DOE awards $148M contract for remediation services to RSI Entech, LLC, with a 3-year term

Contract Overview

Contract Amount: $148,039,829 ($148.0M)

Contractor: RSI Entech, LLC

Awarding Agency: Department of Energy

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $135.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO INCREMENTALLY FUND TO 8 FOR ONE MONTH.

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Energy obligated $148.0 million to RSI ENTECH, LLC for work described as: TO INCREMENTALLY FUND TO 8 FOR ONE MONTH. Key points: 1. Contract awarded via full and open competition, indicating a robust bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. Performance period spans three years, suggesting a need for sustained remediation efforts. 4. The contract is for remediation services, a critical environmental function for the Department of Energy. 5. The award value of $148 million represents a significant investment in environmental cleanup. 6. The contractor, RSI Entech, LLC, is responsible for delivering these essential services.

Value Assessment

Rating: good

The contract value of $148 million over three years averages approximately $49.3 million annually. Benchmarking this against similar large-scale environmental remediation contracts requires access to proprietary cost data. However, the fixed fee component suggests a defined profit margin. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee, which is a standard practice for complex service contracts where exact costs are difficult to predict upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates competition was sought, the 'exclusion of sources' clause suggests specific criteria or prior exclusions may have been applied, warranting further investigation into the pre-award process. The number of bidders is not specified, but the 'full and open' nature generally implies multiple interested parties were allowed to submit proposals, fostering price discovery.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best value through multiple offers. The extent to which this competition truly drove down costs depends on the number and quality of bids received.

Public Impact

The primary beneficiaries are the Department of Energy and the public, through the cleanup of environmental hazards. Services delivered include critical remediation activities to address contamination. The geographic impact is focused on Tennessee, where the remediation efforts will take place. This contract supports specialized jobs in the environmental remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent cost overruns.
The 'exclusion of sources' in the competition method warrants a review of the justification.
The duration of the contract (3 years) requires sustained performance monitoring.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
The contract addresses critical environmental remediation needs for the Department of Energy.
The fixed fee component provides a level of cost certainty for the government.

Sector Analysis

Environmental remediation is a significant sector within government contracting, driven by regulatory requirements and the need to address historical contamination. The Department of Energy, in particular, manages extensive legacy sites requiring complex cleanup operations. This contract fits within the broader category of environmental services, which includes hazardous waste management, site cleanup, and compliance consulting. Comparable spending benchmarks would typically be found within the DOE's own historical spending on similar remediation projects or through industry reports on large-scale environmental service contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large remediation contracts may include provisions for small business participation, either through direct awards or subcontracting opportunities.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would likely involve regular reviews of incurred costs, progress reports, and performance metrics by the Department of Energy contracting officers and technical representatives. Accountability measures would be tied to the contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases, but detailed operational oversight information is typically internal to the agency.

Related Government Programs

Department of Energy Environmental Management
Hazardous Waste Remediation Services
Environmental Cleanup Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Justification for 'Exclusion of Sources' needs review.
Performance monitoring over the 3-year duration is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $148.0 million to RSI ENTECH, LLC. TO INCREMENTALLY FUND TO 8 FOR ONE MONTH.

Who is the contractor on this award?

The obligated recipient is RSI ENTECH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $148.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the historical performance record of RSI Entech, LLC with the Department of Energy or similar agencies?

Assessing the historical performance of RSI Entech, LLC requires accessing contract databases and performance review systems (e.g., Contractor Performance Assessment Reporting System - CPARS). A review would typically look at past contract awards, on-time delivery, quality of work, cost control, and any past performance issues or disputes. Without specific data on RSI Entech's prior engagements, it's difficult to provide a definitive assessment. However, agencies generally conduct thorough pre-award reviews of a contractor's past performance before awarding significant contracts like this $148 million remediation award.

How does the estimated annual cost of this contract compare to similar large-scale environmental remediation projects?

The annual value of this contract is approximately $49.3 million ($148 million / 3 years). Benchmarking this against similar large-scale environmental remediation projects is challenging without access to proprietary cost data and detailed scope comparisons. Factors influencing cost include the type and extent of contamination, complexity of the remediation technology required, site accessibility, regulatory requirements, and labor costs. Generally, contracts of this magnitude are awarded through competitive processes to ensure value, but direct cost-per-unit comparisons are often not publicly available or easily standardized across different projects and locations.

What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation?

Cost Plus Fixed Fee contracts, while common for complex projects with uncertain costs, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within reason). This necessitates robust government oversight to scrutinize costs and ensure efficiency. For the contractor, the risk lies in underestimating the costs, which could lead to reduced profit margins if actual expenses exceed projections significantly. Effective risk mitigation involves clear contract terms, detailed cost accounting standards, and diligent monitoring by the contracting agency.

What specific remediation activities are encompassed by this contract?

The provided data indicates the contract is for 'Remediation Services' but does not detail the specific activities. Environmental remediation can encompass a wide range of tasks, including but not limited to: soil and groundwater cleanup, hazardous waste removal and disposal, demolition of contaminated structures, site restoration, long-term monitoring, and risk assessment. The specific scope of work would be detailed in the contract's Statement of Work (SOW), which outlines the precise requirements, deliverables, and performance standards that RSI Entech, LLC must meet.

What does the 'After Exclusion of Sources' clause imply for the competition level and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' clause suggests that while the competition was intended to be broad, certain potential sources were excluded prior to the solicitation. The reasons for exclusion must be justified and documented by the agency, often related to specific capabilities, past performance, or national security concerns. This exclusion could potentially limit the number of bidders, which might reduce the competitive pressure on pricing compared to a truly unrestricted full and open competition. However, if the exclusions were narrowly defined and still resulted in multiple qualified bidders, significant price discovery could still occur.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 203 VICTORIUS BLVD, OAK RIDGE, TN, 37830

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $164,713,192

Exercised Options: $164,713,192

Current Obligation: $148,039,829

Actual Outlays: $123,011,171

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303020DLM000001

IDV Type: IDC

Timeline