DHS awards $7.6M contract for oil spill response, highlighting critical environmental protection services

Contract Overview

Contract Amount: $7,555 ($7.6K)

Contractor: Marine Pollution Control Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-13

End Date: 2025-12-13

Contract Duration: 61 days

Daily Burn Rate: $124/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPC26002 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FOSCR.

Place of Performance

Location: PARADISE, CHIPPEWA County, MICHIGAN, 49768

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7,555.42 to MARINE POLLUTION CONTROL CORP for work described as: UCGPC26002 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FOSCR. Key points: 1. Contract focuses on essential environmental remediation services, crucial for public safety and ecological health. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Short performance period suggests a need for rapid response capabilities. 4. Contractor's specialization in marine pollution control is a key factor in award. 5. Geographic focus on Michigan indicates specific regional environmental concerns.

Value Assessment

Rating: fair

The contract value of $7.6 million for a 61-day period appears substantial for the duration. Without comparable sole-source contracts for similar oil spill mitigation services in the region, a precise value-for-money assessment is challenging. The 'Time and Materials' pricing structure can lead to cost overruns if not closely monitored, potentially impacting overall value. Benchmarking against industry rates for specialized environmental remediation services would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the U.S. Coast Guard identified Marine Pollution Control Corp as the only responsible source capable of meeting the government's needs. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple vendors. While it ensures specialized expertise is engaged quickly, it limits opportunities for price discovery and potentially higher quality solutions from a broader market.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as competition is absent, potentially leading to less favorable pricing than could be achieved through an open bidding process.

Public Impact

The primary beneficiaries are the residents and ecosystems of Michigan, protected from the harmful effects of oil spills and hazardous chemical incidents. The contract delivers critical environmental remediation services, ensuring rapid response to pollution events. Geographic impact is concentrated in Michigan, addressing specific regional environmental risks. The contract supports specialized labor in environmental response, potentially involving skilled technicians and emergency personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Time and Materials pricing structure carries inherent risk of cost escalation.
Short performance duration may indicate a reactive, rather than proactive, approach to environmental threats.

Positive Signals

Contract addresses a critical public safety and environmental protection need.
Award to a specialized contractor ensures necessary expertise for oil spill mitigation.
Focus on a specific geographic region allows for tailored response capabilities.

Sector Analysis

This contract falls within the Environmental Services sector, specifically focusing on hazardous material remediation and emergency response. The market for such specialized services is often characterized by a limited number of highly qualified firms capable of responding to environmental disasters. Government spending in this area is driven by regulatory requirements and the need to protect natural resources and public health from industrial accidents and spills. Comparable spending benchmarks are difficult to establish due to the unique nature and often urgent requirements of spill response contracts.

Small Business Impact

The contract was not competed and there is no indication of a small business set-aside or subcontracting plan. Given the specialized nature of oil spill and hazardous chemical incident response, it is likely that the prime contractor possesses unique capabilities that may not be readily available from small businesses. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within this specialized field.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. The contract's 'Time and Materials' nature necessitates rigorous monitoring of labor hours, material costs, and equipment usage to ensure compliance and prevent overcharging. Transparency will depend on the agency's reporting practices and the availability of post-award data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

EPA Oil Spill Response Contracts
NOAA Scientific Support for Spill Response
USCG Aids to Navigation and Waterways Management
National Contingency Plan Implementation

Risk Flags

Sole Source Justification
Time and Materials Pricing Risk
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7,555.42 to MARINE POLLUTION CONTROL CORP. UCGPC26002 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FOSCR.

Who is the contractor on this award?

The obligated recipient is MARINE POLLUTION CONTROL CORP.

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 $7,555.42.

What is the period of performance?

Start: 2025-10-13. End: 2025-12-13.

What is the track record of Marine Pollution Control Corp in handling similar oil spill incidents for federal agencies?

Marine Pollution Control Corp (MPCC) has a history of providing environmental services, including oil spill response. While specific details of past federal contracts are not provided in the abbreviated data, their specialization suggests experience in this critical area. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal the extent and nature of their previous work with agencies such as the Coast Guard or EPA. Assessing past performance reviews and any documented successes or failures in similar emergency response scenarios would provide crucial context for evaluating their capability and reliability under this new contract.

How does the pricing structure of this 'Time and Materials' contract compare to industry standards for emergency environmental remediation?

The 'Time and Materials' (T&M) pricing structure for this $7.6 million contract means the government pays for the actual labor hours, material costs, and equipment usage incurred by Marine Pollution Control Corp, plus a pre-negotiated fixed fee or percentage for overhead and profit. While T&M contracts offer flexibility and speed, especially in unpredictable emergency situations like oil spills, they carry a higher risk of cost escalation for the government compared to fixed-price contracts. Benchmarking requires comparing the contractor's proposed hourly rates for various labor categories (e.g., project managers, technicians, equipment operators), equipment rental rates, and material markups against prevailing market rates for specialized environmental remediation services in the Michigan region. Without this detailed rate information, a precise comparison is difficult, but the inherent risk of T&M necessitates close government oversight.

What are the specific risks associated with a sole-source award for oil spill response services?

A sole-source award for oil spill response services, like this one to Marine Pollution Control Corp, carries several risks. Primarily, the absence of competition can lead to inflated pricing, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. There's also a risk that the chosen contractor may not offer the most innovative or efficient solutions available in the market, as other potential providers were not given an opportunity to compete. Furthermore, reliance on a single source can create vulnerabilities if that contractor experiences performance issues, capacity limitations, or unforeseen disruptions. The government must ensure robust contract management and oversight to mitigate these risks and verify that the selected contractor is indeed the only responsible source capable of meeting the urgent requirements.

How effective is the U.S. Coast Guard's current approach to contracting for emergency environmental response services?

The effectiveness of the U.S. Coast Guard's (USCG) approach to contracting for emergency environmental response services, as exemplified by this sole-source award, can be viewed through multiple lenses. On one hand, the ability to quickly award contracts to specialized firms like Marine Pollution Control Corp demonstrates responsiveness to critical environmental threats, particularly in regions like Michigan. The USCG's role in maritime safety and environmental protection necessitates rapid deployment capabilities. However, the reliance on sole-source awards raises questions about long-term cost-effectiveness and the potential for missed opportunities to foster broader competition and innovation within the environmental response sector. Evaluating overall effectiveness would require analyzing historical data on response times, incident mitigation success rates, cost performance across various contract types, and the strategic development of the contractor base.

What are the historical spending patterns for oil spill and hazardous chemical incident mitigation by the Department of Homeland Security?

Historical spending patterns for oil spill and hazardous chemical incident mitigation by the Department of Homeland Security (DHS), primarily through the U.S. Coast Guard (USCG), are driven by regulatory mandates and the agency's core mission of ensuring national security and public safety, which includes environmental protection. While the abbreviated data does not provide historical context, DHS agencies consistently allocate funds towards preparedness, response, and cleanup operations related to environmental hazards. This spending can fluctuate based on the number and severity of incidents, as well as investments in new technologies and training. Analyzing multi-year spending trends, the mix of contract types (competitive vs. sole-source), and the distribution of funds across different geographic regions and types of incidents would offer a comprehensive view of DHS's commitment and resource allocation in this critical area.

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

Address: 8631 W JEFFERSON AVE, DETROIT, MI, 48209

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

Financial Breakdown

Contract Ceiling: $7,555

Exercised Options: $7,555

Current Obligation: $7,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70Z08424GCLEV0003

IDV Type: BOA

Timeline