DOE Awards $2.3B Remediation Contract to Fluor Idaho LLC for Idaho Site Cleanup
Contract Overview
Contract Amount: $2,302,392,654 ($2.3B)
Contractor: Fluor Idaho LLC
Awarding Agency: Department of Energy
Start Date: 2016-06-01
End Date: 2021-12-31
Contract Duration: 2,039 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: IGF::OT::IGF, ICP CORE CONTRACT
Place of Performance
Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83415
State: Idaho Government Spending
Plain-Language Summary
Department of Energy obligated $2.30 billion to FLUOR IDAHO LLC for work described as: IGF::OT::IGF, ICP CORE CONTRACT Key points: 1. Significant contract value highlights the scale of environmental remediation efforts. 2. Full and open competition suggests a robust bidding process. 3. Potential risks include cost overruns and schedule delays common in large-scale cleanup projects. 4. The contract falls within the Environmental Remediation sector, a critical area for government spending.
Value Assessment
Rating: fair
The contract's cost-plus incentive fee structure aims to control costs, but the large value and long duration present inherent risks for price escalation. Benchmarking is difficult without specific performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for long-term environmental cleanup, with the goal of mitigating risks and restoring affected areas.
Public Impact
Ensures continued cleanup of legacy nuclear waste at the Idaho National Laboratory. Supports environmental restoration and protection of public health. Creates and sustains jobs in the region related to specialized remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term nature of cleanup projects can lead to unforeseen costs.
- Complexity of environmental remediation can pose technical challenges.
- Contractor performance monitoring is crucial for success.
Positive Signals
- Full and open competition can drive efficiency.
- Incentive fee structure encourages contractor performance.
- DOE's oversight aims to ensure accountability.
Sector Analysis
This contract is within the Environmental Remediation sector, which involves significant government investment in cleaning up contaminated sites. Spending in this sector is driven by regulatory requirements and historical industrial activities.
Small Business Impact
The data does not indicate specific subcontracting goals for small businesses. Large, complex remediation contracts often involve significant subcontracting opportunities, but the extent to which small businesses will benefit is not detailed here.
Oversight & Accountability
The Department of Energy's Inspector General and internal oversight mechanisms are responsible for monitoring contract performance, ensuring compliance, and preventing fraud, waste, and abuse throughout the contract's lifecycle.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to project complexity and duration.
- Schedule delays are common in large-scale environmental cleanup.
- Reliance on a single contractor for a critical, long-term function.
- Unforeseen environmental conditions could increase costs and timelines.
- Effectiveness of incentive fee structure requires ongoing evaluation.
Tags
remediation-services, department-of-energy, id, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.30 billion to FLUOR IDAHO LLC. IGF::OT::IGF, ICP CORE CONTRACT
Who is the contractor on this award?
The obligated recipient is FLUOR IDAHO LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.30 billion.
What is the period of performance?
Start: 2016-06-01. End: 2021-12-31.
What is the projected cost per unit of waste remediated, and how does it compare to industry benchmarks?
A precise per-unit cost benchmark is not available without detailed performance metrics and specific waste types. However, cost-plus incentive fee contracts aim to incentivize efficiency. Comparing this to industry benchmarks would require analyzing the specific types and volumes of waste handled, as well as the complexity of the remediation processes employed over the contract's duration.
What are the primary risks associated with Fluor Idaho LLC's ability to meet the remediation schedule and budget?
Key risks include the inherent uncertainties in characterizing and cleaning up legacy contamination, potential for unforeseen subsurface conditions, and the long duration of the contract which increases exposure to economic fluctuations and evolving regulatory requirements. Contractor performance, labor availability, and effective management of complex technical processes are also critical factors.
How effectively is the cost-plus incentive fee structure driving cost savings and performance improvements compared to alternative contract types?
The effectiveness of the cost-plus incentive fee structure depends on the clarity of performance metrics and the alignment of incentives with DOE's goals. While it encourages efficiency, the large scale and long-term nature of this contract mean that continuous monitoring and potential adjustments to incentives are necessary to ensure optimal value and timely completion of remediation activities.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0007097
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 6700 LAS COLINAS BLVD, IRVING, TX, 75039
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,407,187,892
Exercised Options: $2,407,187,892
Current Obligation: $2,302,392,654
Actual Outlays: $599,686,422
Subaward Activity
Number of Subawards: 2449
Total Subaward Amount: $1,016,326,379
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2022-09-20
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)