DOE's $506M PGDP Deactivation Task Order Awarded to Fluor Federal Services Inc
Contract Overview
Contract Amount: $505,920,243 ($505.9M)
Contractor: Fluor Federal Services Inc
Awarding Agency: Department of Energy
Start Date: 2014-07-22
End Date: 2017-10-19
Contract Duration: 1,185 days
Daily Burn Rate: $426.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF PADUACH GASEOUS DIFFUSION PLANT (PGDP) DEACTIVATION TASK ORDER
Place of Performance
Location: KEVIL, MCCRACKEN County, KENTUCKY, 42053
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $505.9 million to FLUOR FEDERAL SERVICES INC for work described as: IGF::OT::IGF PADUACH GASEOUS DIFFUSION PLANT (PGDP) DEACTIVATION TASK ORDER Key points: 1. Significant contract value of over $505 million for plant deactivation. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Risk associated with large-scale environmental remediation projects. 4. Sector focus on environmental remediation services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed carefully. The awarded amount of $505,920,242.52 is substantial for deactivation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically aims to secure the best value for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition.
Public Impact
Environmental cleanup of a former gaseous diffusion plant. Potential for long-term environmental benefits and site restoration. Job creation and economic activity in the Kentucky region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can lead to cost overruns.
- Large scale environmental remediation projects carry inherent risks.
- Contract duration and complexity.
Positive Signals
- Awarded under full and open competition.
- Task order for deactivation of a significant facility.
- Potential for positive environmental impact.
Sector Analysis
This contract falls within the environmental remediation services sector, specifically for the deactivation of a large industrial facility. Spending benchmarks for such complex projects vary widely based on scope and environmental conditions.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular task order. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of Energy's Inspector General would typically oversee contracts of this magnitude to ensure compliance, cost-effectiveness, and proper execution of deactivation activities.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure can incentivize cost growth.
- Potential for unforeseen environmental remediation challenges.
- Large contract value increases financial risk exposure.
- Complexity of deactivating a gaseous diffusion plant.
Tags
remediation-services, department-of-energy, ky, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $505.9 million to FLUOR FEDERAL SERVICES INC. IGF::OT::IGF PADUACH GASEOUS DIFFUSION PLANT (PGDP) DEACTIVATION TASK ORDER
Who is the contractor on this award?
The obligated recipient is FLUOR FEDERAL SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $505.9 million.
What is the period of performance?
Start: 2014-07-22. End: 2017-10-19.
What were the key performance metrics and award fee criteria used in this Cost Plus Award Fee contract to ensure Fluor Federal Services Inc. achieved optimal deactivation outcomes?
The specific performance metrics and award fee criteria are not detailed in the provided data. Typically, for deactivation projects, these would include adherence to safety protocols, environmental compliance, schedule milestones, cost control, and successful completion of specific deactivation phases. The award fee would be determined by how well the contractor met or exceeded these predefined objectives.
Given the complexity of deactivating a gaseous diffusion plant, what were the primary environmental risks identified during the competition phase, and how were they mitigated in the contract?
Primary environmental risks likely included radioactive contamination, hazardous material handling, waste disposal, and potential soil/water contamination. Mitigation strategies in the contract would involve stringent safety and environmental protection plans, detailed waste management protocols, regulatory compliance assurances, and potentially performance bonds or insurance to cover unforeseen environmental liabilities.
How does the awarded amount of $505.9 million compare to industry benchmarks for similar large-scale industrial facility deactivation projects, considering the specific challenges of a gaseous diffusi
Comparing this cost requires detailed project scope analysis. However, deactivating nuclear-related facilities like gaseous diffusion plants is exceptionally complex and costly due to specialized safety, security, and environmental remediation requirements. Benchmarking would need to account for the specific contaminants, facility size, and regulatory environment, making direct comparisons difficult without more granular data.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DE-SOL-0004563
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 1200 JADWIN AVE, RICHLAND, WA, 99352
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $512,098,638
Exercised Options: $512,098,638
Current Obligation: $505,920,243
Actual Outlays: $1,717,751
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEEM0001131
IDV Type: IDC
Timeline
Start Date: 2014-07-22
Current End Date: 2017-10-19
Potential End Date: 2023-07-22 00:00:00
Last Modified: 2023-07-21
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