Department of Energy's Waste Isolation Pilot Plant contract awarded to Nuclear Waste Partnership LLC for over $2.8 billion
Contract Overview
Contract Amount: $2,823,678,827 ($2.8B)
Contractor: Nuclear Waste Partnership LLC
Awarding Agency: Department of Energy
Start Date: 2012-04-19
End Date: 2023-02-03
Contract Duration: 3,942 days
Daily Burn Rate: $716.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF THE MAJOR PURPOSE OF THIS CONTRACT IS TO OPERATE AND MAINTAIN THE WASTE ISOLATION PILOT PLANT (WIPP) AND TO IMPLEMENT THE DOE'S NATIONAL TRANSURANIC WASTE PROGRAM (NTP). THE OVERALL MISSION OF THE WIPP AND THE NATIONAL TRANSURANIC WASTE PROGRAM IS TO PROTECT HUMAN HEALTH AND THE ENVIRONMENT BY SAFE MANAGEMENT, RETRIEVAL, CHARACTERIZATION, TRANSPORTATION, AND DISPOSAL OF APPROVED WASTES.
Place of Performance
Location: CARLSBAD, EDDY County, NEW MEXICO, 88220
Plain-Language Summary
Department of Energy obligated $2.82 billion to NUCLEAR WASTE PARTNERSHIP LLC for work described as: IGF::OT::IGF THE MAJOR PURPOSE OF THIS CONTRACT IS TO OPERATE AND MAINTAIN THE WASTE ISOLATION PILOT PLANT (WIPP) AND TO IMPLEMENT THE DOE'S NATIONAL TRANSURANIC WASTE PROGRAM (NTP). THE OVERALL MISSION OF THE WIPP AND THE NATIONAL TRANSURANIC WASTE PROGRAM IS TO PROTECT HUMAN HE… Key points: 1. Contract focuses on operating and maintaining the Waste Isolation Pilot Plant (WIPP) and implementing the National Transuranic Waste Program. 2. The mission is to protect human health and the environment through safe management of transuranic waste. 3. This is a definitive contract with a cost-plus-award-fee structure. 4. The contract duration is substantial, spanning over 10 years. 5. The primary service falls under Facilities Support Services. 6. The contract was awarded through full and open competition.
Value Assessment
Rating: good
The total award amount of over $2.8 billion for a decade-long operation and maintenance contract for a critical national facility appears reasonable given the scope. Benchmarking against similar large-scale environmental management and facility operations contracts would provide a more precise value-for-money assessment. The cost-plus-award-fee structure incentivizes performance, which can lead to better outcomes but also requires robust oversight to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and service quality. The number of bidders (4) suggests a healthy level of interest and competition for this specialized service.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The primary beneficiaries are the Department of Energy and the nation, ensuring safe management of transuranic waste. Services delivered include operation and maintenance of the WIPP facility and implementation of the National Transuranic Waste Program. The geographic impact is primarily in New Mexico, where the WIPP facility is located. The contract supports a specialized workforce involved in nuclear waste management and facility operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts if not managed tightly.
- Complexity of managing nuclear waste requires continuous vigilance and adherence to strict safety protocols.
- Long-term nature of the contract necessitates sustained oversight to ensure ongoing performance and value.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Cost-plus-award-fee structure incentivizes contractor performance and efficiency.
- The contract supports a critical national mission for environmental protection and human health.
- The contractor has a significant role in a highly specialized and essential government function.
Sector Analysis
This contract falls within the Facilities Support Services sector, specifically related to the management and disposal of nuclear waste. The market for such specialized services is limited, with a few key players possessing the necessary expertise and security clearances. The Department of Energy is a primary client for these types of services, and spending in this area is driven by national policy and regulatory requirements for nuclear material management.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the highly specialized nature of operating and maintaining a nuclear waste facility, it is unlikely that small businesses would be primary contractors for the entirety of this work. However, the prime contractor, Nuclear Waste Partnership LLC, may engage small businesses for subcontracting opportunities in areas such as specialized equipment maintenance, logistics, or support services.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The cost-plus-award-fee structure implies performance metrics that are monitored to determine award fees, suggesting a degree of accountability. Transparency would be facilitated through contract reporting requirements and potentially through public statements from the DOE regarding the WIPP's operations. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy - Environmental Management
- Nuclear Waste Disposal Services
- Federal Facility Operations and Maintenance
- National Transuranic Waste Program
Risk Flags
- High-risk material handling
- Long-term environmental stewardship
- Complex facility operations
- Nuclear safety compliance
Tags
facilities-support-services, department-of-energy, new-mexico, definitive-contract, large-contract, full-and-open-competition, cost-plus-award-fee, nuclear-waste, environmental-management, facility-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.82 billion to NUCLEAR WASTE PARTNERSHIP LLC. IGF::OT::IGF THE MAJOR PURPOSE OF THIS CONTRACT IS TO OPERATE AND MAINTAIN THE WASTE ISOLATION PILOT PLANT (WIPP) AND TO IMPLEMENT THE DOE'S NATIONAL TRANSURANIC WASTE PROGRAM (NTP). THE OVERALL MISSION OF THE WIPP AND THE NATIONAL TRANSURANIC WASTE PROGRAM IS TO PROTECT HUMAN HEALTH AND THE ENVIRONMENT BY SAFE MANAGEMENT, RETRIEVAL, CHARACTERIZATION, TRANSPORTATION, AND DISPOSAL OF APPROVED WASTES.
