DoD's $64.7M Cornell Dubilier Superfund Remediation Contract Awarded to Sevenson Environmental Services

Contract Overview

Contract Amount: $64,752,818 ($64.8M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-31

End Date: 2013-10-30

Contract Duration: 1,825 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CORNELL DUBILIER SUPERFUND SOILS LTTD TASK ORDER-CPFF

Place of Performance

Location: PLAINFIELD, UNION County, NEW JERSEY, 07060

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $64.8 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: CORNELL DUBILIER SUPERFUND SOILS LTTD TASK ORDER-CPFF Key points: 1. The contract value is substantial at $64.7 million. 2. Sevenson Environmental Services, Inc. secured the award. 3. The Department of Defense, specifically the Army, is the awarding agency. 4. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. The procurement method was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for unforeseen site conditions, can lead to higher costs compared to fixed-price contracts if not managed tightly. The benchmark for remediation services varies greatly by site complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for fair pricing but the exclusion aspect warrants scrutiny regarding its justification and impact on price discovery.

Taxpayer Impact: Taxpayers bear the cost of environmental remediation, and the CPFF structure necessitates careful oversight to ensure cost efficiency and prevent unnecessary expenditures.

Public Impact

Environmental cleanup of a Superfund site, directly impacting local communities and ecosystems. Long-term monitoring and potential future liabilities associated with the site. The use of taxpayer funds for complex environmental remediation projects. Potential for job creation in the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can lead to cost overruns.
  • Exclusion of sources in a full and open competition needs justification.
  • Long duration (5 years) increases risk exposure.

Positive Signals

  • Awarded under full and open competition.
  • Addresses critical environmental remediation needs.
  • Experienced contractor likely involved.

Sector Analysis

Environmental remediation services fall under the broader professional, scientific, and technical services sector. Spending in this area is driven by regulatory requirements (like Superfund) and infrastructure needs, with costs highly dependent on site complexity and cleanup technology.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Large-scale environmental remediation projects often involve prime contractors who may then subcontract to smaller specialized firms, but direct prime awards to SMBs are less common for contracts of this magnitude.

Oversight & Accountability

The CPFF structure requires robust oversight from the Department of the Army to monitor costs, ensure work is performed efficiently, and verify that the remediation objectives are met within the established fee structure.

Related Government Programs

  • Remediation Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost overrun risk due to CPFF structure.
  • Potential for reduced competition due to source exclusion.
  • Long contract duration increases exposure to changing conditions.
  • Complexity of Superfund site remediation.

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 $64.8 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. CORNELL DUBILIER SUPERFUND SOILS LTTD TASK ORDER-CPFF

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 $64.8 million.

What is the period of performance?

Start: 2008-10-31. End: 2013-10-30.

What specific environmental hazards were addressed by this remediation task order, and what was the estimated cost per unit of contaminant removed?

The specific environmental hazards addressed are not detailed in the provided data, but the contract pertains to the Cornell Dubilier Superfund site. Calculating a precise cost per unit of contaminant removed is complex and requires detailed site-specific data on contaminant types, concentrations, and the remediation technologies employed, which is not available here.

How did the 'exclusion of sources' in the full and open competition impact the final price compared to a truly unrestricted competition?

The exclusion of specific sources, while potentially justified by technical requirements or past performance, could limit the competitive pool. This limitation might result in a higher price than if all potential bidders were allowed to compete, as it reduces the pressure on the remaining bidders to offer the lowest possible price.

What are the long-term effectiveness metrics for this remediation project, and how is ongoing environmental impact being monitored post-completion?

Long-term effectiveness metrics and post-completion monitoring plans are typically detailed in the contract's statement of work and environmental permits. These would likely include groundwater monitoring, soil sampling, and institutional controls to ensure the site remains protective of human health and the environment over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: DACW4103R0068

Offers Received: 20

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $64,752,818

Exercised Options: $64,752,818

Current Obligation: $64,752,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ04D0023

IDV Type: IDC

Timeline

Start Date: 2008-10-31

Current End Date: 2013-10-30

Potential End Date: 2013-10-30 00:00:00

Last Modified: 2021-08-17

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