DOE's $152.7M SPRU nuclear facility deactivation contract awarded to Amentum Environment & Energy Inc
Contract Overview
Contract Amount: $152,679,550 ($152.7M)
Contractor: Amentum Environment & Energy Inc.
Awarding Agency: Department of Energy
Start Date: 2007-12-13
End Date: 2020-08-31
Contract Duration: 4,645 days
Daily Burn Rate: $32.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: DEACTIVATION DEMOLITION AND REMOVAL OF THE SEPARATIONS PROCESS RESEARCH UNIT (SPRU) NUCLEAR FACILITIES; CONTAMINATED SOIL; AND DECONTAMINATION OF PIPING TUNNEL CONNECTING THE SPRU FACILITIES.
Place of Performance
Location: SCHENECTADY, SCHENECTADY County, NEW YORK, 12309
State: New York Government Spending
Plain-Language Summary
Department of Energy obligated $152.7 million to AMENTUM ENVIRONMENT & ENERGY INC. for work described as: DEACTIVATION DEMOLITION AND REMOVAL OF THE SEPARATIONS PROCESS RESEARCH UNIT (SPRU) NUCLEAR FACILITIES; CONTAMINATED SOIL; AND DECONTAMINATION OF PIPING TUNNEL CONNECTING THE SPRU FACILITIES. Key points: 1. Contract focused on deactivation, demolition, and removal of nuclear facilities and contaminated materials. 2. Significant scope involving hazardous material remediation and site cleanup. 3. Long duration of over 12 years indicates a complex and extensive project. 4. Awarded as a competitive delivery order, suggesting multiple bids were considered. 5. Cost-plus incentive fee structure aims to balance contractor performance with cost control. 6. Project located in New York, with potential implications for regional environmental cleanup efforts.
Value Assessment
Rating: good
The total contract value of approximately $152.7 million over more than 12 years suggests a substantial investment in nuclear facility decommissioning. Benchmarking this against similar large-scale environmental remediation projects is challenging due to the unique nature of nuclear facilities. However, the cost-plus incentive fee (CPIF) structure indicates an effort to incentivize efficient performance and cost savings, which is a positive sign for value for money. The duration and scope imply a complex undertaking where cost overruns are a risk, but the incentive fee aims to mitigate this.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded as a competitive delivery order, indicating that multiple vendors likely competed for this work. The presence of 4 bids (no: 4) suggests a reasonable level of competition for this specialized remediation service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source awards.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution for the complex and hazardous task of deactivating nuclear facilities.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the safe and environmentally sound cleanup of nuclear facilities. Services delivered include the deactivation, demolition, and removal of the Separations Process Research Unit (SPRU) nuclear facilities, contaminated soil, and decontamination of associated piping. The geographic impact is localized to the SPRU site in New York. Workforce implications include employment for specialized environmental remediation and demolition personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 12 years) increases the risk of cost escalation and scope creep.
- The complexity of nuclear facility deactivation presents inherent safety and environmental risks.
- Cost-plus incentive fee contracts can sometimes lead to higher costs if not managed rigorously.
- Potential for unforeseen contamination requiring additional remediation efforts and funding.
Positive Signals
- Awarded through a competitive process, suggesting potential for cost efficiencies.
- Incentive fee structure encourages contractor performance and cost control.
- Focus on deactivation and removal addresses long-term environmental liabilities.
- Specialized expertise of Amentum Environment & Energy Inc. in hazardous material handling.
Sector Analysis
This contract falls within the environmental remediation and nuclear decommissioning sector. This is a highly specialized and regulated industry, characterized by significant barriers to entry due to technical expertise, safety protocols, and regulatory compliance requirements. The market size for such services is substantial, driven by the legacy of nuclear research and energy production. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each facility, but large-scale environmental cleanup contracts can run into hundreds of millions or even billions of dollars.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The specialized nature of nuclear facility deactivation typically requires large, experienced contractors with specific certifications and capabilities, which may limit the direct involvement of small businesses in prime contracting roles. However, opportunities might exist for small businesses in supporting roles or specialized services if subcontracted by the prime.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's program management and contracting offices. Accountability measures are likely embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance metrics and cost targets. Transparency is generally maintained through contract reporting requirements, though specific details of ongoing operations may be sensitive. Inspector General jurisdiction would apply to ensure the integrity of the contracting process and prevent fraud, waste, and abuse.
Related Government Programs
- Department of Energy Environmental Management
- Nuclear Decommissioning Projects
- Hazardous Waste Remediation Services
- Federal Site Cleanup Contracts
Risk Flags
- Long contract duration
- Complex hazardous material handling
- Nuclear facility deactivation
Tags
remediation-services, department-of-energy, new-york, competitive-delivery-order, large-contract, cost-plus-incentive-fee, nuclear-facilities, environmental-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $152.7 million to AMENTUM ENVIRONMENT & ENERGY INC.. DEACTIVATION DEMOLITION AND REMOVAL OF THE SEPARATIONS PROCESS RESEARCH UNIT (SPRU) NUCLEAR FACILITIES; CONTAMINATED SOIL; AND DECONTAMINATION OF PIPING TUNNEL CONNECTING THE SPRU FACILITIES.
