DOE's $31.3M contract for program support awarded to HII NUCLEAR INC shows fair value with a competitive award
Contract Overview
Contract Amount: $31,352,703 ($31.4M)
Contractor: HII Nuclear Inc
Awarding Agency: Department of Energy
Start Date: 2009-10-01
End Date: 2014-06-30
Contract Duration: 1,733 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROGRAM SUPPORT
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81501
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $31.4 million to HII NUCLEAR INC for work described as: PROGRAM SUPPORT Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract duration of 1733 days suggests a long-term need for these services. 3. Awarded as a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 562910 points to environmental remediation services. 5. The contractor, HII NUCLEAR INC, has secured this significant award, suggesting capability in the sector. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.
Value Assessment
Rating: fair
Benchmarking the value of this $31.3 million contract is challenging without specific performance metrics or comparable contract data. However, the award was made under full and open competition, which generally supports competitive pricing. The Time and Materials (T&M) contract type, while flexible, requires diligent oversight to ensure costs remain reasonable and do not escalate beyond expectations. Without more granular data on labor rates and material costs, a definitive value-for-money assessment is difficult, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'after exclusion of sources' phrasing might suggest initial limitations, the overall designation indicates that the opportunity was broadly advertised and multiple bidders were likely considered. The presence of competition is crucial for price discovery and ensuring the government receives the best possible value. The specific number of bidders is not provided, but the 'full and open' nature suggests a healthy competitive environment.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. This approach minimizes the risk of overpayment and encourages contractors to offer their most competitive terms.
Public Impact
The Department of Energy benefits from essential program support services, likely related to its core missions. This contract contributes to the operational capacity of the Department of Energy, enabling effective program execution. The services provided are crucial for the ongoing operations and potential remediation efforts managed by the DOE. Geographic impact is likely concentrated around DOE facilities or project sites, primarily in Colorado. Workforce implications include employment opportunities for individuals with expertise in program support and potentially remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored for labor hours and material markups.
- Lack of specific performance metrics makes it difficult to fully assess the contractor's effectiveness and value delivered.
- The 'after exclusion of sources' clause warrants further investigation to understand any initial limitations on competition.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- The contractor, HII NUCLEAR INC, has secured a significant contract, indicating a level of trust and capability.
- The contract duration suggests a stable, long-term need for the services, providing continuity for the agency.
Sector Analysis
The contract falls within the Environmental Remediation Services sector, a critical area for government agencies managing legacy sites and ongoing environmental responsibilities. This sector is characterized by specialized technical expertise and stringent regulatory compliance. The market size for such services is substantial, driven by federal mandates and the need for cleanup and management of hazardous materials. This specific contract with HII NUCLEAR INC represents a portion of the broader federal spending on environmental services, which often involves complex, long-term projects.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to HII NUCLEAR INC, a potentially larger entity, suggests that small business participation may be limited unless mandated through subcontracting requirements not detailed here. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including delivery schedules, performance standards (if defined), and payment clauses. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the program support and any associated risks.
Related Government Programs
- Department of Energy Environmental Management
- Federal Remediation Services
- Government Program Support Contracts
- Defense Environmental Cleanup Program
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Ambiguity in contract type designation ('after exclusion of sources').
- Lack of specific performance metrics for value assessment.
Tags
program-support, hii-nuclear-inc, department-of-energy, remediation-services, full-and-open-competition, delivery-order, time-and-materials, colorado, environmental-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $31.4 million to HII NUCLEAR INC. PROGRAM SUPPORT
Who is the contractor on this award?
The obligated recipient is HII NUCLEAR INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $31.4 million.
What is the period of performance?
Start: 2009-10-01. End: 2014-06-30.
What is the track record of HII NUCLEAR INC in performing similar government contracts?
HII NUCLEAR INC, as a contractor, likely has a portfolio of past performance on government contracts. To assess their track record for this specific $31.3 million program support contract, one would need to examine their history with the Department of Energy and other federal agencies. Key indicators include on-time delivery, adherence to budget, quality of work, and any past disputes or contract terminations. Reviewing contract award histories and past performance evaluations (if publicly available) would provide insight into their reliability and capability in delivering complex services. Without specific past performance data for HII NUCLEAR INC related to this NAICS code (562910), it's difficult to provide a definitive assessment, but their ability to win this competitive bid suggests a baseline level of qualification.
How does the awarded amount of $31.3 million compare to similar program support contracts within the Department of Energy?
Comparing the $31.3 million award requires context regarding the scope and duration of the services. Program support can range widely in complexity and cost. If this contract is for long-term, comprehensive support, the amount may be reasonable. However, if it represents a shorter-term or more narrowly defined service, it could be on the higher end. Benchmarking against other DOE contracts for similar services, considering factors like the number of personnel, specific deliverables, and contract type (e.g., T&M vs. Firm-Fixed-Price), would be necessary. The fact that it was awarded under full and open competition suggests market validation of the price, but without specific comparable data points, a definitive value assessment remains qualitative.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?
The primary risk with a Time and Materials (T&M) contract, especially one valued at $31.3 million over approximately five years, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred, plus a fixed fee or rate. This structure can incentivize longer project durations or higher labor rates if not managed rigorously. Key risks include: uncontrolled scope creep where additional work is performed without formal modification; inflated labor hours billed; excessive material costs or markups; and a lack of contractor incentive to improve efficiency. Effective oversight, detailed tracking of hours and materials, and clear definition of ceiling prices are crucial mitigation strategies.
What does the 'after exclusion of sources' clause in the contract type signify?
The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation is somewhat contradictory and requires clarification. Typically, 'Full and Open Competition' means all responsible sources were permitted to submit offers. The phrase 'after exclusion of sources' suggests that certain potential sources may have been excluded from the competition, possibly due to specific requirements, pre-qualification, or other factors. This could imply that while the competition was broad, it wasn't entirely unrestricted from the outset. Understanding which sources were excluded and why is important for assessing the true level of competition and whether the government received the widest possible range of offers and pricing.
How does this contract align with the Department of Energy's broader mission in environmental remediation?
This contract, under NAICS code 562910 for Remediation Services, directly aligns with the Department of Energy's significant mission in managing and cleaning up nuclear and hazardous waste sites across the United States. The DOE is responsible for addressing the environmental legacy of its decades of nuclear weapons production and energy research. Contracts like this provide essential support services, which could include technical expertise, project management, waste handling, site characterization, or regulatory compliance assistance, all critical for achieving the DOE's environmental cleanup goals and ensuring public safety and environmental protection.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 105 TECHNOLOGY DR STE 190, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $31,696,845
Exercised Options: $31,696,845
Current Obligation: $31,352,703
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM0107LM00060
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2021-09-17
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