DOE's $20.1M Uranium Processing Facility contract awarded to Navarro Research and Engineering, Inc. for remediation services
Contract Overview
Contract Amount: $20,106,464 ($20.1M)
Contractor: Navarro Research and Engineering, Inc.
Awarding Agency: Department of Energy
Start Date: 2011-09-28
End Date: 2017-01-27
Contract Duration: 1,948 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SERVICES, PROJECT MANAGEMENT IN SUPPORT OF THE URANIUM PROCESSING FACILITY (UPF) FOR Y-12 SITE OFFICE - YSO.
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37831
Plain-Language Summary
Department of Energy obligated $20.1 million to NAVARRO RESEARCH AND ENGINEERING, INC. for work described as: SERVICES, PROJECT MANAGEMENT IN SUPPORT OF THE URANIUM PROCESSING FACILITY (UPF) FOR Y-12 SITE OFFICE - YSO. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges if not closely managed. 3. The duration of the contract was 1948 days, indicating a significant, long-term project. 4. The project is located in Tennessee, potentially impacting the local workforce and economy. 5. The North American Industry Classification System (NAICS) code 562910 points to a focus on remediation services. 6. The award was a delivery order, implying it was part of a larger contract vehicle.
Value Assessment
Rating: fair
The total award amount of $20.1 million for project management support in remediation services appears moderate for a federal contract of this nature. Benchmarking against similar contracts for large-scale environmental remediation projects is difficult without more specific details on the scope of work and the complexity of the uranium processing facility. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost overruns if not meticulously monitored. Without detailed performance metrics or cost breakdowns, a definitive value-for-money assessment is challenging, but the duration suggests a substantial undertaking.
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 3 bidders suggests a reasonable level of competition for this specialized remediation service. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions. However, the specific number of bidders does not inherently guarantee the lowest possible price without further analysis of the bids received and the market landscape.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and encourages efficient service delivery through market forces.
Public Impact
The primary beneficiary is the Department of Energy (DOE) through the provision of essential project management services for the Uranium Processing Facility (UPF). The services delivered include project management crucial for the remediation and operational support of the Y-12 Site Office. The geographic impact is concentrated in Tennessee (TN), potentially creating or sustaining local jobs and economic activity related to the Y-12 National Nuclear Security Complex. Workforce implications may include the need for specialized project managers, engineers, and technical staff familiar with nuclear facility remediation and safety protocols.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not managed rigorously.
- The long duration of the contract (1948 days) requires sustained oversight to ensure continued value.
- Specialized nature of nuclear facility remediation may limit the pool of qualified contractors, potentially impacting future competition.
- Potential for scope creep in complex remediation projects if not clearly defined and controlled.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract supports critical national security infrastructure (Y-12 Site Office).
- The contractor, Navarro Research and Engineering, Inc., likely possesses specialized expertise required for this complex task.
- The project's location in Tennessee may provide economic benefits to the local region.
Sector Analysis
The contract falls within the Environmental Remediation and Support Services sector, a critical area for government agencies managing legacy nuclear sites. The market for such services is specialized, often dominated by a few large firms with the necessary security clearances, technical expertise, and experience in handling hazardous materials. Federal spending in this sector is substantial, driven by ongoing cleanup efforts at numerous sites across the country. This contract represents a portion of the DOE's broader investment in maintaining and remediating its nuclear infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of managing a Uranium Processing Facility and remediation services, it is common for such large-scale contracts to be awarded to larger, established firms. There is no explicit information on subcontracting plans for small businesses within this award, but it is possible that the prime contractor may engage small businesses for specific support roles.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's Y-12 Site Office. As a Time and Materials contract, rigorous oversight of labor hours, material costs, and adherence to the Statement of Work is crucial. The Department of Energy has an Office of Inspector General (OIG) responsible for auditing and investigating DOE programs and operations to prevent fraud, waste, and abuse, which would likely have jurisdiction over this contract.
Related Government Programs
- Department of Energy Uranium Processing Facility (UPF) Projects
- Y-12 National Security Complex Operations
- Environmental Remediation Services Contracts
- Nuclear Site Management and Support
- Department of Energy Site Offices
Risk Flags
- Time and Materials Contract Type Risk
- Long Contract Duration Requires Sustained Oversight
- Complexity of Nuclear Facility Remediation
- Potential for Cost Overruns with T&M
Tags
department-of-energy, remediation-services, project-management, uranium-processing-facility, y-12-site-office, tennessee, full-and-open-competition, delivery-order, time-and-materials, navarro-research-and-engineering, nuclear-facilities, environmental-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.1 million to NAVARRO RESEARCH AND ENGINEERING, INC.. SERVICES, PROJECT MANAGEMENT IN SUPPORT OF THE URANIUM PROCESSING FACILITY (UPF) FOR Y-12 SITE OFFICE - YSO.
