DoD's $19M environmental remediation contract for Fort Irwin awarded to PIKA-PIRNIE JV LLC

Contract Overview

Contract Amount: $19,083,693 ($19.1M)

Contractor: Pika-Pirnie JV LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2016-11-18

Contract Duration: 2,243 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIATION SERVICES AT THE NATIONAL TRAINING CENTER AND FORT IRWIN, CA.

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to PIKA-PIRNIE JV LLC for work described as: ENVIRONMENTAL REMEDIATION SERVICES AT THE NATIONAL TRAINING CENTER AND FORT IRWIN, CA. Key points: 1. The contract value of $19.1 million represents a significant investment in environmental cleanup at a major military installation. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a competitive process but with specific initial limitations. 3. The fixed-price contract type aims to control costs, but the duration of over 6 years (2243 days) requires careful monitoring for potential overruns. 4. The contract's focus on remediation services aligns with critical environmental stewardship responsibilities for federal agencies. 5. The award to a joint venture indicates a potential pooling of specialized expertise for complex environmental tasks. 6. The absence of small business set-aside flags suggests the primary focus was on technical capability for this specific remediation need.

Value Assessment

Rating: fair

Benchmarking the value of this $19.1 million contract is challenging without specific details on the scope of environmental remediation required at Fort Irwin. However, the duration of over six years suggests a substantial and complex undertaking. The firm-fixed-price structure is generally favorable for cost control, but the total value over such an extended period warrants scrutiny for potential cost efficiencies and comparison against similar large-scale environmental cleanup projects at other federal facilities. The contract's value per year is approximately $2.7 million, which needs to be assessed against the complexity and volume of remediation activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, there was an initial exclusion of certain sources, possibly due to specific technical requirements or prior performance considerations. The number of bidders (3) is relatively low for a federal contract, which could suggest a specialized service area or a limited pool of qualified contractors. A lower number of bidders can sometimes lead to less aggressive pricing compared to broader, more inclusive competitions.

Taxpayer Impact: For taxpayers, a limited competition, even if initially open after exclusions, may result in higher costs if the pool of qualified bidders is small. This can reduce the downward pressure on pricing that typically occurs with a larger number of competing firms.

Public Impact

The primary beneficiaries are the Department of Defense and the National Training Center/Fort Irwin, ensuring environmental compliance and operational readiness. The services delivered include critical environmental remediation, addressing potential contamination and restoring affected areas. The geographic impact is localized to Fort Irwin, California, a significant military training facility. The contract supports specialized environmental engineering and remediation workforce, likely involving skilled technicians and scientists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to understand if it limited fair market access.
The long contract duration (over 6 years) increases the risk of scope creep or unforeseen cost increases if not managed tightly.
With only 3 bidders, there's a potential for reduced price competition, impacting overall value for money.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The award to a joint venture (PIKA-PIRNIE JV LLC) may indicate a robust capability to handle complex environmental challenges.
The contract addresses essential environmental remediation, contributing to regulatory compliance and ecological health at a key military installation.

Sector Analysis

Environmental remediation services fall under the broader environmental consulting and services sector, which is a significant market driven by regulatory compliance and corporate responsibility. Federal agencies, particularly the Department of Defense, are major clients due to the extensive landholdings and historical activities that often require cleanup. The market for environmental remediation is competitive, with specialized firms offering expertise in areas like hazardous waste management, soil and groundwater cleanup, and site restoration. This contract represents a substantial portion of spending within this niche for a specific geographic location.

Small Business Impact

The contract details indicate that small business set-asides were not utilized (ss: false, sb: false). This suggests that the primary focus of this procurement was on securing the most capable contractor for the complex environmental remediation tasks, rather than specifically targeting small businesses. Consequently, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. The impact on the small business ecosystem is neutral in terms of direct set-aside opportunities, though larger prime contractors may engage small businesses as subcontractors if their capabilities align with project needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified remediation services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's performance period.

