DOE's $59.7M Hanford Lab Services Contract Awarded to VNS Federal Services Amidst Full and Open Competition
Contract Overview
Contract Amount: $59,663,407 ($59.7M)
Contractor: VNS Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2015-09-21
End Date: 2021-04-14
Contract Duration: 2,032 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF HANFORD 222-S LABORATORY ANALYSIS AND TESTING SERVICES
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99354
Plain-Language Summary
Department of Energy obligated $59.7 million to VNS FEDERAL SERVICES LLC for work described as: IGF::OT::IGF HANFORD 222-S LABORATORY ANALYSIS AND TESTING SERVICES Key points: 1. The contract value of $59.7 million for laboratory analysis and testing services at Hanford is substantial. 2. VNS Federal Services LLC secured this award through full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration of 2032 days (approx. 5.5 years) suggests a long-term need for these services. 4. The NAICS code 562910 (Remediation Services) places this spending within the environmental services sector.
Value Assessment
Rating: fair
The contract type is Fixed Price Award Fee, which can lead to cost efficiencies but also requires careful performance monitoring to ensure fair pricing. Without specific performance data, it's difficult to definitively assess if the award fee structure resulted in optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, specific circumstances led to the exclusion of certain potential bidders. The price discovery mechanism relies on the competitive bids received under these conditions.
Taxpayer Impact: The competitive bidding process, even with source exclusion, aims to secure the best value for taxpayers. However, the exclusion of sources warrants scrutiny to ensure it did not unduly limit competition or inflate costs.
Public Impact
Environmental cleanup and safety at the Hanford site are critical public concerns. This contract supports essential laboratory services for analyzing hazardous materials. The long-term nature of the contract implies ongoing environmental management efforts. Transparency in the 'exclusion of sources' process is important for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources'.
- Award Fee structure requires careful oversight to ensure value.
- Long contract duration may not adapt well to changing technological needs.
Positive Signals
- Awarded through full and open competition.
- Supports critical environmental remediation services.
- Contract value indicates significant government need.
Sector Analysis
This contract falls within the environmental remediation and testing services sector, a critical area for government operations, particularly at sites like Hanford. Spending benchmarks for similar remediation services can vary widely based on scope and location, but large contracts like this are typical for complex federal sites.
Small Business Impact
The data indicates that the awardee, VNS Federal Services LLC, is not a small business (ss: false). There is no specific information provided regarding subcontracting opportunities for small businesses on this contract.
Oversight & Accountability
The contract was awarded by the Department of Energy, which has established oversight mechanisms. However, the 'exclusion of sources' clause requires specific attention to ensure accountability and prevent potential improprieties in the procurement process.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for limited competition.
- Award Fee structure requires careful monitoring.
- Lack of small business participation noted.
- Justification for 'exclusion of sources' needs review.
- Long contract duration may pose risks.
Tags
remediation-services, department-of-energy, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $59.7 million to VNS FEDERAL SERVICES LLC. IGF::OT::IGF HANFORD 222-S LABORATORY ANALYSIS AND TESTING SERVICES
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 $59.7 million.
What is the period of performance?
Start: 2015-09-21. End: 2021-04-14.
What specific criteria led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. This process aims to ensure the government procures specialized services effectively. However, if the exclusion was not fully justified or if it significantly reduced the pool of qualified bidders, it could potentially lead to higher prices than under unrestricted full and open competition.
How effectively did the Fixed Price Award Fee structure incentivize VNS Federal Services LLC to perform efficiently and deliver high-quality laboratory analysis and testing services within budget?
The Fixed Price Award Fee structure is designed to provide a baseline payment with potential incentives for exceeding performance standards. Its effectiveness hinges on clearly defined performance metrics and objective evaluation criteria. If these are robust, it can drive efficiency and quality. Conversely, poorly defined metrics or subjective evaluations can lead to disputes or suboptimal outcomes, potentially impacting overall value for the government.
What is the long-term environmental impact and cost-effectiveness of relying on VNS Federal Services LLC for laboratory analysis and testing at the Hanford site over the contract's extended duration?
The long-term cost-effectiveness depends on the contractor's ability to maintain high standards of accuracy and efficiency throughout the contract period, especially given the hazardous nature of materials at Hanford. Regular performance reviews and independent verification of results are crucial. The environmental impact is tied to the accuracy and reliability of the testing, which informs remediation strategies and ensures compliance with regulations, ultimately contributing to site cleanup.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0005750
Offers Received: 4
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Address: 1571 SHYVILLE RD, PIKETON, OH, 45661
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,378,458
Exercised Options: $67,378,458
Current Obligation: $59,663,407
Actual Outlays: $12,112,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-21
Current End Date: 2021-04-14
Potential End Date: 2025-09-19 00:00:00
Last Modified: 2026-02-20
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