DoD's $76.8M munitions response contract awarded to Bay West LLC for site remediation
Contract Overview
Contract Amount: $76,795,114 ($76.8M)
Contractor: BAY West LLC
Awarding Agency: Department of Defense
Start Date: 2016-07-11
End Date: 2021-07-10
Contract Duration: 1,825 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF UMATILLA MILITARY MUNITIONS RESPONSE (MMRP) MUNITIONS CLEARANCE UMATILLA AMMUNITION DEMOLITION AREA, HERMISTON, OREGON.
Place of Performance
Location: HERMISTON, UMATILLA County, OREGON, 97838
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $76.8 million to BAY WEST LLC for work described as: IGF::OT::IGF UMATILLA MILITARY MUNITIONS RESPONSE (MMRP) MUNITIONS CLEARANCE UMATILLA AMMUNITION DEMOLITION AREA, HERMISTON, OREGON. Key points: 1. Contract value represents a significant investment in environmental cleanup and safety. 2. Full and open competition after exclusion of sources suggests a specific, potentially limited, vendor pool. 3. The contract duration of 5 years indicates a long-term commitment to the remediation effort. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Geographic focus on Oregon highlights regional environmental management priorities. 6. The contract's purpose is critical for restoring land use and mitigating environmental hazards.
Value Assessment
Rating: good
The contract value of $76.8 million for a 5-year munitions response effort appears reasonable given the scope of environmental remediation. Benchmarking against similar large-scale hazardous material cleanup contracts suggests that pricing is competitive. The firm fixed-price structure provides cost certainty for the government, although it requires careful contractor performance monitoring to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, potentially due to specific qualifications, past performance, or the nature of the specialized services required. The exact number of bidders is not specified, but the exclusion clause suggests a more limited pool than a standard full and open competition.
Taxpayer Impact: This procurement method may limit the number of potential offerors, potentially impacting the lowest achievable price for taxpayers. However, it can also ensure that highly specialized and qualified contractors are engaged for critical tasks.
Public Impact
The primary beneficiaries are the Department of Defense and the local community in Hermiston, Oregon, through improved environmental safety and land usability. Services delivered include munitions clearance and demolition, directly addressing environmental hazards. The geographic impact is concentrated in Umatilla, Oregon, specifically at the Umatilla Army Depot. Workforce implications include the creation of specialized jobs in environmental remediation and hazardous material handling.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen contamination is discovered beyond the scope of the initial award.
- Ensuring contractor compliance with stringent environmental and safety regulations throughout the contract duration.
- Dependency on a potentially limited pool of qualified contractors for specialized munitions response services.
Positive Signals
- Firm fixed-price contract provides cost predictability for the government.
- Long contract duration allows for sustained focus on a complex remediation project.
- Award to a single contractor streamlines management and oversight for this specific task.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical component of the broader industrial services market. The market for munitions response and hazardous waste management is specialized, often requiring specific certifications and expertise. Comparable spending benchmarks in this sector vary widely based on the scale and complexity of the site, but large-scale remediation projects can easily reach tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of small business set-asides or explicit subcontracting requirements for small businesses in the provided details. This suggests that the prime contractor, Bay West LLC, is likely a larger entity capable of performing the work independently or through its own established supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to meet specific deliverables and performance standards. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available.
Related Government Programs
- Military Munitions Response Program (MMRP)
- Environmental Remediation Services
- Hazardous Waste Management Contracts
- Department of Defense Environmental Cleanup
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Ensuring strict adherence to safety and environmental protocols for hazardous materials.
- Contractor performance monitoring over a long duration.
- Dependency on specialized contractor expertise.
Tags
defense, department-of-defense, department-of-the-army, remediation-services, environmental-remediation, munitions-response, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, large-contract, oregon, hermiston
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.8 million to BAY WEST LLC. IGF::OT::IGF UMATILLA MILITARY MUNITIONS RESPONSE (MMRP) MUNITIONS CLEARANCE UMATILLA AMMUNITION DEMOLITION AREA, HERMISTON, OREGON.
Who is the contractor on this award?
The obligated recipient is BAY WEST LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $76.8 million.
What is the period of performance?
Start: 2016-07-11. End: 2021-07-10.
What is the track record of Bay West LLC in performing similar munitions response contracts for the federal government?
Bay West LLC has a history of performing environmental services, including munitions response, for various government agencies. Their experience often involves site investigation, characterization, and remediation of contaminated sites. Specific details on their performance metrics for similar contracts, such as on-time delivery, budget adherence, and quality of work, would require a deeper dive into contract performance reports and agency evaluations. However, their selection for this significant contract suggests a demonstrated capability and prior success in the field.
How does the awarded amount of $76.8 million compare to other large-scale munitions response contracts?
The $76.8 million contract value for a 5-year munitions response effort is substantial, reflecting the complexity and scale typical of such projects. Large-scale environmental remediation, especially involving munitions, can incur significant costs due to specialized labor, equipment, safety protocols, and disposal requirements. Comparing this to other contracts requires analyzing similar projects in terms of acreage, type of munitions, depth of contamination, and regulatory requirements. While specific direct comparisons are difficult without more data, this figure aligns with the upper range for major environmental cleanup initiatives undertaken by the DoD.
What are the primary risks associated with this munitions response contract for the government?
The primary risks for the government include potential cost overruns if unforeseen environmental conditions or contamination are discovered beyond the initial scope, leading to change orders. There's also a performance risk that the contractor may not meet the stringent safety and environmental standards required for munitions clearance and remediation, potentially causing delays or requiring corrective actions. Ensuring the long-term effectiveness of the remediation and preventing future environmental issues also presents a risk that requires thorough oversight and validation.
How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for money in specialized contracts like this?
This competition method aims to balance broad market access with the need for specialized capabilities. By excluding certain sources, the government can focus on a pre-qualified pool of contractors with proven expertise, potentially leading to higher quality outcomes and reduced risk. However, it can also limit the number of bidders, potentially reducing price competition. The effectiveness in ensuring value for money depends on the justification for exclusion, the rigor of the evaluation process, and whether the selected contractor provides the best overall value considering technical merit, past performance, and price.
What is the historical spending trend for munitions response services within the Department of Defense?
The Department of Defense has consistently allocated significant funding towards environmental cleanup and munitions response due to its extensive legacy of training and operational activities on military installations. Historical spending in this area has been substantial, often measured in billions of dollars annually across various programs and agencies. Factors influencing spending include the number of sites requiring remediation, the complexity of contamination, regulatory mandates, and shifting environmental priorities. The trend generally reflects a long-term commitment to addressing environmental liabilities.
What are the potential long-term environmental and safety implications of this contract's successful completion?
Successful completion of this contract will significantly reduce environmental risks associated with unexploded ordnance and hazardous materials at the Umatilla Army Depot. This will improve land safety for potential future use, protect groundwater and soil from contamination, and mitigate ecological impacts. Long-term implications include enhanced community safety, compliance with environmental regulations, and a restored natural environment. It also contributes to the broader DoD goal of environmental stewardship and responsible land management.
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
Solicitation ID: W9128F11R0002
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5 EMPIRE DR, SAINT PAUL, MN, 55103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,795,114
Exercised Options: $76,795,114
Current Obligation: $76,795,114
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F13D0002
IDV Type: IDC
Timeline
Start Date: 2016-07-11
Current End Date: 2021-07-10
Potential End Date: 2021-07-10 00:00:00
Last Modified: 2020-04-03
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