DOE awards $16.15M contract to Four Rivers Nuclear Partnership for R-114 destruction at Paducah site
Contract Overview
Contract Amount: $16,150,000 ($16.1M)
Contractor: Four Rivers Nuclear Partnership LLC
Awarding Agency: Department of Energy
Start Date: 2022-12-12
End Date: 2026-12-31
Contract Duration: 1,480 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THIS IS A TASK ORDER ISSUED AGAINST THE IDIQ CLIN 0401 OF DE-EM0004895 FOR THE SHIPMENT AND DESTRUCTION OF LEGACY R-114 FROM THE PADUCAH SITE.
Place of Performance
Location: KEVIL, MCCRACKEN County, KENTUCKY, 42053
State: Kentucky Government Spending
Plain-Language Summary
Department of Energy obligated $16.1 million to FOUR RIVERS NUCLEAR PARTNERSHIP LLC for work described as: THIS IS A TASK ORDER ISSUED AGAINST THE IDIQ CLIN 0401 OF DE-EM0004895 FOR THE SHIPMENT AND DESTRUCTION OF LEGACY R-114 FROM THE PADUCAH SITE. Key points: 1. Contract focuses on hazardous material disposal, a critical environmental service. 2. Competition was full and open, suggesting a competitive bidding process. 3. The cost-plus award fee structure incentivizes performance but requires careful oversight. 4. This falls under Remediation Services, a key area for environmental agencies.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF). While this allows for flexibility in cost, the award fee component requires clear performance metrics to ensure value for money. Benchmarking against similar hazardous waste disposal contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price for the critical environmental service.
Public Impact
Ensures safe disposal of hazardous legacy materials, protecting public health and the environment. Supports the Department of Energy's mission to manage nuclear waste responsibly. Creates jobs and economic activity related to environmental remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires robust performance monitoring.
- Potential for cost overruns if not managed tightly.
- Long contract duration (4 years) increases exposure to changing market conditions.
Positive Signals
- Full and open competition likely secured a competitive price.
- Addresses a critical environmental and safety need.
- Experienced contractor likely involved in hazardous material handling.
Sector Analysis
This contract falls within the Remediation Services sector, specifically dealing with hazardous waste disposal. Spending in this sector is driven by regulatory requirements and the need to manage legacy environmental issues, often involving significant costs and specialized expertise.
Small Business Impact
The data indicates the awardee is Four Rivers Nuclear Partnership LLC. Further analysis would be needed to determine the extent of small business participation as subcontractors on this contract.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) contract type necessitates strong government oversight to ensure performance standards are met and costs are controlled. Regular reviews of performance metrics and expenditures are crucial for accountability.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Potential for cost escalation over the 4-year period.
- Complexity of hazardous material handling and disposal.
- Reliance on specific expertise for R-114 management.
Tags
remediation-services, department-of-energy, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.1 million to FOUR RIVERS NUCLEAR PARTNERSHIP LLC. THIS IS A TASK ORDER ISSUED AGAINST THE IDIQ CLIN 0401 OF DE-EM0004895 FOR THE SHIPMENT AND DESTRUCTION OF LEGACY R-114 FROM THE PADUCAH SITE.
Who is the contractor on this award?
The obligated recipient is FOUR RIVERS NUCLEAR PARTNERSHIP LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2022-12-12. End: 2026-12-31.
What are the specific performance metrics tied to the award fee, and how are they measured to ensure optimal value?
The specific performance metrics for the award fee are not detailed in the provided data. However, for a CPAF contract, these typically include factors like schedule adherence, quality of work, cost control, and safety performance. The government contracting officer is responsible for establishing objective and subjective criteria for evaluating performance against these metrics and determining the award fee amount.
What are the potential risks associated with the long duration of this contract for R-114 destruction?
A 4-year duration for hazardous material destruction presents risks such as potential escalation of disposal costs due to market fluctuations, changes in regulatory requirements over time, and the possibility of unforeseen technical challenges arising during the extended period. Contractor performance could also degrade over a longer term if not continuously monitored.
How does the 'full and open competition' impact the overall cost-effectiveness of this remediation service?
Full and open competition generally enhances cost-effectiveness by encouraging multiple qualified contractors to bid, driving down prices through market forces. This process allows the government to select the offer that provides the best overall value, considering both price and technical approach, thereby maximizing the efficient use of taxpayer funds for essential environmental services.
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 › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0008746
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,206,812
Exercised Options: $23,206,812
Current Obligation: $16,150,000
Actual Outlays: $15,202,213
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DEEM0004895
IDV Type: IDC
Timeline
Start Date: 2022-12-12
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-24
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