DOE's $30.8M SLAC cleanup contract awarded to C/P/E Environmental Services shows mixed value and competition
Contract Overview
Contract Amount: $30,796,404 ($30.8M)
Contractor: C/P/E Environmental Services, LLC
Awarding Agency: Department of Energy
Start Date: 2007-09-25
End Date: 2013-04-30
Contract Duration: 2,044 days
Daily Burn Rate: $15.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SERVICES TO PERFORM ALL WORK NECESSARY TO REMEDIATE AND CLEANUP SOIL AND GROUNDWATER CONTAMINATION AT STANFORD LINEAR ACCELERATOR CENTER (SLAC)
Place of Performance
Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025
Plain-Language Summary
Department of Energy obligated $30.8 million to C/P/E ENVIRONMENTAL SERVICES, LLC for work described as: SERVICES TO PERFORM ALL WORK NECESSARY TO REMEDIATE AND CLEANUP SOIL AND GROUNDWATER CONTAMINATION AT STANFORD LINEAR ACCELERATOR CENTER (SLAC) Key points: 1. The contract's value proposition is difficult to assess due to the cost-plus award fee structure, which can incentivize cost overruns. 2. Competition was limited, with only three bidders, potentially impacting price discovery and taxpayer value. 3. Performance risks are moderate, given the complex nature of soil and groundwater remediation. 4. The contract duration of over five years suggests a significant, long-term environmental undertaking. 5. This contract falls within the broader environmental remediation sector, characterized by specialized services and regulatory oversight.
Value Assessment
Rating: fair
The cost-plus award fee (CPAF) structure makes a direct value-for-money assessment challenging. While it allows for flexibility in complex remediation projects, it can also lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar large-scale environmental cleanup contracts is difficult without more granular cost data, but the total award value of approximately $30.8 million over five years suggests a substantial investment in remediation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was competed as a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, with three bidders participating. While competition existed, the limited number of bidders suggests that the market for such specialized remediation services may be concentrated, potentially leading to less aggressive pricing than a full and open competition with a larger pool of offerors.
Taxpayer Impact: A limited competition means taxpayers may not have benefited from the lowest possible price achievable through broader market engagement. The government's ability to secure the best value is somewhat constrained when fewer firms are vying for the contract.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the remediation of environmental contamination at a national laboratory. Services delivered include soil and groundwater cleanup, addressing hazardous substances at the Stanford Linear Accelerator Center. The geographic impact is localized to the SLAC site in California, but the environmental benefits have broader implications for public health and safety. The contract supports a specialized workforce in environmental engineering, remediation, and hazardous waste management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure can lead to less cost certainty for the government.
- Limited competition may result in higher prices than a more open bidding process.
- Long contract duration increases the risk of scope creep or unforeseen cost increases over time.
Positive Signals
- The contract addresses a critical environmental cleanup need at a significant national facility.
- The award fee mechanism, if well-managed, can incentivize contractor performance and efficiency.
- The Department of Energy has oversight responsibility for ensuring contract objectives are met.
Sector Analysis
Environmental remediation services represent a specialized segment of the broader professional, scientific, and technical services industry. This sector is driven by regulatory compliance, legacy contamination issues at industrial and government sites, and ongoing environmental stewardship. The market is characterized by firms with specific technical expertise, significant bonding capacity, and experience navigating complex permitting and safety requirements. Comparable spending benchmarks are highly project-specific, depending on the scale, complexity, and type of contaminants involved.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the specialized nature and scale of environmental remediation projects, prime contracts are often awarded to larger, established firms. However, the prime contractor may have subcontracting opportunities for smaller businesses providing specific services or supplies, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of Energy, as the contracting agency, is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reviews, performance evaluations, and financial audits to ensure compliance with contract terms and objectives. The CPAF structure implies performance monitoring to determine award fees. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Superfund Site Cleanup
- Department of Energy Cleanup Program
- Defense Environmental Restoration Program
Risk Flags
- Cost-Plus contract type
- Limited competition
- Long contract duration
Tags
environmental-remediation, department-of-energy, stanford-linear-accelerator-center, california, delivery-order, competitive-delivery-order, cost-plus-award-fee, limited-competition, soil-and-groundwater-contamination, hazardous-waste-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $30.8 million to C/P/E ENVIRONMENTAL SERVICES, LLC. SERVICES TO PERFORM ALL WORK NECESSARY TO REMEDIATE AND CLEANUP SOIL AND GROUNDWATER CONTAMINATION AT STANFORD LINEAR ACCELERATOR CENTER (SLAC)
Who is the contractor on this award?
