DOE awards $133.8M for Nevada environmental operations, with Navarro Research and Engineering Inc. as prime

Contract Overview

Contract Amount: $133,866,814 ($133.9M)

Contractor: Navarro Research and Engineering, Inc.

Awarding Agency: Department of Energy

Start Date: 2020-11-30

End Date: 2028-09-30

Contract Duration: 2,861 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ENVIRONMENTAL OPERATIONS TASK ORDER FOR NEVADA

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Energy obligated $133.9 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: ENVIRONMENTAL OPERATIONS TASK ORDER FOR NEVADA Key points: 1. Contract value of $133.8M over nearly 8 years suggests a significant, long-term commitment to environmental remediation. 2. The contract type (Cost Plus Award Fee) allows for flexibility but requires robust oversight to ensure cost control and performance. 3. Competition was 'Full and Open Competition after Exclusion of Sources,' indicating a potentially complex procurement process. 4. The North American Industry Classification System (NAICS) code 562910 points to a focus on Remediation Services. 5. The contract's duration of over 2800 days highlights the extensive nature of the environmental operations required. 6. The award to Navarro Research and Engineering, Inc. represents a substantial investment in a single contractor for these services.

Value Assessment

Rating: fair

Benchmarking the value of this $133.8M contract is challenging without specific details on the scope of environmental operations. However, the Cost Plus Award Fee (CPAF) structure implies that performance incentives are tied to costs, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if not managed tightly. The duration of nearly 8 years suggests a significant undertaking, and the total value should be assessed against the complexity and scale of the environmental challenges at the Nevada site.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This designation suggests that while the competition was intended to be broad, specific circumstances or requirements led to the exclusion of certain potential bidders. The exact reasons for this exclusion are not detailed, but it implies that not all interested parties were able to participate fully. The number of bidders and the specific criteria for exclusion would be crucial to fully understanding the competitive landscape and its impact on pricing.

Taxpayer Impact: The 'exclusion of sources' aspect of the competition could potentially limit price discovery and may not have resulted in the most cost-effective outcome for taxpayers compared to a truly unrestricted full and open competition.

Public Impact

The primary beneficiaries are likely the Department of Energy and its mission to manage and remediate environmental hazards at its Nevada facilities. The services delivered encompass environmental operations, which could include waste management, site cleanup, monitoring, and compliance activities. The geographic impact is focused on Nevada, specifically at Department of Energy sites within the state. Workforce implications include the potential for job creation and the utilization of specialized environmental engineering and technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Award Fee' structure requires diligent oversight to prevent cost overruns and ensure that award fees are justified by exceptional performance.
The 'Exclusion of Sources' in the competition process warrants further investigation to ensure fair market access and optimal pricing.
The long contract duration necessitates continuous monitoring of performance and adaptability to evolving environmental regulations and site conditions.

Positive Signals

The award to a single entity for a large sum indicates a level of trust and established capability with Navarro Research and Engineering, Inc.
The 'Full and Open Competition' aspect, even with exclusions, suggests an attempt to leverage market capabilities for the DOE's environmental mission.
The contract's focus on environmental operations aligns with critical national priorities for safety and regulatory compliance.

Sector Analysis

The environmental remediation and waste management sector is a critical component of the industrial landscape, particularly for government agencies managing legacy sites. This contract falls within the broader environmental services industry, which includes hazardous waste treatment, site cleanup, and compliance consulting. Spending in this sector is often driven by regulatory requirements and the need to address historical contamination. Comparable spending benchmarks would typically be found within other large-scale environmental cleanup contracts awarded by agencies like the EPA or DoD.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Given the scale and specialized nature of environmental remediation, it's possible that large prime contractors like Navarro Research and Engineering, Inc. are expected to engage small businesses for specific services or supplies. However, without explicit details on subcontracting goals or achievements, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily fall under the Department of Energy's contracting and program management officials. The CPAF structure itself includes an incentive mechanism tied to performance, implying a need for regular evaluations and reviews. Transparency would be enhanced by public reporting on contract performance and award fee determinations. The extent of Inspector General (IG) jurisdiction would depend on the specific DOE IG's mandate concerning this type of contract and the nature of any potential issues that may arise.

