Department of Energy awards $67.2M contract for environmental remediation services to North Wind Portage, Inc
Contract Overview
Contract Amount: $67,242,930 ($67.2M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Energy
Start Date: 2014-06-26
End Date: 2024-07-28
Contract Duration: 3,685 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENERGY TECHNOLOGY ENGINEERING CENTER ENVIRONMENTAL MONITORING AND DECONTAMINATION AND DEMOLITION. IGF::OT::IGF
Place of Performance
Location: SIMI VALLEY, VENTURA County, CALIFORNIA, 93063
Plain-Language Summary
Department of Energy obligated $67.2 million to NORTH WIND PORTAGE, INC. for work described as: ENERGY TECHNOLOGY ENGINEERING CENTER ENVIRONMENTAL MONITORING AND DECONTAMINATION AND DEMOLITION. IGF::OT::IGF Key points: 1. Contract value of $67.2M over 10 years suggests significant long-term environmental management needs. 2. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicates a competitive process but with specific pre-qualifications. 3. A duration of 3685 days (over 10 years) points to complex, multi-year remediation projects. 4. The primary NAICS code (562910) for Remediation Services highlights the specialized nature of the work. 5. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The firm fixed price contract type provides cost certainty for the government.
Value Assessment
Rating: fair
The total award amount of $67.2 million over approximately 10 years for environmental remediation services appears to be within a reasonable range for large-scale, long-term projects. Benchmarking against similar large-scale environmental cleanup contracts managed by the Department of Energy or other federal agencies would be necessary for a definitive value assessment. The firm fixed price structure helps manage cost overruns, but the overall value is contingent on the scope and complexity of the remediation tasks performed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications, past performance, or security requirements. The number of bidders (4) indicates a moderate level of competition, which is typical for specialized federal contracts. This level of competition likely provides some price discovery but may not be as robust as a completely unrestricted full and open competition.
Taxpayer Impact: For taxpayers, this competition level means that while multiple qualified firms could bid, the exclusion of certain sources might have limited the potential for the absolute lowest price. However, it also ensures that the selected contractor meets stringent requirements, potentially reducing risks and ensuring effective service delivery.
Public Impact
The primary beneficiaries are the Department of Energy and potentially other federal agencies requiring environmental remediation services. The services delivered include environmental monitoring, decontamination, and demolition, crucial for site cleanup and safety. The contract has a geographic impact primarily within California, where the contractor is located. The contract supports a workforce skilled in environmental remediation, decontamination, and demolition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'EXCLUSION OF SOURCES' aspect of the competition warrants scrutiny to understand the rationale and ensure fairness.
- Long contract duration increases the risk of scope creep or unforeseen cost increases if not managed tightly.
- Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the IDIQ itself has issues.
Positive Signals
- The firm fixed price contract type offers predictability and control over costs for the government.
- Having 4 bidders suggests a reasonable level of market interest and capability for this specialized service.
- The contract's long duration indicates a sustained need and potential for building contractor expertise in specific DOE environmental challenges.
Sector Analysis
The environmental remediation services sector is a critical component of the federal government's responsibility for managing legacy contamination and ensuring safe land use. This contract falls within the broader environmental services industry, which includes hazardous waste management, site cleanup, and demolition. The Department of Energy is a significant player in this market due to its historical role in nuclear research and energy production, often requiring extensive and complex remediation efforts. Comparable spending benchmarks would likely be found within other large federal environmental cleanup contracts, such as those managed by the EPA or DoD.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). The prime contractor, North Wind Portage, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. The impact on the small business ecosystem would depend on whether North Wind Portage, Inc. actively seeks small business subcontractors for specialized tasks within the remediation scope.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. The Inspector General's office for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, but detailed performance reports and specific oversight activities are not publicly detailed in this summary.
Related Government Programs
- Department of Energy Environmental Management Program
- EPA Superfund Program
- DoD Environmental Restoration Program
- Hazardous Waste Remediation Services
- Decontamination and Demolition Services
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Risk of scope creep over the 10-year contract duration.
- Ensuring continued regulatory compliance throughout the remediation process.
- Dependence on the specific capabilities and financial stability of the prime contractor.
- Adequacy of competition given the 'exclusion of sources' clause.
Tags
energy, department-of-energy, environmental-remediation, remediation-services, full-and-open-competition-after-exclusion-of-sources, firm-fixed-price, delivery-order, california, large-contract, long-term-contract, hazardous-waste, decontamination
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $67.2 million to NORTH WIND PORTAGE, INC.. ENERGY TECHNOLOGY ENGINEERING CENTER ENVIRONMENTAL MONITORING AND DECONTAMINATION AND DEMOLITION. IGF::OT::IGF
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 $67.2 million.
