DOE awards $45.6M for Santa Susana Field Lab environmental remediation to CDM Joint Venture

Contract Overview

Contract Amount: $45,561,830 ($45.6M)

Contractor: CDM a Joint Venture

Awarding Agency: Department of Energy

Start Date: 2012-10-01

End Date: 2024-08-31

Contract Duration: 4,352 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIATION SERVICES FOR ENVIRONMENTAL COMPLIANCE FOR AREA IV OF THE NORTHERN BUFFER ZONE OF THE SANTA SUSANA FIELD LABORATORY IN SUPPORT OF THE ENERGY TECHNOLOGY ENGINEERING CENTER (ETEC)

Place of Performance

Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91309

State: California Government Spending

Plain-Language Summary

Department of Energy obligated $45.6 million to CDM A JOINT VENTURE for work described as: ENVIRONMENTAL REMEDIATION SERVICES FOR ENVIRONMENTAL COMPLIANCE FOR AREA IV OF THE NORTHERN BUFFER ZONE OF THE SANTA SUSANA FIELD LABORATORY IN SUPPORT OF THE ENERGY TECHNOLOGY ENGINEERING CENTER (ETEC) Key points: 1. Significant contract for environmental remediation services. 2. CDM Joint Venture is the sole awardee. 3. Long-term contract duration (2012-2024) suggests complex, ongoing needs. 4. Cost Plus Incentive Fee contract type allows for performance-based adjustments.

Value Assessment

Rating: fair

The contract value of $45.6M over 12 years averages approximately $3.8M annually. Benchmarking is difficult without specific task details, but this appears to be a substantial investment for specialized environmental services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. The delivery order structure suggests it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for task-specific pricing.

Taxpayer Impact: Taxpayer funds are being used for essential environmental cleanup at a former research facility, addressing long-term environmental liabilities.

Public Impact

Ensures compliance with environmental regulations at a significant federal site. Supports cleanup efforts at the Santa Susana Field Laboratory, a site with historical environmental concerns. Provides specialized remediation services, potentially involving hazardous materials. Long-term commitment indicates a sustained effort towards environmental restoration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Environmental remediation services are crucial for managing legacy contamination and ensuring regulatory compliance at federal sites. Spending in this sector can vary widely based on site complexity and remediation scope.

Small Business Impact

The contract was awarded to CDM Joint Venture, which is not explicitly identified as a small business. Further analysis would be needed to determine if small business participation was incorporated or subcontracted.

Oversight & Accountability

The Department of Energy is responsible for overseeing this contract. The Cost Plus Incentive Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-energy, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $45.6 million to CDM A JOINT VENTURE. ENVIRONMENTAL REMEDIATION SERVICES FOR ENVIRONMENTAL COMPLIANCE FOR AREA IV OF THE NORTHERN BUFFER ZONE OF THE SANTA SUSANA FIELD LABORATORY IN SUPPORT OF THE ENERGY TECHNOLOGY ENGINEERING CENTER (ETEC)

Who is the contractor on this award?

The obligated recipient is CDM A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $45.6 million.

What is the period of performance?

Start: 2012-10-01. End: 2024-08-31.

What specific remediation activities are included in this contract, and how do they align with the overall cleanup goals for Area IV?

The contract focuses on environmental remediation services for environmental compliance within Area IV of the Santa Susana Field Laboratory. Specific activities likely include soil and groundwater cleanup, hazardous waste management, and monitoring to meet regulatory standards. The alignment with overall goals depends on the detailed scope of work and the specific contaminants present in Area IV, which requires further investigation into the site's remediation plan.

What are the primary risks associated with this long-term environmental remediation project, and how are they being mitigated?

Key risks include unforeseen contamination, escalating costs due to complex remediation challenges, and potential delays in achieving cleanup milestones. Mitigation strategies likely involve detailed site characterization, robust project management, performance incentives within the CPIF contract, and contingency planning for unexpected discoveries. The long duration also poses a risk of evolving regulatory requirements that may necessitate adaptive management approaches.

How effective is the Cost Plus Incentive Fee (CPIF) structure in ensuring cost efficiency and successful environmental outcomes for this project?

The CPIF structure aims to incentivize the contractor to control costs while achieving performance targets. Its effectiveness hinges on well-defined performance metrics and realistic cost goals. If incentives are appropriately structured, it can drive efficiency and quality. However, poorly defined metrics or overly optimistic targets could lead to disputes or suboptimal outcomes. Regular oversight is crucial to ensure the CPIF mechanism is functioning as intended.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 210, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,688,569

Exercised Options: $45,688,569

Current Obligation: $45,561,830

Actual Outlays: $12,478,605

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $22,606,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEEM0001128

IDV Type: IDC

Timeline

Start Date: 2012-10-01

Current End Date: 2024-08-31

Potential End Date: 2024-08-31 00:00:00

Last Modified: 2024-02-29

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