DoD Awards $29.1M for Environmental Remediation at Arnold AFB and Maxwell AFB

Contract Overview

Contract Amount: $29,145,558 ($29.1M)

Contractor: Bhate Environmental Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-08-20

End Date: 2023-12-31

Contract Duration: 3,420 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PERFORMANCE BASED REMEDIATION (PBR) ARNOLD AFB, TN; MAXWELL AFB AND GUNTER ANNEX, AL P2: 404727

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to BHATE ENVIRONMENTAL ASSOCIATES, INC. for work described as: IGF::OT::IGF PERFORMANCE BASED REMEDIATION (PBR) ARNOLD AFB, TN; MAXWELL AFB AND GUNTER ANNEX, AL P2: 404727 Key points: 1. Contract awarded to BHATE ENVIRONMENTAL ASSOCIATES, INC. for remediation services. 2. Significant contract value of $29.1 million over a 9-year period. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a complex procurement. 4. The sector is environmental remediation, crucial for base operations and compliance.

Value Assessment

Rating: fair

The contract's firm fixed price structure provides cost certainty. However, without detailed cost breakdowns or benchmarks for similar remediation projects, assessing the overall value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a limited competition, potentially impacting price discovery and the range of available solutions. This method requires justification for excluding other sources.

Taxpayer Impact: Taxpayer funds are utilized for environmental cleanup, a necessary but potentially costly government function. The limited competition may lead to higher costs than a fully open process.

Public Impact

Ensures environmental compliance and safety at key Air Force installations. Supports base operations by addressing hazardous material and contamination. Potential for long-term environmental benefits and reduced future liabilities.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Positive Signals

Sector Analysis

Environmental remediation services are critical for government facilities to manage hazardous materials and comply with regulations. Spending in this sector can vary significantly based on the scale of contamination and cleanup required.

Small Business Impact

The contract data does not indicate any specific set-asides for small businesses, suggesting that larger firms were likely involved in the competition. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army for services at Air Force bases, indicating inter-service cooperation. Oversight would focus on performance, adherence to environmental standards, and cost management.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to BHATE ENVIRONMENTAL ASSOCIATES, INC.. IGF::OT::IGF PERFORMANCE BASED REMEDIATION (PBR) ARNOLD AFB, TN; MAXWELL AFB AND GUNTER ANNEX, AL P2: 404727

Who is the contractor on this award?

The obligated recipient is BHATE ENVIRONMENTAL ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2014-08-20. End: 2023-12-31.

What specific environmental hazards were addressed, and what was the justification for the 'exclusion of sources' in the competition?

The specific environmental hazards are not detailed in the provided data, but remediation services typically involve addressing soil and groundwater contamination from hazardous substances. The justification for excluding sources in a 'full and open competition after exclusion of sources' procurement is critical for ensuring fair competition and taxpayer value. This typically involves demonstrating that only a limited number of sources possess the unique capabilities or proprietary information required for the specific task, or that national security concerns necessitate limiting the pool of contractors.

How does the awarded price compare to industry benchmarks for similar environmental remediation projects of this scale?

Without access to detailed cost breakdowns, specific remediation activities, and regional cost indices, a precise benchmark comparison is not feasible. However, the $29.1 million contract over nine years suggests a significant undertaking. Factors like the type of contaminants, geographical location, and regulatory requirements heavily influence pricing. A thorough review would involve comparing the per-unit costs for specific remediation tasks against publicly available data or industry cost guides for similar environmental cleanup projects.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being monitored to ensure effectiveness?

Key performance indicators for environmental remediation contracts typically include adherence to cleanup standards, project timelines, safety protocols, and environmental compliance. Monitoring is usually conducted through regular site inspections, progress reports, milestone reviews, and independent environmental testing. The effectiveness of the remediation is measured by the reduction in contaminant levels to meet regulatory requirements and the long-term stability of the cleanup efforts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F11R0002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1608 13TH AVE S 300, BIRMINGHAM, AL, 35205

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

Financial Breakdown

Contract Ceiling: $31,335,811

Exercised Options: $29,145,558

Current Obligation: $29,145,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F13D0012

IDV Type: IDC

Timeline

Start Date: 2014-08-20

Current End Date: 2023-12-31

Potential End Date: 2023-12-31 00:00:00

Last Modified: 2023-09-14

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