DOE awards $171M contract for mill tailings pile remediation in Utah
Contract Overview
Contract Amount: $171,111,150 ($171.1M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Energy
Start Date: 2023-10-01
End Date: 2027-04-30
Contract Duration: 1,307 days
Daily Burn Rate: $130.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SCOPE OF TASK ORDER 89303323FEM400390 INCLUDES COMPLETION OF THE MILL TAILINGS PILE REMEDIATION AT A RATE OF SPEED REFLECTING ESTABLISHED PRODUCTION CAPACITY UNDER SAFE WORKING CONDITIONS.
Place of Performance
Location: MOAB, GRAND County, UTAH, 84532
State: Utah Government Spending
Plain-Language Summary
Department of Energy obligated $171.1 million to NORTH WIND PORTAGE, INC. for work described as: SCOPE OF TASK ORDER 89303323FEM400390 INCLUDES COMPLETION OF THE MILL TAILINGS PILE REMEDIATION AT A RATE OF SPEED REFLECTING ESTABLISHED PRODUCTION CAPACITY UNDER SAFE WORKING CONDITIONS. Key points: 1. Contract focuses on efficient and safe remediation of mill tailings. 2. Fixed-price structure aims to control costs for the government. 3. Competition was open, suggesting potential for competitive pricing. 4. Project duration of over three years indicates a significant undertaking. 5. The contract is a delivery order, implying it's part of a larger vehicle. 6. Geographic focus on Utah highlights regional environmental efforts.
Value Assessment
Rating: good
The contract's firm fixed-price nature provides cost certainty for the Department of Energy. While specific cost benchmarks for mill tailings remediation are not provided, the scale of the project suggests a substantial investment. Comparing this to similar large-scale environmental cleanup contracts would offer further insight into its value. The established production capacity clause aims to ensure efficient execution, which can contribute to value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive bidding process was utilized. The specific details of how many bidders participated are not provided, but the 'full and open' designation suggests a broad solicitation. This level of competition is generally expected to drive down prices and encourage innovative solutions.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by selecting the most cost-effective and capable offeror.
Public Impact
The Department of Energy benefits from the remediation of environmental hazards. Services delivered include the cleanup of mill tailings piles. The geographic impact is concentrated in Utah. The project will likely involve a skilled workforce for environmental remediation and construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price structure.
- Ensuring sustained production capacity over the multi-year duration requires careful planning and resource management.
- Environmental compliance and safety protocols must be rigorously maintained throughout the project lifecycle.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a robust selection process.
- Focus on established production capacity aims for efficient project execution.
Sector Analysis
The environmental remediation sector is critical for addressing legacy industrial impacts. This contract falls within the broader environmental services industry, which includes hazardous waste management and site cleanup. The Department of Energy frequently engages in such contracts to manage sites with historical contamination. Market size for environmental remediation is substantial, driven by regulatory requirements and corporate responsibility.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not detailed in the provided data. As this is a large-scale remediation project, it is possible that opportunities for small businesses may exist within the subcontracting chain, depending on the prime contractor's strategy and the nature of the work packages.
Oversight & Accountability
Oversight will likely be managed by the Department of Energy's contracting officers and program managers. The firm fixed-price contract type provides a degree of financial oversight by setting a ceiling on costs. Transparency will depend on DOE's reporting practices for environmental remediation projects and public access to contract performance information.
Related Government Programs
- Superfund Remedial Actions
- Department of Energy Environmental Management
- Uranium Mill Tailings Remedial Action Program
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Ensuring long-term environmental safety of the remediated site.
- Complexity of managing hazardous materials and waste disposal.
Tags
environmental-remediation, department-of-energy, utah, delivery-order, large-contract, full-and-open-competition, firm-fixed-price, hazardous-waste, mill-tailings, remediation-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $171.1 million to NORTH WIND PORTAGE, INC.. SCOPE OF TASK ORDER 89303323FEM400390 INCLUDES COMPLETION OF THE MILL TAILINGS PILE REMEDIATION AT A RATE OF SPEED REFLECTING ESTABLISHED PRODUCTION CAPACITY UNDER SAFE WORKING CONDITIONS.
Who is the contractor on this award?
The obligated recipient is NORTH WIND PORTAGE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $171.1 million.
What is the period of performance?
Start: 2023-10-01. End: 2027-04-30.
What is the historical spending pattern of the Department of Energy on mill tailings remediation?
The Department of Energy has a long history of managing and remediating mill tailings, particularly from former uranium milling operations. Significant funding has been allocated over decades through programs like the Uranium Mill Tailings Remedial Action (UMTRA) Project, managed by DOE. For instance, the UMTRA program alone has involved the cleanup of over 200 million cubic yards of tailings and associated wastes at numerous sites across the United States. Annual spending can fluctuate based on project lifecycles, site complexities, and congressional appropriations, but it consistently represents a major component of the DOE's environmental management budget, often in the hundreds of millions of dollars annually for various cleanup activities.
How does the awarded amount compare to similar mill tailings remediation projects?
The $171 million award for this specific mill tailings pile remediation is substantial, reflecting the complexity and scale typical of such environmental cleanup efforts. Large-scale remediation projects, especially those involving hazardous materials like radioactive or heavy metal-laden tailings, can easily run into tens or hundreds of millions of dollars. For example, other significant DOE cleanup sites, such as those at Hanford or Rocky Flats, have involved contracts in the hundreds of millions, and sometimes billions, for comprehensive remediation. The cost per unit of material remediated or per acre cleaned can vary widely based on factors like material type, volume, site accessibility, and required cleanup standards. Without more specific project details, direct comparison is challenging, but the awarded amount is within the expected range for a major environmental remediation undertaking.
What are the key risks associated with this type of remediation contract?
Key risks for mill tailings remediation contracts include unforeseen site conditions (e.g., discovering unexpected contaminants, geological instability), potential for environmental incidents during cleanup, and challenges in maintaining worker safety due to hazardous materials. Schedule delays can also be a risk, potentially increasing costs if not managed effectively, even under a fixed-price contract if scope changes are necessary. Regulatory changes or evolving environmental standards could also impact project requirements. Furthermore, ensuring long-term containment or disposal of remediated materials presents its own set of technical and logistical challenges. The contractor must also manage community relations and stakeholder expectations throughout the project.
What is North Wind Portage, Inc.'s track record with the Department of Energy?
North Wind Portage, Inc. (part of the North Wind Group) has a significant track record working with the Department of Energy and other federal agencies on environmental remediation and support services. They have been awarded numerous contracts for various cleanup activities, including hazardous waste management, demolition, and site restoration. Their experience often involves complex, large-scale projects at DOE sites. Past performance reviews and contract awards indicate a history of performing services related to environmental management, often in challenging environments. Specific details on performance metrics for individual contracts would require deeper analysis of federal procurement databases and agency reports.
What does the 'full and open competition after exclusion of sources' designation imply for this contract?
The designation 'full and open competition after exclusion of sources' indicates that the contract was initially solicited broadly to all responsible prospective sources (full and open competition). However, at some point, specific sources were excluded from consideration. This could happen for various reasons, such as prior performance issues, inability to meet specific technical requirements, or if the contract was a modification or follow-on to a previous effort where certain vendors were already qualified or involved. While it started as full and open, the exclusion implies a narrowed field of bidders compared to a purely unrestricted competition. The goal remains to obtain the best value, but the exclusion might limit the number of potential offerors.
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 › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $227,926,315
Exercised Options: $223,672,407
Current Obligation: $171,111,150
Actual Outlays: $150,208,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303322DEM000073
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-02-05
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