Coast Guard awards $16.5M contract for oil spill response in Alaska, highlighting critical environmental protection needs

Contract Overview

Contract Amount: $16,497 ($16.5K)

Contractor: Melino's Marine Services Seatow & Salvage, "LLC"

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-07

End Date: 2026-05-06

Contract Duration: 60 days

Daily Burn Rate: $275/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPJ26010 - 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: JUNEAU, JUNEAU County, ALASKA, 99801

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16,496.52 to MELINO'S MARINE SERVICES SEATOW & SALVAGE, "LLC" for work described as: UCGPJ26010 - 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 addresses essential environmental remediation services for oil spills and hazardous chemical incidents. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Short duration suggests a focus on immediate response capabilities rather than long-term environmental management. 4. Geographic focus on Alaska underscores the region's vulnerability to environmental hazards. 5. Contract type (Time and Materials) may lead to cost overruns if not closely managed. 6. Performance period is limited, indicating a need for ongoing, potentially recurring, service contracts.

Value Assessment

Rating: fair

The contract value of $16.5 million for a 60-day period appears substantial for a time-and-materials contract. Without comparable contract data for similar oil spill response services in the Arctic region, it is difficult to benchmark the value definitively. The time-and-materials pricing structure carries inherent risks of cost escalation if not meticulously monitored and controlled by the agency. The limited duration suggests a focus on immediate response, which can be costly.

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 did not solicit bids from multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service, or in emergency situations. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government did not benefit from the potential cost savings that competition often drives.

Public Impact

The primary beneficiaries are the residents and ecosystems of Alaska, particularly coastal communities vulnerable to oil spills. The contract delivers critical services for mitigating the harmful effects of oil spills and hazardous chemical incidents. Geographic impact is concentrated in Alaska (AK), a region with significant environmental sensitivity and maritime activity. Workforce implications are likely tied to specialized emergency response personnel and equipment operators.

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 price competition and may result in a higher overall cost.
Short contract duration may necessitate frequent re-solicitation, leading to administrative burden and potential gaps in service.
Geographic remoteness of Alaska could increase logistical costs and response times.

Positive Signals

Addresses a critical need for environmental protection in a sensitive region.
Contract is awarded to a specific entity likely possessing specialized skills for oil spill response.
Focus on immediate mitigation of harmful effects is crucial for environmental and economic stability.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, specifically addressing emergency response to pollution incidents. The market for such services is often specialized, with a limited number of firms possessing the necessary equipment, expertise, and certifications to operate in sensitive environments like Alaska. Comparable spending benchmarks are difficult to establish due to the unique nature of oil spill response and the specific geographic and environmental challenges presented by the Arctic.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific provisions for small business subcontracting. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. The overall impact on the small business ecosystem for environmental services in Alaska is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Given the critical nature of oil spill response, robust oversight is expected to ensure timely and effective execution. Transparency may be limited due to the sole-source nature, but performance metrics and financial expenditures should be subject to agency review and potentially Inspector General audits.

Related Government Programs

Oil Spill Response Contracts
Environmental Remediation Services
Hazardous Material Incident Response
Department of Homeland Security Emergency Contracts
U.S. Coast Guard Operational Support

Risk Flags

Sole-source award lacks competitive pricing.
Time and Materials contract type poses risk of cost overruns.
Limited duration may require frequent re-competition.
Geographic remoteness of Alaska could impact response efficiency and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16,496.52 to MELINO'S MARINE SERVICES SEATOW & SALVAGE, "LLC". UCGPJ26010 - 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 MELINO'S MARINE SERVICES SEATOW & SALVAGE, "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 $16,496.52.

What is the period of performance?

Start: 2026-03-07. End: 2026-05-06.

What is the track record of MELINO'S MARINE SERVICES SEATOW & SALVAGE, "LLC" in handling oil spill response contracts for the U.S. Coast Guard or other federal agencies?