Related Government Programs

Environmental Services Contracts
Department of Defense Facilities Management
Hazardous Waste Management Contracts
Military Base Environmental Compliance
Site Remediation Services

Risk Flags

Limited competition due to source exclusion
Potential for cost overruns on long-duration FFP contract
Need for detailed review of contractor's past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to PIKA-PIRNIE JV LLC. ENVIRONMENTAL REMEDIATION SERVICES AT THE NATIONAL TRAINING CENTER AND FORT IRWIN, CA.

Who is the contractor on this award?

The obligated recipient is PIKA-PIRNIE JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2010-09-28. End: 2016-11-18.

What specific types of environmental contamination were addressed under this contract, and what remediation technologies were employed?

The provided data does not specify the exact types of environmental contamination or the remediation technologies used. However, environmental remediation services at military installations like Fort Irwin often involve addressing contaminants such as petroleum hydrocarbons, heavy metals, solvents, and unexploded ordnance. Technologies could range from excavation and disposal, in-situ treatment (e.g., bioremediation, chemical oxidation), soil vapor extraction, to groundwater pump-and-treat systems. A detailed review of the contract statement of work (SOW) and any subsequent modifications would be necessary to ascertain the precise scope and methods.

How does the awarded amount of approximately $19.1 million compare to the estimated cost or budget for this environmental remediation project?

The provided data indicates the awarded amount is $19,083,693.30. Without access to the government's initial cost estimates or budget allocations for this specific project, a direct comparison is not possible. However, the fact that it was awarded suggests it was within the agency's perceived funding limits or deemed a necessary expenditure. The 'firm fixed price' nature implies the government sought to cap its liability at this amount, assuming the scope was well-defined. Further analysis would require comparing this award to similar-sized remediation projects funded by the DoD or other federal agencies.

What is the track record of PIKA-PIRNIE JV LLC in performing similar environmental remediation contracts for the federal government?

The provided data identifies PIKA-PIRNIE JV LLC as the contractor but does not offer details on their past performance or track record. To assess their suitability, one would need to examine their contract history, including past performance evaluations, any disputes or claims filed, and the successful completion of similar environmental remediation projects. Federal procurement databases (like SAM.gov or FPDS) often contain information on past awards and performance, which would be crucial for a thorough assessment of the contractor's reliability and expertise in this domain.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, what were the likely reasons for excluding certain sources, and did this impact the final price?

The 'exclusion of sources' typically occurs when specific technical capabilities, security clearances, or unique qualifications are required that only a subset of potential contractors possess. For environmental remediation, this could involve specialized permits, proprietary technologies, or experience with particular types of hazardous materials relevant to the site. While intended to ensure capability, excluding sources can limit competition. With only three bidders, the exclusion might have reduced the number of competitive offers, potentially leading to a higher price than if a broader range of firms had been eligible. The specific rationale for exclusion would be documented in the contract's Justification and Approval (J&A) if it deviated from standard full and open competition.

What are the potential risks associated with a firm-fixed-price contract lasting over six years for environmental remediation?

Firm-fixed-price (FFP) contracts are generally preferred for cost control. However, for long-duration projects like this (2243 days, approx. 6.1 years), risks can emerge. The primary risk is that the initial scope definition might not fully capture the complexities that arise over time, leading to contractor requests for equitable adjustments or claims for additional compensation if unforeseen conditions are encountered (e.g., discovering more extensive contamination than initially assessed). Conversely, if the contractor underestimates the work, they bear the loss. Effective oversight is crucial to manage scope, monitor progress, and ensure the contractor is performing efficiently without compromising quality, especially given the extended timeline.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912PP10R0039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12723 CAPRICORN ST STE 500, STAFFORD, TX, 77477

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,083,693

Exercised Options: $19,083,693

Current Obligation: $19,083,693

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY10D0025

IDV Type: IDC

Timeline