DOE's $3.9B ETTP Decontamination Contract Awarded to UCOR LLC Under Full and Open Competition
Contract Overview
Contract Amount: $3,900,788,934 ($3.9B)
Contractor: Ucor LLC
Awarding Agency: Department of Energy
Start Date: 2011-04-29
End Date: 2021-07-31
Contract Duration: 3,746 days
Daily Burn Rate: $1.0M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: DECONTAMINATION AND DECOMISSIONING OF THE EAST TENNESSEE TECHNOLOGY PARK (ETTP)AT OAK RIDGE, TN.
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $3.90 billion to UCOR LLC for work described as: DECONTAMINATION AND DECOMISSIONING OF THE EAST TENNESSEE TECHNOLOGY PARK (ETTP)AT OAK RIDGE, TN. Key points: 1. Significant investment in environmental remediation at Oak Ridge, TN. 2. UCOR LLC secured a large, long-term contract for complex decontamination. 3. Potential risks associated with large-scale, multi-year environmental projects. 4. Spending aligns with DOE's mission for nuclear site cleanup.
Value Assessment
Rating: fair
The contract value of $3.9 billion over 10 years is substantial. Benchmarking is difficult due to the unique nature of large-scale environmental remediation and decommissioning projects, which often involve significant unknowns and evolving scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the cost-plus award fee structure allows for flexibility but can lead to higher costs if not managed tightly.
Taxpayer Impact: Taxpayers are funding a critical environmental cleanup effort. The cost-plus structure necessitates strong oversight to ensure efficiency and prevent cost overruns.
Public Impact
Ensures cleanup of legacy nuclear waste at a major federal facility. Supports environmental restoration and public safety in Tennessee. Creates jobs and economic activity related to specialized remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration increases risk of scope creep and cost escalation.
- Complex technical challenges inherent in nuclear site decommissioning.
- Cost-plus award fee structure requires diligent oversight to control costs.
Positive Signals
- Awarded through full and open competition, promoting value.
- Addresses critical environmental and national security mission.
- Significant investment in a specialized, high-demand sector.
Sector Analysis
This contract falls within the Environmental Remediation and Waste Management sector, a critical area for the Department of Energy. Spending benchmarks are difficult to establish due to the unique scale and complexity of nuclear site cleanup.
Small Business Impact
The data indicates this was a large prime contract awarded to UCOR LLC. There is no explicit information on small business subcontracting participation within this data snippet, which is a common area for oversight in large federal contracts.
Oversight & Accountability
The Department of Energy's oversight is crucial for managing the risks and costs associated with this extensive remediation project. Regular reviews of performance, cost, and adherence to safety and environmental regulations are essential.
Related Government Programs
- Remediation Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Overruns
- Schedule Delays
- Technical Challenges
- Environmental Incidents
- Contractor Performance Issues
Tags
remediation-services, department-of-energy, tn, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.90 billion to UCOR LLC. DECONTAMINATION AND DECOMISSIONING OF THE EAST TENNESSEE TECHNOLOGY PARK (ETTP)AT OAK RIDGE, TN.
Who is the contractor on this award?
The obligated recipient is UCOR LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.90 billion.
What is the period of performance?
Start: 2011-04-29. End: 2021-07-31.
What is the projected cost per unit of waste or area remediated, and how does it compare to similar projects?
A precise per-unit cost is difficult to establish due to the variable nature of decontamination and decommissioning. Factors like the type and level of contamination, the specific structures being removed, and unforeseen site conditions significantly impact costs. Benchmarking against other large-scale federal cleanup projects would be necessary for a comparative analysis, but direct unit cost comparisons are often not feasible.
What are the primary risks associated with the cost-plus award fee structure in this contract?
The primary risk with a Cost Plus Award Fee (CPAF) contract is that the contractor may have less incentive to control costs aggressively compared to fixed-price contracts. While the award fee component aims to incentivize performance, there's a potential for costs to escalate if oversight is not rigorous. This structure requires robust government monitoring to ensure efficiency and prevent unnecessary expenditures.
How effectively is this contract contributing to the long-term environmental restoration goals of the Department of Energy?
This contract is central to the DOE's mission of cleaning up legacy nuclear materials and facilities at the East Tennessee Technology Park. Its effectiveness hinges on the successful and timely completion of decontamination and decommissioning tasks, reducing environmental hazards, and restoring the site. Continuous monitoring of progress against milestones and environmental impact assessments will determine its ultimate success.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation 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-0001551
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 701 SCARBORO RD STE 300, OAK RIDGE, TN, 37830
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,175,324,022
Exercised Options: $4,175,289,576
Current Obligation: $3,900,788,934
Actual Outlays: $847,796,345
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-29
Current End Date: 2021-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2025-12-29
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