EPA Awards $21.3M Remediation Contract for Lower Rouge River Old Channel to Ahtna-Brennan JV

Contract Overview

Contract Amount: $21,315,304 ($21.3M)

Contractor: Ahtna-Brennan JV, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2025-06-17

End Date: 2026-08-31

Contract Duration: 440 days

Daily Burn Rate: $48.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOWER ROUGE RIVER OLD CHANNEL LRROC GREAT LAKES NATIONAL PROGRAM OFFICE PHASE II REMEDIAL ACTION CONSTRUCTION.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48209

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $21.3 million to AHTNA-BRENNAN JV, LLC for work described as: LOWER ROUGE RIVER OLD CHANNEL LRROC GREAT LAKES NATIONAL PROGRAM OFFICE PHASE II REMEDIAL ACTION CONSTRUCTION. Key points: 1. Contract awarded to a joint venture, indicating potential for specialized expertise. 2. The contract is for remedial action construction, a critical environmental service. 3. Fixed price contract type aims to control costs, but scope creep is a risk. 4. The sector is environmental remediation, vital for public health and ecosystem restoration.

Value Assessment

Rating: fair

The contract value of $21.3M for a 440-day duration appears reasonable for a complex environmental remediation project. However, without specific details on the scope of work and comparable project costs, a precise valuation is difficult. The firm fixed price structure suggests an expectation of well-defined requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited source selection process. This could be due to specific qualifications or existing relationships. The lack of full and open competition may limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, which is a necessary public service. The cost-effectiveness of this limited competition award will be a key factor in its overall taxpayer impact.

Public Impact

Improved environmental quality in the Lower Rouge River watershed. Potential for job creation in the environmental services sector. Mitigation of ecological and health risks associated with contaminated sites. Long-term benefits for local communities and recreational use of the river.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Potential for scope creep in complex remediation projects.
Contract duration of 440 days requires careful monitoring.

Positive Signals

Addresses critical environmental remediation needs.
Firm fixed price contract provides cost certainty if scope is well-defined.
Award to a joint venture may bring specialized expertise.

Sector Analysis

Environmental remediation services are crucial for addressing legacy pollution and protecting natural resources. Spending in this sector can vary significantly based on the scale and complexity of cleanup efforts, regulatory requirements, and the number of active Superfund or similar sites.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets all environmental standards and project milestones within the fixed price. The EPA's contracting and program offices will need to actively manage performance and address any potential issues promptly.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Limited competition raises concerns about potential overpricing.
Complexity of remediation projects can lead to unforeseen costs or delays.
Effectiveness of remediation depends heavily on contractor execution and oversight.
Potential for environmental incidents during construction activities.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $21.3 million to AHTNA-BRENNAN JV, LLC. LOWER ROUGE RIVER OLD CHANNEL LRROC GREAT LAKES NATIONAL PROGRAM OFFICE PHASE II REMEDIAL ACTION CONSTRUCTION.

Who is the contractor on this award?

The obligated recipient is AHTNA-BRENNAN JV, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2025-06-17. End: 2026-08-31.

What specific remediation activities are included in this contract, and how do they align with the overall goals for the Lower Rouge River?

The contract is for 'Remedial Action Construction' for the Lower Rouge River Old Channel. This typically involves physical work to contain, remove, or treat contaminants. The specific activities would depend on the site's contamination profile and the chosen remediation strategy outlined in the EPA's Record of Decision (ROD). Alignment with overall goals means ensuring the construction directly contributes to reducing ecological and human health risks as intended by the Great Lakes National Program Office.

Given the limited competition, what mechanisms are in place to ensure the contractor is performing efficiently and that the final cost is justified?

While competition was limited, the firm fixed price contract provides a baseline for cost control, assuming the scope is well-defined. The EPA's oversight will be crucial, involving regular site inspections, progress reviews, and verification of work completed against contract requirements. Performance metrics and potential penalties for non-compliance, if included in the contract, would also serve as incentives for efficiency and quality.

What is the expected long-term environmental benefit of this $21.3M investment in the Lower Rouge River Old Channel?

This investment is expected to significantly improve the environmental health of the Lower Rouge River Old Channel by addressing contamination. Benefits include reduced toxicity to aquatic life, improved water quality, restoration of habitat, and mitigation of potential human health risks associated with exposure to pollutants. The long-term impact contributes to the broader goals of the Great Lakes Water Quality Agreement and enhances the ecological integrity of the region.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HE0525R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 EL CAMINO REAL STE 240, IRVINE, CA, 92602

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,020,050

Exercised Options: $21,315,304

Current Obligation: $21,315,304

Actual Outlays: $6,179,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline