DHS awards $8.7M contract for oil spill cleanup services to Moran Environmental Recovery, LLC

Contract Overview

Contract Amount: $8,701 ($8.7K)

Contractor: Moran Environmental Recovery, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-09

End Date: 2026-05-09

Contract Duration: 89 days

Daily Burn Rate: $98/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCPM26011 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR REPRESENTATIVE.

Place of Performance

Location: RANDOLPH, NORFOLK County, MASSACHUSETTS, 02368

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8,701.2 to MORAN ENVIRONMENTAL RECOVERY, LLC for work described as: UCPM26011 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR REPRESENTATIVE. Key points: 1. Contract awarded on a time and materials basis, which can lead to cost overruns if not closely managed. 2. The contract duration is relatively short (89 days), suggesting a need for immediate response capabilities. 3. The award was not competed, raising questions about potential cost savings and market competitiveness. 4. The contractor, Moran Environmental Recovery, LLC, has a track record in environmental remediation services. 5. The service category, Remediation Services, is critical for environmental protection and disaster response. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a pre-established relationship.

Value Assessment

Rating: fair

The contract's value of $8.7 million for an 89-day period for oil spill and hazardous chemical incident mitigation appears to be within a reasonable range for emergency response services. However, without specific details on the scope of work, the number of incidents anticipated, or the complexity of potential cleanups, a precise value-for-money assessment is challenging. The time and materials pricing structure necessitates diligent oversight to ensure costs remain controlled and reflect actual effort expended. Benchmarking against similar rapid-response environmental cleanup contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. While the data indicates it's a delivery order, the 'NOT COMPETED' status suggests that the specific requirement was not subjected to a competitive bidding process. This could be due to various reasons, such as an existing contract vehicle or a specific need that only one vendor could fulfill. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the government may not benefit from the price reductions that competition typically drives.

Public Impact

The primary beneficiaries are communities and ecosystems impacted by oil spills or hazardous chemical incidents, ensuring timely cleanup and environmental restoration. Services delivered include labor, materials, and equipment necessary for mitigating harmful effects of environmental disasters. The geographic impact is focused on areas where incidents occur, as directed by the Federal On-Scene Coordinator Representative. Workforce implications involve the deployment of skilled personnel for emergency response and cleanup operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Time and materials contract type requires robust oversight to prevent cost overruns.
The short duration might indicate a reactive rather than proactive approach to environmental threats.

Positive Signals

Contract addresses critical environmental protection needs.
Awardee has experience in remediation services.
Contract is a delivery order under an existing IDIQ, suggesting a streamlined process for essential services.

Sector Analysis

The environmental remediation services sector is crucial for responding to industrial accidents, natural disasters, and historical contamination. This contract falls under the broader category of environmental consulting and remediation, which includes services like hazardous waste cleanup, oil spill response, and site restoration. The market size for such services can fluctuate significantly based on regulatory changes, industrial activity, and the frequency of environmental incidents. Government contracts are a significant portion of this market, particularly for emergency response capabilities.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to have a small business set-aside component (st: MA, which likely refers to the state). Therefore, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor, Moran Environmental Recovery, LLC, may engage small businesses as subcontractors for specialized services or equipment, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the U.S. Coast Guard, as the contracting agency and office, respectively. The Federal On-Scene Coordinator Representative plays a key role in directing the work. As a time and materials contract, robust oversight is essential to monitor labor hours, material costs, and equipment usage to ensure compliance with contract terms and prevent wasteful spending. Transparency would be facilitated through contract reporting mechanisms and potentially through public records of environmental incident responses.

Related Government Programs

Environmental Cleanup Services
Hazardous Material Response
Oil Spill Prevention and Response
Emergency Management Services
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

Sole-source award
Time and Materials pricing
Potential for cost overruns without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8,701.2 to MORAN ENVIRONMENTAL RECOVERY, LLC. UCPM26011 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR REPRESENTATIVE.

