DOE's $17.3M contract for transuranic waste transport to New Mexico shows stable pricing over two years
Contract Overview
Contract Amount: $17,314,486 ($17.3M)
Contractor: Cast Specialty Transportation Inc
Awarding Agency: Department of Energy
Start Date: 2010-01-13
End Date: 2012-03-13
Contract Duration: 790 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: TRANSPORTATION OF TRANSURANIC WASTE FOR OPTION PERIOD 3
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88221
Plain-Language Summary
Department of Energy obligated $17.3 million to CAST SPECIALTY TRANSPORTATION INC for work described as: TRANSPORTATION OF TRANSURANIC WASTE FOR OPTION PERIOD 3 Key points: 1. Contract value remained consistent across its duration, indicating predictable operational costs. 2. Specialized freight trucking is a niche market, suggesting limited but capable providers. 3. The firm fixed-price structure transfers cost risk to the contractor. 4. Long-distance specialized hauling is inherently risky, requiring robust safety protocols. 5. This contract supports critical national security and environmental cleanup missions. 6. The Department of Energy is the primary client, highlighting a focused government need.
Value Assessment
Rating: good
The contract's total value of $17.3 million over approximately two years suggests a steady demand for specialized transportation services. Benchmarking against similar contracts for hazardous material transport is difficult without more specific data on volume and distance, but the consistent pricing across the option period indicates a stable market rate. The firm fixed-price nature of the award implies that the contractor is responsible for managing cost fluctuations, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of four bidders (no=4) suggests a reasonably competitive environment for this specialized service. This level of competition is generally expected to drive prices toward market rates and encourage efficiency from the winning contractor.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and service for the transportation of sensitive materials.
Public Impact
Benefits the Department of Energy by ensuring the safe and secure transport of transuranic waste. Services delivered include long-distance, specialized freight trucking for hazardous materials. Geographic impact is primarily between waste generation sites and the Waste Isolation Pilot Plant (WIPP) in New Mexico. Workforce implications include specialized drivers, logistics personnel, and safety compliance officers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen logistical challenges in transporting hazardous materials over long distances.
- Reliance on a single contractor for a critical national security function could pose a risk if performance falters.
Positive Signals
- Firm fixed-price contract shifts cost overrun risk to the contractor.
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- Contract duration and stable value indicate predictable operational requirements and contractor performance.
Sector Analysis
The transportation of specialized and hazardous materials, such as transuranic waste, falls within the niche sector of specialized freight trucking. This sector requires significant investment in safety, regulatory compliance, and specialized equipment. The market size for such services is relatively small, dominated by a few key players capable of meeting stringent government requirements. This contract represents a significant portion of specialized freight spending for the Department of Energy's nuclear materials management.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The specialized nature of transporting transuranic waste likely requires capabilities and certifications that are more common among larger, established firms in the specialized logistics sector.
Oversight & Accountability
The Department of Energy's acquisition regulations and oversight mechanisms would govern this contract. The firm fixed-price structure provides a degree of financial oversight by locking in costs. Transparency is generally maintained through federal contract databases, and the Inspector General's office would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Energy Nuclear Materials Transportation
- Hazardous Materials Logistics
- National Nuclear Security Administration Contracts
- Waste Isolation Pilot Plant (WIPP) Operations
Risk Flags
- Potential for transportation accidents involving hazardous materials.
- Reliance on specialized contractor for critical national security function.
- Regulatory compliance complexities for radioactive waste transport.
Tags
transportation, department-of-energy, hazardous-materials-transport, transuranic-waste, long-distance-trucking, firm-fixed-price, full-and-open-competition, new-mexico, specialized-freight, government-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $17.3 million to CAST SPECIALTY TRANSPORTATION INC. TRANSPORTATION OF TRANSURANIC WASTE FOR OPTION PERIOD 3
Who is the contractor on this award?
The obligated recipient is CAST SPECIALTY TRANSPORTATION INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2010-01-13. End: 2012-03-13.
What is the historical spending trend for transuranic waste transportation by the Department of Energy?
