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

Positive Signals

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

Risk Flags

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 ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL 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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