Interior's USGS Awards $4.48M for Frac Tank Rental to Potomac Environmental Inc

Contract Overview

Contract Amount: $4,477 ($4.5K)

Contractor: Potomac Environmental Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-22

End Date: 2025-11-07

Contract Duration: 169 days

Daily Burn Rate: $26/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FRAC TANK RENTAL

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23602

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $4,476.6 to POTOMAC ENVIRONMENTAL INC for work described as: FRAC TANK RENTAL Key points: 1. Spending on frac tank rental totals $4.48 million. 2. Competition was conducted under Simplified Acquisition Procedures (SAP). 3. The contract was awarded to Potomac Environmental Inc. 4. The sector is Other Commercial and Industrial Machinery and Equipment Rental and Leasing.

Value Assessment

Rating: fair

The contract value of $4.48 million for a 169-day rental period appears reasonable given the nature of specialized equipment. Benchmarking against similar specialized equipment rentals would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition approach. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential equipment rental. The efficiency of the SAP process in achieving a fair price is a key consideration for taxpayer impact.

Public Impact

Essential equipment for geological surveys and environmental projects. Supports operational needs of the U.S. Geological Survey. Potential for environmental impact depending on usage and disposal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may impact price.
Lack of detailed cost breakdown for rental.

Positive Signals

Supports critical USGS operations.
Fixed price contract provides cost certainty.

Sector Analysis

The rental of specialized equipment like frac tanks falls under the broader industrial machinery rental sector. Spending benchmarks for this specific niche are difficult to ascertain without more granular data, but it supports essential government operations.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were solicited or had the opportunity to compete.

Oversight & Accountability

Oversight will be managed by the U.S. Geological Survey. The purchase order mechanism provides a clear record of the transaction, but detailed performance oversight is crucial.

Related Government Programs

Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Department of the Interior Contracting
U.S. Geological Survey Programs

Risk Flags

Limited competition
Potential environmental risks
No small business award
SAP may not yield best price

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4,476.6 to POTOMAC ENVIRONMENTAL INC. FRAC TANK RENTAL

Who is the contractor on this award?

The obligated recipient is POTOMAC ENVIRONMENTAL INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $4,476.6.

What is the period of performance?

Start: 2025-05-22. End: 2025-11-07.

What is the typical market rate for frac tank rentals of this duration and capacity?

Determining the typical market rate requires access to industry-specific pricing data, which is often proprietary. Factors like tank size, capacity, rental duration, delivery/pickup costs, and specific environmental regulations in the service area significantly influence pricing. Without this granular data, a precise benchmark is challenging to establish, but comparing to similar government or commercial contracts for comparable services is a starting point.

What are the specific environmental risks associated with the use of these frac tanks?

Frac tanks are used to store various liquids, including water, chemicals, and wastewater. Risks include potential leaks or spills that could contaminate soil and groundwater, improper handling or disposal of stored materials, and emissions from associated equipment. The contract should ideally specify containment measures, regular inspections, and adherence to all environmental regulations to mitigate these risks.

How effectively does the SAP procurement method ensure fair and reasonable pricing for specialized equipment rentals?

Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in acquiring goods and services below certain dollar thresholds. While SAP can be effective for common items, its ability to ensure the most competitive pricing for specialized equipment like frac tanks is debatable. It relies on market research and quotes from a limited number of sources, which may not always uncover the full competitive landscape or the lowest possible price.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140G0325P0129

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 241 GARRISONVILLE RD #201, STAFFORD, VA, 22554

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,477

Exercised Options: $4,477

Current Obligation: $4,477

Actual Outlays: $4,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline