DOE's $25.7M environmental remediation contract awarded to OSC Technical Solutions, LLC

Contract Overview

Contract Amount: $25,748,548 ($25.7M)

Contractor: OSC Technical Solutions, LLC

Awarding Agency: Department of Energy

Start Date: 2017-09-01

End Date: 2020-10-15

Contract Duration: 1,140 days

Daily Burn Rate: $22.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO PROCURE SUPPORT SERVICES FOR ENVIRONMENTAL REMEDIATION, TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR THE US DOE OFFICE OF RIVER PROTECTION (ORP) BY PROVIDING QUALIFIED ASSISTANCE IN THE PLANNING, DIRECTING, AND OVERSEEING OF DESIGN, CONSTRUCTION, ENVIRONMENTAL REMEDIATION, CLEANUP, AND OPERATION OF ORP FACILITIES. SBA REFERENCE NUMBER 1087-17-70230

Place of Performance

Location: RICHLAND, BENTON County, WASHINGTON, 99354

State: Washington Government Spending

Plain-Language Summary

Department of Energy obligated $25.7 million to OSC TECHNICAL SOLUTIONS, LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO PROCURE SUPPORT SERVICES FOR ENVIRONMENTAL REMEDIATION, TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR THE US DOE OFFICE OF RIVER PROTECTION (ORP) BY PROVIDING QUALIFIED ASSISTANCE IN THE PLANNING, DIRECTING, AND OVERSEEING OF DESIGN,… Key points: 1. Contract provides critical support for environmental remediation and program management at DOE's Office of River Protection. 2. The award was not competitively procured, raising questions about potential price discovery. 3. The contract duration of 1140 days suggests a significant, long-term need for these services. 4. The use of labor hours as a contract type can sometimes lead to cost overruns if not managed tightly. 5. The geographic focus is Washington state, indicating a localized but important environmental cleanup effort.

Value Assessment

Rating: fair

The total award amount of $25.7 million for environmental remediation and program management support appears to be within a reasonable range for a multi-year federal contract of this nature. However, without specific benchmarks for comparable services at the Department of Energy or other agencies, a precise value-for-money assessment is challenging. The 'labor hours' contract type necessitates careful monitoring to ensure efficiency and prevent cost escalation. The absence of competition further complicates a direct price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other qualified vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances do not permit a competitive process. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price for these essential services due to the absence of competitive bidding. This could potentially lead to higher overall costs for the remediation effort.

Public Impact

The Department of Energy's Office of River Protection benefits from essential support services for its environmental cleanup mission. Services include planning, directing, and overseeing design, construction, environmental remediation, cleanup, and operation of facilities. The geographic impact is concentrated in Washington state, addressing specific environmental challenges. The contract supports a specialized workforce skilled in environmental remediation and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Labor hour contract type requires diligent oversight to control spending and prevent scope creep.
Lack of publicly available performance data makes it difficult to assess contractor effectiveness.
The long duration of the contract could lead to complacency if not actively managed.

Positive Signals

Contract addresses a critical environmental remediation need for the Department of Energy.
OSC Technical Solutions, LLC is a known entity in providing these types of services.
The contract supports the government's mission to clean up legacy nuclear waste sites.
The defined scope of work provides a clear objective for the contractor.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical area for government agencies managing legacy industrial and nuclear sites. The market for these services is specialized, often involving complex technical challenges and stringent regulatory compliance. Spending in this sector is driven by federal mandates for cleanup and site restoration. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each site and remediation project, but multi-million dollar contracts for comprehensive support services are common.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to OSC Technical Solutions, LLC, a company not explicitly identified as a small business in this context, suggests that the primary focus was on securing specialized capabilities. This means that opportunities for small businesses to participate in this specific contract may be limited, unless they are part of a larger subcontracting effort not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's Office of River Protection, which is the recipient of the support services. The contract's 'labor hours' type necessitates robust performance monitoring and financial oversight to ensure that work is performed efficiently and within budget. Accountability measures would be tied to the delivery of defined support services and adherence to project milestones. Transparency is generally maintained through contract reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

Department of Energy Environmental Cleanup Programs
Federal Remediation Services
Nuclear Waste Management Programs

Risk Flags

Sole-source award
Labor hour contract type
Lack of performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $25.7 million to OSC TECHNICAL SOLUTIONS, LLC. IGF::OT::IGF THE PURPOSE OF THIS CONTRACT IS TO PROCURE SUPPORT SERVICES FOR ENVIRONMENTAL REMEDIATION, TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR THE US DOE OFFICE OF RIVER PROTECTION (ORP) BY PROVIDING QUALIFIED ASSISTANCE IN THE PLANNING, DIRECTING, AND OVERSEEING OF DESIGN, CONSTRUCTION, ENVIRONMENTAL REMEDIATION, CLEANUP, AND OPERATION OF ORP FACILITIES. SBA REFERENCE NUMBER 1087-17-70230

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 $25.7 million.

What is the period of performance?

Start: 2017-09-01. End: 2020-10-15.

What is the track record of OSC Technical Solutions, LLC in performing similar environmental remediation and program management contracts for the federal government?

OSC Technical Solutions, LLC has a history of performing contracts related to environmental services and technical support for various government agencies. While specific details on past performance for the Department of Energy's Office of River Protection are not provided in this data snippet, the company's engagement in this significant contract suggests a level of established capability. A comprehensive review would involve examining past performance evaluations, contract completion records, and any reported issues or successes on similar projects. Understanding their experience with large-scale, long-term environmental remediation efforts, particularly those involving complex regulatory environments like nuclear site cleanup, would be crucial for a full assessment of their track record.

How does the $25.7 million contract value compare to similar environmental remediation support services procured by the DOE or other federal agencies?

The $25.7 million contract value for environmental remediation, technical, and program management support for the DOE's Office of River Protection is substantial, reflecting the complexity and duration of such projects. Without access to a comprehensive database of comparable federal contracts, a precise benchmark is difficult. However, large-scale environmental cleanup and management contracts for agencies like the EPA or DOD often range from tens to hundreds of millions of dollars over several years. The 'labor hours' pricing structure means the final cost can fluctuate based on actual hours worked. Given the critical nature of DOE's mission at the Hanford site (where ORP operates), this level of funding is not unexpected for comprehensive support services over a multi-year period.

What are the primary risks associated with this sole-source contract, and how are they being mitigated?

The primary risk associated with this sole-source contract is the potential for inflated pricing and reduced efficiency due to the lack of competitive pressure. Without competing bids, there is less incentive for the contractor to offer the lowest possible price or to innovate aggressively. Mitigation strategies would typically involve robust government oversight, including detailed cost analysis, performance monitoring, and strict adherence to the contract's scope of work. The Department of Energy would need to ensure that the 'labor hours' are justified, that the work is necessary, and that the rates are fair. Regular performance reviews and audits are essential to identify and address any potential cost overruns or performance deficiencies.

How effective has OSC Technical Solutions, LLC been in delivering the planned environmental remediation and program management support services under this contract?

The provided data does not include specific performance metrics or evaluations for OSC Technical Solutions, LLC's effectiveness in delivering services under this contract. Effectiveness would typically be assessed through metrics such as adherence to project timelines, quality of deliverables, cost control, and compliance with environmental and safety regulations. As the contract spans from September 1, 2017, to October 15, 2020, a post-award review would be necessary to determine if the project objectives were met. Without access to official performance reports or Inspector General findings, a definitive assessment of effectiveness cannot be made from this data alone.

What are the historical spending patterns for environmental remediation and program management support at the DOE's Office of River Protection?

Historical spending patterns for environmental remediation and program management support at the DOE's Office of River Protection (ORP) are likely characterized by significant, long-term investments due to the nature of the cleanup mission at the Hanford Site. The ORP is responsible for managing the treatment and disposal of radioactive waste, a process that requires sustained funding over decades. Contracts in this area often involve large dollar amounts and can be awarded through various mechanisms, including sole-source or competitive procurements, depending on the specific needs and market conditions. The $25.7 million awarded for this particular contract (2017-2020) represents a portion of the overall, ongoing federal expenditure dedicated to ORP's mission, which is driven by complex technical challenges and regulatory requirements.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DE-SOL-0010964

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cook Inlet Region Inc (UEI: 076630334)

Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,000,000

Exercised Options: $26,000,000

Current Obligation: $25,748,548

Actual Outlays: $8,001,214

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline