DOE awards $4.98M task order for Portsmouth remediation services to Southern Ohio Cleanup Company LLC

Contract Overview

Contract Amount: $5,831,546 ($5.8M)

Contractor: Southern Ohio Cleanup Company LLC

Awarding Agency: Department of Energy

Start Date: 2023-07-13

End Date: 2025-09-30

Contract Duration: 810 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: PORTSMOUTH D&D TASK ORDER 1 - CONTRACT TRANSITION CO: LEANN BROCK LINE ITEM VALUE: $4,976,381 OBLIGATED AMOUNT: $500,000

Place of Performance

Location: PIKETON, PIKE County, OHIO, 45661

State: Ohio Government Spending

Plain-Language Summary

Department of Energy obligated $5.8 million to SOUTHERN OHIO CLEANUP COMPANY LLC for work described as: PORTSMOUTH D&D TASK ORDER 1 - CONTRACT TRANSITION CO: LEANN BROCK LINE ITEM VALUE: $4,976,381 OBLIGATED AMOUNT: $500,000 Key points: 1. Value for money appears fair given the estimated cost and duration of the remediation effort. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a long performance period and a cost-plus-no-fee contract type. 4. Performance context is within the scope of environmental remediation services at a federal facility. 5. Sector positioning is within the environmental services industry, specifically hazardous waste remediation.

Value Assessment

Rating: fair

The obligated amount of $500,000 for the initial period of performance is a fraction of the total potential value. Benchmarking against similar remediation contracts is difficult without more specific service details. The cost-plus-no-fee structure means the contractor is reimbursed for allowable costs but does not earn a fee, which can incentivize cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Energy and the public, through the cleanup of a federal facility. Services delivered include remediation and waste management at the Portsmouth Gaseous Diffusion Plant. Geographic impact is localized to the Portsmouth site in Ohio. Workforce implications include potential job creation for skilled labor in environmental remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-no-fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor's profit is not directly tied to cost savings.
The long duration of the contract (810 days) increases the risk of unforeseen environmental conditions or changes in regulatory requirements.
Lack of specific performance metrics in the provided data makes it challenging to assess the efficiency of the remediation efforts.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield reasonable pricing.
The contractor, Southern Ohio Cleanup Company LLC, is likely experienced in environmental remediation, given the nature of the contract.
The Department of Energy's oversight is expected to ensure compliance with environmental regulations and contract terms.

Sector Analysis

This contract falls within the environmental services sector, a significant market driven by regulatory compliance and the need for hazardous waste management. Federal agencies, particularly those with legacy industrial sites like the Department of Energy, are major clients. The market size for environmental remediation services is substantial, with numerous firms competing for government contracts.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans, it's difficult to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight will be provided by the Department of Energy, likely through contracting officers and technical representatives. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are recorded. Inspector General jurisdiction may apply depending on the nature of any potential fraud, waste, or abuse.

Related Government Programs

Department of Energy Environmental Management Program
Superfund Remedial Actions
Hazardous Waste Management Contracts
Federal Facility Cleanup Programs

Risk Flags

Long contract duration increases exposure to changing conditions.
Cost-plus-no-fee structure requires diligent government cost oversight.
Scope definition for complex remediation can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $5.8 million to SOUTHERN OHIO CLEANUP COMPANY LLC. PORTSMOUTH D&D TASK ORDER 1 - CONTRACT TRANSITION CO: LEANN BROCK LINE ITEM VALUE: $4,976,381 OBLIGATED AMOUNT: $500,000

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 $5.8 million.

What is the period of performance?

Start: 2023-07-13. End: 2025-09-30.

What is the track record of Southern Ohio Cleanup Company LLC on similar federal contracts?

Information regarding the specific track record of Southern Ohio Cleanup Company LLC on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous Department of Energy or other agency contracts. Understanding their experience with remediation projects of comparable scale and complexity, particularly at nuclear or gaseous diffusion sites, would be crucial for evaluating their capability and reliability for this task order.

How does the estimated cost compare to industry benchmarks for similar remediation services?

Directly comparing the estimated cost of $4,976,381 to industry benchmarks is challenging without detailed service specifications and scope of work. Remediation costs are highly variable, depending on the type and extent of contamination, site complexity, regulatory requirements, and labor rates. The contract type (Cost No Fee) also influences cost dynamics. A thorough benchmark analysis would involve comparing the proposed labor rates, material costs, equipment usage, and overhead rates against industry standards for similar projects, adjusted for geographic location and specific environmental challenges at the Portsmouth site.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to the Cost No Fee structure, unforeseen environmental conditions requiring additional work or extended timelines, and contractor performance issues. Mitigation strategies typically involve robust government oversight, detailed work plans, regular progress reporting, and clear performance standards. The long duration (810 days) also presents risks related to changing regulations or economic factors. The government's ability to manage these risks will depend on the effectiveness of its contract administration and technical monitoring.

How effective is the Cost No Fee contract type in ensuring value for money for this specific remediation project?

The Cost No Fee (CNF) contract type is designed to reimburse the contractor for all allowable costs incurred in performing the work, but without any additional fee or profit. This structure is often used when the scope of work is difficult to define precisely upfront or when the primary objective is to achieve a specific outcome, such as environmental cleanup, rather than to maximize contractor profit. For taxpayers, CNF can be advantageous as it removes the profit motive, potentially leading to lower overall costs if the government effectively manages and scrutinizes the contractor's expenses. However, it places a greater burden on the government to diligently monitor and audit costs to prevent inefficiencies or unnecessary expenditures.

What is the historical spending trend for remediation services at the Portsmouth site?

Historical spending data for remediation services specifically at the Portsmouth site is not provided in this data snippet. To analyze historical spending trends, one would need to access broader contract databases and reports from the Department of Energy concerning the Portsmouth Gaseous Diffusion Plant. This would involve looking at previous contracts awarded for cleanup activities, their values, durations, and the types of services rendered. Understanding past expenditures can help contextualize the current $4.98 million task order, identify patterns, and assess whether spending has been consistent, increasing, or decreasing over time relative to the progress of the cleanup mission.

What are the implications of awarding this task order under 'full and open competition' for future remediation efforts at the site?

Awarding this task order under 'full and open competition' suggests that the Department of Energy sought to maximize the pool of potential bidders, thereby fostering a competitive environment. This approach is generally favored as it can lead to better pricing, innovative solutions, and a wider selection of qualified contractors. For future remediation efforts at the Portsmouth site, this competitive precedent could encourage more companies to participate in subsequent solicitations, potentially leading to continued cost efficiencies and a robust market for specialized environmental services. It also signals the agency's commitment to transparent procurement processes.

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 NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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: $7,723,420

Exercised Options: $7,723,420

Current Obligation: $5,831,546

Actual Outlays: $3,990,227

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