DOE's $270M transuranic waste contract with ENERGX TN, LLC awarded in 1998, concluded in 2010
Contract Overview
Contract Amount: $269,950,002 ($270.0M)
Contractor: Energx TN, LLC
Awarding Agency: Department of Energy
Start Date: 1998-08-15
End Date: 2010-01-16
Contract Duration: 4,172 days
Daily Burn Rate: $64.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TREATMENT AND DISPOSAL OF TRANSAURANIC WASTE AT OAK RIDGE NATIONAL LABORATORY
Place of Performance
Location: LENOIR CITY, LOUDON County, TENNESSEE, 37771
Plain-Language Summary
Department of Energy obligated $270.0 million to ENERGX TN, LLC for work described as: TREATMENT AND DISPOSAL OF TRANSAURANIC WASTE AT OAK RIDGE NATIONAL LABORATORY Key points: 1. The contract's significant value suggests a complex and long-term need for specialized waste management services. 2. Full and open competition was utilized, indicating a potentially robust market for these services at the time of award. 3. The cost-plus-fixed-fee structure may incentivize contractor efficiency, but requires careful oversight to manage costs. 4. The contract duration of over 11 years highlights the sustained operational requirements for transuranic waste disposal. 5. Performance context is crucial, as the effectiveness of waste treatment and disposal directly impacts environmental safety and regulatory compliance. 6. Sector positioning within Facilities Support Services (NAICS 561210) places this contract within a broad category of essential operational support.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data from the period. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can lead to cost overruns if not managed diligently. The total award amount of approximately $270 million over its lifespan suggests a substantial investment in critical environmental services. Without detailed breakdowns of costs incurred and services rendered, a precise value-for-money assessment is difficult, but the duration and nature of the work imply significant operational expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed here. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to less competitive solicitations.
Taxpayer Impact: Taxpayers likely benefited from the competitive bidding process, which should have driven down costs and ensured the government received competitive proposals for this essential service.
Public Impact
The primary beneficiaries are the Department of Energy and its mission to safely manage nuclear waste. Services delivered include the treatment and disposal of transuranic waste, a critical environmental protection function. The geographic impact is centered around Oak Ridge National Laboratory in Tennessee, addressing a specific site's waste management needs. Workforce implications include the employment of specialized personnel in hazardous waste handling, environmental science, and facility operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts require vigilant oversight to prevent scope creep and ensure cost containment.
- The long duration of the contract could present risks related to evolving regulatory requirements or technological advancements in waste disposal.
- Assessing the long-term environmental impact and effectiveness of the disposal methods used requires ongoing monitoring beyond the contract period.
Positive Signals
- Awarded under full and open competition, suggesting a competitive marketplace for these services.
- The contract addressed a critical and long-standing federal requirement for nuclear waste management.
- The fixed fee component of the CPFF structure provides some level of cost predictability for the government.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a wide range of operational and maintenance activities for government facilities. The specific nature of transuranic waste treatment and disposal is a highly specialized niche within this sector, often dominated by a limited number of experienced contractors due to stringent safety and regulatory requirements. Comparable spending benchmarks for such specialized environmental services are difficult to establish broadly, as they are highly dependent on the volume and type of waste, as well as the specific disposal technologies employed.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Given the specialized nature and scale of transuranic waste management, it is common for such large prime contracts to be awarded to large businesses. Subcontracting opportunities for small businesses might exist in supporting roles, but the primary award was not directed towards small business set-asides.
Oversight & Accountability
Oversight for this contract would have been primarily managed by the Department of Energy's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is generally facilitated through contract awards databases and public reporting, though detailed operational oversight specifics are typically internal. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Environmental Management
- Nuclear Waste Disposal Services
- Oak Ridge National Laboratory Operations
- Hazardous Waste Management Contracts
- Federal Facilities Cleanup Program
Risk Flags
- Cost-Plus-Fixed-Fee contract requires diligent oversight.
- Long contract duration may pose risks related to evolving regulations.
- Assessing long-term environmental impact requires post-contract monitoring.