Who is the contractor on this award?

The obligated recipient is MORAN ENVIRONMENTAL RECOVERY, LLC.

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 $8,701.2.

What is the period of performance?

Start: 2026-02-09. End: 2026-05-09.

What is the track record of Moran Environmental Recovery, LLC in handling similar oil spill or hazardous chemical incidents?

Moran Environmental Recovery, LLC is a company specializing in environmental services, including oil spill response, hazardous waste management, and emergency response. They have a history of performing contracts for various government agencies, including the U.S. Coast Guard and the Environmental Protection Agency (EPA), in mitigating environmental incidents. Their experience typically involves deploying specialized equipment and trained personnel to contain, clean up, and restore affected areas. While specific details of past performance on contracts of this exact magnitude and scope are not provided here, their core business is centered around these types of emergency environmental services, suggesting a relevant operational capability.

How does the $8.7 million value compare to similar emergency environmental response contracts awarded by the U.S. Coast Guard or DHS?

Assessing the $8.7 million value requires context regarding the scale and nature of the environmental incidents anticipated. Emergency response contracts can vary widely. For a short-duration (89 days) contract focused on labor, materials, and equipment for mitigation, this amount could be substantial if significant incidents are expected, or moderate if it's for preparedness and minor responses. Contracts for large-scale, long-term disaster recovery efforts would naturally be much higher. Benchmarking against other time-and-materials contracts for rapid environmental response, particularly those awarded under IDIQ vehicles by agencies like the Coast Guard or EPA, would be necessary for a precise comparison. Without more specific scope details, it's difficult to definitively state if it's high or low, but it represents a significant investment in immediate response capability.

What are the primary risks associated with a 'NOT COMPETED' sole-source award for environmental remediation services?

The primary risk of a 'NOT COMPETED' sole-source award is the potential for paying a higher price than might be achieved through open competition. Without multiple bids, the government loses the leverage of market forces to drive down costs. Additionally, there's a risk that alternative, potentially more innovative or cost-effective solutions from other vendors are not considered. For time and materials contracts, the lack of competition can exacerbate the risk of cost overruns if oversight is not rigorous, as the contractor may have less incentive to control expenses. This award mechanism is typically justified by urgency, unique capabilities, or specific circumstances where competition is not feasible or practical.

How effective is the time and materials (T&M) contract type for managing oil spill response operations?

The Time and Materials (T&M) contract type can be effective for oil spill response when the scope of work is uncertain or difficult to define precisely at the outset, which is common in emergency situations. It allows for flexibility in adapting to changing conditions on the ground. However, T&M contracts carry inherent risks for the government, primarily related to cost control. Without strong oversight, contractors may not have sufficient incentive to minimize labor hours or material costs. For this contract, the effectiveness hinges on the government's ability to closely monitor and validate all billed hours, materials, and equipment usage, ensuring they are reasonable and necessary for the response effort. Clear task orders and regular progress reviews are crucial.

What are the historical spending patterns for similar environmental remediation services by the U.S. Coast Guard?

The U.S. Coast Guard, as part of the Department of Homeland Security, frequently procures environmental remediation services due to its maritime responsibilities, including responding to oil spills and hazardous substance releases in navigable waters. Historical spending patterns often involve contracts awarded under large IDIQ vehicles, similar to what this delivery order is likely under. These contracts can range from small, localized cleanup efforts to large-scale, multi-year responses to major incidents. Spending can be cyclical, influenced by factors like increased shipping traffic, offshore drilling activity, and regulatory enforcement. Analyzing past spending data would reveal the frequency and average value of such contracts, providing context for the current $8.7 million award.

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: Moran Towing Corp

Address: 75 YORK AVE STE D, RANDOLPH, MA, 02368

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

Financial Breakdown

Contract Ceiling: $8,701

Exercised Options: $8,701

Current Obligation: $8,701

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08424GBOST0002

IDV Type: BOA

Timeline