DOE's $341M TRU Waste Processing Contract Awarded to VNS Federal Services LLC
Contract Overview
Contract Amount: $340,946,056 ($340.9M)
Contractor: VNS Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2009-12-12
End Date: 2022-07-22
Contract Duration: 4,605 days
Daily Burn Rate: $74.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TRANSURANIC (TRU) WASTE PROCESSING CENTER IN OAK RIDGE, TN
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $340.9 million to VNS FEDERAL SERVICES LLC for work described as: TRANSURANIC (TRU) WASTE PROCESSING CENTER IN OAK RIDGE, TN Key points: 1. Contract value of $341 million over its period of performance. 2. Awarded to VNS Federal Services LLC for hazardous waste treatment and disposal. 3. The contract was a definitive contract with a cost-plus-award-fee structure. 4. Performance period spanned from December 2009 to July 2022. 5. The contract was competed under 'full and open competition after exclusion of sources'. 6. The facility is located in Oak Ridge, TN, a key site for nuclear materials management.
Value Assessment
Rating: fair
The total award amount of $341 million for hazardous waste treatment and disposal over nearly 13 years suggests a significant investment. Benchmarking this against similar large-scale environmental remediation contracts is challenging without more specific service details. However, the cost-plus-award-fee structure implies that contractor performance directly influenced the final cost, potentially incentivizing efficiency. The contract's duration and complexity indicate a substantial undertaking for the Department of Energy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was intended to be broad, certain sources were excluded for specific reasons. The number of bidders was five. This type of competition, while not fully open, aims to ensure a reasonable level of competition to achieve fair pricing and select the most capable contractor.
Taxpayer Impact: This limited competition approach seeks to balance the need for specialized expertise with taxpayer value, ensuring that multiple qualified firms had the opportunity to bid while potentially addressing unique project requirements.
Public Impact
Benefits the Department of Energy by ensuring the safe treatment and disposal of transuranic waste. Delivers critical environmental management services at the Oak Ridge facility. Geographic impact is concentrated in Tennessee, specifically Oak Ridge. Supports a specialized workforce in hazardous waste management and nuclear operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of hazardous waste management requires stringent safety protocols and oversight.
- Long-term contracts can present risks related to cost overruns if not managed effectively.
- Reliance on a single contractor for such a critical function necessitates robust performance monitoring.
Positive Signals
- The 'cost-plus-award-fee' structure incentivizes contractor performance and efficiency.
- The contract was competed, suggesting an effort to secure competitive pricing.
- The long duration indicates a sustained commitment to addressing a critical national need.
Sector Analysis
This contract falls within the environmental services sector, specifically focusing on hazardous waste treatment and disposal. The market for such services is highly specialized, often involving government contracts due to the nature of the waste (e.g., nuclear). The Department of Energy is a major player in this sector, managing legacy waste from decades of nuclear research and production. Comparable spending benchmarks would likely be found in other large-scale environmental remediation projects managed by federal agencies.
Small Business Impact
Information regarding small business set-asides or subcontracting goals for this specific contract was not provided in the data. However, large federal contracts of this magnitude often include provisions for small business participation, either through direct set-asides or subcontracting requirements to foster a broader industrial base.
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, the Inspector General's office likely plays a role in ensuring accountability and preventing fraud, waste, and abuse. Transparency would be facilitated through contract award notices and potentially public reports on environmental performance.
Related Government Programs
- Department of Energy Environmental Management
- Nuclear Waste Disposal
- Hazardous Waste Management
- Oak Ridge National Laboratory Operations
Risk Flags
- Contract duration
- Competition type (exclusion of sources)
- Cost-plus-award-fee structure
Tags
hazardous-waste-treatment, department-of-energy, tennessee, oak-ridge, definitive-contract, cost-plus-award-fee, limited-competition, environmental-management, nuclear-waste, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $340.9 million to VNS FEDERAL SERVICES LLC. TRANSURANIC (TRU) WASTE PROCESSING CENTER IN OAK RIDGE, TN
Who is the contractor on this award?
The obligated recipient is VNS FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $340.9 million.
What is the period of performance?
Start: 2009-12-12. End: 2022-07-22.
What is the specific nature of the 'transuranic waste' being processed under this contract?
Transuranic (TRU) waste is defined by the U.S. Department of Energy as waste containing alpha-emitting radionuclides with atomic numbers greater than 92, in concentrations greater than 100 nanocuries per gram. This waste is generated from nuclear weapons production and defense-related nuclear research activities. Examples include contaminated tools, protective clothing, filters, and equipment. The processing typically involves stabilization, packaging, and preparation for long-term disposal, often at facilities like the Waste Isolation Pilot Plant (WIPP) in New Mexico.
How does the 'cost-plus-award-fee' (CPAF) structure typically work, and what were the award criteria for VNS Federal Services LLC?
A Cost-Plus-Award-Fee (CPAF) contract provides for the payment of (1) an estimated cost stated in the contract and (2) a fee that is determined and awarded by the government based on the contractor's performance against stated criteria. The government's determination of the award fee is typically subjective and not subject to negotiation or dispute. For this contract, specific award criteria were not detailed in the provided data, but they generally relate to factors such as meeting schedule, cost control, quality of work, and technical performance in hazardous waste treatment and disposal.
What does 'full and open competition after exclusion of sources' imply for the bidding process?
This procurement method signifies that the solicitation was made available to all responsible sources, but specific sources were excluded from consideration. This exclusion is typically based on factors such as national security, proprietary information, or the need for specialized capabilities that only certain entities possess. While it aims for broad competition, the exclusion of certain parties means the pool of potential bidders is narrower than in a purely 'full and open' competition, which could potentially impact the level of price competition.
What is the significance of the Oak Ridge, TN location for federal hazardous waste management?
Oak Ridge, Tennessee, is a historically significant site for U.S. nuclear research and development, including the Manhattan Project. It hosts multiple Department of Energy facilities, such as Oak Ridge National Laboratory (ORNL) and the Y-12 National Security Complex. These facilities have generated substantial amounts of legacy nuclear and hazardous waste over decades. Consequently, Oak Ridge is a critical hub for federal efforts in waste characterization, treatment, storage, and eventual disposal, making contracts for services like TRU waste processing essential for environmental cleanup and national security.
What are the potential risks associated with a long-duration contract (nearly 13 years) for hazardous waste processing?
Long-duration contracts for hazardous waste processing carry several potential risks. Firstly, cost escalation due to inflation, unforeseen site conditions, or changes in regulatory requirements can significantly increase the total expenditure beyond initial estimates. Secondly, technological advancements in waste treatment could render the contracted methods obsolete or less efficient over time. Thirdly, contractor performance can degrade over extended periods if oversight is not consistently rigorous. Finally, changes in government priorities or funding availability could impact the contract's execution or necessitate modifications, leading to potential disputes or inefficiencies.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wastren, Inc.
Address: 1862 SHYVILLE RD STE 212, PIKETON, OH, 45661
Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $347,877,996
Exercised Options: $347,877,996
Current Obligation: $340,946,056
Actual Outlays: $14,792
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2009-12-12
Current End Date: 2022-07-22
Potential End Date: 2022-07-23 00:00:00
Last Modified: 2022-07-22
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