DOE's $2B Waste Isolation Pilot Plant Contract Awarded to Washington TRU Solutions Under Full and Open Competition
Contract Overview
Contract Amount: $2,007,900,740 ($2.0B)
Contractor: Washington TRU Solutions LLC
Awarding Agency: Department of Energy
Start Date: 2000-12-14
End Date: 2012-09-30
Contract Duration: 4,308 days
Daily Burn Rate: $466.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: MANAGEMENT AND OPERATION OF THE WASTE ISOLATION PILOT PLANT
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88221
Plain-Language Summary
Department of Energy obligated $2.01 billion to WASHINGTON TRU SOLUTIONS LLC for work described as: MANAGEMENT AND OPERATION OF THE WASTE ISOLATION PILOT PLANT Key points: 1. The contract for managing the Waste Isolation Pilot Plant represents a significant investment in nuclear waste management. 2. Washington TRU Solutions LLC secured this large contract through a competitive bidding process. 3. The Cost Plus Award Fee contract type suggests incentives for performance and cost control. 4. This spending falls under Facilities Support Services, a critical sector for government operations.
Value Assessment
Rating: good
The contract value of approximately $2 billion over its period of performance is substantial. Benchmarking against similar large-scale facility management contracts would be necessary for a precise value assessment, but the competitive award suggests a reasonable price was negotiated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.
Public Impact
Ensures continued safe management and operation of the Waste Isolation Pilot Plant, a critical national asset. Supports jobs and economic activity in New Mexico through contract operations. Demonstrates the government's commitment to long-term nuclear waste disposal solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts.
- Long contract duration (over 10 years) increases risk exposure.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition, suggesting strong market engagement.
- Contract type incentivizes performance and cost efficiency.
- Managed by the Department of Energy, an agency with expertise in this domain.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a wide range of services for maintaining and operating government facilities. Spending in this sector is often substantial due to the scale and complexity of government infrastructure.
Small Business Impact
The data indicates that small businesses were not a direct awardee on this prime contract. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
The Department of Energy, as the contracting agency, is responsible for oversight. The Cost Plus Award Fee structure includes performance incentives, which can aid in accountability, but requires diligent monitoring.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration exceeds 10 years.
- Cost Plus Award Fee contract type.
- No small business participation noted on prime contract.
- Critical national infrastructure management.
Tags
facilities-support-services, department-of-energy, nm, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.01 billion to WASHINGTON TRU SOLUTIONS LLC. MANAGEMENT AND OPERATION OF THE WASTE ISOLATION PILOT PLANT
Who is the contractor on this award?
The obligated recipient is WASHINGTON TRU SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.01 billion.
What is the period of performance?
Start: 2000-12-14. End: 2012-09-30.
What are the key performance metrics tied to the award fee structure, and how are they measured?
The award fee structure is designed to incentivize Washington TRU Solutions LLC to meet or exceed specific performance objectives related to the safe and efficient operation of the Waste Isolation Pilot Plant. Key metrics likely include operational safety, environmental compliance, waste handling efficiency, and cost control. The Department of Energy would establish detailed criteria and a robust monitoring system to assess performance against these metrics and determine the award fee amount.
What are the long-term risks associated with a decade-long contract for managing a nuclear waste facility?
Long-term risks include potential technological obsolescence in waste management techniques, unforeseen environmental challenges, shifts in regulatory requirements, and contractor performance degradation over time. The significant duration also increases the potential impact of any contractor-related issues, such as financial instability or management changes. Continuous oversight and adaptive contract management are crucial to mitigate these risks.
How effectively does the Cost Plus Award Fee structure balance cost control with necessary operational flexibility for a complex facility like WIPP?
The Cost Plus Award Fee structure aims to balance cost control by providing a base cost reimbursement with incentives (award fees) for achieving performance targets, including cost savings. For a complex facility like WIPP, this structure allows for flexibility in addressing unforeseen operational needs while encouraging efficiency. However, effective implementation requires clear performance metrics and diligent oversight to prevent potential cost creep or gaming of the incentive system.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: AECOM
Address: 4021 NATIONAL PARKS HWY, CARLSBAD, NM, 88220
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,070,166,604
Exercised Options: $2,070,166,604
Current Obligation: $2,007,900,740
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2000-12-14
Current End Date: 2012-09-30
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2026-04-01
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