Superfund site cleanup contract awarded to SEVENSON ENVIRONMENTAL SERVICES for over $72M, spanning five years

Contract Overview

Contract Amount: $72,781,523 ($72.8M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-13

End Date: 2016-12-13

Contract Duration: 2,010 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, CONSTRUCTION UNIT 5.6 JOHNSON BOULEVARD PROPERTIES, BALL FIELDS SOUTH, GLOUCESTER CITY, NEW JERSEY

Place of Performance

Location: GLOUCESTER CITY, CAMDEN County, NEW JERSEY, 08030

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $72.8 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, CONSTRUCTION UNIT 5.6 JOHNSON BOULEVARD PROPERTIES, BALL FIELDS SOUTH, GLOUCESTER CITY, NEW JERSEY Key points: 1. Contract value of $72.8M for environmental remediation services indicates significant investment in site cleanup. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of five years allows for sustained effort in addressing complex environmental issues. 4. Awarded by the Department of the Army, this contract aligns with federal responsibilities for environmental stewardship. 5. The specific site, WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, highlights the focus on hazardous waste remediation. 6. The cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control and value. 7. The absence of small business set-aside suggests the primary contractor is likely a large business.

Value Assessment

Rating: good

The contract value of $72.8 million for environmental remediation services at a Superfund site is substantial. Benchmarking against similar large-scale environmental cleanup contracts would be necessary for a precise value-for-money assessment. However, the duration of five years suggests a comprehensive approach to a complex problem. The cost-plus-fixed-fee structure, while common for complex projects, necessitates diligent oversight to manage costs effectively and ensure the fixed fee remains reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of three bidders (no) suggests a moderate level of competition for this significant environmental remediation project. This level of competition is generally favorable for price discovery and can incentivize bidders to offer competitive terms.

Taxpayer Impact: A competitive bidding process for environmental cleanup projects like this helps ensure that taxpayer dollars are used efficiently, potentially leading to lower overall costs for the remediation effort.

Public Impact

The primary beneficiaries are the residents and environment of Gloucester City, New Jersey, through the cleanup of a hazardous Superfund site. The services delivered involve complex environmental remediation, likely including soil and groundwater cleanup, and waste disposal. The geographic impact is localized to the WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE in Gloucester City, New Jersey. Workforce implications include employment for environmental engineers, scientists, construction workers, and support staff involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed meticulously.
The complexity of Superfund site remediation presents inherent technical and logistical risks.
Ensuring long-term effectiveness of the remediation requires robust monitoring and validation.

Positive Signals

Full and open competition suggests a competitive environment that can drive efficiency.
The five-year duration allows for a thorough and sustained approach to cleanup.
Awarded by the Department of the Army, indicating a commitment to environmental responsibility.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader Environmental Services industry. This sector deals with the cleanup of contaminated sites, often involving hazardous materials, and is heavily regulated. The market size for environmental remediation is substantial, driven by regulatory requirements and historical industrial activity. This specific contract addresses a Superfund site, which are typically complex and require specialized expertise and significant investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contractor, SEVENSON ENVIRONMENTAL SERVICES, INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large federal contracts often include provisions for small business participation, which would need to be verified through the contract details.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is generally facilitated through federal contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Superfund Program
Environmental Remediation Contracts
Department of Defense Environmental Services
Hazardous Waste Management

Risk Flags

Potential for cost overruns due to CPFF structure
Unforeseen site conditions impacting schedule and cost
Long-term effectiveness of remediation requires ongoing monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.8 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, CONSTRUCTION UNIT 5.6 JOHNSON BOULEVARD PROPERTIES, BALL FIELDS SOUTH, GLOUCESTER CITY, NEW JERSEY

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 $72.8 million.

What is the period of performance?

Start: 2011-06-13. End: 2016-12-13.

What is the track record of SEVENSON ENVIRONMENTAL SERVICES, INC. with federal environmental remediation contracts?

SEVENSON ENVIRONMENTAL SERVICES, INC. has a history of performing environmental remediation work for federal agencies. While specific details on past performance for this exact type of Superfund site cleanup would require deeper analysis of contract databases and performance reviews, their award on this significant contract suggests they possess the necessary qualifications and experience. Federal agencies typically vet contractors based on past performance, financial stability, and technical capabilities before awarding large-value contracts. Further investigation into their contract history, including any past issues or commendations, would provide a more complete picture of their reliability and expertise in handling complex environmental projects.

How does the awarded amount of $72.8 million compare to similar Superfund site remediation contracts?

The $72.8 million contract value for the WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE is substantial, reflecting the complexity and scale typical of Superfund cleanups. To benchmark this value, one would need to compare it against other Superfund remediation contracts awarded by agencies like the EPA or DoD over similar timeframes and for sites with comparable contamination levels and remediation challenges. Factors such as the type of contaminants, the extent of affected media (soil, groundwater, sediment), and the chosen remediation technologies significantly influence contract costs. Without a detailed comparison of these factors across multiple contracts, it's difficult to definitively state if this award represents exceptional value, but the amount is consistent with the high costs associated with addressing legacy environmental contamination.

What are the primary risks associated with this type of environmental remediation contract?

The primary risks associated with this environmental remediation contract are multifaceted. Technical risks include unforeseen site conditions, the effectiveness of chosen remediation technologies, and potential discovery of additional contamination. Financial risks are present, particularly with cost-plus-fixed-fee contracts, where cost overruns can occur if not managed diligently. Schedule risks can arise from permitting delays, weather impacts, or contractor performance issues. Environmental risks involve potential accidental releases during cleanup activities. Finally, regulatory risks are inherent, as Superfund sites are subject to stringent federal oversight and evolving environmental standards, requiring continuous compliance and adaptation.

How effective is the cost-plus-fixed-fee (CPFF) contract type for managing Superfund site cleanups?

The cost-plus-fixed-fee (CPFF) contract type is often used for complex projects like Superfund site cleanups where the scope of work can be difficult to define precisely upfront. It allows the contractor to be reimbursed for actual costs incurred, plus a predetermined fixed fee representing profit. This structure can be effective in encouraging contractors to undertake challenging projects with uncertain cost elements. However, it also shifts some of the cost risk to the government, as the contractor has less incentive to control costs compared to a fixed-price contract. Effective management, robust oversight, and clear performance metrics are crucial to ensure that the fixed fee remains reasonable and that the overall project cost is controlled.

What is the historical spending trend for environmental remediation services by the Department of the Army?

Historical spending by the Department of the Army on environmental remediation services has been significant, driven by its extensive legacy of operating and closing military installations. The Army is responsible for managing and cleaning up numerous contaminated sites across the country. Spending in this category fluctuates based on the number of active cleanup projects, the complexity of the sites, and available appropriations. While specific year-over-year trends require detailed analysis of historical budget data and contract awards, the Army consistently allocates substantial resources to environmental compliance and remediation efforts to meet regulatory obligations and address environmental liabilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,814,401

Exercised Options: $75,814,401

Current Obligation: $72,781,523

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ10D3006

IDV Type: IDC

Timeline