DoD Awards $64.3M Superfund Remediation Contract to Sevenson Environmental Services in New Jersey

Contract Overview

Contract Amount: $64,299,405 ($64.3M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-31

End Date: 2013-06-30

Contract Duration: 2,069 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE CONTRACTOR SHALL PERFORM REMEDIATION WORK AT WELSBACH SUPERFUND SITE, CAMDEN COUNTY, NJ

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08101

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $64.3 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: THE CONTRACTOR SHALL PERFORM REMEDIATION WORK AT WELSBACH SUPERFUND SITE, CAMDEN COUNTY, NJ Key points: 1. The contract focuses on environmental remediation at a Superfund site, a critical but often complex service. 2. Competition was limited due to the exclusion of sources, potentially impacting price discovery. 3. The project duration of 2069 days indicates a long-term, significant environmental undertaking. 4. The sector is Environmental Services, a niche area requiring specialized expertise.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific cost breakdowns, but the total award value is substantial for remediation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while some competition occurred, it was not fully open, potentially limiting the number of bidders and influencing the final price.

Taxpayer Impact: Taxpayer funds are being used for a necessary but potentially costly environmental cleanup. The effectiveness of the remediation and cost control will determine the ultimate value for taxpayers.

Public Impact

Addresses environmental contamination at a Superfund site, improving public health and safety. Long-term project with significant taxpayer investment in environmental restoration. Potential for long-term environmental benefits and ecological recovery in the affected area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may have led to a higher price.
  • Cost Plus Fixed Fee contracts can incentivize cost overruns.
  • Long project duration increases risk of unforeseen issues and cost escalation.

Positive Signals

  • Addresses critical environmental remediation needs.
  • Contract awarded to a specialized environmental services firm.
  • Project aims to restore a Superfund site.

Sector Analysis

Environmental remediation services are specialized and crucial for addressing hazardous waste sites. Spending in this sector can vary widely based on the scale and complexity of contamination, with Superfund sites often representing significant investments.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Specialized environmental remediation often requires large firms with specific certifications and resources.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would involve ensuring the contractor meets remediation standards and stays within budget, which can be challenging for long-term, complex projects.

Related Government Programs

  • Remediation Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition
  • Cost Plus Fixed Fee contract type
  • Long project duration
  • Lack of small business participation
  • Potential for cost overruns

Tags

remediation-services, department-of-defense, nj, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.3 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. THE CONTRACTOR SHALL PERFORM REMEDIATION WORK AT WELSBACH SUPERFUND SITE, CAMDEN COUNTY, NJ

Who is the contractor on this award?

The obligated recipient is SEVENSON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $64.3 million.

What is the period of performance?

Start: 2007-10-31. End: 2013-06-30.

What specific remediation technologies are being employed, and how do their costs compare to industry standards for similar Superfund sites?

The provided data does not detail the specific remediation technologies. A thorough analysis would require reviewing the contract's technical specifications and comparing the chosen methods and their associated costs against benchmarks for similar Superfund site cleanups. This would help assess if the chosen approach is cost-effective and technologically appropriate for the contamination present.

How effectively was competition managed under the 'exclusion of sources' clause, and what was the impact on the final contract price?

The 'exclusion of sources' clause inherently limits competition. While it may be justified for specialized work, it raises concerns about whether the government secured the best possible price. An analysis would need to examine the justification for excluding sources and compare the awarded price to similar contracts that underwent broader competition to gauge the potential price impact.

What are the key performance indicators (KPIs) for this remediation project, and how is progress being tracked to ensure effectiveness and taxpayer value?

Effective oversight requires clearly defined KPIs related to environmental cleanup milestones, safety, and budget adherence. The government must actively monitor the contractor's performance against these KPIs. Regular progress reports, site inspections, and independent verification of remediation results are crucial to ensure the project's effectiveness and demonstrate responsible use of taxpayer funds.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2749 LOCKPORT ROAD, NIAGARA FALLS, NY, 14305

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $68,515,032

Exercised Options: $68,515,032

Current Obligation: $64,299,405

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ04D0023

IDV Type: IDC

Timeline

Start Date: 2007-10-31

Current End Date: 2013-06-30

Potential End Date: 2013-06-30 00:00:00

Last Modified: 2021-02-24

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