DOE's $21.6M Uranium Mill Tailings Remedial Action contract awarded sole-source to a tribal organization
Contract Overview
Contract Amount: $21,635,334 ($21.6M)
Contractor: S & K Logistics Services LLC
Awarding Agency: Department of Energy
Start Date: 2012-06-19
End Date: 2017-09-19
Contract Duration: 1,918 days
Daily Burn Rate: $11.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF THIS CONTRACT IS FOR THE MOAB URANIUM MILL TAILINGS REMEDIAL ACTION (UMTRA) PROJECT TECHNICAL ASSISTANCE CONTRACT (TAC). THE REQUIREMENTS WERE SET-ASIDE IN ACCORDANCE WITH SECTION 8(A) OF THE SMALL BUSINESS ACT AND WILL BE AWARDED ON A SOLE SOURCE BASIS TO A TRIBAL ORGANIZATION. THE TAC WILL BE RESPONSIBLE FOR RECORDS MANAGEMENT, TRAINING, INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS INFRASTRUCTURE, SAFEGUARDS AND SECURITY, SAFETY, QUALITY ASSURANCE, PROPERTY MANAGEMENT, COMMUNITY RELATIONS, GROUNDWATER MONITORING, SAMPLING AND ANALYSIS, GROUNDWATER RESTORATION AND COMPLIANCE, AND THE INTEGRATED MOAB PROJECT BASELINE. THE TAC WILL PROVIDE SERVICES TO DOE AND IN SUPPORT OF THE REMEDIAL ACTION CONTRACT (RAC).
Place of Performance
Location: MOAB, GRAND County, UTAH, 84532
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $21.6 million to S & K LOGISTICS SERVICES LLC for work described as: IGF::OT::IGF THIS CONTRACT IS FOR THE MOAB URANIUM MILL TAILINGS REMEDIAL ACTION (UMTRA) PROJECT TECHNICAL ASSISTANCE CONTRACT (TAC). THE REQUIREMENTS WERE SET-ASIDE IN ACCORDANCE WITH SECTION 8(A) OF THE SMALL BUSINESS ACT AND WILL BE AWARDED ON A SOLE SOURCE BASIS TO A TRIBAL … Key points: 1. Contract focuses on comprehensive technical assistance for the Moab UMTRA project, including IT, security, and environmental monitoring. 2. Sole-source award to a tribal organization highlights a commitment to supporting indigenous communities in environmental remediation. 3. The contract's duration of over 5 years suggests a long-term need for specialized technical support. 4. Performance-based contract type (Cost Plus Award Fee) incentivizes contractor efficiency and effectiveness. 5. Set-aside for a small business under Section 8(a) aims to foster economic development for disadvantaged businesses. 6. The scope includes critical functions like records management, groundwater monitoring, and compliance, vital for project success.
Value Assessment
Rating: fair
The contract's total value of approximately $21.6 million over five years for comprehensive technical assistance appears reasonable given the specialized nature of the work and the sole-source award to a tribal organization. Benchmarking is difficult due to the unique set-aside and sole-source nature. However, the Cost Plus Award Fee structure allows for performance-based adjustments, which can lead to better value if the contractor meets or exceeds expectations. The absence of direct competition means a thorough review of the contractor's proposed costs against independent estimates would be crucial for ensuring optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis under Section 8(a) of the Small Business Act to a tribal organization. This approach bypasses traditional full and open competition, indicating a specific strategic objective to support a particular entity. While this ensures the intended recipient benefits, it limits the potential for price discovery and innovation that could arise from a competitive bidding process. The justification for sole-sourcing is critical to understanding the rationale behind not seeking multiple bids.
Taxpayer Impact: The sole-source nature means taxpayers do not benefit from the cost savings that typically result from competitive bidding. However, the award may align with broader government objectives related to supporting tribal economic development and environmental stewardship.
Public Impact
The primary beneficiaries are the tribal organization receiving the contract and the Department of Energy, which secures specialized technical assistance for a critical environmental project. Services delivered include essential functions such as records management, IT support, security, safety protocols, and environmental monitoring. The geographic impact is focused on the Moab, Utah area, where the UMTRA project is located. Workforce implications include job creation and skill development within the awarded tribal organization, contributing to local economic growth.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Lack of competitive bidding may reduce opportunities for innovative solutions or cost-saving approaches.
- Performance-based contract requires robust oversight to ensure award fees are justified by actual performance.
Positive Signals
- Set-aside for a tribal organization under Section 8(a) supports economic development and self-determination for indigenous communities.
- Cost Plus Award Fee structure incentivizes high performance and efficient service delivery.
- Contract addresses critical environmental remediation needs, contributing to public health and safety.
Sector Analysis
This contract falls within the Environmental Remediation and Technical Services sector, a specialized area focused on cleaning up contaminated sites and providing expert support. The market for such services is driven by regulatory requirements and government initiatives like the UMTRA program. While specific market size data for this niche is limited, the broader environmental services industry is substantial. This contract represents a significant investment in managing long-term environmental liabilities.
Small Business Impact
The contract is specifically set-aside for a small business, awarded on a sole-source basis to a tribal organization under Section 8(a) of the Small Business Act. This approach directly supports the economic development goals for disadvantaged businesses and tribal enterprises. It implies that the awarded entity is expected to perform the majority of the work, with potential subcontracting opportunities needing to be assessed to understand the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight is primarily the responsibility of the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee structure necessitates diligent monitoring of performance against established criteria to ensure award fees are earned appropriately. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Moab Uranium Mill Tailings Remedial Action (UMTRA) Project
- Department of Energy Environmental Management Programs
- Small Business Administration Section 8(a) Program
- Tribal Economic Development Initiatives
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for performance issues if contractor lacks sufficient experience.
- Cost Plus Award Fee requires diligent oversight to prevent cost overruns.
Tags
environmental-remediation, technical-assistance, uranium-mill-tailings, moab-utah, department-of-energy, sole-source, section-8a, tribal-organization, cost-plus-award-fee, small-business-set-aside, remediation-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $21.6 million to S & K LOGISTICS SERVICES LLC. IGF::OT::IGF THIS CONTRACT IS FOR THE MOAB URANIUM MILL TAILINGS REMEDIAL ACTION (UMTRA) PROJECT TECHNICAL ASSISTANCE CONTRACT (TAC). THE REQUIREMENTS WERE SET-ASIDE IN ACCORDANCE WITH SECTION 8(A) OF THE SMALL BUSINESS ACT AND WILL BE AWARDED ON A SOLE SOURCE BASIS TO A TRIBAL ORGANIZATION. THE TAC WILL BE RESPONSIBLE FOR RECORDS MANAGEMENT, TRAINING, INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS INFRASTRUCTURE, SAFEGUARDS AND SECURITY, SAFETY, QUALITY ASSURANCE, PROPERTY MANAGEMENT, COMMUNIT
Who is the contractor on this award?
The obligated recipient is S & K LOGISTICS 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 $21.6 million.
What is the period of performance?
Start: 2012-06-19. End: 2017-09-19.
What is the track record of S & K Logistics Services LLC in managing similar large-scale environmental remediation technical assistance contracts?
Information regarding the specific track record of S & K Logistics Services LLC in managing large-scale environmental remediation technical assistance contracts of this magnitude and complexity is not readily available in the provided data. As this was a sole-source award under the 8(a) program to a tribal organization, the focus may have been on the entity's capacity and alignment with tribal development goals rather than extensive competitive performance history. A deeper dive into the contractor's past performance, client references, and project outcomes would be necessary for a comprehensive assessment. The Department of Energy's contract performance databases and potentially the Small Business Administration's records could offer further insights into their capabilities and reliability in executing such critical services.
How does the cost structure (Cost Plus Award Fee) compare to industry standards for similar technical assistance contracts?
The Cost Plus Award Fee (CPAF) contract type is common for services where performance outcomes are critical and can be objectively measured, but precise cost control is challenging. For technical assistance contracts in environmental remediation, CPAF is often used to incentivize contractors to meet or exceed performance targets while managing complex project variables. Industry standards vary, but CPAF generally allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee and an award amount based on performance. Compared to fixed-price contracts, CPAF can offer more flexibility but requires robust oversight to ensure the award fee is justified. Without specific benchmarks for comparable UMTRA technical assistance contracts, it's difficult to definitively state if this contract's fee structure deviates significantly from norms, but its use suggests a focus on achieving specific performance metrics.
What are the key performance indicators (KPIs) used to determine the award fee for S & K Logistics Services LLC?
The provided data does not specify the key performance indicators (KPIs) used to determine the award fee for S & K Logistics Services LLC. Typically, for a contract of this nature, KPIs would be detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These indicators would likely relate to the successful execution of core responsibilities such as the accuracy and timeliness of records management, effectiveness of IT and telecommunications infrastructure, adherence to safety and security protocols, quality of groundwater monitoring and analysis, compliance with project baselines, and overall support provided to the Remedial Action Contractor (RAC) and the Department of Energy. The award fee would be contingent upon the contractor meeting or exceeding predefined targets for these KPIs.
What is the historical spending pattern for technical assistance related to the Moab UMTRA project?
Historical spending data specifically for technical assistance contracts on the Moab UMTRA project prior to this $21.6 million contract (2012-2017) is not detailed in the provided information. However, the UMTRA program itself has a long history, involving significant federal investment in remediating uranium mill tailings across the United States. The Moab site, in particular, has required ongoing management and technical support for decades. The scale of this particular contract suggests a substantial and sustained need for technical expertise. To understand the full historical spending pattern, one would need to examine prior contracts awarded for technical assistance, site management, and remediation activities at the Moab site, potentially going back to the initial phases of the project managed by different agencies or contractors.
What are the potential risks associated with a sole-source award to a tribal organization under the 8(a) program for this type of contract?
Potential risks associated with a sole-source 8(a) award to a tribal organization for this contract include limited price competition, which could lead to higher costs than if the contract were competed. There's also a risk related to the contractor's capacity and experience, as the 8(a) program prioritizes development opportunities, and the entity might be less experienced than established large corporations. Ensuring robust oversight and performance management is crucial to mitigate these risks. Additionally, sole-sourcing can sometimes lead to a lack of innovative solutions that might emerge from a competitive environment. However, the program's intent is to foster growth, and the risks are often weighed against the benefits of supporting targeted economic development and achieving specific socio-economic goals.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: DE-SOL-0003195
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 138 PEACHTREE PARKWAY, BYRON, GA, 31008
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,635,334
Exercised Options: $21,635,334
Current Obligation: $21,635,334
Actual Outlays: $-20,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-19
Current End Date: 2017-09-19
Potential End Date: 2017-09-19 00:00:00
Last Modified: 2025-09-29
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