DoD Awards $80.4M Environmental Remediation Contract to Sevenson Environmental Services

Contract Overview

Contract Amount: $80,445,818 ($80.4M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-13

End Date: 2009-08-15

Contract Duration: 1,828 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::68 8145::TAS ENVIRONMENTAL REMEDIATION SERVICES 200412!001512!96CE!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ04D0023 !A!N! !N!0001 ! !20040813!20051215!083535773!083535773!083535773!N!SEVENSON ENVIRONMENTAL SERVICE!2749 LOCKPORT ROAD !NIAGARA FALLS !NY!14305!43620!035!34!MANVILLE !SOMERSET !NEW JERSEY!+000005432000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !ZSE !* !562910!E! !5!B!M! !E! !99990909!B! ! !A! !A!U!U!2!012!K! !Z!N!Z! ! !N!B!N!N! ! !Z! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MANVILLE, SOMERSET County, NEW JERSEY, 08835

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $80.4 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: TAS::68 8145::TAS ENVIRONMENTAL REMEDIATION SERVICES 200412!001512!96CE!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ04D0023 !A!N! !N!0001 ! !20040813!20051215!083535773!083535773!083535773!N!SEVENSON ENVIRONMENTAL SERVICE!2749 LOCKPORT ROAD !NIAGARA FALL… Key points: 1. Contract awarded for hazardous substance removal and cleanup services. 2. Sevenson Environmental Services, Inc. is the sole contractor. 3. The contract value is substantial at over $80 million. 4. The sector is primarily environmental services within the Defense department.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award value is high, but without specific cost breakdowns or benchmarks for similar remediation projects, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have resulted in the most competitive pricing, as fewer bidders were considered.

Taxpayer Impact: The high contract value suggests a significant taxpayer investment. The limited competition raises concerns about whether taxpayers received the best possible price for these essential environmental services.

Public Impact

Environmental cleanup is crucial for public health and safety. Taxpayer funds are being used for hazardous waste management. The long duration of the contract implies ongoing environmental needs. The specific location of the remediation efforts could impact local communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have inflated costs.
Cost Plus Fixed Fee contracts carry inherent cost escalation risks.
Lack of detailed cost breakdown hinders value assessment.

Positive Signals

Addresses critical environmental remediation needs.
Contract awarded to an established environmental services company.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical area for government operations, particularly for agencies like the Department of Defense. Spending benchmarks for such services can vary widely based on the scope and complexity of the environmental hazards.

Small Business Impact

The data indicates that this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted for any portion of the work.

Oversight & Accountability

The contract was awarded by the Department of the Army, Kansas City District. Oversight would typically involve monitoring the contractor's performance, cost expenditures, and adherence to environmental regulations to ensure accountability.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition raises cost concerns.
Cost Plus Fixed Fee structure can lead to cost escalation.
Lack of detailed cost breakdown hinders value analysis.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.4 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. TAS::68 8145::TAS ENVIRONMENTAL REMEDIATION SERVICES 200412!001512!96CE!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ04D0023 !A!N! !N!0001 ! !20040813!20051215!083535773!083535773!083535773!N!SEVENSON ENVIRONMENTAL SERVICE!2749 LOCKPORT ROAD !NIAGARA FALLS !NY!14305!43620!035!34!MANVILLE !SOMERSET !NEW JERSEY!+000005432000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !ZSE !*

Who is the contractor on this award?

The obligated recipient is SEVENSON ENVIRONMENTAL SERVICES, 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 $80.4 million.

What is the period of performance?

Start: 2004-08-13. End: 2009-08-15.

What specific environmental hazards are being addressed by this contract, and what is the estimated cost per unit of remediation?

The data specifies 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' but does not detail the specific hazards. Without this information and a breakdown of services rendered, calculating a per-unit cost for remediation is not possible from the provided data. Further investigation into the contract's statement of work is required.

What were the reasons for excluding other potential sources in the competition, and how did this impact the final price?

The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting specific justifications were made for excluding other bidders, possibly due to specialized capabilities or prior performance. However, the exact reasons are not detailed. This limited competition likely reduced price pressure, potentially leading to a higher final cost than if a broader competition had occurred.

How effectively is Sevenson Environmental Services managing the remediation process and controlling costs under the Cost Plus Fixed Fee structure?

Effectiveness in managing the remediation process and controlling costs under a Cost Plus Fixed Fee contract depends heavily on robust government oversight and detailed performance metrics, which are not provided in this data. While the contract has a fixed fee component, the 'cost plus' aspect requires diligent monitoring to prevent cost overruns and ensure efficient service delivery.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2749 LOCKPORT ROAD, NIAGARA FALLS, NY, 14305

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $5,044,825

Exercised Options: $5,044,825

Current Obligation: $80,445,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ04D0023

IDV Type: IDC

Timeline