Kenneth Fletcher
WC Monitor
2/6/2015
With only two teams likely to be in the running for the new Idaho Cleanup Project (ICP) Core contract, Rep. Mike Simpson (R-Idaho) said this week he is “concerned” about the lack of competition for the work. Initially, four teams were believed to be considering the procurement, but potential bidders balked at a provision in last fall’s draft request for proposals that would make them liable for all costs above the target cost, and even after DOE made some changes in response to industry concerns, little competition appears likely. “I’m absolutely concerned about it, and so is the community,” Simpson told WC Monitor in an interview. “It is something that we have to look at, and I don’t know that they have made a final decision on it. The [Department of Energy] is concerned that they don’t have the number of contractors interested in it that will create the competition. That is the reason they redid some of these things.”
The Department released a revised draft RFP in December to remove the provision that would make the contractor liable for costs once the target had been exceeded by $150 million. Some industry officials are still taking issue with other provisions in the draft, including that all fee earned over the life of the contract is provisional. Amidst the concerns, it appears that only two teams are set to compete for the job. Fluor has assembled a team and has been actively preparing to bid, and according to industry officials. Bechtel is also believed to be looking to lead and assemble a team to compete for the new contract, though a final decision hasn’t been made.
‘It’s Problematic’
The controversial provisions fit into the Department’s new contract management strategy that aims to shift more risk onto the contractor. When asked this week if a harder-line approach was the right move, Simpson said he needs to further look into the issue. “I think it’s problematic, but it’s one of those things I’d like to know more about. I understand why they’re doing it,” he said. “If you could shift all the risk to the contractors you would. But have they gone too far to make it uncompetitive anymore? It might have.”
The new ICP contract is intended to replace the two cleanup contracts at the Idaho site that are set to expire in September—one held by CH2M-WG Idaho, made up of CH2M Hill and AECOM (which has acquired URS) and responsible for the bulk of the cleanup work at the site; and one held by Idaho Treatment Group, made up of B&W, AECOM and EnergySolutions and responsible for managing the Advanced Mixed Waste Treatment Project. The new contract is set to run for five years, and DOE has said it plans to issue a final RFP this month.
Please see next week’s issue of Weapons Complex Monitor for the full transcript of our interview with Rep. Simpson.
