Interior Department awards $2.7M environmental consulting BPA call to SWCA, Inc. for oil and gas leasing support

Contract Overview

Contract Amount: $2,730,404 ($2.7M)

Contractor: Swca, Incorporated

Awarding Agency: Department of the Interior

Start Date: 2023-09-25

End Date: 2028-07-31

Contract Duration: 1,771 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&G LEASING NEPA & ADMIN SUPPORT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $2.7 million to SWCA, INCORPORATED for work described as: O&G LEASING NEPA & ADMIN SUPPORT Key points: 1. Contract provides essential environmental consulting services for oil and gas leasing, aligning with federal land management responsibilities. 2. The firm-fixed-price contract type suggests predictable costs for the services rendered. 3. A long performance period of nearly five years indicates a sustained need for these specialized services. 4. The contract is a BPA Call, implying it leverages an existing Blanket Purchase Agreement, potentially streamlining procurement. 5. Services are geographically focused on New Mexico, a key area for oil and gas activities. 6. The award was made under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $2.7 million over approximately 4.8 years averages to about $562,500 annually. This appears reasonable for specialized environmental consulting services supporting complex regulatory processes like NEPA and oil and gas leasing administration. Benchmarking against similar environmental consulting contracts for federal agencies would provide a more precise value-for-money assessment, but the scope and duration suggest a fair price point for the expertise required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service quality. The use of a BPA Call suggests that the underlying BPA was likely competed previously, and this call represents a specific task order awarded through a competitive process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the government's investment in environmental consulting services.

Public Impact

The Bureau of Land Management (BLM) benefits from expert support in navigating environmental reviews for oil and gas leasing. Services include NEPA compliance and administrative support, crucial for responsible resource development. The contract's geographic focus on New Mexico directly impacts environmental management in a state with significant energy production. This contract supports the federal government's role in balancing energy development with environmental protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if environmental review requirements evolve significantly during the contract period.
Dependence on a single contractor for critical environmental support could pose a risk if performance issues arise.
The long duration may not fully account for potential changes in regulatory landscapes or technological advancements in environmental consulting.

Positive Signals

Award to an established firm (SWCA, Inc.) suggests a degree of confidence in their capabilities and past performance.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a thorough vetting of potential contractors.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, specifically supporting the energy industry's interaction with federal land management agencies. The market for environmental consulting is substantial, driven by regulatory compliance requirements across various sectors, including energy, construction, and infrastructure. This contract represents a small but important segment of federal spending on environmental services, enabling the Bureau of Land Management to fulfill its mandate under laws like the National Environmental Policy Act (NEPA).

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors like SWCA, Inc. may engage small businesses as subcontractors, though this is not detailed in the award information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Land Management contracting officer and project managers. As a BPA Call, oversight may also be influenced by the terms of the underlying Blanket Purchase Agreement. Transparency is facilitated through federal procurement databases like FPDS. While specific IG jurisdiction isn't detailed, the Department of the Interior's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Bureau of Land Management Oil and Gas Leasing Program
National Environmental Policy Act (NEPA) Compliance
Environmental Consulting Services Contracts
Federal Land Management Support
Energy Sector Support Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Long-term contract relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.7 million to SWCA, INCORPORATED. O&G LEASING NEPA & ADMIN SUPPORT

Who is the contractor on this award?

The obligated recipient is SWCA, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2023-09-25. End: 2028-07-31.

What is SWCA, Inc.'s track record with federal environmental consulting contracts?

SWCA, Inc. has a significant history of performing environmental consulting services for various federal agencies, including the Department of the Interior, Department of Defense, and Environmental Protection Agency. Their experience often encompasses environmental impact assessments, NEPA documentation, natural and cultural resource management, and permitting support. Analyzing their past performance on similar-sized contracts, particularly those involving oil and gas leasing or complex regulatory reviews, would provide further insight into their capabilities and reliability. Reviewing contract close-out reports and past performance evaluations, where available, can offer a more granular understanding of their success rates and any challenges encountered.

How does the $2.7 million contract value compare to similar environmental consulting services for oil and gas leasing support?

The $2.7 million contract value over nearly five years, averaging approximately $562,500 annually, appears to be within a reasonable range for specialized environmental consulting supporting federal oil and gas leasing. Contracts of this nature often involve extensive fieldwork, data analysis, regulatory interpretation, and documentation preparation (e.g., Environmental Assessments, Environmental Impact Statements). Comparable contracts can vary widely based on geographic scope, complexity of the leasing areas, specific regulatory requirements (state vs. federal), and the level of detail required. Without specific benchmarks for New Mexico's BLM leasing activities, a precise comparison is difficult, but the value seems commensurate with the anticipated scope of work for NEPA and administrative support.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential delays in environmental review processes due to unforeseen complexities or regulatory changes, which could impact project timelines and costs. Performance risk, related to the contractor's ability to deliver high-quality services consistently, is another concern. Mitigation strategies likely involve clear performance work statements, regular progress reviews, defined deliverables, and the firm-fixed-price structure which incentivizes contractor efficiency. The BLM's project management and oversight are crucial for identifying and addressing issues proactively. Furthermore, the contract's duration necessitates careful monitoring to ensure continued relevance and effectiveness of the services provided.

How effective is the Bureau of Land Management's use of BPA Calls for environmental consulting services?

The use of Blanket Purchase Agreements (BPAs) and subsequent BPA Calls, like this one, is generally an efficient procurement method for recurring needs. It allows agencies to establish pre-negotiated terms and conditions with qualified vendors, streamlining the process for individual task orders. For environmental consulting, this can expedite the acquisition of necessary support for leasing and project development. The effectiveness hinges on the quality of the initial BPA competition and the clarity of the task orders issued under it. When managed well, BPA Calls can reduce administrative burden and lead times, ensuring timely support for BLM's mission-critical functions.

What is the historical spending trend for environmental consulting services by the Bureau of Land Management?

Historical spending data for environmental consulting services by the Bureau of Land Management (BLM) would reveal trends in their reliance on external expertise for regulatory compliance and land management. Analyzing past years' expenditures on similar contracts (e.g., NEPA support, environmental assessments, biological surveys) would indicate whether spending in this area is increasing, decreasing, or remaining stable. This context helps in evaluating the current $2.7 million award as part of a larger pattern. Factors influencing historical spending could include shifts in energy development policies, regulatory changes, litigation, and overall budget allocations for the BLM's environmental programs.

What are the implications of a firm-fixed-price contract for environmental consulting services?

A firm-fixed-price (FFP) contract structure means the contractor agrees to perform the specified work for a predetermined price, regardless of the actual costs incurred. For the government, this offers cost certainty and shifts the risk of cost overruns to the contractor. This is generally advantageous for services where the scope of work is well-defined and quantifiable, such as specific environmental assessments or administrative support tasks. However, if unforeseen complexities arise that significantly expand the scope beyond what was reasonably anticipated, the contractor may be less willing to accommodate changes without formal modifications, potentially leading to negotiation challenges or performance issues if not managed carefully.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140L4023Q0029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20 E THOMAS RD, PHOENIX, AZ, 85012

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

Financial Breakdown

Contract Ceiling: $3,178,134

Exercised Options: $2,730,404

Current Obligation: $2,730,404

Actual Outlays: $1,376,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140L0623A0013

IDV Type: BPA

Timeline