DoD Awards $50.9M Superfund Remediation Contract to Sevenson Environmental Services in New Jersey
Contract Overview
Contract Amount: $50,889,504 ($50.9M)
Contractor: Sevenson Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-05-20
End Date: 2016-05-19
Contract Duration: 1,826 days
Daily Burn Rate: $27.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: REMEDIAL ACTION ROEBLING OU5 BACK CHANNEL SEDIMENTATION ROEBLING SUPERFUND SITE, NEW JERSEY
Place of Performance
Location: ROEBLING, BURLINGTON County, NEW JERSEY, 08554
Plain-Language Summary
Department of Defense obligated $50.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: REMEDIAL ACTION ROEBLING OU5 BACK CHANNEL SEDIMENTATION ROEBLING SUPERFUND SITE, NEW JERSEY Key points: 1. Contract awarded for critical environmental remediation at Roebling Superfund Site. 2. Sevenson Environmental Services, a large business, secured the contract. 3. The contract type is Cost Plus Fixed Fee, which can pose cost control challenges. 4. This spending falls within the broader environmental remediation sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Benchmarking against similar remediation projects is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the most price-efficient outcome compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for essential environmental cleanup, addressing long-term public health and ecological risks.
Public Impact
Addresses a significant environmental hazard at a Superfund site, protecting public health and local ecosystems. Ensures compliance with federal environmental regulations. Supports economic revitalization of the affected area by cleaning up contaminated land.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Long duration of the contract (5 years) increases exposure to potential cost escalations.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical environmental remediation need.
Sector Analysis
Environmental remediation services are crucial for addressing legacy pollution and ensuring public safety. Spending in this sector can vary significantly based on the scale and complexity of the contamination.
Small Business Impact
The contract was awarded to Sevenson Environmental Services, Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight is critical for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and work is performed efficiently. The Department of the Army's contracting activity suggests established oversight mechanisms are in place.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (5 years).
- Lack of detailed cost breakdown for benchmarking.
- No explicit mention of small business subcontracting goals.
Tags
remediation-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. REMEDIAL ACTION ROEBLING OU5 BACK CHANNEL SEDIMENTATION ROEBLING SUPERFUND SITE, NEW JERSEY
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 $50.9 million.
What is the period of performance?
Start: 2011-05-20. End: 2016-05-19.
What was the total estimated cost of the project before the contract award, and how does the awarded amount compare?
The provided data shows an awarded amount of $50,889,504.01. Without pre-award estimates or data on the total project scope, it's difficult to assess if this represents a value-for-money outcome. Further analysis would require comparing this to similar-sized remediation projects and the specific complexities of the Roebling OU5 site.
What are the specific risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risk with Cost Plus Fixed Fee (CPFF) is that the contractor has less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to potential cost overruns if not rigorously monitored by the government. The long duration of this contract amplifies this risk.
How effectively does this contract address the long-term environmental and public health risks at the Roebling Superfund Site?
The contract's effectiveness hinges on the successful completion of the remediation activities outlined in the scope of work. While the award signifies a commitment to addressing the site's contamination, the long-term impact will depend on the quality of the work performed by Sevenson Environmental Services and the subsequent monitoring of the site's environmental health.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DQ09R3006
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2749 LOCKPORT RD, NIAGARA FALLS, NY, 14305
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,889,504
Exercised Options: $50,889,504
Current Obligation: $50,889,504
Subaward Activity
Number of Subawards: 1314
Total Subaward Amount: $353,201,361
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DQ10D3006
IDV Type: IDC
Timeline
Start Date: 2011-05-20
Current End Date: 2016-05-19
Potential End Date: 2016-05-19 00:00:00
Last Modified: 2019-05-08
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