DOE's $88.8M contract for Portsmouth/Paducah remediation services awarded to RSI Entech, LLC
Contract Overview
Contract Amount: $88,754,437 ($88.8M)
Contractor: RSI Entech, LLC
Awarding Agency: Department of Energy
Start Date: 2008-06-30
End Date: 2013-09-30
Contract Duration: 1,918 days
Daily Burn Rate: $46.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SUPPORT FOR THE REMEDIATION AND D&D PROJECT AT PORTSMOUTH/PADUCAH PROJECT OFFICE.
Place of Performance
Location: PIKETON, PIKE County, OHIO, 45661
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $88.8 million to RSI ENTECH, LLC for work described as: SUPPORT FOR THE REMEDIATION AND D&D PROJECT AT PORTSMOUTH/PADUCAH PROJECT OFFICE. Key points: 1. Contract awarded for environmental consulting services related to site remediation and decommissioning. 2. The contract duration spanned over 5 years, indicating a long-term need for these services. 3. Awarded as a competitive delivery order, suggesting multiple bids were considered. 4. The contract utilized a Time and Materials pricing structure, which can pose cost control challenges. 5. The project is located in Ohio, impacting the local workforce and economy. 6. The total value of the contract was approximately $88.8 million.
Value Assessment
Rating: fair
The contract's value of $88.8 million for environmental consulting and remediation over five years appears substantial. Benchmarking this against similar large-scale Department of Energy (DOE) remediation projects is crucial for a definitive value assessment. The use of Time and Materials (T&M) pricing, while common for uncertain scopes, can lead to cost overruns if not managed rigorously. Without specific performance metrics or comparisons to industry standards for similar remediation efforts, it's difficult to definitively assess value for money. However, the competitive award suggests some level of market validation.
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 competed under a broader contract vehicle. The presence of 4 bids suggests a reasonable level of competition for this specific delivery order. A competitive process generally allows for price discovery and encourages contractors to offer competitive pricing. However, the specific details of the competition, such as the number of bidders and the range of proposals, would provide a clearer picture of the effectiveness of the competition in driving down costs.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source procurement. It indicates that multiple firms were willing to bid, suggesting a healthy market for these services and preventing a single entity from dictating terms.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the remediation and decommissioning of nuclear facilities. Services delivered include environmental consulting, remediation, and decommissioning support. The geographic impact is focused on Ohio, specifically the Portsmouth/Paducah Project Office sites. Workforce implications include the creation or sustainment of jobs for environmental scientists, engineers, technicians, and support staff in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost escalation if not closely monitored and controlled.
- The long duration of the contract (over 5 years) increases the risk of scope creep and potential inefficiencies over time.
- The nature of environmental remediation projects often involves unforeseen challenges, which can impact costs and timelines.
Positive Signals
- Awarded through a competitive process, indicating market interest and potential for cost-effectiveness.
- The contract addresses critical environmental remediation needs at significant federal facilities.
- The project's focus on decommissioning and remediation contributes to long-term environmental safety and compliance.
Sector Analysis
The environmental consulting and remediation sector is a significant part of the federal contracting landscape, particularly for agencies managing legacy industrial and defense sites. This contract falls within the broader category of environmental services, which includes site assessment, cleanup, waste management, and decommissioning. The market for these services is driven by regulatory requirements and the need to address historical environmental impacts. Comparable spending benchmarks would involve looking at other large-scale DOE remediation contracts or similar projects managed by the EPA or Department of Defense.
Small Business Impact
The provided data indicates that small business participation (sb) was false (0) and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was likely awarded to a large business or a joint venture without a specific small business designation. There is no information on subcontracting plans, so the impact on the small business ecosystem is unclear. Without set-aside provisions, opportunities for small businesses to directly participate in this large-scale remediation effort may have been limited.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The contract's duration and value suggest regular reporting requirements and performance reviews. Inspector General jurisdiction would apply to investigate any allegations of fraud, waste, or abuse. Transparency would be facilitated through contract award databases and potentially public reports on project progress, though specific details on oversight mechanisms are not provided in the data.
Related Government Programs
- Department of Energy Environmental Management
- Portsmouth Gaseous Diffusion Plant
- Paducah Gaseous Diffusion Plant
- Environmental Remediation Services
- Decommissioning Projects
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Long contract duration increases risk of scope creep and inefficiency.
- Unforeseen environmental conditions can impact project costs and timelines.
- Effectiveness of oversight and cost controls for T&M contracts.
Tags
environmental-consulting, remediation, decommissioning, department-of-energy, competitive-delivery-order, time-and-materials, ohio, large-contract, federal-facilities
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $88.8 million to RSI ENTECH, LLC. SUPPORT FOR THE REMEDIATION AND D&D PROJECT AT PORTSMOUTH/PADUCAH PROJECT OFFICE.
Who is the contractor on this award?
The obligated recipient is RSI ENTECH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $88.8 million.
What is the period of performance?
Start: 2008-06-30. End: 2013-09-30.
What is the track record of RSI Entech, LLC in handling large-scale environmental remediation contracts for the federal government?
Assessing the track record of RSI Entech, LLC requires a deeper dive into their contract history with federal agencies, particularly the Department of Energy. Information on past performance, including successful completion of similar remediation and decommissioning projects, adherence to budget and schedule, and any past performance issues or disputes, would be critical. A review of federal procurement databases (like SAM.gov or FPDS) and any available past performance evaluations would provide insights into their capabilities and reliability in executing complex environmental contracts. Without this specific data, it's difficult to definitively assess their suitability beyond this single award.
How does the awarded amount of $88.8 million compare to the estimated cost for similar environmental remediation projects at federal sites?
To benchmark the $88.8 million award, one would need to identify comparable federal environmental remediation and decommissioning projects, ideally managed by the Department of Energy or other agencies with similar site complexities. Key comparison factors include the scope of work (e.g., type of contamination, size of the facility), the duration of the project, and the specific remediation technologies employed. Analyzing the cost per square foot or per unit of waste treated for similar projects can provide a valuable perspective. For instance, if other projects of similar scale and complexity were awarded in the range of $70-100 million, this award would appear within a reasonable market range. Conversely, significant deviations could signal potential overpricing or underestimation of the scope.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract, and how were they mitigated?
The primary risk of a Time and Materials (T&M) contract is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fee. This structure can incentivize contractors to extend project timelines or use more resources than strictly necessary if not managed diligently. Mitigation strategies typically involve robust oversight, detailed work breakdown structures, clear performance metrics, and regular reviews of contractor expenditures. The Department of Energy would have likely implemented specific controls, such as establishing ceiling prices, requiring detailed timesheets, and conducting audits, to manage these risks. The effectiveness of these mitigation efforts would be crucial in ensuring the contract remained within budget and delivered value.
What evidence exists regarding the effectiveness of the competitive bidding process in ensuring a fair price for these environmental services?
The fact that this was a 'COMPETITIVE DELIVERY ORDER' with 4 bids suggests that the process was designed to foster competition. To assess its effectiveness in ensuring a fair price, one would examine the bid range: the difference between the lowest and highest bid, and the relationship of the awarded price to the estimated government cost. If the bids were tightly clustered, it often indicates a well-understood scope and competitive market. If there was a wide variance, it might suggest differing interpretations of the scope or varying levels of contractor confidence in cost estimation. Furthermore, comparing the awarded price to independent cost estimates or historical data for similar services would provide further validation of price fairness.
How has historical spending on environmental remediation and decommissioning at the Portsmouth and Paducah sites evolved over time?
Analyzing historical spending patterns for environmental remediation and decommissioning at the Portsmouth and Paducah sites is essential for understanding the long-term commitment and cost trajectory. This would involve examining annual or cumulative expenditures by the Department of Energy for these specific sites over previous years or decades. Trends in spending can reveal whether projects are on schedule, facing cost overruns, or experiencing scope changes. Understanding this historical context helps in evaluating the current $88.8 million contract not just in isolation, but as part of a larger, ongoing effort to address environmental liabilities at these federal facilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-RT30-08CC40018
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 100 WESTVIEW LANE, OAK RIDGE, TN, 03
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $88,987,364
Exercised Options: $88,987,364
Current Obligation: $88,754,437
Parent Contract
Parent Award PIID: GS10F0273S
IDV Type: FSS
Timeline
Start Date: 2008-06-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-10-28
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