CLEANUP MANAGEMENT
National Academies of Science Determines that EM “End State ”Contracting is Neither Outcomes-Based Nor Completion-Focused”
ECA Staff | 1/12/2021
The National Academy of Science published a report entitled “Review of Effectiveness and Efficiency of Defense Environmental Cleanup Activities of the Department of Energy’s Office of Environmental Management” (the “Report”). This Report was directed by Congress in the National Defense Authorization Act of 2019. In the detailed Report the National Academies of Science states that EM
cleanup contracting can be and should be improved. Specifically it suggested that EM move away from the (misleadingly) titled End States contracting. This report further studied how the Office of Environmental Management (EM) performs its duties of executing mission activities related to cleanup. Specifically, the contracts used by EM to perform such duties for large projects are evaluated.
In review of the existing end state contracting model (ESCM), the report reviewed the advantages and disadvantages of different contract types in comparison to previous cleanup contracting models. Both the present and former contracting models were compared with the new ESCM that EM has advanced as improved. Notably, the committee found: “the ESCM is neither outcomes-based nor completion-focused. Rather,
ESCM is focused on delivery of a set of discrete outputs that are not clearly mapped by contract to achievement of either a clearly defined intermediate or final end-state. This significant deficiency deprives EM and the IDIQ contractor of the benefits of having a completion-oriented contract fully integrated throughout the supply chain and the fostering of innovation at the scale the program requires.”
In review of Indefinite Delivery, Indefinite Quantity (IDIQ), the report reviewed the effectiveness of resource management in terms of cost and time. The committee found: “that the IDIQ task order structure will create a significant number of task orders, triggering a pro rata increase in the project management burden to EM. The anticipated size of the task orders in the IDIQ clean-up contracts,
averaging about $100 million, will result in EM having to manage potentially 100 task orders over the life of one clean-up contract. This process carries greater risk for EM, requiring the possible management of an unwieldy number of task orders and a significant amount of DOE oversight.”
The report in general calls for an increase in transparency for contractor performance evaluation, for EM to establish well-defined, outcomes-based intermediated end-states in its contracts, and for EM to issue quarterly reports marking progress of end-state programs. Cleanup efficiency is put at risk by not achieving a streamlined procurement process when utilizing the ESCM of singled award for IDIQ
contracts.
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NUCLEAR POWER
NuScale Power and UAMPS Execute Agreements to Progress Carbon Free Power Project
Argus-Press | 1/11/2021
NuScale Power today announced together with Utah Associated Municipal Power Systems (UAMPS) that it has executed agreements to facilitate the development of the Carbon Free Power Project (CFPP), which will deploy NuScale Power Modules™ at the Idaho National Laboratory (INL) and create cleaner, safer and cost-effective carbon-free power for UAMPS member utilities. Pursuant to the initial orders from
UAMPS, Fluor Corporation and NuScale (as a subcontractor to Fluor) are to develop higher maturity cost estimates and initial project planning work for the licensing, manufacturing and construction of the CFPP.
“The orders between NuScale and UAMPS mark the next major step in moving forward with the commercialization of NuScale’s groundbreaking small modular reactor (SMR) technology,” said John Hopkins, NuScale Chairman and Chief Executive Officer. “This is the first step in a prudent deployment plan that could result in the order of NuScale Power Modules in 2022. We are appreciative of UAMPS’ strong
partnership and collaboration as we forge a new energy frontier together.”
Read about DOE's High Level Waste Interpretation
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ECA's new site profiles detail DOE's 13 active Environmental Management cleanup sites and national laboratories, highlighting their history, missions, and priorities. The profiles are a key source for media, stakeholders, and the public to learn more about DOE site activities, contractors, advisory boards, and their surrounding local
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