Air Force awards $25.6M for radar site remediation, with 3 bids received

Contract Overview

Contract Amount: $25,595,491 ($25.6M)

Contractor: BEM Systems Inc

Awarding Agency: Department of Defense

Start Date: 2013-06-06

End Date: 2020-09-30

Contract Duration: 2,673 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BARTER ISLAND LONG RANGE RADAR SITE, AK BULLEN POINT SHORT RANGE RADAR SITE, AK OLIKTOK LONG RANGE RADAR SITE, AK AND POINT LONELY SHORT RANGE RADAR SITE, AK

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99695

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to BEM SYSTEMS INC for work described as: IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BARTER ISLAND LONG RANGE RADAR SITE, AK BULLEN POINT SHORT RANGE RADAR SITE, AK OLIKTOK LONG RANGE RADAR SITE, AK AND POINT LONELY SHORT RANGE RADAR SITE, AK Key points: 1. Contract value represents a significant investment in environmental cleanup for critical radar infrastructure. 2. The fixed-price nature of the contract aims to control costs and provide budget certainty. 3. Performance-based elements suggest a focus on achieving specific environmental outcomes rather than just effort. 4. The duration of the contract indicates a long-term commitment to site remediation. 5. Geographic concentration in Alaska highlights the unique environmental challenges and costs associated with remote locations.

Value Assessment

Rating: good

The contract's total value of $25.6 million over approximately seven years suggests a substantial but potentially reasonable investment for comprehensive environmental remediation across multiple remote Alaskan sites. Benchmarking against similar large-scale environmental cleanup contracts in remote or challenging environments would be necessary for a definitive value-for-money assessment. The firm fixed-price structure, while offering cost certainty, requires careful initial pricing to ensure fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to specialized capabilities or prior performance. With three bidders, there was some level of competition, which is generally positive for price discovery. However, the exclusion of sources might limit the full breadth of competitive pressure.

Taxpayer Impact: The limited competition, despite initial openness, could mean that taxpayers did not benefit from the lowest possible price that might have been achieved with broader participation. However, the presence of multiple bidders still provides a degree of market validation for the awarded price.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, ensuring the operational readiness and environmental compliance of critical long-range and short-range radar sites. Services delivered include environmental remediation, addressing contamination and restoring sites to acceptable environmental standards. The geographic impact is concentrated in Alaska, specifically at Barter Island, Bullen Point, Oliktok, and Point Lonely, which are remote and environmentally sensitive areas. Workforce implications include the potential for specialized environmental contractors and personnel to be deployed to these remote Alaskan locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise in remote Alaskan locations.
Challenges in oversight and quality control due to the remoteness of the work sites.
Dependence on a limited number of qualified bidders for specialized environmental remediation services in harsh climates.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Performance-based aspects encourage efficient and effective remediation outcomes.
Award to a single contractor streamlines management and accountability for the project.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of infrastructure maintenance and compliance for government agencies, particularly those with extensive land holdings or operational sites like military bases. The market for such services is specialized, requiring expertise in handling hazardous materials and navigating complex regulatory environments, especially in challenging geographies like Alaska. Spending in this area is often driven by regulatory requirements and the need to maintain the operational integrity of essential facilities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the specialized nature and scale of environmental remediation in remote locations, it is possible that larger, more experienced firms are better positioned to compete. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General. The contract's performance-based nature implies that oversight will focus on the achievement of defined remediation outcomes. Transparency is facilitated through contract award data, but detailed operational oversight reports are typically internal to the agency unless specific IG investigations are initiated.

Related Government Programs

Environmental Remediation Services
Military Base Infrastructure Maintenance
Long Range Radar Site Operations
Department of Defense Environmental Compliance

Risk Flags

Potential for cost increases due to unforeseen site conditions in remote Alaska.
Logistical challenges inherent in operating in remote Alaskan environments.
Limited competition may affect optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to BEM SYSTEMS INC. IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BARTER ISLAND LONG RANGE RADAR SITE, AK BULLEN POINT SHORT RANGE RADAR SITE, AK OLIKTOK LONG RANGE RADAR SITE, AK AND POINT LONELY SHORT RANGE RADAR SITE, AK

Who is the contractor on this award?