Historical spending data for transuranic waste transportation by the Department of Energy (DOE) reveals a consistent need driven by ongoing nuclear cleanup and waste management activities. While specific figures fluctuate annually based on waste generation rates and available transport capacity, the overall trend indicates sustained investment in this critical area. Contracts like the one awarded to CAST Specialty Transportation Inc. for the period of 2010-2013 represent a segment of this larger, ongoing expenditure. The DOE's budget allocates significant resources to managing and transporting radioactive materials, including transuranic waste, to designated disposal sites like the Waste Isolation Pilot Plant (WIPP) in New Mexico. Analyzing multi-year spending patterns shows that the demand for these specialized services remains relatively stable, reflecting the long-term nature of nuclear waste management.
How does the pricing of this contract compare to other specialized freight contracts awarded by the government?
Directly comparing the per-unit cost of this contract is challenging without detailed metrics on the volume, weight, and distance of the transuranic waste transported. However, the total value of approximately $17.3 million over two years, awarded under a firm fixed-price structure, suggests a competitive rate for highly specialized and regulated long-haul freight. Contracts for transporting hazardous materials, especially radioactive waste, typically command higher prices due to the extensive safety protocols, specialized equipment, insurance requirements, and regulatory compliance involved. The fact that this contract was awarded through full and open competition with four bidders indicates that the pricing was likely vetted against market alternatives, implying it falls within a reasonable range for this niche service. Government-wide data on specialized freight contracts would be needed for a more precise benchmark.
What are the primary risks associated with transporting transuranic waste, and how are they mitigated in this contract?
The primary risks associated with transporting transuranic waste are significant and multifaceted, including potential for accidents leading to radioactive contamination, security breaches, and logistical failures. Mitigation strategies are embedded within the contract's structure and the operational requirements. The firm fixed-price nature transfers financial risk related to operational challenges to the contractor, CAST Specialty Transportation Inc. Furthermore, the contract likely mandates strict adherence to Department of Transportation (DOT) and Department of Energy (DOE) regulations for hazardous materials transport, including specific packaging, vehicle requirements, route planning, and emergency response protocols. The selection of a contractor through full and open competition also implies a thorough vetting process, likely assessing the bidder's safety record, experience, and compliance history. Continuous monitoring and oversight by the DOE are also crucial for ensuring ongoing risk mitigation throughout the contract's performance period.
What is the track record of CAST Specialty Transportation Inc. in handling government contracts, particularly for hazardous materials?
CAST Specialty Transportation Inc. has a history of performing government contracts, including those involving specialized and potentially hazardous materials. While specific details of their entire contract portfolio require deeper database analysis, their successful bid for this Department of Energy contract for transporting transuranic waste indicates they possess the necessary certifications, experience, and infrastructure to handle such sensitive cargo. Government contracting databases often track past performance, on-time delivery rates, and compliance records. A positive performance history in similar high-stakes transportation projects would have been a key factor in their selection. Further investigation into their contract awards and performance evaluations within federal procurement systems would provide a more comprehensive understanding of their track record.
How does the geographic focus on New Mexico impact the logistics and cost of this contract?
The geographic focus on New Mexico, specifically the Waste Isolation Pilot Plant (WIPP), is a critical factor influencing the logistics and cost of this contract. WIPP is the nation's only repository for long-term disposal of transuranic waste, meaning that waste generated across the country must be transported to this single location. This necessitates long-distance hauling, often across multiple states, which inherently increases transportation costs due to fuel, driver hours, and vehicle wear. The specific routes to New Mexico may also involve challenging terrain or require special permits. Furthermore, the concentration of this critical infrastructure in one state means that the DOE relies heavily on a limited number of specialized carriers capable of meeting the stringent requirements for delivery to WIPP. This geographic specificity shapes the competitive landscape and the overall cost structure for transuranic waste transportation.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Long-Distance
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9850 HAVANA ST, HENDERSON, CO, 08
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $17,941,114
Exercised Options: $17,941,114
Current Obligation: $17,314,486
Parent Contract
Parent Award PIID: DEAM3007CC20005
IDV Type: IDC
Timeline
Start Date: 2010-01-13
Current End Date: 2012-03-13
Potential End Date: 2012-03-13 00:00:00
Last Modified: 2013-07-15
More Contracts from Cast Specialty Transportation Inc
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