DOE's $42M contract for waste transport to WIPP awarded to Bed Rock, Inc. under full and open competition
Contract Overview
Contract Amount: $42,005,761 ($42.0M)
Contractor: BED Rock, Inc.
Awarding Agency: Department of Energy
Start Date: 2000-08-28
End Date: 2007-12-27
Contract Duration: 2,677 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: TRANSPORTATION OF CH AND RH TRU WASTE FROM VARIOUS DOE SITESTO WIPP
Place of Performance
Location: JOPLIN, JASPER County, MISSOURI, 64801
State: Missouri Government Spending
Plain-Language Summary
Department of Energy obligated $42.0 million to BED ROCK, INC. for work described as: TRANSPORTATION OF CH AND RH TRU WASTE FROM VARIOUS DOE SITESTO WIPP Key points: 1. The contract aimed to transport hazardous waste, indicating a critical but potentially high-risk service. 2. The duration of the contract (2677 days) suggests a long-term need for these specialized transportation services. 3. The firm-fixed-price structure likely provided cost certainty for the government, though it may limit flexibility. 4. Awarded under full and open competition, this suggests a robust bidding process and potential for competitive pricing. 5. The North American Industry Classification System (NAICS) code 484121 points to a specialized segment of the trucking industry. 6. The contract's value of approximately $42 million over its term indicates a significant investment in waste management logistics.
Value Assessment
Rating: good
The contract value of $42 million over nearly 7.5 years averages to roughly $5.6 million per year. Without specific benchmarks for hazardous waste transport to WIPP, it's difficult to definitively assess value for money. However, the firm-fixed-price contract type suggests an attempt to control costs. The existence of two bidders in a full and open competition implies some level of market validation for the pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a reasonable, though not extensive, level of competition for this specialized service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through multiple bids. While only two bidders participated, the process itself likely led to a more favorable price than a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are the Department of Energy (DOE) and its sites requiring the disposal of transuranic (TRU) waste. The contract facilitated the safe and compliant transportation of hazardous waste from various DOE sites to the Waste Isolation Pilot Plant (WIPP). The geographic impact is concentrated on DOE facilities generating waste and the WIPP facility in New Mexico. This contract supports specialized logistics and transportation jobs within the trucking sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen logistical challenges arise, despite the fixed-price nature.
- Dependence on a single contractor for a critical and potentially hazardous transportation service.
- Risks associated with the long-term nature of the contract, including potential contractor performance degradation or changes in regulatory requirements.
- Limited competition (two bidders) may not have fully optimized price discovery.
- The specialized nature of transporting radioactive waste requires stringent safety protocols; any lapse could have severe consequences.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Awarded under full and open competition, suggesting a fair and transparent procurement process.
- The contractor, Bed Rock, Inc., was selected, implying they met the necessary qualifications for this specialized service.
- The contract duration indicates a stable, long-term solution for a persistent DOE need.
- The service directly supports a critical national mission: the safe disposal of nuclear waste.
Sector Analysis
The transportation sector, specifically long-distance truckload freight, is a vital component of the US economy. This contract falls within the specialized niche of hazardous materials and government contracting. The market for transporting nuclear waste is highly regulated and limited to a few specialized providers. Comparable spending benchmarks are difficult to establish due to the unique nature of the cargo and destination (WIPP).
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of transporting hazardous waste, it is unlikely that small businesses would be primary bidders or subcontractors unless they possess highly specialized certifications and capabilities. The prime contractor, Bed Rock, Inc., is not identified by size, but the contract's scope suggests it may be a larger entity. Subcontracting opportunities for small businesses are not explicitly detailed but would likely be limited to support services rather than the core transportation of hazardous materials.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The firm-fixed-price nature implies that performance standards and delivery schedules are key accountability measures. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- DOE Nuclear Waste Management Programs
- DOE Site Cleanup Contracts
- Department of Transportation Hazardous Materials Regulations
- Federal Acquisition Regulation (FAR) Clauses
- Waste Isolation Pilot Plant (WIPP) Operations
Risk Flags
- Hazardous Material Transportation Risk
- Long-Term Contract Performance
- Regulatory Compliance Changes
- Limited Competition Pool
- Nuclear Waste Safety Protocols
Tags
transportation, department-of-energy, waste-management, hazardous-materials, trucking, firm-fixed-price, full-and-open-competition, long-distance-freight, nuclear-waste, wipp, bed-rock-inc, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $42.0 million to BED ROCK, INC.. TRANSPORTATION OF CH AND RH TRU WASTE FROM VARIOUS DOE SITESTO WIPP
Who is the contractor on this award?
