DOE Awards $1.54 Billion 10-Year Remediation Services Task Order to Idaho Environmental Coalition LLC

Contract Overview

Contract Amount: $1,543,061,963 ($1.5B)

Contractor: Idaho Environmental Coalition LLC

Awarding Agency: Department of Energy

Start Date: 2023-10-01

End Date: 2031-09-30

Contract Duration: 2,921 days

Daily Burn Rate: $528.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD THE ICP TEN YEAR PLAN HYBRID TASK ORDER UNDER SINGLE AWARD MASTER IDIQ CONTRACT 89303321DEM000061. CLIN 05 S1W D&D IS INCLUDED WITH AUTHORIZATION TO COMMENCE SCOPE 10/1/2023.

Place of Performance

Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83402

State: Idaho Government Spending

Plain-Language Summary

Department of Energy obligated $1.54 billion to IDAHO ENVIRONMENTAL COALITION LLC for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD THE ICP TEN YEAR PLAN HYBRID TASK ORDER UNDER SINGLE AWARD MASTER IDIQ CONTRACT 89303321DEM000061. CLIN 05 S1W D&D IS INCLUDED WITH AUTHORIZATION TO COMMENCE SCOPE 10/1/2023. Key points: 1. Significant long-term contract for environmental remediation services. 2. Single award task order under a master IDIQ, raising questions about competition. 3. Potential for cost overruns given the Cost Plus Award Fee contract type. 4. Focus on remediation services suggests a critical environmental need.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can incentivize contractors to control costs but also carries a risk of higher final prices compared to fixed-price contracts. Benchmarking is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract states 'FULL AND OPEN COMPETITION', but it is a single award task order under a master IDIQ. This implies competition occurred at the IDIQ level, but the task order itself was not competed.

Taxpayer Impact: The large value of this contract represents a significant taxpayer investment in environmental cleanup.

Public Impact

Ensures continued environmental cleanup and remediation efforts in Idaho. Long-term commitment provides stability for the contractor and workforce. Potential for job creation in the remediation sector. Addresses environmental concerns and regulatory compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Award Fee contract type
  • Single award task order under IDIQ
  • Long contract duration (10 years)

Positive Signals

  • Addresses critical environmental remediation needs
  • Long-term commitment provides stability

Sector Analysis

This contract falls within the Environmental Remediation Services sector, which is crucial for addressing legacy contamination and ensuring public safety. Spending in this sector can vary significantly based on regulatory requirements and historical industrial activity.

Small Business Impact

The data indicates this is a single award to Idaho Environmental Coalition LLC and does not specify if they are a small business. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The single-award nature of this task order warrants oversight to ensure fair pricing and effective performance throughout the contract's 10-year duration. Regular performance reviews and cost audits are essential.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to CPAF structure
  • Lack of task-order level competition
  • Long contract duration may reduce flexibility
  • Performance metrics for award fee not detailed

Tags

remediation-services, department-of-energy, id, delivery-order, billion-dollar

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $1.54 billion to IDAHO ENVIRONMENTAL COALITION LLC. THE PURPOSE OF THIS ACTION IS TO AWARD THE ICP TEN YEAR PLAN HYBRID TASK ORDER UNDER SINGLE AWARD MASTER IDIQ CONTRACT 89303321DEM000061. CLIN 05 S1W D&D IS INCLUDED WITH AUTHORIZATION TO COMMENCE SCOPE 10/1/2023.

Who is the contractor on this award?

The obligated recipient is IDAHO ENVIRONMENTAL COALITION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.54 billion.

What is the period of performance?

Start: 2023-10-01. End: 2031-09-30.

What was the competitive landscape at the IDIQ level, and why was a single award task order chosen?

While the contract states 'full and open competition,' this refers to the initial IDIQ award. The decision for a single award task order suggests that either the specific requirements of this task order were best met by this contractor, or a competitive task order process was not deemed necessary or feasible. Further documentation would clarify the rationale.

What are the specific cost control mechanisms and performance metrics within the Cost Plus Award Fee structure?

The Cost Plus Award Fee (CPAF) structure allows for reimbursement of allowable costs plus an award fee based on performance. Specific metrics and targets for the award fee are critical for incentivizing efficiency and cost control. Without these details, it's difficult to assess the true value and potential for cost overruns.

How will the long-term effectiveness of the remediation efforts be measured and ensured over the 10-year period?

Measuring long-term effectiveness requires clear, measurable environmental outcomes and ongoing monitoring. The Department of Energy must establish robust performance standards and independent verification processes to ensure the remediation goals are met and sustained throughout the contract's duration and beyond.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388

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

Financial Breakdown

Contract Ceiling: $2,377,272,036

Exercised Options: $2,377,272,036

Current Obligation: $1,543,061,963

Actual Outlays: $1,056,235,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303321DEM000061

IDV Type: IDC

Timeline

Start Date: 2023-10-01

Current End Date: 2031-09-30

Potential End Date: 2031-09-30 00:00:00

Last Modified: 2026-04-10

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