DOE awards $168M task order for Portsmouth D&D, extending services through 2031
Contract Overview
Contract Amount: $168,039,067 ($168.0M)
Contractor: Southern Ohio Cleanup Company LLC
Awarding Agency: Department of Energy
Start Date: 2025-09-19
End Date: 2031-09-30
Contract Duration: 2,202 days
Daily Burn Rate: $76.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PORTSMOUTH (PORTS) DECONTAMINATION & DECOMMISSIONING (D&D) - TASK ORDER 3 FISCAL YEARS 2026 THROUGH 2031
Place of Performance
Location: PIKETON, PIKE County, OHIO, 45661
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $168.0 million to SOUTHERN OHIO CLEANUP COMPANY LLC for work described as: PORTSMOUTH (PORTS) DECONTAMINATION & DECOMMISSIONING (D&D) - TASK ORDER 3 FISCAL YEARS 2026 THROUGH 2031 Key points: 1. Task order focuses on critical decontamination and decommissioning activities at the Portsmouth site. 2. Long-term contract duration suggests a significant, ongoing need for specialized remediation services. 3. Cost-plus award fee structure incentivizes performance while allowing for cost flexibility. 4. Full and open competition indicates a robust bidding process for this complex work. 5. The contract's value positions it as a substantial investment in environmental cleanup. 6. Performance period spans multiple fiscal years, requiring sustained contractor commitment and oversight.
Value Assessment
Rating: good
The contract value of approximately $168 million over six years represents a significant investment in environmental remediation. While specific benchmarks for this type of specialized D&D work are difficult to ascertain without detailed scope, the cost-plus award fee structure allows for adjustments based on performance. Comparing this to similar large-scale environmental cleanup contracts, the pricing appears to be within a reasonable range, contingent on the successful achievement of performance objectives and cost controls.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process is a positive indicator for price discovery and value for money. This approach typically leads to more competitive pricing and a wider selection of capable firms.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the significant funds allocated to this environmental cleanup effort.
Public Impact
The primary beneficiaries are the Department of Energy and the public, through the safe and effective cleanup of a former nuclear materials production site. Services delivered include decontamination, decommissioning, and waste management activities essential for site closure. The geographic impact is concentrated in Pike County, Ohio, where the Portsmouth Gaseous Diffusion Plant is located. Workforce implications include the potential for numerous skilled jobs in environmental remediation, engineering, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
- Complexity of D&D activities can lead to unforeseen challenges and schedule delays.
- Ensuring consistent oversight across a multi-year, high-value contract requires dedicated resources.
Positive Signals
- Awarded through full and open competition, indicating a strong market response.
- Long-term duration suggests contractor stability and commitment to the project.
- Cost-plus award fee structure can incentivize high performance and efficiency.
Sector Analysis
This contract falls within the environmental remediation and government services sector, specifically focusing on the complex decontamination and decommissioning of former nuclear facilities. The market for such specialized services is relatively niche, dominated by a few large, experienced contractors. The Department of Energy is a major client in this space, with significant ongoing investments in cleaning up legacy sites across the nation. Benchmarking this contract's value against other large-scale D&D projects would require detailed analysis of scope and complexity.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor is Southern Ohio Cleanup Company LLC, the scale and nature of D&D work often involve significant subcontracting opportunities. It is crucial to assess whether the prime contractor has robust plans for engaging small businesses as subcontractors to ensure broader economic participation.
Oversight & Accountability
Oversight will likely be managed by the Department of Energy's relevant program offices and potentially the Office of Inspector General. Accountability measures are built into the cost-plus award fee structure, tying contractor compensation to performance metrics. Transparency will depend on the DOE's reporting practices regarding progress, costs, and any challenges encountered during the contract period.
Related Government Programs
- Portsmouth Site D&D Projects
- DOE Environmental Management Program
- Nuclear Facility Decommissioning
- Hazardous Waste Remediation Services
Risk Flags
- Long contract duration may increase risk of cost escalation due to inflation or unforeseen issues.
- Complexity of D&D activities carries inherent risks of schedule delays and technical challenges.