Related Government Programs

Department of Energy Environmental Management Program
EPA Superfund Program
Department of Defense Environmental Cleanup

Risk Flags

Potential for cost overruns due to CPAF structure.
Limited competition due to 'exclusion of sources' may impact price.
Long contract duration increases risk of unforeseen environmental or regulatory changes.
Dependence on a single contractor for critical environmental operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $133.9 million to NAVARRO RESEARCH AND ENGINEERING, INC.. ENVIRONMENTAL OPERATIONS TASK ORDER FOR NEVADA

Who is the contractor on this award?

The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $133.9 million.

What is the period of performance?

Start: 2020-11-30. End: 2028-09-30.

What specific environmental remediation activities are covered under this contract, and what is the historical performance of Navarro Research and Engineering, Inc. in similar DOE contracts?

The provided data indicates the contract is for 'ENVIRONMENTAL OPERATIONS TASK ORDER FOR NEVADA' and falls under NAICS code 562910 (Remediation Services). This typically encompasses a range of activities such as hazardous waste management, site characterization and cleanup, demolition, waste disposal, and environmental monitoring. To assess Navarro Research and Engineering, Inc.'s historical performance, a review of their past contracts with the Department of Energy and other federal agencies would be necessary. This would involve examining past performance evaluations, any documented issues or disputes, and their track record in delivering similar environmental services on time and within budget. Without access to these specific performance records, a definitive assessment is not possible based solely on the contract award data.

How does the $133.8 million contract value compare to other large-scale environmental remediation contracts awarded by the DOE or other federal agencies?

The $133.8 million contract value over nearly eight years positions this as a significant, but not exceptionally large, environmental remediation contract within the federal government's portfolio. Large-scale environmental cleanup efforts, particularly those involving legacy nuclear weapons sites or extensive hazardous waste disposal, can often reach hundreds of millions or even billions of dollars over their lifecycles. For instance, major cleanup initiatives at sites like Hanford or Oak Ridge have involved contracts significantly exceeding this amount. This $133.8 million award suggests a substantial, ongoing operational need at the Nevada site, likely focused on specific remediation tasks rather than a complete site closure, placing it in the mid-to-upper tier of environmental services contracts.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for environmental operations, and what mitigation strategies are typically employed?

The primary risks with a CPAF contract for environmental operations include potential cost overruns if performance metrics are not clearly defined or if scope creep occurs, as the contractor is reimbursed for costs plus an award fee based on performance. There's also a risk that the 'award' component might incentivize meeting minimum requirements rather than exceeding them, or conversely, lead to gaming the system to maximize fees. Mitigation strategies typically involve robust government oversight, clearly defined and measurable performance objectives (metrics), stringent review processes for cost reimbursement, and a well-structured award fee plan that genuinely rewards exceptional performance and cost efficiency. Regular audits and continuous communication between the contractor and the contracting officer are also crucial.

What does the 'Full and Open Competition after Exclusion of Sources' procurement method imply about the nature of this contract and potential competition limitations?

The 'Full and Open Competition after Exclusion of Sources' method implies that the initial intent was to compete the contract broadly. However, specific circumstances or requirements led to the exclusion of certain potential offerors. This could be due to factors like the need for highly specialized capabilities, existing security clearances, or prior work on the site that makes certain contractors uniquely qualified or disqualified. While it's a form of competition, the exclusion means the pool of bidders was smaller than in a truly unrestricted competition. This might limit the downward pressure on pricing and innovation that can arise from maximum competition, suggesting the agency prioritized specific qualifications or existing relationships over the widest possible market engagement.

How has federal spending on environmental remediation services, particularly by the Department of Energy, trended in recent years, and where does this contract fit?

Federal spending on environmental remediation services, particularly by the Department of Energy (DOE), has historically been substantial due to the legacy of nuclear weapons production and energy research. While specific year-over-year trends can fluctuate based on budget appropriations and the lifecycle of cleanup projects, the DOE's Environmental Management (EM) program consistently requires billions of dollars annually. This $133.8 million contract represents a significant, but not dominant, portion of the DOE's overall environmental remediation budget. It fits within the ongoing operational needs for managing and cleaning up sites, reflecting a sustained commitment to addressing environmental liabilities rather than a surge or drastic reduction in spending for this specific task order.

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

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1020 COMMERCE PARK DR STE 4, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $173,666,309

Exercised Options: $173,666,309

Current Obligation: $133,866,814

Actual Outlays: $116,718,981

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 89303320DEM000037

IDV Type: IDC

Timeline