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

Positive Signals

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

Risk Flags

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 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

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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