DOE's $33.6M radioactive and chemical soil/groundwater cleanup contract awarded to Accelerated Remediation Company
Contract Overview
Contract Amount: $33,619,374 ($33.6M)
Contractor: Accelerated Remediation Company a Portage Shaw Joint Venture LLC
Awarding Agency: Department of Energy
Start Date: 2007-09-26
End Date: 2012-11-30
Contract Duration: 1,892 days
Daily Burn Rate: $17.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: CPIF TASK ORDER FOR THE ENVIRONMENTAL RESTORATION OF APPROX. 15 ACRES OF SOIL AND GROUNDWATER CONTAMINATED WITH RADIOACTIVITY AND CHEMICALS IN THE SPRU LAND AREAS.
Place of Performance
Location: SCHENECTADY, SCHENECTADY County, NEW YORK, 12309
State: New York Government Spending
Plain-Language Summary
Department of Energy obligated $33.6 million to ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC for work described as: CPIF TASK ORDER FOR THE ENVIRONMENTAL RESTORATION OF APPROX. 15 ACRES OF SOIL AND GROUNDWATER CONTAMINATED WITH RADIOACTIVITY AND CHEMICALS IN THE SPRU LAND AREAS. Key points: 1. The contract utilized a Cost Plus Incentive Fee (CPIF) structure, aligning contractor incentives with project cost and performance goals. 2. This task order was competitively awarded, suggesting a degree of market engagement and potential for price discovery. 3. The duration of the contract (1892 days) indicates a significant, long-term environmental remediation effort. 4. The contract's focus on radioactive and chemical contamination highlights a critical environmental stewardship role for the agency. 5. The award was made by the Department of Energy, a key agency involved in managing legacy environmental liabilities from nuclear activities.
Value Assessment
Rating: fair
Benchmarking the value of this specific environmental remediation contract is challenging without detailed cost breakdowns and scope comparisons. However, the CPIF structure suggests an attempt to manage costs by incentivizing the contractor. The total award amount of $33.6 million over approximately five years reflects the complexity and scale of dealing with radioactive and chemical contamination. Further analysis would require comparing unit costs for remediation activities (e.g., per cubic yard of soil treated) against similar projects within the Department of Energy or other federal agencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was subject to full and open competition. The presence of 3 bids (no: 3) suggests a reasonable level of competition for this specialized environmental remediation service. A competitive process generally allows for a wider range of potential contractors to bid, fostering price discovery and potentially leading to more favorable terms for the government.
Taxpayer Impact: The competitive award process for this contract likely resulted in a more efficient use of taxpayer funds by encouraging multiple firms to offer their best pricing and technical solutions.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the cleanup of hazardous environmental contamination. Services delivered include the remediation of approximately 15 acres of soil and groundwater contaminated with radioactivity and chemicals. The geographic impact is localized to the SPRU land areas in New York, addressing specific environmental hazards. The contract supports specialized environmental services, potentially involving a skilled workforce in remediation technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPIF contract type can lead to cost overruns if not closely monitored, as the government bears a significant portion of the costs.
- Long contract durations (1892 days) can introduce risks related to changing environmental regulations or unforeseen site conditions.
- Specialized environmental remediation can be subject to significant cost fluctuations based on the complexity and extent of contamination discovered.
- The specific nature of radioactive and chemical contamination requires stringent safety protocols and specialized expertise, increasing inherent risks.
Positive Signals
- The competitive award process suggests that multiple qualified vendors were considered, potentially leading to better value.
- The CPIF structure aims to incentivize cost control and performance, aligning contractor and government interests.
- The contract addresses a critical environmental need, contributing to public health and safety.
- The Department of Energy's involvement indicates a commitment to managing complex environmental liabilities.
Sector Analysis
This contract falls within the Environmental Remediation services sector, a critical component of the broader environmental services industry. This sector is characterized by specialized technical expertise, stringent regulatory compliance, and significant project management requirements. The market includes firms capable of handling hazardous materials, including radioactive and chemical contaminants. Comparable spending benchmarks would involve analyzing other large-scale environmental cleanup contracts awarded by federal agencies like the EPA or DoD, focusing on the cost per unit of remediation for similar types of contamination.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature and scale of radioactive and chemical remediation, it is likely that larger, experienced firms or joint ventures are better positioned to compete. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The CPIF structure necessitates close monitoring of costs and performance against established targets. Transparency would be facilitated through contract reporting requirements and potentially through public disclosures of environmental cleanup progress. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Environmental Management Program
- Superfund Remedial Actions
- Defense Environmental Restoration Program
- EPA Hazardous Waste Cleanup
Risk Flags
- Potential for cost overruns inherent in CPIF contracts.
