DOE Awards $10M for Environmental Skid Rooms at Direct Air Capture Center
Contract Overview
Contract Amount: $10,040,054 ($10.0M)
Contractor: Chenega Worldwide Support, LLC
Awarding Agency: Department of Energy
Start Date: 2024-08-07
End Date: 2026-04-30
Contract Duration: 631 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TASK ORDER 6 - CONSTRUCTION: ENVIRONMENTAL SKID ROOMS FOR 89243323DFE000021 IDIQ DESIGN/BUILD CONTRACT OF THE DIRECT AIR CAPTURE CENTER (DACC) PROJECT
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236
Plain-Language Summary
Department of Energy obligated $10.0 million to CHENEGA WORLDWIDE SUPPORT, LLC for work described as: TASK ORDER 6 - CONSTRUCTION: ENVIRONMENTAL SKID ROOMS FOR 89243323DFE000021 IDIQ DESIGN/BUILD CONTRACT OF THE DIRECT AIR CAPTURE CENTER (DACC) PROJECT Key points: 1. Significant investment in critical infrastructure for the DACC project. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given the firm-fixed-price contract type. 4. Construction sector spending benchmark for similar projects needs review.
Value Assessment
Rating: questionable
The contract is a firm-fixed-price delivery order under an IDIQ. Without comparable contract data, assessing the pricing against similar projects is difficult. The $10M award for environmental skid rooms warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Supports the development of the Direct Air Capture Center, a key climate initiative. Construction of specialized environmental skid rooms is essential for project operations. The award contributes to the broader energy sector's transition towards cleaner technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed cost breakdown.
- Firm-fixed-price contract may not reflect true market value without competition.
Positive Signals
- Supports a critical climate change mitigation project.
- Addresses specific environmental needs for the DACC facility.
Sector Analysis
This award falls within the Commercial and Institutional Building Construction sector. The $10M price point for specialized construction elements like environmental skid rooms is substantial and requires careful benchmarking against similar projects in the energy and construction industries.
Small Business Impact
The contract was awarded to Chenega Worldwide Support, LLC. Information regarding small business subcontracting is not readily available, and the sole-source nature of the award limits opportunities for small businesses to participate.
Oversight & Accountability
Oversight will be crucial to ensure the project stays within budget and meets its environmental and operational objectives, especially given the sole-source award. The Department of Energy's contracting office is responsible for monitoring performance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns due to lack of competition.
- Limited transparency on price justification.
- No clear indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-energy, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.0 million to CHENEGA WORLDWIDE SUPPORT, LLC. TASK ORDER 6 - CONSTRUCTION: ENVIRONMENTAL SKID ROOMS FOR 89243323DFE000021 IDIQ DESIGN/BUILD CONTRACT OF THE DIRECT AIR CAPTURE CENTER (DACC) PROJECT
Who is the contractor on this award?
The obligated recipient is CHENEGA WORLDWIDE SUPPORT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2024-08-07. End: 2026-04-30.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves specific circumstances, such as unique capabilities or urgent needs. Without access to the justification documentation, it's impossible to confirm the rationale. The price reasonableness assessment in such cases relies heavily on historical data, independent cost estimates, or market research conducted by the agency, which may be less robust than competitive bidding.
What are the specific environmental risks this skid room is designed to mitigate, and what is the cost-effectiveness of this solution compared to alternatives?
Environmental skid rooms are typically designed to contain and manage hazardous materials, emissions, or specific process byproducts, ensuring compliance with environmental regulations and preventing contamination. The cost-effectiveness of this specific solution is difficult to assess without knowing the exact environmental hazards it addresses and comparing its lifecycle costs against alternative containment or mitigation strategies. The sole-source nature complicates this evaluation.
How will the effectiveness of these environmental skid rooms be measured to ensure they meet the operational and environmental goals of the DACC project?
The effectiveness of the skid rooms will likely be measured through a combination of initial inspections, operational performance monitoring, and environmental compliance testing. This includes verifying containment integrity, monitoring air quality, and ensuring the systems function as designed throughout their operational lifespan. Regular audits and reporting by the contractor will be essential for accountability.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1155 KELLY JOHNSON BLVD STE 105, COLORADO SPRINGS, CO, 80920
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,040,054
Exercised Options: $10,040,054
Current Obligation: $10,040,054
Actual Outlays: $8,556,065
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89243323DFE000021
IDV Type: IDC
Timeline
Start Date: 2024-08-07
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-09
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