Who is the contractor on this award?
The obligated recipient is NUCLEAR WASTE PARTNERSHIP LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $2.82 billion.
What is the period of performance?
Start: 2012-04-19. End: 2023-02-03.
What is the historical spending trend for the Waste Isolation Pilot Plant (WIPP) operations and maintenance?
Analyzing historical spending for WIPP operations and maintenance requires access to detailed budget and expenditure data over multiple fiscal years. While the current contract value is over $2.8 billion, understanding the trend involves comparing this to previous contract periods and potential fluctuations in operational costs, regulatory changes, and waste throughput. For instance, if previous contracts were significantly lower or higher, it could indicate changes in scope, efficiency, or inflationary pressures. A detailed analysis would involve examining annual reports, budget justifications, and contract award histories to identify patterns, significant cost drivers, and any deviations from projected spending. Without specific historical data points, it's challenging to provide a precise trend, but the sustained nature of the WIPP mission suggests a consistent, albeit potentially fluctuating, level of investment.
How does the per-unit cost of waste disposal or management compare to other similar facilities or programs?
Determining the per-unit cost of waste disposal or management for the WIPP requires defining a clear 'unit' (e.g., metric ton of transuranic waste, cubic meter of disposal volume) and accessing detailed operational cost data. Benchmarking this against other facilities, such as the Savannah River Site or Hanford Site's waste treatment and disposal operations, would be crucial. These comparisons should account for differences in waste characteristics (e.g., radioactivity levels, volume, chemical composition), disposal methods, regulatory environments, and facility age. The WIPP is unique in its purpose as a deep geological repository for transuranic waste. Therefore, direct per-unit cost comparisons might be difficult, and a more nuanced analysis considering the specific challenges and scale of operations at WIPP would be necessary. The cost-plus-award-fee structure also means that reported costs are subject to performance incentives, which could influence the final per-unit cost.
What is the track record of Nuclear Waste Partnership LLC in managing similar large-scale, high-risk government contracts?
Nuclear Waste Partnership LLC (NWP) is a joint venture specifically formed to manage the WIPP. Its track record is intrinsically tied to its performance at WIPP. NWP is comprised of key entities with experience in nuclear operations and project management. For example, one of its principal members, Fluor, has extensive experience in managing large, complex industrial and government projects, including nuclear facilities. However, NWP as a distinct entity's track record is primarily defined by its stewardship of the WIPP since its formation. Evaluating NWP's performance would involve reviewing Department of Energy performance evaluations, award fee determinations, safety records, and any significant operational incidents or successes during its tenure at WIPP. The longevity of the contract suggests a level of satisfaction, but a comprehensive assessment would require detailed review of performance metrics and independent evaluations.
What are the primary risks associated with the operation and maintenance of the Waste Isolation Pilot Plant (WIPP)?
The primary risks associated with the WIPP operation and maintenance are multifaceted and significant, given the nature of the materials handled. These include: 1. **Safety Risks:** Potential for radiation exposure to workers and the public due to handling, transportation, or accidental release of transuranic waste. This also encompasses the integrity of the underground repository over long timescales. 2. **Environmental Risks:** The possibility of contamination of soil, groundwater, or air if containment systems fail or if waste emplacement is compromised. 3. **Operational Risks:** Equipment failures, human errors, or unforeseen geological conditions within the repository that could disrupt operations or compromise safety. 4. **Regulatory Risks:** Changes in environmental regulations or licensing requirements that could necessitate costly modifications or operational changes. 5. **Security Risks:** Protecting the facility and its contents from sabotage or unauthorized access. The cost-plus-award-fee contract structure aims to mitigate some operational risks by incentivizing performance, but the inherent risks remain substantial.
How has the competition level for WIPP operations contracts evolved over time?
The competition level for WIPP operations contracts has historically seen periods of both competitive bidding and sole-source or limited competition, often influenced by the evolving needs and complexities of the WIPP mission. The current contract was awarded under 'full and open competition' with four bidders, indicating a robust competitive environment for this specific award. However, the specialized nature of nuclear waste management means that the pool of qualified bidders can be limited. Previous contract awards might have involved different competition dynamics, potentially including fewer bidders or specific justifications for limited competition if unique capabilities were required. Understanding the full evolution would necessitate reviewing the contracting history for WIPP prior to this award, examining the justifications for competition levels in each solicitation, and identifying any trends in bidder participation over the facility's operational life.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0002555
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 106 NEWBERRY STREET SW, AIKEN, SC, 29801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,950,944,370
Exercised Options: $2,950,944,370
Current Obligation: $2,823,678,827
Actual Outlays: $953,027,064
Subaward Activity
Number of Subawards: 2971
Total Subaward Amount: $1,104,487,478
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-19
Current End Date: 2023-02-03
Potential End Date: 2025-02-14 00:00:00
Last Modified: 2025-02-13
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