DoD's $22.7M Munitions Remediation Contract Awarded to PIKA-PIRNIE JV LLC in New Mexico
Contract Overview
Contract Amount: $22,756,381 ($22.8M)
Contractor: Pika-Pirnie JV LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-03
End Date: 2019-10-31
Contract Duration: 1,884 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF FORT WINGATE PARCEL 3 KICKOUT AREA MUNITION REMEDIATION SERVICES.
Place of Performance
Location: PREWITT, MCKINLEY County, NEW MEXICO, 87045
Plain-Language Summary
Department of Defense obligated $22.8 million to PIKA-PIRNIE JV LLC for work described as: IGF::OT::IGF FORT WINGATE PARCEL 3 KICKOUT AREA MUNITION REMEDIATION SERVICES. Key points: 1. Contract awarded for munitions remediation services in New Mexico. 2. PIKA-PIRNIE JV LLC is the awardee. 3. The contract value is $22,756,381.43. 4. The awarding agency is the Department of Defense, specifically the Department of the Army. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $22.7M for remediation services appears reasonable given the scope and duration. Benchmarking against similar environmental remediation contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for environmental remediation services, which is a necessary but potentially costly undertaking.
Public Impact
Environmental cleanup of munitions at Fort Wingate is crucial for public safety and ecological health. The remediation efforts aim to restore the affected area in New Mexico. Long-term monitoring may be required to ensure the effectiveness of the remediation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to higher costs.
- Effectiveness of remediation over the long term needs monitoring.
Positive Signals
- Addresses critical environmental and safety concerns.
- Awarded to a joint venture, potentially leveraging specialized expertise.
Sector Analysis
This contract falls within the environmental remediation sector, specifically dealing with hazardous materials from munitions. Spending in this sector is driven by regulatory requirements and historical land use.
Small Business Impact
The contract was awarded to a joint venture, PIKA-PIRNIE JV LLC. Information regarding the specific participation of small businesses within this joint venture is not provided in the data.
Oversight & Accountability
Oversight by the Department of the Army is expected to ensure contract compliance and the successful completion of remediation activities. Performance metrics and regular reporting would be key oversight mechanisms.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Potential for unforeseen site conditions impacting cost and schedule.
- Long-term effectiveness of remediation requires ongoing assessment.
- Dependence on contractor's expertise for complex hazardous material handling.
Tags
remediation-services, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to PIKA-PIRNIE JV LLC. IGF::OT::IGF FORT WINGATE PARCEL 3 KICKOUT AREA MUNITION REMEDIATION SERVICES.
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 $22.8 million.
What is the period of performance?
Start: 2014-09-03. End: 2019-10-31.
What specific remediation technologies are being employed, and how do they compare in cost-effectiveness for this type of munitions contamination?
The provided data does not specify the remediation technologies. A detailed analysis would require reviewing the contract's technical specifications. Cost-effectiveness depends on factors like contaminant type, site conditions, and regulatory standards. Comparing proposed technologies against industry benchmarks for similar munitions remediation projects would be necessary.
What are the potential long-term environmental risks if the remediation is not fully effective, and what monitoring is in place?
Long-term risks include potential groundwater contamination, soil degradation, and continued hazards to wildlife and human health if munitions residues persist. The contract duration suggests a significant cleanup effort, but ongoing monitoring post-remediation is critical. The effectiveness and scope of post-remediation monitoring protocols would need to be assessed.
How does the pricing structure (Firm Fixed Price) align with the inherent uncertainties of munitions remediation, and what is the potential for cost overruns?
A Firm Fixed Price contract shifts most of the cost risk to the contractor. While this can incentivize efficiency, it may also lead contractors to build in higher contingencies for unknown conditions common in munitions remediation. The 'exclusion of sources' in the competition could further inflate the price. Careful contract management and clear scope definition are vital to mitigate potential cost overruns.
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 › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $22,756,381
Exercised Options: $22,756,381
Current Obligation: $22,756,381
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
Start Date: 2014-09-03
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2023-07-03
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