What is the period of performance?
Start: 2014-06-26. End: 2024-07-28.
What is the track record of North Wind Portage, Inc. with federal environmental remediation contracts?
North Wind Portage, Inc. has a significant history of performing environmental remediation, decontamination, and demolition services for various federal agencies, including the Department of Energy and the Department of Defense. Their portfolio often includes complex projects involving hazardous materials, radiological contamination, and large-scale site cleanup. Analyzing their past performance on similar contracts, including any documented issues, cost overruns, or successful project completions, would provide crucial context for assessing their capability and reliability on this specific $67.2 million award. A review of their contract history would reveal the types of environments they have worked in, the scale of projects undertaken, and their adherence to safety and environmental regulations.
How does the $67.2 million award compare to typical federal spending on environmental remediation services?
The $67.2 million award for environmental remediation services over approximately 10 years represents a substantial, but not extraordinary, investment for the Department of Energy. Large-scale environmental cleanup projects, especially those inherited from historical nuclear weapons production or energy research activities, can easily run into tens or hundreds of millions of dollars. For context, the DOE's Office of Environmental Management manages billions of dollars annually for cleanup activities across numerous sites. This specific contract's value should be benchmarked against other large remediation contracts awarded by DOE or the EPA for similar types of contamination and site complexity. The duration of the contract also suggests a long-term commitment to addressing significant environmental challenges.
What are the primary risks associated with a 10-year firm-fixed-price contract for environmental remediation?
A primary risk with a 10-year firm-fixed-price contract for environmental remediation is the potential for unforeseen site conditions or the discovery of new contaminants that were not fully anticipated during the initial bidding process. If the scope of work significantly expands beyond what was reasonably foreseeable, the contractor may incur substantial losses, potentially leading to disputes, reduced quality, or even contract termination. Conversely, the government bears the risk if the contractor's initial cost estimates were too high, leading to an overpayment for the services rendered. Effective risk management requires robust contingency planning, clear change order processes, and continuous monitoring of the remediation progress and evolving site conditions.
How effective are 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers?
The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers is nuanced. On one hand, it allows for a competitive bidding process, which generally drives down prices and encourages efficiency. The inclusion of multiple bidders (four in this case) suggests a degree of market engagement. However, the 'exclusion of sources' means that not all potentially capable contractors had the opportunity to bid. The rationale for these exclusions is critical; if they were based on legitimate, objective criteria related to specialized capabilities, security, or past performance necessary for the specific task, then the competition might still yield good value by selecting the most qualified and cost-effective provider for that niche. If exclusions were arbitrary or overly restrictive, it could limit competition and potentially lead to higher prices or less optimal solutions for taxpayers.
What are the implications of this contract being a 'Delivery Order'?
This contract being a 'Delivery Order' implies that it is likely issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQs are commonly used by federal agencies to procure a broad range of supplies or services over a period of time, with the government ordering specific quantities or task orders as needed. As a Delivery Order, this $67.2 million represents the total value committed for a specific set of services or deliverables under that overarching IDIQ. The implications are that the government has flexibility in ordering, but the overall performance and pricing are governed by the terms of the parent IDIQ contract. It also means that the competition that occurred might have been for the IDIQ itself, with this delivery order being awarded based on pre-established terms, or it could represent a competitive task order under a pre-competed IDIQ.
What is the significance of the NAICS code 562910 (Remediation Services) in understanding this contract?
The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is highly significant as it precisely defines the core business activity covered by this contract. This code encompasses establishments primarily engaged in cleaning up sites contaminated by pollution, or other hazardous materials. This includes activities such as site remediation, hazardous waste site cleanup, asbestos abatement, lead paint removal, and demolition of contaminated structures. Understanding this NAICS code confirms that the contract is focused on specialized environmental cleanup operations, requiring specific expertise, equipment, and regulatory compliance, differentiating it from general construction or waste disposal services.
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $67,440,719
Exercised Options: $67,440,719
Current Obligation: $67,242,930
Actual Outlays: $42,499,263
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEEM0000837
IDV Type: IDC
Timeline
Start Date: 2014-06-26
Current End Date: 2024-07-28
Potential End Date: 2026-04-14 00:00:00
Last Modified: 2026-04-13
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