DoD's Kozel'sk Silo Decommissioning Contract Reaches $13.7M, Lacking Competition

Contract Overview

Contract Amount: $13,716,549 ($13.7M)

Contractor: Closed Joint Stock Company Holding-Rosobschemash

Awarding Agency: Department of Defense

Start Date: 2008-02-01

End Date: 2010-06-30

Contract Duration: 880 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE REDETERMINATION

Sector: Construction

Official Description: SILO DECOMMISSIONING AT KOZELS'K

Plain-Language Summary

Department of Defense obligated $13.7 million to CLOSED JOINT STOCK COMPANY HOLDING-ROSOBSCHEMASH for work described as: SILO DECOMMISSIONING AT KOZELS'K Key points: 1. Contract value of $13.7 million for silo decommissioning. 2. No competition was utilized for this award. 3. Fixed Price Redetermination contract type suggests potential cost overruns. 4. Specialty trade contractors sector with limited public data. 5. Awarded by the Defense Threat Reduction Agency.

Value Assessment

Rating: questionable

The contract value of $13.7 million for silo decommissioning is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection process. This lack of competition may have hindered price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: The absence of competition raises concerns about the optimal use of taxpayer funds for this specialized service.

Public Impact

Environmental remediation and safety concerns addressed by the decommissioning. Potential for specialized job creation within the specialty trade sector. Geopolitical implications of dismantling former military infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Fixed Price Redetermination contract type
Limited transparency on cost breakdown

Positive Signals

Addresses critical infrastructure decommissioning
Awarded by a specialized agency

Sector Analysis

This contract falls within the 'All Other Specialty Trade Contractors' sector, which often involves specialized services for infrastructure projects. Benchmarking is difficult due to the niche nature and lack of public data.

Small Business Impact

The data indicates the awardee is a Closed Joint Stock Company Holding-Rosobschemash, which does not appear to be a small business. No specific provisions for small business participation were noted.

Oversight & Accountability

The award was a delivery order under a larger contract, suggesting some level of pre-existing oversight. However, the lack of competition warrants closer examination of the justification for sole-source or limited sourcing.

Related Government Programs

All Other Specialty Trade Contractors
Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to contract type
Limited public information on contractor capabilities
Unclear justification for limited competition
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to CLOSED JOINT STOCK COMPANY HOLDING-ROSOBSCHEMASH. SILO DECOMMISSIONING AT KOZELS'K

Who is the contractor on this award?

The obligated recipient is CLOSED JOINT STOCK COMPANY HOLDING-ROSOBSCHEMASH.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2008-02-01. End: 2010-06-30.

What was the specific justification for awarding this contract without competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require access to the contract file to understand the specific reasons, which could include unique capabilities, urgent need, or proprietary technology, and to ensure these justifications were valid and properly documented.

How were costs determined and controlled under the Fixed Price Redetermination contract type?

Fixed Price Redetermination contracts allow for price adjustments based on actual costs incurred. Without detailed cost reports and audits, it's challenging to assess if the final price accurately reflected the work performed and if cost controls were effective. This contract type inherently carries more risk of cost escalation than a firm fixed-price contract.

What is the long-term environmental and safety impact of the silo decommissioning?

The decommissioning of silos, particularly those potentially holding hazardous materials, is crucial for environmental safety and preventing proliferation. The effectiveness of this specific project would depend on the thoroughness of the decommissioning process, waste disposal, and site remediation, details not available in the provided summary data.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE REDETERMINATION (A)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chop Romeks Plyus OOO (UEI: 354722313)

Address: 7 SERGEYA MAKEEVA UL., MOSCOW

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,496,430

Exercised Options: $15,496,430

Current Obligation: $13,716,549

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA107D0002

IDV Type: IDC

Timeline