DOE Awards $491.7M Contract for 222-S Lab Operations and Maintenance to Hanford Laboratory Management and Integration LLC
Contract Overview
Contract Amount: $491,682,823 ($491.7M)
Contractor: Hanford Laboratory Management and Integration LLC
Awarding Agency: Department of Energy
Start Date: 2020-09-29
End Date: 2026-01-04
Contract Duration: 1,923 days
Daily Burn Rate: $255.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SERVICES DESCRIBED IN SECTION C.2 TO OPERATE AND MAINTAIN THE 222-S LABORATORY COMPLEX.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99352
Plain-Language Summary
Department of Energy obligated $491.7 million to HANFORD LABORATORY MANAGEMENT AND INTEGRATION LLC for work described as: SERVICES DESCRIBED IN SECTION C.2 TO OPERATE AND MAINTAIN THE 222-S LABORATORY COMPLEX. Key points: 1. The contract focuses on essential laboratory operations and maintenance, a critical function for the Department of Energy. 2. Competition was full and open after exclusion of sources, suggesting a deliberate but potentially limited competitive process. 3. The cost-plus-award-fee structure incentivizes performance but requires careful oversight to manage costs effectively. 4. This contract falls within the Remediation Services sector, highlighting ongoing environmental management needs.
Value Assessment
Rating: good
The contract's cost-plus-award-fee structure allows for flexibility but necessitates robust performance metrics to ensure value. Benchmarking against similar large-scale laboratory operations and maintenance contracts would provide further insight into pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after the exclusion of sources, indicating a specific justification for limiting the initial pool of bidders. This approach may impact price discovery by reducing the number of competing proposals.
Taxpayer Impact: Taxpayer funds are being utilized for essential environmental and laboratory services, with the contract's success hinging on efficient cost management and performance.
Public Impact
Ensures continued operation of a critical national laboratory facility. Supports ongoing environmental remediation efforts at the Hanford site. Provides employment opportunities within the scientific and technical sectors. Maintains national security and research capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee structure.
- Limited initial competition may impact ultimate price.
- Long contract duration requires sustained oversight.
Positive Signals
- Awarded to a single entity, suggesting specialized expertise.
- Clear performance objectives likely tied to award fees.
- Contract supports critical national infrastructure.
Sector Analysis
This contract is within the Remediation Services sector, specifically for operating and maintaining a laboratory complex. Spending in this sector is often driven by long-term environmental cleanup mandates and the need for specialized scientific facilities.
Small Business Impact
The contract was awarded to Hanford Laboratory Management and Integration LLC, a single large entity. There is no explicit indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Cost Plus Award Fee structure requires diligent oversight from the Department of Energy to ensure performance targets are met and costs are controlled. Regular audits and performance reviews will be crucial for accountability.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Overrun Risk
- Limited Competition Impact
- Contractor Performance Monitoring
- Long-Term Contractual Obligation
Tags
remediation-services, department-of-energy, wa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $491.7 million to HANFORD LABORATORY MANAGEMENT AND INTEGRATION LLC. SERVICES DESCRIBED IN SECTION C.2 TO OPERATE AND MAINTAIN THE 222-S LABORATORY COMPLEX.
Who is the contractor on this award?
The obligated recipient is HANFORD LABORATORY MANAGEMENT AND INTEGRATION LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $491.7 million.
What is the period of performance?
Start: 2020-09-29. End: 2026-01-04.
What specific performance metrics are tied to the award fee, and how are they measured to ensure optimal value for taxpayer dollars?
The specific performance metrics are not detailed in the provided data. However, for a Cost Plus Award Fee contract of this nature, metrics typically revolve around operational efficiency, safety compliance, environmental performance, and timely completion of research or maintenance objectives. The Department of Energy would establish a detailed performance evaluation plan, with independent reviews assessing the contractor's achievement against these benchmarks to determine the award fee.
What was the rationale for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final negotiated price?
The exclusion of sources typically occurs when specific capabilities, security clearances, or unique infrastructure are required, limiting the pool of eligible contractors. The rationale would be documented by the agency. While full and open competition aims for the best value, excluding sources can reduce the competitive pressure, potentially leading to a higher price than if a broader competition had been feasible.
How does the operational cost of the 222-S Laboratory Complex compare to similar facilities managed under different contract types or by different entities?
Without specific cost breakdowns and benchmarks for comparable facilities, a direct comparison is difficult. However, the Cost Plus Award Fee structure suggests a focus on incentivizing performance, which can sometimes lead to higher base costs than fixed-price contracts, offset by potential savings or efficiencies if performance targets are exceeded. A detailed cost-benefit analysis would be needed for a definitive assessment.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89303318REM000012
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2425 STEVENS CENTER PL, RICHLAND, WA, 99354
Business Categories: Category Business, Joint Venture Women Owned Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $635,527,533
Exercised Options: $554,706,143
Current Obligation: $491,682,823
Actual Outlays: $428,467,194
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $8,797,942
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-29
Current End Date: 2026-01-04
Potential End Date: 2028-01-04 00:00:00
Last Modified: 2026-04-06
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