Interior Department awards $2.2M environmental support contract to Dawson McG, LLC, with no competition

Contract Overview

Contract Amount: $2,200,317 ($2.2M)

Contractor: Dawson MCG, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL SUPPORT SERVICES IN SUPPORT OF FORT CAVAZOS

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to DAWSON MCG, LLC for work described as: ENVIRONMENTAL SUPPORT SERVICES IN SUPPORT OF FORT CAVAZOS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. The contract duration is 729 days, spanning two years. 3. No small business set-aside was applied to this procurement. 4. The contract falls under environmental consulting services. 5. Awarded by the Department of the Interior, supporting Fort Cavazos.

Value Assessment

Rating: questionable

The contract value of $2.2 million for environmental support services over two years appears to be within a reasonable range for such specialized services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The firm-fixed-price structure provides cost certainty, but the lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically implies a sole-source or limited competition scenario. The absence of a full and open competition means that only one offeror was solicited or considered. This limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through a competitive process.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that could have been achieved through a bidding war among multiple qualified vendors.

Public Impact

The primary beneficiary is Dawson McG, LLC, receiving a significant federal contract. Services delivered include environmental consulting and support for Fort Cavazos. The geographic impact is localized to Texas, where Fort Cavazos is located. The contract supports specialized environmental services, potentially impacting the local workforce in that niche.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about fair pricing and value for taxpayer money.
The sole-source nature of the award bypasses opportunities for small businesses to compete.
Limited transparency into the justification for not competing the contract.
Potential for contractor lock-in if this is a recurring need without re-competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration is clearly defined, allowing for long-term planning.
Services are specific to environmental support, indicating a focused need.

Sector Analysis

The environmental consulting services sector is a critical component of government operations, particularly for military installations and federal agencies managing land and resources. This contract, valued at $2.2 million, falls within the typical range for specialized environmental support. The North American Industry Classification System (NAICS) code 541620 confirms the nature of the services. Benchmarking against similar contracts is challenging due to the sole-source award, but the market generally supports a competitive environment for these types of services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The lack of a small business set-aside means that opportunities for small businesses to participate in this specific procurement were limited. Without explicit subcontracting clauses, the prime contractor has discretion over engaging small businesses, potentially limiting their participation in the broader ecosystem for this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officer and potentially an Inspector General's office, depending on the nature of any potential issues. Transparency is limited due to the non-competitive award. Accountability measures would be tied to the performance clauses within the firm-fixed-price contract, with recourse for non-performance.

Related Government Programs

Environmental Remediation Services
Base Operations Support Contracts
Federal Environmental Compliance Services
Military Installation Support Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency in Award Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to DAWSON MCG, LLC. ENVIRONMENTAL SUPPORT SERVICES IN SUPPORT OF FORT CAVAZOS

Who is the contractor on this award?

The obligated recipient is DAWSON MCG, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. This suggests that the procurement may have fallen under specific exceptions to full and open competition, such as those for urgent and compelling needs, or if only one source was capable of meeting the requirement. A detailed justification document, typically required for sole-source awards above certain thresholds, would outline the specific reasons. Without access to this document, the precise rationale remains unclear. However, common reasons include unique technical capabilities, proprietary technology, or a critical need that cannot be met through competitive means within the required timeframe.

How does the $2.2 million contract value compare to similar environmental support services contracts for military installations?

Benchmarking this $2.2 million contract value is challenging without knowing the specific scope of environmental services required for Fort Cavazos and comparing it to contracts with identical or highly similar service descriptions and durations. However, environmental support services for large military installations can range from hundreds of thousands to tens of millions of dollars annually, depending on the complexity of environmental challenges (e.g., remediation, compliance, natural resource management, hazardous waste). A two-year contract of $2.2 million suggests a moderate scope. The lack of competition prevents a direct value-for-money comparison against potentially lower bids from other firms.

What are the potential risks associated with awarding a contract without competition?

The primary risks associated with awarding a contract without competition include: 1. **Higher Costs:** Without competitive pressure, the contractor may charge a higher price than would be achievable in a competitive bidding process. 2. **Reduced Innovation:** Limited or no competition can stifle innovation, as the contractor may have less incentive to develop more efficient or effective solutions. 3. **Lower Quality:** The contractor might deliver lower quality services if they perceive little risk of losing future business due to performance issues. 4. **Lack of Transparency:** Sole-source awards can be perceived as less transparent, potentially leading to public or congressional scrutiny. 5. **Contractor Lock-in:** If the agency becomes dependent on a single provider without re-competing, it can lead to long-term reliance and potentially inflated costs over time.

What is the track record of DAWSON McG, LLC in performing federal contracts, particularly environmental services?

Information regarding the specific track record of DAWSON McG, LLC in performing federal contracts, especially environmental services, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any reported issues or successes on similar government contracts. Without this information, it is difficult to ascertain their reliability, expertise, and past performance quality in delivering federal environmental support services.

What is the historical spending pattern for environmental support services at Fort Cavazos or by the Department of the Interior?

The provided data does not include historical spending patterns for environmental support services at Fort Cavazos or within the Department of the Interior. To analyze this, one would need to access historical contract databases (like FPDS or USASpending.gov) to identify previous contracts for similar services at this installation or agency. Examining past spending would reveal trends in contract values, durations, award types (competitive vs. sole-source), and the contractors previously engaged. This context is crucial for understanding if the current $2.2 million award represents an increase, decrease, or continuation of previous spending levels and for assessing the consistency of procurement strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140D0424R0068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 FORT STREET MALL STE 1850, HONOLULU, HI, 96813

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,315,078

Exercised Options: $2,783,890

Current Obligation: $2,200,317

Actual Outlays: $1,743,117

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,200,235

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline