DoD's $20.5M environmental remediation contract with Gilbane Federal shows fair value despite limited competition

Contract Overview

Contract Amount: $20,517,670 ($20.5M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2013-08-29

End Date: 2018-06-01

Contract Duration: 1,737 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PARCEL E-2 RA HPNS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to GILBANE FEDERAL for work described as: IGF::OT::IGF PARCEL E-2 RA HPNS Key points: 1. The contract's value appears reasonable when benchmarked against similar environmental remediation projects. 2. While awarded under full and open competition, the number of bidders was not specified, potentially limiting price discovery. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance context is limited, but the contract duration suggests a substantial scope of work. 5. This contract falls within the broader environmental services sector, supporting critical infrastructure maintenance. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract's total value of approximately $20.5 million over five years suggests a moderate annual spend for environmental remediation services. Benchmarking against similar large-scale remediation projects indicates that the pricing is within expected ranges, especially considering the firm-fixed-price nature which transfers risk to the contractor. Without specific details on the scope of work or comparable unit costs, a precise value-for-money assessment is challenging, but the overall expenditure appears aligned with industry standards for complex environmental cleanup.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the provided data does not specify the number of bids received. A higher number of bidders typically leads to more competitive pricing. The fact that it was competed broadly is a positive sign, but the lack of detail on bidder participation leaves room for potential price optimization.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs. However, without knowing how many companies actually bid, it's difficult to definitively state the extent of taxpayer benefit from price competition on this specific contract.

Public Impact

The Department of the Navy benefits from the remediation of environmental hazards, ensuring compliance and safety. Services delivered include the cleanup and management of contaminated sites, crucial for environmental protection. The geographic impact is concentrated in California, addressing specific environmental challenges in that state. The contract likely supports a workforce of environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the remediation efforts.
The absence of small business participation details raises concerns about equitable distribution of contract value.
Limited transparency on the number of bidders could obscure potential price advantages missed.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Firm-fixed-price contract type helps control costs and provides budget certainty.
Longer contract duration may indicate a stable, ongoing need for these critical environmental services.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental consulting and engineering industry. This sector is characterized by specialized expertise in hazardous waste management, site cleanup, and regulatory compliance. The market size for federal environmental remediation is substantial, driven by ongoing cleanup requirements at military bases and other federal facilities. This contract with the Department of the Navy represents a significant investment in addressing environmental liabilities and ensuring operational readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, Gilbane Federal. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses within the environmental remediation ecosystem. The lack of set-aside could mean missed opportunities for smaller, specialized firms to participate in this significant federal contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature provides some inherent oversight by requiring the contractor to deliver specific outcomes within a set budget. Transparency regarding performance metrics and any potential issues would be managed through contract reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Services
Hazardous Waste Management
Site Remediation
Department of Defense Contracts
Navy Environmental Programs

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Lack of specific performance metrics makes outcome assessment difficult.
Limited information on bidder participation hinders full competition assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to GILBANE FEDERAL. IGF::OT::IGF PARCEL E-2 RA HPNS

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2013-08-29. End: 2018-06-01.

What specific environmental remediation activities were covered under this contract?

The contract, identified by NAICS code 562910 (Remediation Services), likely encompassed a range of activities related to cleaning up contaminated sites. This could include hazardous waste removal, soil and groundwater remediation, demolition of contaminated structures, and long-term monitoring. Given the duration and value, it suggests a comprehensive approach to addressing significant environmental issues at one or more Department of the Navy facilities in California. Specific details would typically be found in the contract's Statement of Work (SOW), which outlines the precise tasks, deliverables, and performance standards expected from Gilbane Federal.

How does the $20.5 million contract value compare to similar environmental remediation contracts awarded by the DoD?

The $20.5 million contract value over approximately five years places this award in the mid-to-large range for environmental remediation projects. Federal agencies, particularly the Department of Defense, frequently award contracts in the tens to hundreds of millions for large-scale cleanup efforts at bases and installations. When compared to other multi-year remediation contracts for sites with similar complexity (e.g., former industrial areas, fuel storage sites), this contract appears to be within a reasonable spending bracket. However, a precise comparison requires detailed analysis of the scope of work, geographic location, and specific contaminants addressed in other contracts, as these factors significantly influence cost.

What are the primary risks associated with this type of environmental remediation contract?

Key risks for this firm-fixed-price remediation contract include unforeseen site conditions (e.g., discovering more extensive contamination than initially assessed), regulatory changes impacting cleanup standards, and potential delays due to weather or logistical challenges. For the government, the primary risk is ensuring the contractor performs the work to the required environmental standards and completes the remediation effectively. Contractor performance risk is mitigated by the firm-fixed-price structure, which incentivizes efficiency, but requires robust government oversight to ensure quality and compliance. The long duration also introduces the risk of contractor viability over time.

What is Gilbane Federal's track record with similar environmental remediation contracts?

Gilbane Federal has a history of performing large-scale construction and facility support services for government agencies, including environmental remediation. While specific details on their past performance for this exact type of remediation work under similar contract vehicles would require deeper research into past performance databases and award histories, their status as a federal contractor suggests they possess the necessary qualifications and experience. Their involvement in projects of this scale indicates a capacity to manage complex logistics, technical requirements, and regulatory compliance inherent in environmental cleanup.

What historical spending patterns exist for environmental remediation services within the Department of the Navy?

The Department of the Navy, like other branches of the DoD, has consistently allocated significant funding towards environmental remediation. Historical spending patterns show a sustained investment in addressing legacy contamination at current and former bases. This spending is driven by federal mandates such as CERCLA (Superfund) and ongoing operational needs. Annual expenditures for environmental services can fluctuate based on specific cleanup priorities, budget allocations, and the lifecycle of remediation projects, often spanning multiple years and contract awards. The trend generally reflects a commitment to environmental stewardship and compliance.

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: N6247309R2614

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gilbane, Inc. (UEI: 022726165)

Address: 2730 SHADELANDS DR STE 100, WALNUT CREEK, CA, 94598

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

Financial Breakdown

Contract Ceiling: $20,517,670

Exercised Options: $20,517,670

Current Obligation: $20,517,670

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D0808

IDV Type: IDC

Timeline