DOE's Transuranic Waste Processing Center contract awarded to OSC Technical Solutions for over $266M
Contract Overview
Contract Amount: $266,236,192 ($266.2M)
Contractor: OSC Technical Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2015-10-19
End Date: 2023-04-18
Contract Duration: 2,738 days
Daily Burn Rate: $97.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF TRANSURANIC WASTE PROCESSING CENTER (TWPC) OPERATIONS CONTRACT
Place of Performance
Location: LENOIR CITY, LOUDON County, TENNESSEE, 37771
Plain-Language Summary
Department of Energy obligated $266.2 million to OSC TECHNICAL SOLUTIONS, LLC for work described as: IGF::OT::IGF TRANSURANIC WASTE PROCESSING CENTER (TWPC) OPERATIONS CONTRACT Key points: 1. The contract value of over $266 million represents a significant investment in hazardous waste management. 2. The contract was awarded under 'full and open competition after exclusion of sources,' indicating a specific justification for limiting the initial pool. 3. The duration of the contract (2738 days) suggests a long-term need for these specialized services. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 562211 points to a specialized hazardous waste treatment and disposal market. 6. The contract's performance period spans nearly 7.5 years, indicating sustained operational requirements.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The total award of over $266 million over nearly 7.5 years suggests a substantial operational cost. However, without comparable contracts for similar complex waste processing facilities, it's difficult to definitively assess value for money. The firm-fixed-price structure provides some predictability, but the overall cost-effectiveness relies heavily on the contractor's efficiency and the government's oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, specific sources were excluded, possibly due to unique capabilities or prior involvement. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower competitive field than a truly unrestricted full and open competition. This could impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The exclusion of certain sources, even with an open competition framework, may limit the range of innovative solutions and competitive pricing that taxpayers could benefit from. It suggests a need for specific expertise that not all potential bidders possessed or were allowed to demonstrate.
Public Impact
The primary beneficiaries are the Department of Energy and its mission to safely manage and dispose of transuranic waste. The services delivered are critical for environmental protection and national security by ensuring the secure handling of radioactive materials. The geographic impact is concentrated in Tennessee, where the Transuranic Waste Processing Center is located. The contract supports a specialized workforce in hazardous waste management and nuclear operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' in the competition raises questions about the breadth of competitive pressure and potential cost implications for taxpayers.
- Lack of detailed performance metrics makes it difficult to fully assess the value-for-money proposition of the contract.
- The long duration of the contract requires sustained government oversight to ensure continued efficiency and compliance.
Positive Signals
- The firm-fixed-price contract type provides cost certainty for the government, mitigating risks associated with cost overruns.
- The award to a single contractor for a specialized facility suggests a focus on continuity of operations for a critical national function.
- The contract's existence indicates a commitment to addressing the long-term challenge of transuranic waste management.
Sector Analysis
The hazardous waste treatment and disposal sector is highly specialized, requiring significant technical expertise, regulatory compliance, and capital investment. This contract falls within the environmental services sub-sector, specifically focusing on radioactive and hazardous waste. The market is characterized by a limited number of highly qualified firms capable of handling such complex operations. Comparable spending benchmarks are difficult to establish due to the unique nature of transuranic waste processing, which is largely driven by government contracts related to nuclear material management.
Small Business Impact
The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). This suggests that the specialized nature of the work likely required large, experienced contractors. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting 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 regulatory oversight from agencies like the Environmental Protection Agency (EPA) and potentially the Nuclear Regulatory Commission (NRC). Inspector General jurisdiction would likely extend to audits and investigations of financial integrity and performance. Transparency would depend on the DOE's public reporting practices regarding contract performance and expenditures.
Related Government Programs
- Department of Energy - Environmental Management
- Nuclear Waste Disposal Programs
- Hazardous Waste Management Services
- Radioactive Material Handling Contracts
Risk Flags
- Competition Excluded Sources
- Long Contract Duration
- Specialized Hazardous Waste Handling
Tags
department-of-energy, hazardous-waste-treatment, radioactive-waste-disposal, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, tennessee, environmental-services, large-contract, operations-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $266.2 million to OSC TECHNICAL SOLUTIONS, LLC. IGF::OT::IGF TRANSURANIC WASTE PROCESSING CENTER (TWPC) OPERATIONS CONTRACT
Who is the contractor on this award?
The obligated recipient is OSC TECHNICAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $266.2 million.
What is the period of performance?
Start: 2015-10-19. End: 2023-04-18.
What is the historical spending trend for transuranic waste processing at this facility or similar facilities?
Analyzing historical spending trends for transuranic waste processing is crucial for understanding cost evolution and forecasting future needs. While specific historical data for the Transuranic Waste Processing Center (TWPC) operations contract is not detailed here, the current award of over $266 million from October 2015 to April 2023 (approximately 2738 days) provides a baseline. To establish a trend, one would need to examine prior contracts for TWPC operations, if any, or comparable contracts at other Department of Energy (DOE) sites managing similar waste streams. Factors influencing historical spending include inflation, changes in regulatory requirements, technological advancements in processing, and the volume and type of waste received. Without access to prior contract values and durations, a precise historical trend cannot be determined from the provided data alone. However, the significant award suggests a consistent and substantial requirement for these services over time.
How does the per-unit cost of processing transuranic waste under this contract compare to industry benchmarks?
Determining the per-unit cost of processing transuranic waste under this contract and comparing it to industry benchmarks is complex due to the unique nature of the material and the specialized facilities required. The provided data does not include specific metrics like the volume or type of waste processed, nor does it offer a defined 'unit' for cost calculation (e.g., per kilogram, per cubic meter, per container). Transuranic waste is highly radioactive and requires extensive safety protocols, specialized equipment, and long-term storage solutions, making its processing inherently expensive. Industry benchmarks for such niche services are not readily available in the public domain and are often proprietary or specific to government contracts. A thorough analysis would require access to the contractor's detailed cost breakdowns, the specific waste characteristics processed, and potentially classified or internal DOE cost-performance data for comparison against other government-managed facilities or highly specialized private sector operations, if they exist.
What are the key performance indicators (KPIs) used to evaluate the contractor's performance and ensure value for money?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for the OSC Technical Solutions contract at the Transuranic Waste Processing Center (TWPC). However, for a contract of this nature, typical KPIs would likely revolve around operational efficiency, safety compliance, environmental protection, waste throughput, and adherence to schedule. Examples could include the volume of waste processed per unit of time, the number of safety incidents (aiming for zero), compliance with all environmental discharge permits, successful completion of processing campaigns within planned timelines, and effective management of operational costs against the firm-fixed-price budget. The Department of Energy would monitor these KPIs through regular reporting from the contractor, site visits, audits, and performance reviews. Effective tracking of these KPIs is essential for ensuring the contractor is delivering value for the $266+ million investment and meeting the critical mission requirements for waste management.
What is the track record of OSC Technical Solutions in managing similar large-scale hazardous or radioactive waste contracts?
OSC Technical Solutions, LLC, has a significant track record in managing complex environmental and technical services, including those relevant to hazardous and radioactive waste. While the specific details of their past performance on contracts of identical scale and scope to the TWPC operations are not fully detailed in the provided summary data, the company's involvement in such a critical and high-value contract by the Department of Energy suggests a demonstrated capability. Companies like OSC Technical Solutions often build their expertise through a portfolio of projects involving site remediation, waste management, facility operations, and technical support for government agencies, particularly within the defense and energy sectors. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract awards, and project histories, which are typically available through federal procurement databases and agency performance reports, indicating their suitability for the demanding requirements of the TWPC.
What are the potential risks associated with the long duration and complexity of the TWPC operations contract?
The long duration (nearly 7.5 years) and inherent complexity of the Transuranic Waste Processing Center (TWPC) operations contract present several potential risks. Firstly, there's the risk of technological obsolescence; while the facility is designed for specific waste, future advancements might offer more efficient or safer processing methods not currently employed. Secondly, regulatory landscapes can change; evolving environmental or safety standards could necessitate costly upgrades or operational modifications. Thirdly, long-term contracts can face 'contractor drift,' where initial efficiencies may wane over time without constant oversight, potentially impacting value for money. Workforce stability and knowledge transfer are also risks; retaining skilled personnel over many years and ensuring smooth transitions during personnel changes are critical. Finally, unforeseen geological or environmental conditions at the disposal site, or changes in the nature of the waste received, could pose operational challenges and cost implications not fully anticipated at the contract's outset.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0006331
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc
Address: 320 N CEDAR BLUFF RD STE 220, KNOXVILLE, TN, 37923
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, 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, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $271,492,014
Exercised Options: $271,492,014
Current Obligation: $266,236,192
Actual Outlays: $82,802,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-19
Current End Date: 2023-04-18
Potential End Date: 2023-04-18 00:00:00
Last Modified: 2023-06-12
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