The obligated recipient is C/P/E ENVIRONMENTAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2007-09-25. End: 2013-04-30.
What is the track record of C/P/E Environmental Services, LLC with the Department of Energy and similar environmental contracts?
Assessing the track record of C/P/E Environmental Services, LLC requires a deeper dive into their contract history with the Department of Energy (DOE) and other federal agencies. Specifically, one would look for past performance evaluations, any history of contract disputes or terminations, and their success in completing similar large-scale environmental remediation projects on time and within budget. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific performance management systems would be crucial. A history of successful, compliant project execution would indicate lower risk, while a pattern of issues could signal potential future problems.
How does the cost-plus award fee (CPAF) structure compare to other contract types for environmental remediation, and what are the implications for value?
Cost-plus award fee (CPAF) contracts are often used for complex, uncertain projects like environmental remediation where the scope may evolve. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs plus a fee that is adjusted based on performance against specific metrics. This offers flexibility but can lead to higher costs if not managed rigorously, as the contractor is incentivized to meet performance targets rather than strictly control costs. Fixed-price contracts offer greater cost certainty but may be less suitable if unforeseen technical challenges are highly probable. For taxpayers, CPAF can represent a riskier value proposition if oversight is weak, potentially leading to costs exceeding what might have been achieved under a more competitive, fixed-price scenario.
What are the key performance indicators (KPIs) used to determine the award fee for C/P/E Environmental Services, LLC on this contract?
The specific Key Performance Indicators (KPIs) used to determine the award fee for C/P/E Environmental Services, LLC are not detailed in the provided summary data. However, for environmental remediation contracts, typical KPIs often include adherence to project schedules, meeting environmental cleanup standards and regulatory requirements, effectiveness of remediation techniques, safety performance (e.g., incident rates), waste management protocols, and overall project management efficiency. The Department of Energy would establish these metrics in the contract's Performance Work Statement (PWS) and monitor the contractor's performance against them to calculate the award fee component.
What is the historical spending trend for environmental remediation services at the Stanford Linear Accelerator Center (SLAC) prior to this contract?
Historical spending data for environmental remediation at the Stanford Linear Accelerator Center (SLAC) prior to this specific contract (awarded in 2007) would need to be accessed through federal procurement databases like FPDS. This would involve searching for contracts awarded to SLAC or managed by the Department of Energy for environmental services at that location within preceding years. Analyzing this historical spending would reveal the typical scale and frequency of remediation efforts, identify key contractors involved, and provide a baseline against which the $30.8 million value of this contract can be assessed for consistency or significant deviation.
How does the number of bidders (3) on this delivery order compare to the average number of bidders for similar DOE environmental remediation contracts?
The average number of bidders for similar Department of Energy (DOE) environmental remediation contracts can vary significantly based on the specific service, location, and contract vehicle (e.g., IDIQ vs. standalone). Generally, highly specialized or large-scale remediation projects might attract fewer bidders due to high barriers to entry (technical expertise, bonding capacity, security clearances). However, if this contract was competed under a broad IDIQ vehicle designed for multiple environmental services, three bidders might be considered on the lower end, suggesting potentially limited market reach or intense competition among a select few. A comparative analysis against similar-sized DOE remediation contracts would be needed to definitively state if three bidders is typical, low, or high.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2302 PARKLAKE DRIVE, SUITE 200, ATLANTA, GA, 30345
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $30,802,227
Exercised Options: $30,802,227
Current Obligation: $30,796,404
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM0905SR22405
IDV Type: IDC
Timeline
Start Date: 2007-09-25
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2019-03-13
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