DOE's $84.7M Legacy Management Support Contract Awarded to HII Nuclear Inc. with No Competition
Contract Overview
Contract Amount: $84,684,407 ($84.7M)
Contractor: HII Nuclear Inc
Awarding Agency: Department of Energy
Start Date: 2014-07-01
End Date: 2015-09-30
Contract Duration: 456 days
Daily Burn Rate: $185.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF LEGACY MANAGEMENT SUPPORT (LMS) SERVICES
Place of Performance
Location: GRAND JUNCTION, MESA County, COLORADO, 81505
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $84.7 million to HII NUCLEAR INC for work described as: IGF::OT::IGF LEGACY MANAGEMENT SUPPORT (LMS) SERVICES Key points: 1. Significant contract value of $84.7 million for LMS services. 2. Sole awardee HII Nuclear Inc. indicates a lack of competitive bidding. 3. Contract duration of 456 days. 4. Focus on Remediation Services within the Department of Energy. 5. Time and Materials contract type may pose cost control challenges.
Value Assessment
Rating: questionable
The contract value of $84.7 million for 456 days of service is substantial. Without competitive data, it's difficult to assess if this pricing is optimal compared to similar remediation services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for an $84.7 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Energy's reliance on a single contractor for critical LMS services warrants scrutiny. Potential for cost overruns given the Time and Materials contract type and lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials contract type
- Lack of competition
- Significant contract value
Positive Signals
- Contract awarded to HII Nuclear Inc.
- Services provided to Department of Energy
- Focus on Remediation Services
Sector Analysis
This contract falls under Remediation Services, a critical but often complex sector within the Department of Energy. Spending benchmarks for such specialized services can vary widely, but the lack of competition here is a key concern.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to confirm.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of Energy to ensure fair pricing and effective service delivery, mitigating risks associated with non-competitive awards.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition
- Sole-source award
- Time and Materials contract type
- Potential for cost overruns
- Limited transparency in pricing
Tags
remediation-services, department-of-energy, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $84.7 million to HII NUCLEAR INC. IGF::OT::IGF LEGACY MANAGEMENT SUPPORT (LMS) SERVICES
Who is the contractor on this award?
The obligated recipient is HII NUCLEAR INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $84.7 million.
What is the period of performance?
Start: 2014-07-01. End: 2015-09-30.
What was the justification for awarding this significant contract on a sole-source basis?
The justification for a sole-source award typically involves specific circumstances such as unique capabilities, urgent needs, or the unavailability of other qualified sources. Without detailed documentation from the Department of Energy, the precise rationale remains unclear, making it difficult to assess the necessity of bypassing the competitive process.
What measures were in place to control costs under this Time and Materials contract?
Time and Materials contracts can be susceptible to cost escalation. Given this was a sole-source award, specific oversight mechanisms, such as detailed cost tracking, regular performance reviews, and defined ceiling prices, would be crucial to ensure taxpayer funds were used efficiently and effectively.
How does the performance of HII Nuclear Inc. on this contract compare to industry standards for remediation services?
Assessing performance against industry standards is challenging without access to specific performance metrics and quality data for this contract. A comprehensive review would require examining deliverables, adherence to timelines, and overall effectiveness in meeting the Department of Energy's legacy management support objectives.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 105 TECHNOLOGY DR STE 190, BROOMFIELD, CO, 80021
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $95,634,168
Exercised Options: $95,634,168
Current Obligation: $84,684,407
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-07-01
Current End Date: 2015-09-30
Potential End Date: 2018-08-27 00:00:00
Last Modified: 2018-08-29
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