- Risk of unforeseen environmental conditions impacting scope and cost.
- Long contract duration increases exposure to regulatory changes.
- Complexity of radioactive and chemical contamination requires specialized expertise.
Tags
environmental-remediation, department-of-energy, cost-plus-incentive-fee, competitive-delivery-order, radioactive-contamination, chemical-contamination, soil-remediation, groundwater-remediation, new-york, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $33.6 million to ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC. CPIF TASK ORDER FOR THE ENVIRONMENTAL RESTORATION OF APPROX. 15 ACRES OF SOIL AND GROUNDWATER CONTAMINATED WITH RADIOACTIVITY AND CHEMICALS IN THE SPRU LAND AREAS.
Who is the contractor on this award?
The obligated recipient is ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2007-09-26. End: 2012-11-30.
What was the specific nature and extent of the radioactive and chemical contamination at the SPRU land areas?
The provided data indicates "APPROX. 15 ACRES OF SOIL AND GROUNDWATER CONTAMINATED WITH RADIOACTIVITY AND CHEMICALS." However, the specific isotopes, chemical compounds, concentrations, and the precise boundaries of the contamination zones are not detailed in the summary. A thorough understanding would require access to the site's environmental assessment reports, which would delineate the types and levels of contaminants, the affected media (soil, groundwater, etc.), and the historical sources of contamination. This level of detail is crucial for evaluating the complexity of the remediation effort and the appropriateness of the chosen remediation strategies and associated costs.
How did the final costs compare to the initial estimates or target costs under the CPIF structure?
The Cost Plus Incentive Fee (CPIF) contract structure implies that both the contractor and the government share in cost savings or overruns relative to a target cost. To assess the value for money and the effectiveness of the incentive structure, a comparison of the final incurred costs against the target cost is essential. If the final costs were significantly higher than the target, it would suggest potential issues with cost control, unforeseen complexities, or an inadequately defined target. Conversely, significant cost savings would indicate successful incentive alignment. Without access to the final cost reports and the established target cost, it is impossible to definitively evaluate the CPIF's performance in this instance.
What were the key performance metrics and incentives established in the CPIF contract?
CPIF contracts typically include specific performance metrics related to cost, schedule, and technical performance, with associated incentive fees or penalties. For this environmental remediation contract, key metrics might have included the volume of material remediated, achievement of specific cleanup standards (e.g., regulatory limits for contaminants), adherence to project milestones, and safety performance. The incentive fee would have been adjusted based on how well the contractor met or exceeded these targets. The exact metrics and the formula for calculating the incentive fee are critical for understanding how contractor performance was managed and rewarded.
Were there any significant scope changes or unforeseen conditions that impacted the contract's duration or cost?
Environmental remediation projects, especially those involving legacy contamination, are prone to encountering unforeseen conditions such as discovering additional contamination, encountering unexpected geological formations, or changes in regulatory requirements. Such events often lead to contract modifications, scope changes, and adjustments to the schedule and cost. Information regarding any such modifications, change orders, or claims submitted by the contractor would be vital in understanding the factors that influenced the final cost and duration of this contract and assessing whether the initial $33.6 million award was sufficient or if significant adjustments were necessary.
What is the track record of Accelerated Remediation Company and Portage Shaw Joint Venture LLC on similar federal contracts?
The performance history of Accelerated Remediation Company and Portage Shaw Joint Venture LLC on previous federal contracts, particularly those involving radioactive and chemical environmental remediation, is a key indicator of their capability and reliability. Reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract close-out data, and any history of disputes or litigation would provide insight into their ability to manage complex projects, adhere to budgets and schedules, and meet technical requirements. Without this specific performance data, it's difficult to fully assess the risk associated with awarding this significant contract to this particular entity.
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
Solicitation ID: DERT3007CC60013
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 207 LOS ALAMOS HWY, ESPANOLA, NM, 87532
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $33,896,871
Exercised Options: $33,896,871
Current Obligation: $33,619,374
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM0905SR22399
IDV Type: IDC
Timeline
Start Date: 2007-09-26
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2021-06-17
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