Tags
department-of-energy, facilities-support-services, tennessee, definitive-contract, large-contract, full-and-open-competition, cost-plus-fixed-fee, environmental-services, nuclear-waste, oak-ridge-national-laboratory
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $270.0 million to ENERGX TN, LLC. TREATMENT AND DISPOSAL OF TRANSAURANIC WASTE AT OAK RIDGE NATIONAL LABORATORY
Who is the contractor on this award?
The obligated recipient is ENERGX TN, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $270.0 million.
What is the period of performance?
Start: 1998-08-15. End: 2010-01-16.
What was the contractor's track record prior to this award?
Information regarding ENERGX TN, LLC's specific track record prior to the award of this $270 million contract in 1998 is not detailed in the provided data. However, the Department of Energy's selection process for such a critical and large-scale contract would typically involve a thorough review of a bidder's past performance, technical capabilities, financial stability, and experience with similar hazardous material management. The fact that they were awarded this definitive contract under full and open competition suggests they met the stringent requirements set forth by the DOE at that time. Further investigation into DOE's procurement history and contractor performance databases would be necessary to ascertain a comprehensive pre-award track record.
How does the cost-plus-fixed-fee structure compare to other contract types for similar services?
The Cost-Plus-Fixed-Fee (CPFF) structure used for this contract is common for complex, long-term projects where the scope of work may evolve or is difficult to precisely define at the outset, such as environmental remediation and waste management. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of costs incurred, and cost-reimbursement contracts without a fixed fee. While CPFF provides flexibility and can encourage contractors to take on challenging work, it carries a risk of cost growth if the government's oversight is insufficient. For services with more defined scopes, fixed-price contracts might offer better cost certainty for the government. However, for the inherent uncertainties in transuranic waste treatment and disposal, CPFF is often considered a suitable, albeit closely monitored, approach.
What were the key performance indicators (KPIs) for this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract involving the treatment and disposal of transuranic waste, typical KPIs would likely include metrics related to safety (e.g., incident rates, compliance with environmental regulations), operational efficiency (e.g., waste processed per unit time, throughput rates), quality of disposal (e.g., containment integrity, adherence to disposal standards), and schedule adherence. The Department of Energy would have established specific, measurable, achievable, relevant, and time-bound (SMART) goals within the contract's statement of work and performance requirements to ensure the contractor met its obligations effectively and safely.
What is the historical spending pattern for transuranic waste management at Oak Ridge National Laboratory?
The provided data focuses on a single contract ($269,950,001.65) awarded in 1998 and ending in 2010 for transuranic waste treatment and disposal at Oak Ridge National Laboratory (ORNL). This single data point represents a significant expenditure over a 12-year period. To understand the broader historical spending pattern, one would need to examine spending data for ORNL's waste management activities both before and after this contract's period. This would involve looking at prior contracts, subsequent contracts, and potentially other related environmental cleanup or operational budgets managed by the Department of Energy at the site. Without this broader context, it's impossible to determine if this contract's value represents an increase, decrease, or consistent level of spending for these services over time.
What are the potential long-term environmental risks associated with the disposal methods used under this contract?
Transuranic (TRU) waste consists of radioactive elements heavier than uranium, posing long-term risks if not managed properly. The specific disposal methods employed under this contract would determine the associated risks. Common methods include deep geological disposal, near-surface disposal, or interim storage, each with its own risk profile. Potential long-term risks generally involve the potential for radionuclide migration into the environment (groundwater, soil, air) if containment fails, leading to contamination and potential health hazards. The effectiveness of engineered barriers, site geology, and long-term monitoring are critical factors in mitigating these risks. The Department of Energy's regulatory framework and the specific requirements of this contract would have dictated the approved disposal technologies and safety protocols designed to minimize these long-term environmental impacts.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 189A LAFAYETTE DRIVE, OAK RIDGE, TN, 37830
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $288,151,541
Exercised Options: $288,151,541
Current Obligation: $269,950,002
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1998-08-15
Current End Date: 2010-01-16
Potential End Date: 2010-01-16 00:00:00
Last Modified: 2020-07-08
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