The obligated recipient is BEM SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2013-06-06. End: 2020-09-30.

What is the historical spending trend for environmental remediation at these specific radar sites?

Analyzing historical spending data for environmental remediation at the Barter Island, Bullen Point, Oliktok, and Point Lonely radar sites prior to this $25.6 million award is crucial for context. Without specific prior contract data for these exact locations, we can infer that ongoing maintenance and potential legacy contamination cleanup are standard requirements for such critical infrastructure. If this is a new, comprehensive remediation effort, the $25.6 million represents a significant, potentially one-time or multi-year investment. If it follows previous remediation activities, it could indicate a continuation or expansion of efforts, or perhaps a shift in strategy or scope. Understanding the history would reveal if this award is an anomaly or part of a sustained environmental management program for these remote Air Force installations.

How does the per-unit cost of remediation compare to similar projects in remote or Arctic environments?

A precise per-unit cost comparison is challenging without defining the 'unit' (e.g., per acre remediated, per ton of soil treated, per site). However, the total award of $25.6 million spread across four remote Alaskan sites over approximately seven years suggests a high cost per site and potentially per unit of environmental cleanup. Remediation in Arctic and remote environments is inherently more expensive due to logistical challenges, extreme weather, limited infrastructure, and specialized equipment requirements. If comparable contracts for similar remediation activities in Alaska or other remote regions show significantly lower costs for equivalent scope, it would raise questions about the value for money in this specific award. Conversely, if costs align with or are below benchmarks for such challenging environments, it would support the 'good' value assessment.

What specific environmental risks were identified that necessitated this level of remediation spending?

The specific environmental risks necessitating this $25.6 million remediation effort likely stem from historical operations at the radar sites, which may have involved fuel storage, equipment maintenance, and waste disposal. Potential contaminants could include petroleum hydrocarbons, heavy metals, solvents, or other hazardous materials. The remote Alaskan locations amplify these risks due to sensitive ecosystems, permafrost considerations, and the potential for contamination to impact groundwater or surface water. The 'Remediation Services' contract type indicates that the Air Force has identified a need to address existing contamination to meet environmental regulations, ensure site safety, and maintain the long-term viability of the radar installations. Detailed environmental assessments and site investigations would have informed the scope and cost of this contract.

What is the track record of BEM SYSTEMS INC in performing similar large-scale environmental remediation contracts, particularly in remote locations?

BEM SYSTEMS INC's track record in performing large-scale environmental remediation, especially in remote or challenging environments like Alaska, is a key factor in assessing the risk and potential success of this $25.6 million contract. Information on their past performance, including project complexity, adherence to schedule and budget, quality of work, and safety record, would be critical. Experience with government contracts, particularly with the Department of Defense or Air Force, is also important. A strong history of successfully completing similar projects would increase confidence in their ability to manage the logistical and technical demands of this award. Conversely, a history of performance issues or lack of relevant experience would be a significant concern, potentially impacting the 'good' value rating and increasing risk flags.

How does the competition level (3 bidders) impact the government's ability to ensure the best possible price and outcome?

Having three bidders for this $25.6 million contract provides a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower costs for the government, three offers suggest that the market for this specialized service is not overly constrained. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the initial solicitation was broad, specific criteria or circumstances led to fewer than the maximum possible bidders. The government's ability to ensure the best price and outcome depends on the thoroughness of the evaluation process, the clarity of the solicitation requirements, and the specific capabilities and pricing proposed by each of the three bidders. If the proposals were competitive and the evaluation robust, a good outcome is achievable, though a wider field might have yielded even better results.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PASSAIC AVE, CHATHAM, NJ, 07928

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

Financial Breakdown

Contract Ceiling: $25,689,481

Exercised Options: $25,595,491

Current Obligation: $25,595,491

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8553

IDV Type: IDC

Timeline