DOE Awards $44.3M for Nevada Site Decommissioning and Demolition Services to Navarro Research and Engineering

Contract Overview

Contract Amount: $44,280,443 ($44.3M)

Contractor: Navarro Research and Engineering, Inc.

Awarding Agency: Department of Energy

Start Date: 2023-03-31

End Date: 2025-11-26

Contract Duration: 971 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: SERVICES INCLUDE BUT NOT LIMITED TO THE FOLLOWING: DEACTIVATION, DECOMMISSIONING, DECONTAMINATION, AND DEMOLITION (D4) ACTIVITIES ACROSS SEVERAL INDUSTRIAL SITES ON THE NEVADA NATIONAL SECURITY SITE.

Place of Performance

Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89030

State: Nevada Government Spending

Plain-Language Summary

Department of Energy obligated $44.3 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: SERVICES INCLUDE BUT NOT LIMITED TO THE FOLLOWING: DEACTIVATION, DECOMMISSIONING, DECONTAMINATION, AND DEMOLITION (D4) ACTIVITIES ACROSS SEVERAL INDUSTRIAL SITES ON THE NEVADA NATIONAL SECURITY SITE. Key points: 1. Contract focuses on critical environmental remediation and site closure activities. 2. Navarro Research and Engineering, Inc. is the awardee. 3. The contract was awarded under full and open competition after exclusion of sources. 4. This award represents a significant investment in environmental cleanup at a key national security site.

Value Assessment

Rating: good

The contract type is Cost Plus Incentive Fee, which allows for shared risk and reward between the government and contractor. The award amount of $44.3M appears reasonable for the scope of services, which include complex deactivation, decommissioning, decontamination, and demolition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was employed. This method generally promotes price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: The investment supports environmental cleanup and site restoration, which are crucial for public safety and long-term land use, representing a responsible use of taxpayer funds for environmental stewardship.

Public Impact

Ensures environmental safety and compliance at the Nevada National Security Site. Supports the closure and remediation of industrial sites, contributing to national security infrastructure. Creates jobs and economic activity in the Nevada region through contract execution. Demonstrates commitment to responsible environmental management of federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns with Cost Plus Incentive Fee contract type.
  • Complexity of D4 activities may lead to unforeseen challenges and schedule delays.

Positive Signals

  • Competitive award process likely secured favorable pricing.
  • Focus on critical environmental remediation aligns with agency priorities.
  • Experienced contractor selected for complex tasks.

Sector Analysis

The contract falls within the Remediation Services sector, specifically focusing on Deactivation, Decommissioning, Decontamination, and Demolition (D4) of industrial sites. Spending in this sector is driven by environmental regulations, legacy site cleanup, and infrastructure modernization efforts across various federal agencies.

Small Business Impact

The data indicates the prime contractor is Navarro Research and Engineering, Inc. There is no explicit mention of small business participation in this award notice. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of Energy is responsible for overseeing this contract. The Cost Plus Incentive Fee structure includes performance incentives, suggesting a mechanism for monitoring and encouraging contractor performance. Robust oversight will be critical for managing costs and ensuring successful completion of complex D4 activities.

Related Government Programs

  • Remediation Services
  • Department of Energy Contracting
  • Department of Energy Programs

Risk Flags

  • Cost Plus Incentive Fee contract type can lead to cost overruns if not managed tightly.
  • Complexity of D4 activities presents inherent schedule and performance risks.
  • Potential for unforeseen environmental hazards at legacy industrial sites.
  • Dependence on a single contractor for critical, complex services.

Tags

remediation-services, department-of-energy, nv, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $44.3 million to NAVARRO RESEARCH AND ENGINEERING, INC.. SERVICES INCLUDE BUT NOT LIMITED TO THE FOLLOWING: DEACTIVATION, DECOMMISSIONING, DECONTAMINATION, AND DEMOLITION (D4) ACTIVITIES ACROSS SEVERAL INDUSTRIAL SITES ON THE NEVADA NATIONAL SECURITY SITE.

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 $44.3 million.

What is the period of performance?

Start: 2023-03-31. End: 2025-11-26.

What is the projected cost efficiency of the incentive fee structure in driving down overall project costs for these D4 activities?

The incentive fee structure aims to align contractor profit with government objectives, potentially improving cost efficiency by rewarding performance that meets or exceeds targets. However, the actual efficiency depends heavily on the clarity and attainability of the defined incentives and the government's ability to effectively monitor and manage the contractor's performance against these metrics throughout the project lifecycle.

What are the primary risks associated with the decontamination and demolition of industrial sites at a national security location, and how are they being mitigated?

Key risks include potential exposure to hazardous materials, environmental contamination, structural integrity issues during demolition, and security concerns inherent to a national security site. Mitigation strategies likely involve rigorous safety protocols, specialized equipment, detailed site assessments, waste management plans, and close coordination with site security personnel to ensure safe and secure operations.

How effectively will this contract contribute to the long-term environmental remediation goals for the Nevada National Security Site?

This contract is crucial for addressing immediate D4 activities at specific industrial sites, directly contributing to the site's remediation goals. Its effectiveness in achieving long-term goals will depend on the successful completion of the awarded tasks, adherence to environmental standards, and how these completed actions integrate into the broader, ongoing environmental management strategy for the entire Nevada National Security Site.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $44,280,443

Exercised Options: $44,280,443

Current Obligation: $44,280,443

Actual Outlays: $43,173,193

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

Start Date: 2023-03-31

Current End Date: 2025-11-26

Potential End Date: 2025-11-26 00:00:00

Last Modified: 2026-04-01

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