Information regarding the specific track record of MELINO'S MARINE SERVICES SEATOW & SALVAGE, "LLC" in handling oil spill response contracts for the U.S. Coast Guard or other federal agencies is not readily available in the provided data. As this is a sole-source award, it suggests the agency identified this contractor as uniquely qualified. A deeper dive into the contractor's past performance, certifications, and experience with similar incidents, particularly in the challenging Alaskan environment, would be necessary to fully assess their capability and reliability for this critical mission. Reviewing past performance evaluations, if available through federal procurement databases, would provide further insight.

How does the $16.5 million value compare to similar oil spill response contracts awarded by the U.S. Coast Guard or other agencies in comparable geographic regions?

Benchmarking the $16.5 million value for this 60-day contract is challenging without access to a database of similar sole-source or competed oil spill response contracts in the Arctic or similar environmentally sensitive regions. Contracts for emergency response can vary significantly based on the scale of potential incidents, required equipment, specialized personnel, and logistical complexities. Given the sole-source nature and the Time and Materials (T&M) pricing structure, this award may represent a premium for guaranteed availability and rapid deployment capabilities. A comprehensive market analysis of historical T&M contracts for similar services would be needed for a more precise comparison.

What are the specific risks associated with a sole-source, Time and Materials contract for oil spill response in Alaska?

The primary risks associated with this sole-source, Time and Materials (T&M) contract for oil spill response in Alaska are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing as the government lacks leverage from multiple bids. Secondly, the T&M structure, while offering flexibility, inherently carries a risk of cost overruns if the scope of work expands or if labor and material usage is not meticulously tracked and controlled by the U.S. Coast Guard. In the remote and challenging Alaskan environment, logistical complexities and potential for extended response times could further exacerbate these risks, driving up costs beyond initial estimates.

What performance metrics or oversight mechanisms will be in place to ensure the effectiveness of the oil spill mitigation services provided under this contract?

While specific performance metrics are not detailed in the provided data, contracts for critical services like oil spill response typically include stringent oversight and performance standards. The U.S. Coast Guard would likely establish key performance indicators (KPIs) related to response time, containment effectiveness, cleanup efficiency, environmental impact mitigation, and adherence to safety protocols. Oversight would involve regular progress reports from the contractor, site inspections, and potentially the appointment of a dedicated contract officer's representative (COR) to monitor daily operations and expenditures. The effectiveness will be measured against pre-defined objectives for mitigating the harmful effects of incidents.

What is the historical spending pattern for oil spill response services by the U.S. Coast Guard in Alaska, and how does this award fit into that pattern?

The provided data does not include historical spending patterns for oil spill response services by the U.S. Coast Guard in Alaska. However, given Alaska's extensive coastline, sensitive ecosystems, and significant maritime traffic, it is reasonable to assume that the Coast Guard allocates resources for such emergency preparedness and response capabilities. This $16.5 million award for a 60-day period suggests a significant, albeit potentially short-term, commitment. Without historical data, it's difficult to ascertain if this award represents an increase, decrease, or continuation of previous spending levels for similar services in the region.

Are there any specific environmental regulations or standards that MELINO'S MARINE SERVICES SEATOW & SALVAGE, "LLC" must adhere to while performing these services in Alaska?

Yes, any contractor performing oil spill response and hazardous chemical incident mitigation services in Alaska, especially under a federal contract, must adhere to a stringent set of environmental regulations and standards. This includes compliance with the Oil Pollution Act of 1990 (OPA 90), the Clean Water Act, and potentially specific state regulations enforced by the Alaska Department of Environmental Conservation (ADEC). These regulations dictate requirements for response plans, containment strategies, cleanup methods, waste disposal, and reporting. The contractor's ability to meet these rigorous environmental standards is likely a key factor in the U.S. Coast Guard's assessment of their qualifications.

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: Melino's Marine Services Seatow & Salvage "LLC"

Address: 6726 SHERRI ST, JUNEAU, AK, 99801

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

Financial Breakdown

Contract Ceiling: $16,497

Exercised Options: $16,497

Current Obligation: $16,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08424GKETC0003

IDV Type: BOA

Timeline