Who is the contractor on this award?
The obligated recipient is AMENTUM ENVIRONMENT & ENERGY INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $152.7 million.
What is the period of performance?
Start: 2007-12-13. End: 2020-08-31.
What is the track record of Amentum Environment & Energy Inc. in handling similar nuclear facility deactivation projects?
Amentum Environment & Energy Inc. (and its predecessor companies) has a significant track record in environmental services, including complex demolition and remediation projects. They have been involved in numerous Department of Energy (DOE) and Department of Defense (DOD) cleanup sites. For instance, they have performed work at sites like the Savannah River Site and Hanford Site, which involve handling radioactive and hazardous materials. Their experience often includes deactivation, decontamination, demolition, and waste management. While specific details on the SPRU project's challenges and Amentum's performance within this particular contract require deeper analysis of performance reports and historical data, their general background suggests they possess the requisite expertise for such demanding undertakings. Assessing their performance on this specific contract would involve reviewing contract modifications, award fee determinations, and any reported issues or successes.
How does the cost performance of this contract compare to similar large-scale environmental remediation projects?
Direct cost performance comparison is challenging due to the unique nature of nuclear facility deactivation and the specific conditions at each site. The SPRU project's total value of approximately $152.7 million over more than 12 years averages around $12.7 million annually. This figure needs to be contextualized by the scope of work, which includes demolition of nuclear facilities, soil remediation, and piping decontamination. Cost-plus incentive fee (CPIF) contracts, by design, aim to control costs through performance incentives. Without access to detailed cost breakdowns, earned value management data, and specific performance metrics tied to the incentive fees for this contract, a precise comparison to similar projects is difficult. However, the long duration and complexity suggest that cost management is a critical factor, and the CPIF structure is a mechanism to achieve value for money by rewarding efficiency.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract include unforeseen environmental hazards (e.g., unexpected contamination levels), potential for worker safety incidents due to the hazardous nature of the materials, scope creep leading to cost overruns, and schedule delays. The long duration of over 12 years inherently increases the risk of cost escalation due to inflation and changing regulatory requirements. Management strategies likely involve rigorous safety protocols, detailed site characterization, robust project management, and the Cost Plus Incentive Fee (CPIF) structure. The CPIF contract incentivizes the contractor, Amentum Environment & Energy Inc., to control costs and meet performance targets, thereby mitigating financial risks for the government. Regular progress reviews, risk assessments, and adherence to strict environmental and safety regulations are crucial for managing these inherent risks.
How effective has the competitive delivery order process been in securing value for this nuclear facility deactivation project?
The contract was awarded as a competitive delivery order, with 4 bids received. This competitive process is generally effective in promoting price discovery and encouraging bidders to offer competitive terms. For a specialized service like nuclear facility deactivation, competition ensures that the Department of Energy (DOE) receives proposals from multiple qualified firms, allowing for comparison of technical approaches and pricing. The effectiveness in securing value is further influenced by the contract type (Cost Plus Incentive Fee) and the specific evaluation criteria used during the competition. While competition is a strong indicator of potential value, the ultimate effectiveness depends on the government's ability to negotiate favorable terms and the contractor's subsequent performance in executing the work efficiently and safely within the established parameters.
What is the historical spending pattern for deactivating nuclear facilities at the Department of Energy?
Historical spending on deactivating nuclear facilities by the Department of Energy (DOE) has been substantial and spans several decades, reflecting the legacy of the nation's nuclear weapons program and energy research. The DOE's Office of Environmental Management (EM) is responsible for managing the cleanup of the nuclear weapons complex, which includes decommissioning retired facilities. Annual budgets for EM have historically ranged from $5 billion to over $7 billion, with a significant portion allocated to facility deactivation, demolition, waste treatment, and environmental remediation. Spending patterns vary based on the number and complexity of facilities nearing the end of their operational life and the availability of congressional appropriations. Projects like the SPRU deactivation are part of a long-term, multi-billion dollar cleanup effort across numerous DOE sites nationwide.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DERT3007CC60014
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM
Address: 106 NEWBERRY ST SW, AIKEN, SC, 29801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $155,486,922
Exercised Options: $155,486,922
Current Obligation: $152,679,550
Actual Outlays: $-195,559
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM0905SR22414
IDV Type: IDC
Timeline
Start Date: 2007-12-13
Current End Date: 2020-08-31
Potential End Date: 2021-01-16 00:00:00
Last Modified: 2023-04-26
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