DHS Coast Guard Awards $5.67M for Lead Abatement in California Buildings

Contract Overview

Contract Amount: $5,668,338 ($5.7M)

Contractor: Sustainable Group/Terraphase Engineering JV LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-26

End Date: 2026-06-24

Contract Duration: 180 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SHI ABATEMENT EXTERIOR SIDING HOUSING 305, 306, 331, 416 & 410 (LEAD)

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94952

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.7 million to SUSTAINABLE GROUP/TERRAPHASE ENGINEERING JV LLC for work described as: SHI ABATEMENT EXTERIOR SIDING HOUSING 305, 306, 331, 416 & 410 (LEAD) Key points: 1. Awarded to Sustainable Group/Terraphase Engineering JV LLC for lead abatement services. 2. Contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Full and open competition was conducted after exclusion of sources, suggesting a specific justification. 4. Project duration is 180 days, with completion expected by June 2026. 5. The contract value is $5,668,338.

Value Assessment

Rating: good

The award value of $5.67 million appears reasonable for lead abatement services in commercial and institutional buildings, especially considering the scope across multiple addresses. Benchmarking against similar large-scale abatement projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method implies that while competition was sought, certain sources were initially excluded, potentially due to specific qualifications or prior relationships, which could impact price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential environmental remediation, ensuring public safety and compliance with regulations. The competitive nature of the award aims to secure a fair price for these services.

Public Impact

Protects public health by removing hazardous lead paint from multiple buildings. Ensures compliance with environmental and safety regulations for federal facilities. Supports specialized construction services within the commercial building sector. Contributes to the upkeep and safety of U.S. Coast Guard infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen lead contamination is discovered.
Dependence on the performance and capacity of the selected joint venture.

Positive Signals

Addresses critical environmental health and safety concerns.
Utilizes a competitive procurement process to ensure value.
Clear project scope and defined completion timeline.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure maintenance, upgrades, and environmental remediation needs. Benchmarks for similar lead abatement projects vary widely based on building size, complexity, and location.

Small Business Impact

The award was made to a joint venture, Sustainable Group/Terraphase Engineering JV LLC. Analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors to ensure compliance with small business utilization goals.

Oversight & Accountability

The U.S. Coast Guard, under the Department of Homeland Security, is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders, including performance monitoring and payment verification, should be in place to ensure successful project completion and accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential for cost escalation if unforeseen conditions arise.
Reliance on the performance capabilities of the awarded joint venture.
Need for clarity on the 'exclusion of sources' justification.
Ensuring adequate small business participation within the awarded contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.7 million to SUSTAINABLE GROUP/TERRAPHASE ENGINEERING JV LLC. SHI ABATEMENT EXTERIOR SIDING HOUSING 305, 306, 331, 416 & 410 (LEAD)

Who is the contractor on this award?

The obligated recipient is SUSTAINABLE GROUP/TERRAPHASE ENGINEERING JV 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 $5.7 million.

What is the period of performance?

Start: 2025-12-26. End: 2026-06-24.

What specific factors led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final pricing?

The exclusion of sources typically occurs when specific technical capabilities, past performance on similar projects, or unique certifications are required that only a subset of potential bidders possess. This can limit the pool of competitors, potentially influencing price discovery. A thorough review of the solicitation documents and award justification would clarify the reasons for exclusion and its effect on the negotiated price.

What is the estimated cost per square foot or per building for this lead abatement project, and how does it compare to industry averages for similar work in California?

Without detailed building square footage or specific cost breakdowns per structure, a precise per-unit cost benchmark is difficult to establish. However, the total award of $5.67 million for lead abatement across five buildings suggests a significant undertaking. Industry averages for lead abatement can range from $10 to $50+ per square foot depending on the severity of contamination and complexity of the work.

What are the long-term implications for the U.S. Coast Guard's facility maintenance budget and strategy, given the need for ongoing environmental remediation projects like this lead abatement contract

This contract highlights the recurring need for significant investment in maintaining aging federal infrastructure, particularly concerning environmental hazards like lead. It suggests that facility maintenance budgets must adequately account for such remediation efforts. A proactive strategy involving regular inspections and early intervention can potentially mitigate the scale and cost of future remediation projects.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z08825R0000122

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1480 MORAGA ROAD, SUITE I #374, MORAGA, CA, 94556

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

Financial Breakdown

Contract Ceiling: $5,668,338

Exercised Options: $5,668,338

Current Obligation: $5,668,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08818DPQQ21300

IDV Type: IDC

Timeline