Army Awards $28.9M Remediation Services Task Order to Sevenson Environmental Services

Contract Overview

Contract Amount: $28,932,601 ($28.9M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-02-26

End Date: 2021-09-30

Contract Duration: 2,408 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THIS TASK ORDER SATISFIES THE GUARANTEED MINIMUM ORDER AMOUNT OF $2,500.00 FOR W912DQ-14-D-3004.

Place of Performance

Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14305

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: IGF::OT::IGF THIS TASK ORDER SATISFIES THE GUARANTEED MINIMUM ORDER AMOUNT OF $2,500.00 FOR W912DQ-14-D-3004. Key points: 1. Significant contract value of $28.9 million for environmental remediation. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the long duration and cost-plus fixed fee structure. 4. Sector is Environmental Remediation, a critical but often complex service area.

Value Assessment

Rating: good

The contract value of $28.9 million appears reasonable for a multi-year remediation project. Benchmarking against similar large-scale environmental cleanup contracts would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The delivery order structure suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by allowing multiple qualified vendors to bid.

Public Impact

Environmental cleanup services are essential for public health and safety. Long-term contracts like this can provide stable employment in the remediation sector. Successful completion ensures compliance with environmental regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus fixed fee contracts can incentivize cost overruns if not closely monitored.
  • Long contract duration (2408 days) increases the risk of scope creep or unforeseen challenges.
  • Environmental projects can face unexpected site conditions impacting cost and schedule.

Positive Signals

  • Awarded under full and open competition.
  • Satisfies a guaranteed minimum order amount, indicating a clear need.
  • Long duration suggests a comprehensive and potentially complex project.

Sector Analysis

This contract falls within the Environmental Remediation sector, which involves cleaning up contaminated sites. Spending in this sector can fluctuate based on regulatory requirements and infrastructure needs.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were pursued.

Oversight & Accountability

The contract was awarded as a delivery order under a larger IDIQ. Oversight would likely involve the contracting officer's representative (COR) and program managers to ensure performance and cost control.

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.
  • Potential for unforeseen site conditions.
  • No indication of small business participation.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. IGF::OT::IGF THIS TASK ORDER SATISFIES THE GUARANTEED MINIMUM ORDER AMOUNT OF $2,500.00 FOR W912DQ-14-D-3004.

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 $28.9 million.

What is the period of performance?

Start: 2015-02-26. End: 2021-09-30.

What specific environmental remediation activities were performed under this task order?

The task order falls under NAICS code 562910 (Remediation Services). Specific activities would typically include site assessment, containment, cleanup, and disposal of hazardous materials. Detailed project reports would outline the exact scope of work and methodologies employed.

What were the primary risks associated with this long-term remediation project?

Key risks likely included unforeseen subsurface contamination, changes in environmental regulations during the contract period, potential for contractor performance issues, and fluctuations in material or labor costs. Effective risk management would involve robust site investigations and contingency planning.

How effectively did the cost-plus fixed fee structure balance cost control with contractor incentive?

A cost-plus fixed fee structure aims to cover actual costs plus a predetermined profit. While it ensures the contractor is compensated for necessary expenses, it requires diligent oversight to prevent unnecessary spending. The fixed fee component provides some incentive for efficiency, but the government bears the risk of cost overruns.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ12R3003

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $28,932,601

Exercised Options: $28,932,601

Current Obligation: $28,932,601

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ14D3004

IDV Type: IDC

Timeline

Start Date: 2015-02-26

Current End Date: 2021-09-30

Potential End Date: 2021-09-30 00:00:00

Last Modified: 2021-06-29

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