Interior Department awards $2.5M for environmental consulting, with limited competition

Contract Overview

Contract Amount: $2,500,237 ($2.5M)

Contractor: Fortis Native Group LLC

Awarding Agency: Department of the Interior

Start Date: 2024-05-08

End Date: 2025-12-17

Contract Duration: 588 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENVIRONMENTAL CONSULTING FOR ORPHAN WELLS PROGRAM OFFICE (OWPO)

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of the Interior obligated $2.5 million to FORTIS NATIVE GROUP LLC for work described as: ENVIRONMENTAL CONSULTING FOR ORPHAN WELLS PROGRAM OFFICE (OWPO) Key points: 1. Contract value appears reasonable for specialized environmental consulting services. 2. Limited competition raises concerns about potential overpricing and reduced innovation. 3. Contract duration of nearly two years suggests a need for sustained support. 4. Focus on orphan wells indicates a specific environmental remediation objective. 5. The contractor's track record and past performance will be crucial for success.

Value Assessment

Rating: fair

The contract value of $2.5 million for environmental consulting services over approximately 1.9 years appears within a reasonable range for specialized support. However, without direct benchmarks for similar 'orphan wells' consulting contracts, a definitive value-for-money assessment is challenging. The administrative management and general management consulting services NAICS code (541611) has a wide range of pricing, making direct comparisons difficult. The time and materials pricing structure necessitates close monitoring to ensure costs remain controlled and aligned with the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a limited competition or sole-source justification. The data provided states 'NOT COMPETED UNDER SAP,' which typically implies a process where fewer than the full and open market of vendors were solicited. The limited number of bidders (implied by 'NOT COMPETED') can reduce price discovery and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the most competitive pricing available in the market. This could result in a less efficient use of federal funds.

Public Impact

The primary beneficiaries are the Department of the Interior's Orphan Well Program Office (OWPO), which receives essential consulting support. Services delivered include administrative management and general management consulting, likely focused on the remediation and management of orphan oil and gas wells. The geographic impact is primarily within Alabama (ST: AL, SN: ALABAMA), where the contract is being performed. Workforce implications may include the utilization of specialized environmental consultants, potentially creating or sustaining jobs in the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Time and materials contract type requires diligent oversight to control costs.
The specific expertise required for orphan well remediation might limit the pool of qualified contractors.

Positive Signals

The contract addresses a critical environmental issue (orphan wells).
The Department of the Interior is actively seeking solutions for environmental remediation.
The contract duration allows for sustained effort on a complex problem.

Sector Analysis

The environmental consulting sector is a significant market supporting government and private sector efforts in compliance, remediation, and sustainability. This contract falls within the administrative and management consulting services sub-sector, specifically addressing environmental challenges related to legacy oil and gas infrastructure. Comparable spending benchmarks for environmental consulting can vary widely based on the specific services, duration, and complexity, but federal agencies frequently contract for such expertise to manage environmental liabilities and comply with regulations.

Small Business Impact

The contract was not set aside for small businesses (SB: false) and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary awardee, Fortis Native Group LLC, is likely not a small business, or if it is, the contract was not specifically structured to promote small business participation. The lack of a small business set-aside means opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger subcontracting effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers within the Orphan Well Program Office. Accountability measures would be tied to the performance work statement and delivery of consulting services. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Environmental Remediation Services
Oil and Gas Well Plugging and Abandonment
Federal Environmental Consulting Contracts
Department of the Interior Administrative Support

Risk Flags

Limited Competition
Time and Materials Pricing
Lack of Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.5 million to FORTIS NATIVE GROUP LLC. ENVIRONMENTAL CONSULTING FOR ORPHAN WELLS PROGRAM OFFICE (OWPO)

Who is the contractor on this award?

The obligated recipient is FORTIS NATIVE GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-05-08. End: 2025-12-17.

What is the track record of Fortis Native Group LLC in performing similar environmental consulting services for federal agencies?

A review of federal procurement data would be necessary to fully assess Fortis Native Group LLC's track record. Key indicators to examine would include the number of previous federal contracts awarded to the company, the total value of those contracts, and the specific services rendered. Performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) from prior federal engagements would provide critical insights into their past performance, reliability, and ability to meet contractual obligations. Understanding their experience with 'orphan wells' specifically, or similar environmental remediation projects, would be particularly relevant for this contract's success.

How does the awarded amount compare to similar environmental consulting contracts for orphan well programs?

Benchmarking this $2.5 million contract against similar environmental consulting services for orphan well programs is challenging without access to a comprehensive database of comparable contracts. The 'Administrative Management and General Management Consulting Services' (NAICS 541611) category is broad. To conduct a robust comparison, one would need to identify contracts with similar scopes of work, durations, and geographic focuses, specifically related to orphan well identification, assessment, and remediation planning. The limited competition noted for this award suggests that direct price comparisons might not reflect the most competitive market rates, potentially inflating the perceived value.

What are the primary risks associated with a 'not competed under SAP' contract award for environmental consulting?

The primary risks associated with a 'not competed under SAP' award, which implies limited or sole-source competition, include potential overpricing, reduced innovation, and a lack of vendor accountability. When a contract is not fully competed, the government may not receive the benefit of the lowest possible price due to the absence of robust market competition. Furthermore, limited competition can stifle innovation as contractors may have less incentive to propose novel or cost-saving solutions. There's also a risk that the chosen contractor may not be the best fit for the specific needs if a wider range of potential vendors were not explored.

How effective is the time and materials (T&M) contract type for managing environmental consulting projects like orphan well remediation?

The Time and Materials (T&M) contract type can be effective for environmental consulting projects when the scope of work is not clearly defined at the outset or is expected to evolve. For orphan well remediation, where the extent of contamination or the specific remediation steps might be uncertain, T&M allows for flexibility. However, it carries a significant risk of cost overruns if not managed diligently. Effective oversight, including detailed tracking of labor hours, rates, and material costs, is crucial to ensure that the government pays only for necessary work and that costs remain within budget. Clear ceiling prices and regular reviews are essential mitigation strategies.

What is the historical spending trend for environmental consulting services within the Department of the Interior related to well programs?

Analyzing historical spending trends for environmental consulting within the Department of the Interior (DOI) related to well programs requires access to detailed procurement data over several fiscal years. This would involve querying databases like FPDS or USAspending for contracts awarded under relevant NAICS codes (e.g., 541611, 562910) and keywords related to 'wells,' 'remediation,' 'environmental,' and 'consulting.' Understanding past spending levels, the number of contracts awarded, and the average contract values would provide context for the current $2.5 million award. Significant increases or decreases in spending could indicate shifts in program priorities, regulatory changes, or the emergence of new environmental challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 100 BROOKWOOD ROAD, ATMORE, AL, 36502

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,207,173

Exercised Options: $2,500,237

Current Obligation: $2,500,237

Actual Outlays: $2,500,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline