DOE's $96.8M environmental services contract with Navarro Research and Engineering, Inc. awarded under full and open competition
Contract Overview
Contract Amount: $96,785,167 ($96.8M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2014-10-01
End Date: 2020-11-30
Contract Duration: 2,252 days
Daily Burn Rate: $43.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF ENVIRONMENTAL PROGRAM SERVICES FOR NEVADA FIELD OFFICE - EM-30.1.
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $96.8 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: IGF::OT::IGF ENVIRONMENTAL PROGRAM SERVICES FOR NEVADA FIELD OFFICE - EM-30.1. Key points: 1. The contract's value of $96.8 million over approximately two years suggests a significant investment in environmental remediation services. 2. Awarded under 'full and open competition after exclusion of sources,' this indicates a competitive process with specific justifications for excluding other potential bidders. 3. The 'Cost Plus Award Fee' (CPAF) contract type implies that contractor performance significantly influences the final payment, incentivizing high-quality outcomes. 4. The contract's duration of 2252 days (approx. 6.2 years) points to a long-term commitment to environmental management at the Nevada Field Office. 5. The significant 'base' value of $42.9 million suggests a substantial portion of the contract is for guaranteed services, with award fees tied to performance. 6. The contract's focus on Remediation Services (NAICS 562910) places it within a critical sector for environmental protection and regulatory compliance.
Value Assessment
Rating: good
The contract's total value of $96.8 million for approximately 6.2 years of environmental remediation services at the Nevada Field Office appears reasonable given the scope. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive value for money if managed effectively. Benchmarking against similar large-scale environmental remediation contracts would provide further insight, but the scale of the award suggests a complex and critical undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the initial intent was open competition, certain sources were later excluded, possibly due to specific technical requirements, prior performance, or other justifiable reasons. The number of bidders (5) indicates a degree of competition, but the exclusion of sources may have limited the overall competitive landscape and potentially impacted price discovery.
Taxpayer Impact: The exclusion of sources, even within a framework of open competition, warrants scrutiny to ensure that taxpayers received the best possible value and that the exclusion was fully justified and transparent.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the remediation of environmental hazards at the Nevada Field Office. The services delivered are critical for environmental cleanup and compliance with regulatory standards. The geographic impact is concentrated in Nevada, specifically at the Nevada Field Office. The contract supports a workforce skilled in environmental remediation, engineering, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Cost Plus Award Fee' structure, while incentivizing performance, can lead to higher costs if award fees are consistently maximized without stringent oversight.
- The 'exclusion of sources' in a 'full and open competition' scenario raises questions about the breadth of competition and potential for price optimization.
- The long contract duration (over 6 years) necessitates ongoing vigilance to ensure continued cost-effectiveness and alignment with evolving environmental needs.
Positive Signals
- The award to Navarro Research and Engineering, Inc. suggests they possess the specialized capabilities required for complex environmental remediation.
- The 'full and open competition' aspect, even with exclusions, indicates an effort to solicit bids from qualified contractors.
- The CPAF structure, if managed well, can drive superior performance and achieve project goals efficiently.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical component of the broader Environmental Services industry. This sector involves the cleanup of contaminated sites, waste management, and compliance with environmental regulations. The market is characterized by specialized firms with expertise in geology, engineering, and regulatory affairs. Spending in this area is often driven by government mandates and legacy industrial activities. Comparable spending benchmarks would typically be assessed against other large-scale federal environmental cleanup contracts.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract award. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Navarro Research and Engineering, Inc., is likely a large business, and the contract's nature may not have lent itself to significant subcontracting opportunities for small businesses in the environmental remediation space.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The 'Cost Plus Award Fee' structure implies performance monitoring to determine award fee payouts. Transparency is generally facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the DOE IG typically oversees departmental spending for waste, fraud, and abuse, which would likely encompass significant contracts like this.
Related Government Programs
- Department of Energy Environmental Management Program
- Superfund Remedial Program (EPA)
- Defense Environmental Restoration Program (DoD)
- Federal Agency Environmental Compliance Contracts
Risk Flags
- Potential for cost overruns due to CPAF structure if not tightly managed.
- Limited competition due to exclusion of sources may impact price optimization.
- Long contract duration requires sustained oversight to ensure ongoing value.
- Complexity of environmental remediation can introduce unforeseen technical challenges and costs.
Tags
department-of-energy, environmental-remediation, cost-plus-award-fee, full-and-open-competition, limited-competition, navarro-research-and-engineering, nevada, large-contract, long-term-contract, environmental-services, remediation-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $96.8 million to NAVARRO RESEARCH AND ENGINEERING, INC.. IGF::OT::IGF ENVIRONMENTAL PROGRAM SERVICES FOR NEVADA FIELD OFFICE - EM-30.1.
Who is the contractor on this award?
The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $96.8 million.
What is the period of performance?
Start: 2014-10-01. End: 2020-11-30.
What is the track record of Navarro Research and Engineering, Inc. with Department of Energy contracts, particularly in environmental remediation?
Navarro Research and Engineering, Inc. has a history of working with the Department of Energy on various projects, including environmental management and remediation. Their involvement in contracts like the IGF::OT::IGF ENVIRONMENTAL PROGRAM SERVICES FOR NEVADA FIELD OFFICE suggests a sustained relationship and demonstrated capability in handling complex environmental tasks. Analyzing their past performance on similar DOE contracts, including any awards or penalties related to performance metrics and cost control, would provide a clearer picture of their reliability and effectiveness in delivering environmental services. Specific details on past project outcomes, safety records, and adherence to schedules would further inform an assessment of their track record.
How does the awarded value of $96.8 million compare to similar environmental remediation contracts for Department of Energy field offices?
The $96.8 million award for environmental remediation services at the Nevada Field Office over approximately 6.2 years represents a substantial investment. To benchmark this value, one would compare it to other large-scale environmental cleanup contracts awarded by the DOE or other federal agencies (like EPA or DoD) for comparable sites or scopes of work. Factors such as the complexity of contamination, the specific remediation technologies required, regulatory requirements, and the duration of the contract are crucial for a fair comparison. Without specific comparable contract data, it's difficult to definitively state if $96.8 million is high or low, but it indicates a significant commitment to addressing environmental challenges at this specific DOE facility.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?
The primary risks associated with a CPAF contract of this magnitude ($96.8 million) revolve around cost control and the potential for inflated profits if not managed rigorously. While CPAF incentivizes performance, there's a risk that the contractor may focus on achieving award fee criteria that lead to higher costs, rather than the most cost-effective solutions, if the government's oversight and evaluation processes are not robust. Another risk is the potential for disputes over performance evaluations, which can impact contractor morale and project progress. Ensuring clear, objective, and measurable performance metrics is critical to mitigating these risks and ensuring that the award fee truly reflects exceptional value delivered to the government.
What does the 'full and open competition after exclusion of sources' procurement method imply for the effectiveness of competition and taxpayer value?
The 'full and open competition after exclusion of sources' method implies a complex procurement history. Initially intended for broad competition, the subsequent exclusion of specific sources suggests that only a subset of potential bidders ultimately competed. This could be due to highly specialized requirements, security concerns, or other factors deemed necessary by the agency. While it still involves competition, the exclusion may have narrowed the field, potentially limiting the downward pressure on prices that a truly unrestricted open competition might achieve. For taxpayers, this means the value proposition hinges on whether the excluded sources were genuinely unable to meet critical requirements or if their exclusion inadvertently reduced competitive intensity, potentially impacting the final price paid.
How has historical spending on environmental remediation services at the Nevada Field Office trended prior to this contract?
To assess historical spending trends, one would need to examine prior contracts awarded for environmental remediation services at the DOE's Nevada Field Office. This would involve analyzing contract databases for similar services over preceding years. Understanding the historical spending patterns—whether they were increasing, decreasing, or stable—provides context for the current $96.8 million award. Significant deviations from historical norms might warrant further investigation into the reasons, such as new regulatory requirements, increased site complexity, or changes in program scope. Without access to that specific historical data, it's impossible to detail the trend, but such an analysis is crucial for evaluating the current contract's financial context.
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 › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Solicitation ID: DE-SOL-0005982
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 669 EMORY VALLEY RD, OAK RIDGE, TN, 37830
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $98,740,969
Exercised Options: $98,740,969
Current Obligation: $96,785,167
Actual Outlays: $16,879,243
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-10-01
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2021-02-25
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