DOE's Savannah River Field Office Awards $37.5M Contract for Virgin Palladium Sponge
Contract Overview
Contract Amount: $37,462,993 ($37.5M)
Contractor: Colonial Metals, Inc
Awarding Agency: Department of Energy
Start Date: 2022-07-01
End Date: 2027-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: THE SAVANNAH RIVER FIELD OFFICE (SRFO) DESIRES TO PROCURE VIRGIN PALLADIUM SPONGE MEETING THE REQUIREMENTS OF SPECIFICATION ASTM B 589-94, LESS THAN 5 PPM SULFUR.
Place of Performance
Location: ELKTON, CECIL County, MARYLAND, 21921
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $37.5 million to COLONIAL METALS, INC for work described as: THE SAVANNAH RIVER FIELD OFFICE (SRFO) DESIRES TO PROCURE VIRGIN PALLADIUM SPONGE MEETING THE REQUIREMENTS OF SPECIFICATION ASTM B 589-94, LESS THAN 5 PPM SULFUR. Key points: 1. Procurement of specialized palladium sponge for specific industrial requirements. 2. Contract awarded to Colonial Metals, Inc. by the Department of Energy. 3. Potential risk associated with sole-source or limited competition for critical materials. 4. Focus on meeting stringent purity standards (ASTM B 589-94, <5 PPM Sulfur).
Value Assessment
Rating: questionable
The contract value of $37.5 million for palladium sponge is significant. Without a competitive bid, it's difficult to assess if this price represents fair market value compared to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited or sole-source approach. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Ensures supply of a critical material for specific government operations. Potential for higher costs due to non-competitive award. Lack of transparency in the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
Positive Signals
- Meets specific material requirements
- Ensures supply chain continuity
Sector Analysis
This procurement falls under the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' sector. Spending benchmarks for specialized metal sponge procurement are highly variable based on material type, purity, and market conditions.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to fulfill this specialized requirement.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. The lack of competition warrants scrutiny to ensure accountability and prevent potential misuse of funds.
Related Government Programs
- All Other Miscellaneous Fabricated Metal Product Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competitive bidding
- Potential for price gouging
- Limited oversight on pricing
- Dependency on a single supplier
- Uncertainty due to economic price adjustment
Tags
all-other-miscellaneous-fabricated-metal, department-of-energy, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $37.5 million to COLONIAL METALS, INC. THE SAVANNAH RIVER FIELD OFFICE (SRFO) DESIRES TO PROCURE VIRGIN PALLADIUM SPONGE MEETING THE REQUIREMENTS OF SPECIFICATION ASTM B 589-94, LESS THAN 5 PPM SULFUR.
Who is the contractor on this award?
The obligated recipient is COLONIAL METALS, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $37.5 million.
What is the period of performance?
Start: 2022-07-01. End: 2027-06-30.
What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards require a documented justification, such as a sole-source justification or a limited competition rationale. Without this information, it's impossible to assess the fairness of the pricing or the adherence to procurement regulations designed to achieve best value for the government.
What are the risks associated with relying on a single supplier for critical materials like virgin palladium sponge?
Relying on a single supplier for critical materials like virgin palladium sponge poses significant risks. These include potential supply chain disruptions due to the supplier's operational issues, price volatility if the supplier faces increased costs, and a lack of leverage for the government in price negotiations. This dependence can also hinder innovation and the development of alternative sources or materials.
How does the economic price adjustment clause impact the overall cost and predictability of this contract?
The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as the cost of raw materials or labor. While it can protect the contractor from unforeseen cost increases and potentially ensure supply, it also introduces cost uncertainty for the government. The impact on overall cost depends on the volatility of the underlying economic indicators and the specific terms of the EPA.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233122QNA000254
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Colonial Metals Inc
Address: 505 BLUE BALL RD BLDG 20, ELKTON, MD, 21921
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,496,497
Exercised Options: $49,496,497
Current Obligation: $37,462,993
Actual Outlays: $37,462,986
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-01
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-06-17
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