DOE Awards $80M+ to USA Repository Services LLC for OCRWM Program Management
Contract Overview
Contract Amount: $80,230,667 ($80.2M)
Contractor: USA Repository Services LLC
Awarding Agency: Department of Energy
Start Date: 2009-04-01
End Date: 2020-09-30
Contract Duration: 4,200 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: CONTRACT AWARD FOR MANAGEMENT AND OPERATION OF OCRWM PROGRAM
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89144
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $80.2 million to USA REPOSITORY SERVICES LLC for work described as: CONTRACT AWARD FOR MANAGEMENT AND OPERATION OF OCRWM PROGRAM Key points: 1. The contract value is over $80 million, covering a significant period. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes performance. 4. Facilities Support Services sector, crucial for government operations.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee type, which can lead to costs exceeding initial estimates if performance targets are not well-defined or managed. Benchmarking against similar facilities management contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure means the final price is performance-dependent and may fluctuate.
Taxpayer Impact: Taxpayer funds are utilized for the management and operation of a critical government program, with costs potentially influenced by performance incentives.
Public Impact
Ensures continued operation of the Office of Civilian Radioactive Waste Management (OCRWM) program. Supports long-term management of nuclear waste, a sensitive and critical national issue. Potential for cost overruns exists due to the incentive-based fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to unpredictable final costs.
- Long contract duration (over 10 years) increases risk exposure.
- Lack of specific performance metrics makes it hard to assess value for money.
Positive Signals
- Awarded through full and open competition.
- Contract aims to manage a critical national program.
- Performance incentives are included in the contract type.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing the operation and maintenance of government facilities. Spending in this sector is substantial and essential for agency operations, with benchmarks varying widely based on facility type and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to USA REPOSITORY SERVICES LLC, suggesting it was likely awarded to a large business entity. Further analysis would be needed to determine if small business subcontracting opportunities were included.
Oversight & Accountability
The Department of Energy is responsible for oversight. The Cost Plus Award Fee structure necessitates close monitoring of performance to ensure value for money and prevent cost overruns. Accountability relies on the agency's ability to effectively manage the contractor's performance against award criteria.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure
- Long contract duration
- Potential for cost overruns
- Lack of detailed performance metrics in provided data
- Critical nature of the program managed
Tags
facilities-support-services, department-of-energy, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $80.2 million to USA REPOSITORY SERVICES LLC. CONTRACT AWARD FOR MANAGEMENT AND OPERATION OF OCRWM PROGRAM
Who is the contractor on this award?
The obligated recipient is USA REPOSITORY SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $80.2 million.
What is the period of performance?
Start: 2009-04-01. End: 2020-09-30.
How effectively are the award fee criteria structured to ensure optimal performance and cost control for the OCRWM program?
The effectiveness of the award fee criteria hinges on their specificity, measurability, achievability, relevance, and time-bound nature (SMART). If criteria are vague or easily met without significant effort, costs could escalate without proportional performance gains. Conversely, well-defined, challenging criteria tied to program milestones can drive efficiency and value, justifying the Cost Plus Award Fee approach.
What are the primary risks associated with the long duration and Cost Plus Award Fee structure of this contract?
The primary risks include potential cost overruns if performance targets are not rigorously managed or if unforeseen issues arise, leading to higher-than-anticipated fees. The long duration (over 10 years) increases the risk of scope creep, contractor complacency, or misalignment with evolving program needs. Ensuring continuous oversight and adaptive management is crucial to mitigate these risks.
How does the management and operation of the OCRWM program by USA REPOSITORY SERVICES LLC contribute to the overall effectiveness of nuclear waste management in the US?
The effectiveness of the contractor's management and operation is directly tied to the successful execution of the OCRWM program's objectives, such as site characterization, repository development, and stakeholder engagement. Consistent performance, adherence to safety and security protocols, and efficient resource utilization are key indicators. The award fee mechanism is intended to incentivize this effectiveness, but actual impact requires ongoing evaluation of program outcomes.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 106 NEWBERRY ST SW, AIKEN, SC, 29801
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,606,464,986
Exercised Options: $1,606,464,986
Current Obligation: $80,230,667
Actual Outlays: $186,813
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2009-04-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-06-10
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