Coast Guard awards $840K for oil spill cleanup, highlighting critical environmental response capabilities

Contract Overview

Contract Amount: $8,400,000 ($8.4M)

Contractor: Clean Harbors Environmental Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-24

End Date: 2025-12-31

Contract Duration: 98 days

Daily Burn Rate: $85.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPS25022 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98310

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.4 million to CLEAN HARBORS ENVIRONMENTAL SERVICES INC for work described as: UCGPS25022 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC Key points: 1. Contract focuses on emergency response for oil spills and hazardous materials. 2. Sole-source award suggests limited availability of specialized response services. 3. Performance period is short, indicating an immediate need for services. 4. Contract type is Time and Materials, which can pose cost control challenges. 5. Geographic focus is Washington state, a key area for maritime activity. 6. No small business set-aside was applied, potentially limiting broader participation.

Value Assessment

Rating: fair

The contract value of $840,000 for a period of approximately 3 months appears reasonable for specialized environmental remediation services. However, the Time and Materials (T&M) pricing structure warrants close monitoring to ensure costs do not escalate beyond initial projections. Benchmarking against similar emergency response contracts is difficult without more detailed service descriptions and labor rates, but the provided data suggests a moderate investment for critical incident mitigation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the U.S. Coast Guard identified Clean Harbors Environmental Services Inc. as the only capable provider for this specific requirement. Sole-source awards can limit price competition, potentially leading to higher costs for the government compared to a fully competed contract. The justification for this approach would likely stem from the specialized nature of oil spill response and the need for immediate, pre-qualified capabilities.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the competitive pricing that typically arises from multiple bidders vying for a contract. This can result in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are the U.S. Coast Guard and the public, through the mitigation of environmental damage from oil spills and hazardous chemical incidents. Services delivered include labor, materials, and equipment necessary for effective spill response. The geographic impact is focused on Washington state, protecting its sensitive marine and coastal environments. Workforce implications involve the deployment of specialized response teams and equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns without strict oversight.
Sole-source award limits competitive pressure, potentially impacting value for money.
Short performance period may necessitate rapid mobilization, potentially increasing costs.
Lack of small business participation means fewer opportunities for smaller, specialized firms.

Positive Signals

Contract addresses a critical national security and environmental protection need.
Awardee is likely experienced in hazardous material response, ensuring capability.
Focus on specific geographic area allows for tailored and efficient response.
Clear tasking for mitigation of harmful effects of spills provides defined objectives.

Sector Analysis

The environmental remediation services sector is crucial for responding to industrial accidents and natural disasters. This contract falls under remediation services, a niche within the broader environmental services industry. The market for oil spill response is specialized, often dominated by a few key players with the necessary equipment, training, and certifications. Government spending in this area is driven by regulatory requirements and the need for preparedness against potential environmental hazards, particularly in coastal regions.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in this critical environmental response work are limited. Larger, established environmental service companies are likely the primary recipients of such contracts, potentially impacting the growth and development of smaller firms in this specialized field.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting officer and program managers. Given the Time and Materials nature, rigorous tracking of labor hours, material costs, and equipment usage will be essential to ensure accountability and prevent overcharging. Transparency would be enhanced by public reporting of performance metrics and cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Oil Spill Response
Hazardous Material Cleanup
Emergency Environmental Services
Maritime Environmental Protection
National Preparedness and Response

Risk Flags

Sole-source award may indicate limited market competition.
Time and Materials contract type carries inherent cost escalation risks.
Short performance period requires rapid mobilization and execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.4 million to CLEAN HARBORS ENVIRONMENTAL SERVICES INC. UCGPS25022 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC

Who is the contractor on this award?

The obligated recipient is CLEAN HARBORS ENVIRONMENTAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2025-09-24. End: 2025-12-31.

What is the typical cost range for similar oil spill response contracts awarded by federal agencies?

The cost range for similar oil spill response contracts can vary significantly based on the scope of work, duration, geographic location, and the specific type and volume of pollutants. Contracts can range from tens of thousands of dollars for localized, minor incidents to hundreds of millions for large-scale, long-term cleanup operations. For instance, contracts for rapid response capabilities, similar to this $840,000 award for a few months, might typically fall between $500,000 and $2 million. Larger contracts involving extensive containment, recovery, and remediation efforts over longer periods can easily exceed $10 million. The 'Remediation Services' NAICS code (562910) encompasses a broad range of activities, making direct comparisons challenging without specific service details. However, the provided contract value appears to be within a reasonable range for a focused, short-term emergency response effort.

What is Clean Harbors Environmental Services Inc.'s track record with the U.S. Coast Guard and other federal agencies for oil spill response?

Clean Harbors Environmental Services Inc. is a well-established and prominent provider of hazardous waste management and emergency response services in North America. They have a significant track record of working with various federal agencies, including the U.S. Coast Guard, Environmental Protection Agency (EPA), and Department of Defense, on oil spill response and environmental remediation projects. Their experience often includes responding to major incidents, managing large-scale cleanup operations, and providing specialized equipment and personnel. Publicly available contract data often shows Clean Harbors as a frequent awardee for such services. Their extensive experience suggests a high level of capability and readiness, which is crucial for time-sensitive environmental emergencies. This history likely informed the Coast Guard's decision for a sole-source award, relying on their proven expertise.

What are the primary risks associated with Time and Materials (T&M) contracts for environmental remediation services?

The primary risk associated with Time and Materials (T&M) contracts, like the one awarded to Clean Harbors, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a predetermined profit margin. This structure can incentivize longer project durations or higher labor rates if not carefully managed. For environmental remediation, risks include unforeseen site conditions requiring more extensive work, fluctuating material costs, and the need for specialized equipment that may incur significant rental or usage fees. Effective oversight, detailed record-keeping, and clear task definitions are critical to mitigate these risks and ensure the government pays a fair price for the services rendered. Without stringent monitoring, the total cost can exceed initial estimates significantly.

How does the sole-source nature of this award impact the government's ability to secure competitive pricing for environmental response services?

A sole-source award inherently limits the government's ability to secure competitive pricing because it bypasses the standard procurement process where multiple vendors compete. In this case, the U.S. Coast Guard has identified Clean Harbors Environmental Services Inc. as the only source deemed capable of meeting the requirement. While this may be justified by the specialized nature of oil spill response, it removes the downward price pressure that competition typically provides. Taxpayers may therefore pay a premium compared to what might be achieved in a fully competed scenario. The government's negotiation leverage is reduced, and the final price is largely dependent on the contractor's proposed rates and the government's ability to scrutinize and validate those rates, rather than market-driven competition.

What are the potential long-term implications of relying on a single provider for critical oil spill response capabilities in a specific region?

Relying on a single provider for critical oil spill response capabilities in a specific region, as suggested by this sole-source award, can have several long-term implications. Firstly, it can foster a dependency on that contractor, potentially reducing incentives for innovation or efficiency improvements if they perceive limited future competition. Secondly, it might create a barrier to entry for other qualified companies seeking to develop similar capabilities, thereby limiting the overall market's responsiveness and resilience. While a proven provider ensures immediate capability, it could also lead to complacency or price increases over time if market conditions or the contractor's position changes. Ensuring ongoing performance reviews and periodically reassessing the market for alternative providers would be prudent to mitigate these risks.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clean Harbors, Inc.

Address: 42 LONGWATER DR, NORWELL, MA, 02061

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

Financial Breakdown

Contract Ceiling: $8,400,000

Exercised Options: $8,400,000

Current Obligation: $8,400,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GBOST0001

IDV Type: BOA

Timeline