DOE awards $242M contract for Savannah River mission completion, focusing on nuclear waste disposal

Contract Overview

Contract Amount: $242,338,018 ($242.3M)

Contractor: Savannah River Mission Completion, LLC

Awarding Agency: Department of Energy

Start Date: 2022-06-27

End Date: 2030-08-31

Contract Duration: 2,987 days

Daily Burn Rate: $81.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 5 (SALTSTONE DISPOSAL UNITS 10-12).

Place of Performance

Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802

State: South Carolina Government Spending

Plain-Language Summary

Department of Energy obligated $242.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC for work described as: THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 5 (SALTSTONE DISPOSAL UNITS 10-12). Key points: 1. The contract addresses a critical need for nuclear waste management at the Savannah River Site. 2. The chosen contract type (Cost Plus Incentive Fee) aims to balance cost control with contractor performance. 3. The duration of the contract (over 8 years) suggests a long-term commitment to site remediation. 4. The award was made under full and open competition, indicating a broad market search. 5. The geographic focus is South Carolina, highlighting regional economic and environmental implications. 6. The contractor, Savannah River Mission Completion, LLC, is tasked with a complex and sensitive mission.

Value Assessment

Rating: good

The contract value of $242.3 million for a period extending over 8 years appears reasonable given the scope of integrated mission completion and saltstone disposal unit construction. Benchmarking against similar large-scale environmental remediation contracts is challenging due to the unique nature of nuclear site cleanup. However, the Cost Plus Incentive Fee structure suggests an effort to achieve value by incentivizing efficient performance and cost savings, which is a positive indicator for value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple potential bidders were solicited and evaluated. The specific number of bidders is not provided, but the designation implies a robust competitive process. This level of competition is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant investment in nuclear site remediation.

Public Impact

The primary beneficiaries are the Department of Energy and the public, through the safe and effective cleanup of nuclear materials. The services delivered include the completion of integrated missions and the disposal of saltstone units, crucial for environmental safety. The geographic impact is concentrated in South Carolina, where the Savannah River Site is located. Workforce implications include the potential for numerous skilled jobs in engineering, construction, and environmental management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to cost overruns if not managed tightly.
Complexity of nuclear remediation presents inherent technical and safety risks.
Reliance on a single awardee for such a critical mission requires robust oversight.

Positive Signals

Award under full and open competition suggests a thorough vetting of capabilities.
Incentive fee structure encourages contractor efficiency and cost control.
Focus on mission completion indicates a clear objective for the contract.

Sector Analysis

This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government operations, particularly those involving legacy nuclear sites. The market for such specialized services is limited, often dominated by a few large, experienced contractors. The Savannah River Site is a significant hub for nuclear materials management and cleanup, making this contract a key component of the Department of Energy's broader environmental stewardship efforts.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this specific award. While this large prime contract may not directly be a small business set-aside, the prime contractor will likely be expected to engage small businesses for subcontracting opportunities to fulfill various aspects of the work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Energy's program offices responsible for the Savannah River Site. Accountability measures are embedded within the Cost Plus Incentive Fee structure, tying contractor payment to performance and cost targets. Transparency will depend on the DOE's reporting practices regarding contract progress and expenditures. Inspector General jurisdiction would apply to ensure the integrity of the contracting process and prevent fraud, waste, and abuse.

Related Government Programs

Savannah River Site Operations
Nuclear Waste Management
Environmental Remediation Services
Department of Energy Site Cleanup

Risk Flags

Long-term waste containment integrity
Potential for cost overruns in complex remediation
Ensuring worker safety in hazardous environment
Regulatory compliance for nuclear waste disposal

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $242.3 million to SAVANNAH RIVER MISSION COMPLETION, LLC. THIS AWARD IS FOR THE SAVANNAH RIVER INTEGRATED MISSION COMPLETION CONTRACT - TASK ORDER 5 (SALTSTONE DISPOSAL UNITS 10-12).

Who is the contractor on this award?

The obligated recipient is SAVANNAH RIVER MISSION COMPLETION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $242.3 million.

What is the period of performance?

Start: 2022-06-27. End: 2030-08-31.

What is the historical spending trend for similar integrated mission completion contracts at the Savannah River Site?

Historical spending data for integrated mission completion at the Savannah River Site reveals a significant and sustained investment over decades, driven by the complex legacy of nuclear materials management. While specific figures for 'Task Order 5' are not available historically, the overall site cleanup budget has consistently been in the hundreds of millions of dollars annually. Previous contracts for major remediation efforts, such as tank farm operations or plutonium processing facility deactivation, have also represented substantial financial commitments. The trend indicates a long-term, multi-billion dollar undertaking for the complete remediation and closure of the site, with individual task orders like this one representing key milestones within that larger financial picture.

How does the contractor's track record compare to other potential bidders for this type of complex remediation work?

Savannah River Mission Completion, LLC, is a joint venture specifically formed to address the Savannah River Site's needs, often comprising experienced companies in the nuclear and environmental services sector. While specific performance metrics for this exact joint venture on this contract are nascent, the parent companies typically possess extensive track records in managing large-scale, high-hazard government projects. Evaluating their track record involves assessing past performance on similar Department of Energy or Department of Defense contracts, focusing on safety, environmental compliance, schedule adherence, and cost control. A full comparison would require analyzing the capabilities and past performance of all entities that could have bid under the full and open competition, but the formation of such specialized entities suggests a high level of pre-qualification for complex tasks.

What are the primary risks associated with the 'saltstone disposal units 10-12' component of this contract?

The primary risks associated with the saltstone disposal units (SDUs) 10-12 involve the safe and effective containment of radioactive and hazardous waste. Saltstone is a grout-like material resulting from the treatment of high-level radioactive liquid waste. Risks include potential leaks or failures in the disposal units, leading to environmental contamination of soil and groundwater. Technical risks involve the long-term stability of the saltstone matrix under varying geological and environmental conditions, and the integrity of the engineered disposal cells over extended periods. Operational risks include ensuring consistent quality of the saltstone grout, managing the large volumes of waste, and maintaining worker safety during handling and disposal operations. Regulatory risks also exist, ensuring compliance with stringent environmental and nuclear safety standards throughout the disposal lifecycle.

How does the Cost Plus Incentive Fee (CPIF) structure aim to ensure program effectiveness and cost control?

The Cost Plus Incentive Fee (CPIF) structure is designed to incentivize the contractor to perform effectively while managing costs. Under CPIF, the final fee paid to the contractor is adjusted based on performance against pre-determined targets, such as cost, schedule, or technical objectives. For this contract, the 'incentive' aspect likely relates to achieving specific milestones in mission completion or cost savings in the disposal of saltstone units. If the contractor performs better than the target (e.g., finishes under budget or ahead of schedule), they receive a higher fee, up to a maximum. Conversely, if they perform worse, their fee is reduced, potentially down to a minimum. This mechanism encourages the contractor to proactively identify efficiencies and mitigate risks to maximize their fee, aligning their financial interests with the government's objectives for program effectiveness and cost control.

What is the projected long-term environmental impact of completing the saltstone disposal units?

The projected long-term environmental impact of completing the saltstone disposal units (SDUs) is intended to be one of containment and isolation of hazardous and radioactive waste. By solidifying liquid waste into a stable saltstone form and disposing of it in engineered units, the goal is to prevent the migration of contaminants into the surrounding environment, particularly groundwater. Successful completion and long-term integrity of the SDUs are crucial for mitigating the risk of future environmental contamination originating from the Savannah River Site. The effectiveness relies on the durability of the saltstone grout and the engineered barriers of the disposal cells to withstand environmental factors and prevent leaching over centuries, thereby achieving a state of long-term environmental protection.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 109 RAMSEY PL, LYNCHBURG, VA, 24501

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $461,663,249

Exercised Options: $461,663,249

Current Obligation: $242,338,018

Actual Outlays: $185,870,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303322DEM000068

IDV Type: IDC

Timeline