DOE's $163.5M Portsmouth Decommissioning Support Contract Awarded to WASTREN-ENERGX
Contract Overview
Contract Amount: $163,504,935 ($163.5M)
Contractor: Wastren - Energx Mission Support LLC
Awarding Agency: Department of Energy
Start Date: 2009-12-22
End Date: 2020-03-31
Contract Duration: 3,752 days
Daily Burn Rate: $43.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: FACILITIES SUPPORT SERVICES FOR THE PORTSMOUTH DECONTAMINATION AND DECOMMISSIONING PROJECT
Place of Performance
Location: PIKETON, PIKE County, OHIO, 45661
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $163.5 million to WASTREN - ENERGX MISSION SUPPORT LLC for work described as: FACILITIES SUPPORT SERVICES FOR THE PORTSMOUTH DECONTAMINATION AND DECOMMISSIONING PROJECT Key points: 1. The contract supports critical environmental cleanup at the Portsmouth Gaseous Diffusion Plant. 2. Wastren-Enrgx Mission Support LLC secured the award, indicating a specific capability in this niche. 3. The contract's Cost Plus Award Fee structure incentivizes performance but requires careful oversight. 4. The 'Full and Open Competition After Exclusion of Sources' method suggests a complex procurement process.
Value Assessment
Rating: good
The contract value of $163.5M over its period of performance appears reasonable for large-scale environmental remediation and facility support services. Benchmarking against similar complex decommissioning projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'Full and Open Competition After Exclusion of Sources' implies that while competition was sought, specific criteria limited the pool of eligible bidders. This approach can be justified for specialized services but may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: The use of a competitive process, even if limited, aims to secure value for taxpayers. However, the complexity of the services and the contract type warrant scrutiny to ensure cost-effectiveness.
Public Impact
Ensures continued progress on the environmental cleanup of a former nuclear weapons production site. Supports jobs and economic activity in the Ohio region through contract operations. Addresses long-term environmental liabilities and public safety concerns associated with nuclear material. The project's success is crucial for restoring land use and mitigating potential environmental hazards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires robust performance monitoring.
- Limited competition may reduce price pressure.
- Long contract duration increases risk exposure.
- Exclusion of sources needs clear justification.
Positive Signals
- Supports critical national security and environmental mission.
- Competitive award process, even if limited.
- Focus on performance incentives.
Sector Analysis
This contract falls within the Facilities Support Services sector, specifically related to environmental remediation and decommissioning of industrial sites. Spending in this area is often driven by government mandates and legacy infrastructure, with significant variation based on project scale and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Large-scale, specialized projects like nuclear decommissioning often require significant resources and expertise typically held by larger firms.
Oversight & Accountability
The 'Department of Energy' is the contracting and awarding agency, suggesting internal oversight. The Cost Plus Award Fee structure necessitates strong government oversight to ensure performance targets are met and costs are controlled effectively.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Limited competition may impact price competitiveness.
- Long contract duration increases long-term risk.
- Complexity of nuclear decommissioning presents inherent risks.
Tags
facilities-support-services, department-of-energy, oh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $163.5 million to WASTREN - ENERGX MISSION SUPPORT LLC. FACILITIES SUPPORT SERVICES FOR THE PORTSMOUTH DECONTAMINATION AND DECOMMISSIONING PROJECT
Who is the contractor on this award?
The obligated recipient is WASTREN - ENERGX MISSION SUPPORT LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $163.5 million.
What is the period of performance?
Start: 2009-12-22. End: 2020-03-31.
What specific criteria led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' procurement, and how did this impact the final contract price?
The exclusion of sources likely stemmed from highly specialized technical requirements, security clearances, or unique experience necessary for nuclear decommissioning. While this can ensure capability, it may limit the number of bidders, potentially leading to higher prices than a truly unrestricted competition. Detailed justification documents and market research would clarify the specific rationale and its pricing implications.
How effectively is the Cost Plus Award Fee structure being managed to incentivize performance while controlling costs for this long-term, complex project?
Effective management of a Cost Plus Award Fee (CPAF) contract hinges on clearly defined performance metrics, objective evaluation criteria, and rigorous oversight. For this $163.5M project, the Department of Energy must ensure award fees are tied directly to measurable outcomes in safety, environmental protection, and project completion. Regular audits and performance reviews are crucial to prevent cost overruns and ensure taxpayer value.
What are the primary risks associated with the long duration (over 10 years) and the nature of facilities support services for nuclear decommissioning, and what mitigation strategies are in place?
Key risks include technological obsolescence, evolving regulatory requirements, potential environmental incidents, and contractor performance degradation over time. Mitigation strategies likely involve phased performance objectives, regular contract reviews, robust safety protocols, contingency planning for unforeseen events, and strong government oversight to ensure continuous compliance and effective management.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0000530
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: VNS Federal Services LLC
Address: 1862 SHYVILLE RD STE 212, PIKETON, OH, 45661
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $168,518,448
Exercised Options: $168,518,448
Current Obligation: $163,504,935
Actual Outlays: $189,113
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-22
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2023-05-15
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