The obligated recipient is BED ROCK, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $42.0 million.
What is the period of performance?
Start: 2000-08-28. End: 2007-12-27.
What is the track record of Bed Rock, Inc. in handling similar hazardous waste transportation contracts for the DOE or other federal agencies?
Information regarding Bed Rock, Inc.'s specific track record with hazardous waste transportation for the DOE or other federal agencies is not directly available in the provided data snippet. However, the award of this significant contract under full and open competition suggests that the company met the necessary qualifications and demonstrated capability to perform the required services. Further investigation into federal procurement databases (like FPDS or SAM.gov) and contractor performance reports would be necessary to fully assess their historical performance, safety record, and experience with similar high-risk, regulated materials. Understanding their past performance on contracts of similar scope, duration, and value would provide crucial context for evaluating the ongoing risk and reliability associated with this award.
How does the average annual cost of this contract compare to other federal contracts for similar waste transportation services?
The average annual cost for this contract is approximately $5.6 million ($42,005,761.45 / 7.5 years). Benchmarking this against other federal contracts for similar waste transportation services is challenging without more specific data on the types of waste, distances, regulatory compliance costs, and security requirements involved. Contracts for transporting less hazardous materials or over shorter distances would likely have lower per-unit or annual costs. Conversely, contracts involving highly specialized nuclear materials, long distances, or extremely stringent security protocols could be significantly higher. The fact that this contract was competed under full and open procedures with two bidders suggests the pricing was considered competitive within its specific market niche at the time of award.
What are the primary risks associated with the long duration (2677 days) of this contract, and how were they mitigated?
The long duration of this contract presents several risks, including potential changes in regulatory requirements for hazardous waste transport, fluctuations in fuel and operational costs (though mitigated by fixed-price), potential degradation of contractor performance over time, and the risk of unforeseen environmental or safety incidents. Mitigation strategies likely included robust contract language addressing compliance with evolving regulations, performance standards, and safety protocols. The firm-fixed-price structure helps mitigate cost escalation risks for the government. Furthermore, the DOE's oversight mechanisms, including regular performance reviews and audits, would be crucial for monitoring contractor performance and addressing any emerging issues throughout the contract's lifecycle. The selection of a qualified contractor with a demonstrated ability to manage long-term, high-risk operations is also a key mitigation factor.
What specific types of 'CH' and 'RH' waste are being transported, and what are the implications of their transport to WIPP?
In the context of the Waste Isolation Pilot Plant (WIPP), 'CH' waste typically refers to 'Contact-Handled' transuranic waste, which has a low level of radioactivity and can be handled directly with protective gloves. 'RH' waste refers to 'Remote-Handled' transuranic waste, which has higher levels of radioactivity and requires handling using remote manipulators and shielding. The transport of both CH and RH waste from various Department of Energy (DOE) sites to WIPP is a critical component of the national nuclear waste management strategy. WIPP is the nation's only geologic repository for the disposal of transuranic waste generated from decades of nuclear weapons research and production. Ensuring the safe, secure, and compliant transportation of these materials is paramount to protecting human health and the environment, and it involves complex logistical planning, specialized transportation equipment, and adherence to stringent Department of Transportation and DOE regulations.
How does the spending on this specific contract compare to the overall DOE budget for waste management and transportation over the contract period?
The total value of this contract is approximately $42 million over its 7.5-year duration. To compare this to the overall DOE budget for waste management and transportation, one would need to examine DOE's historical budget appropriations and expenditures for relevant programs during the period of 2000-2007. The DOE's budget is substantial, encompassing numerous environmental management, cleanup, and legacy waste disposition activities across many sites. While $42 million is a significant sum for a single contract, it likely represents a fraction of the total federal spending on nuclear waste management and transportation during that era, which involves extensive site remediation, facility operations, and disposal efforts nationwide. A detailed analysis would require accessing DOE's annual budget reports and program-specific spending data for the relevant fiscal years.
Industry Classification
NAICS: Transportation and Warehousing › General Freight Trucking › General Freight Trucking, Long-Distance, Truckload
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 8141 E 7TH ST, JOPLIN, MO, 07
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,113,678
Exercised Options: $44,561,331
Current Obligation: $42,005,761
Timeline
Start Date: 2000-08-28
Current End Date: 2007-12-27
Potential End Date: 2007-12-27 00:00:00
Last Modified: 2011-03-21
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)