Doe's $30M Wipp Transportation Services Contract Awarded to Cast Specialty Transportation Inc

Contract Overview

Contract Amount: $30,185,087 ($30.2M)

Contractor: Cast Specialty Transportation Inc

Awarding Agency: Department of Energy

Start Date: 2017-07-28

End Date: 2022-09-04

Contract Duration: 1,864 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF WASTE ISOLATION PILOT PLANT (WIPP) TRANSPORTATION SERVICES

Place of Performance

Location: CARLSBAD, EDDY County, NEW MEXICO, 88221

State: New Mexico Government Spending

Plain-Language Summary

Department of Energy obligated $30.2 million to CAST SPECIALTY TRANSPORTATION INC for work described as: IGF::OT::IGF WASTE ISOLATION PILOT PLANT (WIPP) TRANSPORTATION SERVICES Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract duration of 1864 days suggests a long-term need for specialized transportation. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. The North American Industry Classification System (NAICS) code 484230 points to specialized freight trucking. 5. The contract was awarded as a delivery order, suggesting it's part of a larger framework or existing contract. 6. The geographic focus is New Mexico, aligning with the Waste Isolation Pilot Plant's location.

Value Assessment

Rating: good

The total award amount of approximately $30.2 million over roughly five years for specialized freight transportation services appears reasonable given the critical nature and logistical complexities of transporting materials to the Waste Isolation Pilot Plant (WIPP). Benchmarking against similar long-distance, specialized freight contracts is challenging without more specific service details, but the firm-fixed-price nature suggests an effort to manage costs effectively. The duration of the contract also implies a stable, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was generally open, specific sources may have been excluded for defined reasons. The exact number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was intended. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The open competition, even with exclusions, likely resulted in a more competitive pricing environment, benefiting taxpayers by ensuring the government received value for its expenditure on essential transportation services.

Public Impact

The primary beneficiary is the Department of Energy (DOE) and its operations at the Waste Isolation Pilot Plant (WIPP). The contract ensures the safe and reliable transportation of materials to the WIPP facility in New Mexico. This service is critical for the continued operation and management of nuclear waste. The contract supports the specialized trucking and logistics workforce involved in these complex movements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The transportation sector, particularly specialized freight trucking, is a critical component of the U.S. economy, enabling the movement of goods across the nation. This contract falls within the long-distance, specialized freight trucking sub-sector (NAICS 484230). The market for such services is influenced by regulatory requirements, safety standards, and the specific needs of industries like energy and defense. The approximate $30 million award over five years represents a significant, albeit niche, expenditure within this sector, focused on a highly regulated and specialized application.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that the contract was not set aside for small businesses (ss). This suggests that the primary awardee is likely a large business, and there is no explicit indication of small business subcontracting goals or achievements within this specific award data. Therefore, the direct impact on the small business ecosystem from this particular contract award appears limited, though larger prime contractors often engage small businesses for various support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Given the nature of the work, it is likely subject to rigorous safety and security protocols. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

Risk Flags

Tags

department-of-energy, waste-isolation-pilot-plant, transportation-services, specialized-freight, long-distance-trucking, firm-fixed-price, full-and-open-competition, delivery-order, new-mexico, defense-related, hazardous-materials-transport

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $30.2 million to CAST SPECIALTY TRANSPORTATION INC. IGF::OT::IGF WASTE ISOLATION PILOT PLANT (WIPP) TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is CAST SPECIALTY TRANSPORTATION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.2 million.

What is the period of performance?

Start: 2017-07-28. End: 2022-09-04.

What is the track record of CAST SPECIALTY TRANSPORTATION INC. with the Department of Energy and similar contracts?

Information regarding the specific track record of CAST SPECIALTY TRANSPORTATION INC. with the Department of Energy or on similar specialized transportation contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any documented disputes or contract modifications, and the company's history with government contracts. Without this external data, it's difficult to definitively assess their reliability and past success in fulfilling complex transportation requirements, especially those involving sensitive materials like those destined for the WIPP.

How does the pricing of this contract compare to similar specialized freight transportation services?

Direct comparison of the pricing for this $30.2 million contract is challenging without detailed service scope and market data for comparable specialized freight transportation. The contract is firm-fixed-price, which aims to provide cost certainty. However, the unique requirements for transporting materials to the Waste Isolation Pilot Plant (WIPP) likely command a premium due to stringent safety, security, and regulatory compliance. Benchmarking would ideally involve analyzing per-mile rates, weight-based charges, and specialized handling fees for similar hazardous or sensitive material transport contracts, which are not available in the provided snippet.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential delays in transportation impacting WIPP operations, safety incidents during transit of sensitive materials, and cost overruns if the firm-fixed-price model doesn't adequately account for unforeseen logistical challenges. Mitigation strategies likely involve strict adherence to safety and security protocols mandated by the DOE, robust emergency response plans, detailed route planning, and continuous monitoring of the contractor's performance. The long-term nature of the contract also implies a need for strong contract management to ensure ongoing compliance and performance.

How effective has this contract been in ensuring the timely and safe delivery of materials to WIPP?

The provided data focuses on the award details and does not include performance metrics or effectiveness evaluations of the contract's execution. Assessing effectiveness would require analyzing delivery timeliness, incident reports (or lack thereof), and compliance with all regulatory and safety requirements. The contract's duration (ending September 2022) suggests it has been operational for some time, but without post-award performance data, its effectiveness remains undetermined from this information alone.

What are the historical spending patterns for WIPP transportation services?

The provided data only details a single award of $30,185,086.52. To understand historical spending patterns for WIPP transportation services, one would need to examine previous contracts awarded for this purpose, including their values, durations, and the contractors involved. Analyzing trends over multiple fiscal years would reveal whether spending has been consistent, increasing, or decreasing, and whether the number of competitors or contract types have changed, providing context for the current award's significance.

What specific types of materials are being transported under this contract?

The data specifies the contract is for 'WIPP Transportation Services' and falls under NAICS code 484230 (Specialized Freight (except Used Goods) Trucking, Long-Distance). While not explicitly detailed, the Waste Isolation Pilot Plant (WIPP) primarily handles transuranic (TRU) waste, which is radioactive material generated by U.S. Department of Energy defense activities. Therefore, it is highly probable that this contract involves the transportation of such specialized, regulated, and potentially hazardous materials, requiring specialized vehicles, handling procedures, and security measures.

Industry Classification

NAICS: Transportation and WarehousingSpecialized Freight TruckingSpecialized Freight (except Used Goods) Trucking, Long-Distance

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9850 HAVANA ST, HENDERSON, CO, 80640

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,185,087

Exercised Options: $30,185,087

Current Obligation: $30,185,087

Actual Outlays: $12,731,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEEM0004767

IDV Type: IDC

Timeline

Start Date: 2017-07-28

Current End Date: 2022-09-04

Potential End Date: 2026-03-13 00:00:00

Last Modified: 2026-03-12

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