- Cost-plus award fee structure requires diligent government oversight to ensure value for money.
Tags
doe, remediation-services, decontamination-and-decommissioning, environmental-cleanup, cost-plus-award-fee, full-and-open-competition, ohio, portsmouth, long-term-contract, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $168.0 million to SOUTHERN OHIO CLEANUP COMPANY LLC. PORTSMOUTH (PORTS) DECONTAMINATION & DECOMMISSIONING (D&D) - TASK ORDER 3 FISCAL YEARS 2026 THROUGH 2031
Who is the contractor on this award?
The obligated recipient is SOUTHERN OHIO CLEANUP COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $168.0 million.
What is the period of performance?
Start: 2025-09-19. End: 2031-09-30.
What is the historical spending trend for D&D activities at the Portsmouth site?
Historical spending data for D&D at the Portsmouth site would provide crucial context for the $168 million task order. Analyzing past expenditures, including previous task orders and contracts for similar activities, can reveal trends in cost escalation, project timelines, and the overall investment required for site cleanup. Understanding the historical financial commitment helps in evaluating whether the current award is consistent with past spending patterns or represents a significant shift. It also aids in identifying potential cost efficiencies or areas where spending has been particularly high. Without specific historical data, it is challenging to benchmark the current award effectively against the site's cleanup trajectory.
How does the cost-plus award fee structure compare to other D&D contracts?
The Cost-Plus Award Fee (CPAF) structure is common for complex, long-term projects where the final costs are difficult to predict precisely, such as large-scale environmental remediation. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base amount and an award amount that is determined by the government based on performance against pre-defined criteria. This differs from fixed-price contracts, where the price is set regardless of actual costs, or cost-plus-incentive-fee (CPIF) contracts, which have more defined cost-sharing mechanisms. For D&D work, CPAF aims to incentivize contractor performance and efficiency while providing flexibility for unforeseen technical challenges. Its effectiveness hinges on well-defined award criteria and rigorous government oversight to ensure value for money.
What are the key performance indicators (KPIs) for this task order?
Key Performance Indicators (KPIs) for this task order would be critical for assessing the contractor's performance and determining the award fee. While not explicitly detailed in the provided data, typical KPIs for D&D contracts include adherence to safety protocols, environmental compliance, schedule milestones, cost control within approved budgets, waste management efficiency, and successful completion of specific remediation tasks. The Department of Energy would establish these metrics, likely focusing on risk reduction, regulatory compliance, and timely progress towards site closure objectives. The effectiveness of the CPAF structure relies heavily on the clarity, measurability, and attainability of these KPIs.
What is Southern Ohio Cleanup Company LLC's track record with similar DOE contracts?
Assessing Southern Ohio Cleanup Company LLC's track record with similar Department of Energy (DOE) contracts is essential for evaluating their capability to execute this significant task order. Information regarding their past performance on decontamination and decommissioning projects, particularly those involving nuclear materials or complex hazardous waste, would be highly relevant. This includes examining their history of safety compliance, project completion rates, cost performance, and any past performance evaluations or disputes. A strong history with comparable DOE projects suggests a lower risk profile for this new task order, while a less established record might warrant closer scrutiny and more robust oversight.
What are the potential risks associated with the 2031 completion date?
The extended completion date of September 30, 2031, for this task order introduces several potential risks. Firstly, the long duration increases the likelihood of encountering unforeseen technical challenges or changes in regulatory requirements that could impact scope, cost, and schedule. Secondly, maintaining consistent contractor focus and government oversight over such an extended period can be challenging. Thirdly, economic factors, such as inflation or shifts in funding priorities, could affect the project's financial stability over its lifespan. Finally, ensuring the continuity of specialized workforce and institutional knowledge throughout the project's duration is critical to avoid delays or performance degradation.
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
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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,538,764,167
Exercised Options: $2,538,764,167
Current Obligation: $168,039,067
Actual Outlays: $67,136,235
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303323DEM000089
IDV Type: IDC
Timeline
Start Date: 2025-09-19
Current End Date: 2031-09-30
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-03-31
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