004, SECTION B.2.1 "BASE PERIOD TRU WASTE TRANSPORTATION SERVICES" FOR THE PERIOD SPECIFIED BELOW. THIS TASK ORDER IS SUBJECT TO THE TERMS AND CONDITIONS OF CONTRACT NO. DE-AM30-07CC20005.

Who is the contractor on this award?

The obligated recipient is CAST SPECIALTY TRANSPORTATION INC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2007-03-14. End: 2010-09-30.

What is the breakdown between firm-fixed-price and cost-reimbursable components within this task order, and how are cost ceilings managed for the latter?

The provided data indicates a 'COMBINATION (TWO OR MORE)' contract type, including both firm-fixed-price and cost-reimbursable line items. Without a detailed breakdown, it's impossible to determine the exact allocation. Effective management of cost ceilings for the reimbursable portions is crucial to prevent budget overruns and ensure taxpayer value.

What specific risks are associated with transporting TRU waste, and what mitigation strategies are in place under this contract?

Transporting transuranic (TRU) waste involves significant risks including potential environmental contamination, safety hazards to personnel, and security concerns. Mitigation strategies typically include stringent safety protocols, specialized containment, secure transportation routes, and emergency response plans. The contract's effectiveness hinges on the contractor's adherence to these measures.

How does the pricing structure of this contract ensure cost-effectiveness for the government compared to alternative transportation methods or providers?

The contract's pricing structure, a mix of fixed-price and cost-reimbursable elements, presents a challenge in assessing cost-effectiveness without further detail. While fixed-price components offer predictability, the cost-reimbursable parts require robust oversight to ensure value. Benchmarking against similar specialized waste transport contracts would be necessary for a comprehensive evaluation.

Industry Classification

NAICS: Transportation and WarehousingSpecialized Freight TruckingSpecialized Freight (except Used Goods) Trucking, Long-Distance

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Contractor Details

Address: 9850 HAVANA ST, HENDERSON, CO, 08

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,106,321

Exercised Options: $12,106,321

Current Obligation: $12,105,345

Parent Contract

Parent Award PIID: DEAM3007CC20005

IDV Type: IDC

Timeline

Start Date: 2007-03-14

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2010-03-13

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