DOE awards $24M to AtkinsRealis for nuclear waste glass development, facing no competition

Contract Overview

Contract Amount: $24,066,477 ($24.1M)

Contractor: Atkinsrealis Energy Federal EPC Inc.

Awarding Agency: Department of Energy

Start Date: 2012-08-20

End Date: 2018-01-08

Contract Duration: 1,967 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: DEVELOPMENT AND TESTING OF HIGH-LEVEL AND LOW ACTIVITY WASTE GLASS COMPOSITIONS.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Energy obligated $24.1 million to ATKINSREALIS ENERGY FEDERAL EPC INC. for work described as: DEVELOPMENT AND TESTING OF HIGH-LEVEL AND LOW ACTIVITY WASTE GLASS COMPOSITIONS. Key points: 1. Significant investment in specialized nuclear waste management technology. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration is substantial, indicating a long-term project with ongoing costs. 4. Focus on engineering services within the energy sector, specifically nuclear waste.

Value Assessment

Rating: questionable

The contract value of $24,066,477 over nearly 2000 days suggests a high per-unit cost, especially given the lack of competitive bidding. Without benchmarks from similar contracts, it's difficult to definitively assess value, but the absence of competition is a red flag.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The lack of competition for a substantial contract value means taxpayers may not have received the most cost-effective solution.

Public Impact

Impacts the Department of Energy's ability to manage nuclear waste safely and efficiently. Potential for taxpayer funds to be used less efficiently due to non-competitive award. Affects the development of advanced materials for long-term waste containment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Long contract duration
  • Lack of small business participation

Positive Signals

  • Addresses critical national need for nuclear waste management

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to the Department of Energy's mission in managing nuclear materials. Spending in this niche area is often characterized by specialized expertise and limited contractor pools.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor is a large entity, and opportunities for small businesses in this specialized field were not pursued or available.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight from the Department of Energy to ensure the contractor is delivering on objectives and that costs remain reasonable despite the lack of competition.

Related Government Programs

  • Engineering Services
  • Department of Energy Contracting
  • Department of Energy Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Long contract duration may lead to cost overruns if not managed tightly.
  • No small business participation noted.
  • High potential cost per unit due to specialized nature and lack of competition.

Tags

engineering-services, department-of-energy, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $24.1 million to ATKINSREALIS ENERGY FEDERAL EPC INC.. DEVELOPMENT AND TESTING OF HIGH-LEVEL AND LOW ACTIVITY WASTE GLASS COMPOSITIONS.

Who is the contractor on this award?

The obligated recipient is ATKINSREALIS ENERGY FEDERAL EPC INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2012-08-20. End: 2018-01-08.

What specific technical challenges justify a sole-source award for nuclear waste glass development?

Sole-source awards are typically justified by unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For nuclear waste glass development, this could stem from highly specialized knowledge of radioactive materials, unique testing facilities, or patented processes essential for safe and effective waste vitrification.

How can the Department of Energy ensure cost-effectiveness in a sole-source contract of this magnitude?

The Department of Energy can ensure cost-effectiveness through rigorous contract management, including detailed performance metrics, regular progress reviews, and independent cost analysis. Establishing clear milestones and deliverables tied to payment, and potentially negotiating price adjustments based on achieved efficiencies or market shifts, can also mitigate risks associated with non-competitive awards.

What are the long-term implications of developing specific glass compositions for nuclear waste?

The long-term implications involve ensuring the stability and containment of radioactive materials for millennia, preventing environmental contamination. Successful development of optimal glass compositions is crucial for the safety and security of nuclear waste disposal, impacting regulatory compliance, public health, and the overall cost and feasibility of long-term waste management strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Energysolutions, Inc. (UEI: 808265917)

Address: 2345 STEVENS DR STE 240, RICHLAND, WA, 99354

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,066,477

Exercised Options: $24,066,477

Current Obligation: $24,066,477

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-08-20

Current End Date: 2018-01-08

Potential End Date: 2019-11-19 00:00:00

Last Modified: 2018-01-08

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