DOE's Salt Waste Processing Facility Contract Exceeds $2.27 Billion, Awarded to Parsons Government Services Inc
Contract Overview
Contract Amount: $2,276,893,314 ($2.3B)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Energy
Start Date: 2002-09-15
End Date: 2022-04-30
Contract Duration: 7,167 days
Daily Burn Rate: $317.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Construction
Official Description: SALT WASTE PROCESSING FACILITY CONCEPTUAL DESIGN
Place of Performance
Location: AIKEN, AIKEN County, SOUTH CAROLINA, 29802
Plain-Language Summary
Department of Energy obligated $2.28 billion to PARSONS GOVERNMENT SERVICES INC. for work described as: SALT WASTE PROCESSING FACILITY CONCEPTUAL DESIGN Key points: 1. The contract value is substantial at over $2.27 billion. 2. Parsons Government Services Inc. is the sole awardee. 3. The contract type is Cost Plus Incentive Fee, indicating potential for cost overruns. 4. The sector is Industrial Building Construction, a critical but complex area for government projects.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee structure, coupled with its significant duration and value, raises concerns about cost control and potential for exceeding initial estimates. Benchmarking is difficult without specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the long duration and complex nature of the project may have limited the number of truly competitive bids.
Taxpayer Impact: The significant taxpayer investment in this large-scale construction project necessitates rigorous oversight to ensure value for money and prevent cost overruns.
Public Impact
This facility is crucial for nuclear waste management, impacting environmental safety. The project's scale suggests a long-term commitment of federal resources. Potential delays or cost increases could impact the Department of Energy's broader mission and budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type
- Long contract duration (7167 days)
- High total value ($2.27B)
Positive Signals
- Full and open competition awarded
- Critical infrastructure project for national security/environment
Sector Analysis
Industrial Building Construction for specialized facilities like nuclear waste processing is a high-cost, high-risk sector. Government benchmarks for such unique projects are often difficult to establish due to their bespoke nature.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting a potential lack of small business participation.
Oversight & Accountability
The Cost Plus Incentive Fee structure requires robust oversight to ensure contractor performance and cost containment. The long duration necessitates continuous monitoring and potential contract modifications.
Related Government Programs
- Industrial Building Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Long contract duration increases risk of scope creep and schedule delays.
- Lack of small business participation noted.
- Complexity of nuclear waste processing presents inherent technical and safety risks.
- Limited transparency on specific performance metrics and cost drivers.
Tags
industrial-building-construction, department-of-energy, sc, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.28 billion to PARSONS GOVERNMENT SERVICES INC.. SALT WASTE PROCESSING FACILITY CONCEPTUAL DESIGN
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.28 billion.
What is the period of performance?
Start: 2002-09-15. End: 2022-04-30.
What is the projected cost per unit of waste processed, and how does it compare to industry standards or similar government facilities?
Without detailed cost breakdowns and operational data, it is impossible to determine the cost per unit of waste processed. Benchmarking against industry standards is challenging due to the unique nature of nuclear waste processing. Further analysis would require access to the contractor's cost reports and performance metrics.
What are the key performance indicators (KPIs) for this contract, and what are the incentives tied to achieving them?
The contract type is Cost Plus Incentive Fee, implying that specific performance metrics related to cost, schedule, and quality are likely defined. The 'incentive' portion suggests bonuses for exceeding targets or penalties for underperformance. Detailed KPIs and incentive structures would be outlined in the contract's statement of work.
What is the environmental risk associated with the construction and operation of this facility, and what mitigation strategies are in place?
The primary environmental risk stems from the handling and processing of radioactive salt waste. Mitigation strategies would include stringent safety protocols, containment measures, waste disposal plans, and compliance with all relevant environmental regulations. The Department of Energy's oversight would focus on ensuring these measures are effectively implemented.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: Parsons Corporation
Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,453,352,137
Exercised Options: $2,453,352,137
Current Obligation: $2,276,893,314
Actual Outlays: $202,837,349
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2002-09-15
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2024-08-29
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