The Energy Department Office of Environmental Management on Jan. 18 released the key sections of a draft request for proposals (RFP) for the next Tank Closure Contract at the Hanford Site in Washington state.
In particular, the agency is looking for industry feedback on its master indefinite-delivery/indefinite-quantity (IDIQ) contract option, which it has suggested for the upcoming tank contract. It also wants to know if the structure of certain task orders is clear. Hundreds of documents are now available on the Tank Closure Contract website.
The maximum value of the IDIQ contract for closure of the radioactive waste tanks would be $13 billion, according to the draft RFP document on costs and schedule. The instructions in one of the documents suggest DOE wants a contractor’s “key personnel” to commit to staying on the project at least three years.
The tank closure documents do not constitute a full draft RFP. For reference, interested vendors are encouraged to review the Hanford Central Plateau Cleanup Contract for sections – including packaging and inspections – that have not been posted with the tank solicitation.
Central Plateau is being used as the model for DOE’s end-state procurement approach, and key draft RFP sections are “the same or very similar” to what will be found in the final tank closure RFP, DOE said on the procurement website Wednesday.
The agency will not issue a stand-alone draft RFP for the tank closure given its similarity to key sections of Central Plateau. A DOE spokesperson said the decision not to post two draft RFPs should save time. “It is a clearer and more simplistic approach to direct offerors to the [Central Plateau Cleanup Contract] where the procurement will be the same or very similar.”
Interested parties have until Jan. 28 to submit comments on the draft RFP sections and task orders. Comments should be sent to [email protected].
The Energy Department said Dec. 31 it plans to issue the final RFP within 45 days, which roughly translates to Feb. 14. At the time the agency said it was separating the previously single Tank Waste Cleanup Contract into two solicitations for the next contract round – one for tank closure, and a future award for operation of the Waste Treatment Plant being built by Bechtel.
The Tank Closure Contract is largely akin to the current tank operations contract in which the vendor must work with the Office of River Protection mission to store, retrieve, and treat Hanford tank waste. This includes remediation of old single-shell tanks. The future contract will select a vendor to run the vitrification plant that will convert the waste into a glass-like form.
Tank-farm manager Washington River Protection Solutions will remain on at least until September after last fall receiving a one-year, $629 million extension to its 10-year, $6.3 billion contract. With DOE not expecting to issue a tank award before mid-2020, the AECOM-led contractor might be in line for another extension for management of 56 million gallons of radioactive and chemical waste inside 177 underground tanks.
A new contractor would be expected to take charge of the job within 60 days of issuance of a notice to proceed.
A vendor site tour and briefing on the Tank Closure Contract were scheduled for yesterday.
The end-state procurement approach for environmental remediation championed by DOE Assistant Secretary for Environmental Management Anne Marie White asks contractors to propose significant milestones to accelerate cleanup in exchange for higher fees.
One industry source said by telephone Wednesday he likes the IDIQ aspect of the Tank Closure and Central Plateau solicitations, as compared to traditional prime contracts. The IDIQ is a type of contract that provides for an indefinite quantity of supplies or services during a fixed period of time.
Under the IDIQ approach, the contract will be designed to cut DOE environmental risks and financial liability by accelerating tank closures. This “will be defined in future task orders to be performed under this contract,” according to the DOE material.
