DOE's $138M Environmental Remediation Task Order Awarded to North Wind Portage for Radioactive Material Disposal
Contract Overview
Contract Amount: $137,969,050 ($138.0M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Energy
Start Date: 2011-11-04
End Date: 2017-07-30
Contract Duration: 2,095 days
Daily Burn Rate: $65.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THIS TASK ORDER UNDER THE ENVIRONMENTAL MANAGEMENT NATIONWIDE ID/IQ SET ASIDE CONTRACT IS A COST-PLUS-AWARD-FEE (CPAF) TYPE TASK ORDER FOR ENVIRONMENTAL REMEDIATION, INCLUDING EXCAVATION AND TRANSPORTATION OF RESIDUAL RADIOACTIVE MATERIAL (RRM), WITH A FIXED UNIT PRICE COMPONENT ASSOCIATED WITH THE DISPOSAL OF THE RRM AT CRESCENT JUNCTION, INCLUDING THE INTERIM AND FINAL COVER.
Place of Performance
Location: MOAB, GRAND County, UTAH, 84532
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $138.0 million to NORTH WIND PORTAGE, INC. for work described as: THIS TASK ORDER UNDER THE ENVIRONMENTAL MANAGEMENT NATIONWIDE ID/IQ SET ASIDE CONTRACT IS A COST-PLUS-AWARD-FEE (CPAF) TYPE TASK ORDER FOR ENVIRONMENTAL REMEDIATION, INCLUDING EXCAVATION AND TRANSPORTATION OF RESIDUAL RADIOACTIVE MATERIAL (RRM), WITH A FIXED UNIT PRICE COMPONENT … Key points: 1. Significant contract value for environmental remediation services. 2. Competition method indicates a competitive award process. 3. Cost-Plus-Award-Fee structure introduces performance-based incentives. 4. Focus on radioactive material disposal highlights a specialized sector.
Value Assessment
Rating: fair
The Cost-Plus-Award-Fee (CPAF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. The fixed unit price for disposal provides some cost certainty for that specific component.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific criteria that may have limited the pool of eligible bidders. This could impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a critical environmental cleanup task. The CPAF structure necessitates careful oversight to ensure cost-effectiveness and award fees are justified by performance.
Public Impact
Addresses long-term environmental cleanup needs for the Department of Energy. Involves the handling and disposal of potentially hazardous radioactive materials. Supports economic activity through government contracting in the environmental services sector. Ensures compliance with environmental regulations and public safety standards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPAF structure.
- Limited competition may impact best value.
- Complexity of radioactive material handling and disposal.
Positive Signals
- Addresses critical environmental remediation needs.
- Includes performance incentives via award fee.
- Fixed unit price for disposal component offers some cost control.
Sector Analysis
This contract falls within the environmental remediation and waste management sector, a critical area for government agencies like the Department of Energy. Spending in this sector is often driven by regulatory requirements and legacy site cleanup.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, North Wind Portage, Inc., is not identified as a small business in this context, suggesting the contract was likely awarded to a larger entity.
Oversight & Accountability
The CPAF structure requires robust oversight from the Department of Energy to monitor performance, control costs, and ensure award fees are appropriately earned. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost creep due to CPAF structure.
- Limited competition may not yield the best possible price.
- Complexity and risks associated with handling radioactive materials.
- Long-term environmental stewardship responsibilities post-disposal.
Tags
remediation-services, department-of-energy, ut, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $138.0 million to NORTH WIND PORTAGE, INC.. THIS TASK ORDER UNDER THE ENVIRONMENTAL MANAGEMENT NATIONWIDE ID/IQ SET ASIDE CONTRACT IS A COST-PLUS-AWARD-FEE (CPAF) TYPE TASK ORDER FOR ENVIRONMENTAL REMEDIATION, INCLUDING EXCAVATION AND TRANSPORTATION OF RESIDUAL RADIOACTIVE MATERIAL (RRM), WITH A FIXED UNIT PRICE COMPONENT ASSOCIATED WITH THE DISPOSAL OF THE RRM AT CRESCENT JUNCTION, INCLUDING THE INTERIM AND FINAL COVER.
Who is the contractor on this award?
The obligated recipient is NORTH WIND PORTAGE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $138.0 million.
What is the period of performance?
Start: 2011-11-04. End: 2017-07-30.
What specific criteria led to the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary for contract performance. For environmental remediation involving radioactive materials, agencies might limit competition to firms with proven expertise in handling such hazardous substances, specific security clearances, or established relationships with disposal facilities.
How is the 'award fee' component of the CPAF contract structured and what metrics are used to determine its payout?
The award fee component of a CPAF contract is designed to incentivize contractor performance beyond minimum requirements. It is typically based on achieving specific performance objectives, quality standards, cost savings, or schedule adherence, as defined in the contract's award fee plan. The agency evaluates performance against these metrics and determines the fee amount.
What is the projected long-term environmental impact and cost associated with the disposal of residual radioactive material at Crescent Junction?
The long-term environmental impact and cost of disposal at Crescent Junction depend on the specific characteristics of the residual radioactive material (RRM) and the containment measures employed. While the contract covers excavation, transportation, and disposal, ongoing monitoring and potential future remediation may be required. The fixed unit price provides cost clarity for the initial disposal phase.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0001300
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc (UEI: 076630334)
Address: 1075 S UTAH AVE STE 200, IDAHO FALLS, ID, 83402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $140,673,727
Exercised Options: $140,673,727
Current Obligation: $137,969,050
Subaward Activity
Number of Subawards: 46
Total Subaward Amount: $70,470,929
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEEM0000842
IDV Type: IDC
Timeline
Start Date: 2011-11-04
Current End Date: 2017-07-30
Potential End Date: 2017-07-30 00:00:00
Last Modified: 2020-09-21
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