Who is the contractor on this award?
The obligated recipient is NAVARRO RESEARCH AND ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2011-09-28. End: 2017-01-27.
What is the track record of Navarro Research and Engineering, Inc. with the Department of Energy, particularly on similar remediation projects?
Navarro Research and Engineering, Inc. has a significant history of working with the Department of Energy, often in roles related to environmental management, waste disposition, and site remediation. They have been involved in complex projects at various DOE sites, including managing large-scale cleanup operations and supporting nuclear facility infrastructure. Their experience often includes handling hazardous materials, ensuring regulatory compliance, and managing project lifecycles within the stringent requirements of the nuclear industry. Specific to the Y-12 Site Office, their involvement suggests a demonstrated capability to meet the DOE's demanding standards for safety, security, and environmental stewardship. A deeper dive into their contract history with DOE would reveal the scale and success of their past performance on comparable projects, providing context for their selection on this $20.1M contract.
How does the $20.1 million award compare to other federal contracts for similar project management and remediation services?
The $20.1 million award for project management in support of the Uranium Processing Facility (UPF) at the Y-12 Site Office is a substantial sum, but its comparability to other federal contracts depends heavily on the specific scope, duration, and complexity of the services rendered. Federal contracts for environmental remediation and management of nuclear facilities can range from tens of millions to billions of dollars. This particular award, with a duration of approximately 1948 days (over 5 years), suggests a significant, long-term engagement. When compared to contracts for less complex environmental cleanup or standard project management, $20.1 million might appear high. However, within the specialized domain of nuclear site remediation and UPF support, this figure could represent a competitive or even cost-effective award, especially considering the stringent safety, security, and regulatory requirements involved. Benchmarking would require detailed analysis of similar NAICS codes (like 562910) and contract types (Time and Materials) awarded by agencies like the DOE, EPA, or DoD for comparable hazardous material management and facility support.
What are the primary risks associated with a Time and Materials (T&M) contract for a project of this magnitude and type?
Time and Materials (T&M) contracts, like the one awarded to Navarro Research and Engineering, Inc. for the UPF project, carry inherent risks, particularly for large-scale and long-duration efforts. The primary risk for the government is cost escalation, as the contractor is reimbursed for direct labor hours at specified hourly rates and for the actual cost of materials used, plus a fee or profit. Unlike fixed-price contracts, T&M contracts do not provide a ceiling on the total cost unless a contract ceiling is explicitly established and managed. For a complex project like nuclear facility remediation, there's a risk of scope creep, where the project's requirements may expand beyond the initial understanding, leading to increased labor and material usage. Inefficient performance by the contractor's staff can also drive up costs without a direct penalty, as the government pays for the time spent. Effective oversight, detailed tracking of hours and materials, and strong contract administration are crucial to mitigate these risks and ensure the government receives good value.
What does the 'Delivery Order' award type signify in the context of this contract?
The 'Delivery Order' (aw: DELIVERY ORDER) award type indicates that this contract is likely a task order issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts allow agencies to procure supplies or services from various contractors over a set period, with specific quantities or dollar amounts defined by individual task or delivery orders. This approach provides flexibility for the agency to order services as needed. In this case, Navarro Research and Engineering, Inc. was awarded a specific delivery order for $20.1 million, representing a defined scope of work and funding for the project management services related to the Uranium Processing Facility. It suggests that the underlying IDIQ contract likely covered a broader range of services or had a larger potential value, and this order represents a specific call against that contract.
How does the NAICS code 562910 (Remediation Services) inform our understanding of the contract's purpose and scope?
The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' provides critical insight into the core purpose of this contract. This code specifically covers establishments primarily engaged in cleaning up sites contaminated by pollution or other hazardous materials. This includes activities such as site remediation, hazardous waste site cleanup, and environmental remediation consulting. Therefore, the contract awarded to Navarro Research and Engineering, Inc. for 'PROJECT MANAGEMENT IN SUPPORT OF THE URANIUM PROCESSING FACILITY (UPF) FOR Y-12 SITE OFFICE' is fundamentally focused on the management and oversight of activities aimed at cleaning, decontaminating, or restoring areas affected by past industrial or nuclear processes at the Y-12 facility. This implies a scope involving hazardous material handling, environmental compliance, regulatory adherence, and potentially long-term monitoring and restoration efforts.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1020 COMMERCE PARK DR STE 4, OAK RIDGE, TN, 37830
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $20,106,464
Exercised Options: $20,106,464
Current Obligation: $20,106,464
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00F0092N
IDV Type: FSS
Timeline
Start Date: 2011-09-28
Current End Date: 2017-01-27
Potential End Date: 2017-01-27 00:00:00
Last Modified: 2019-02-13
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