DoD's $17.5M Remediation Services Contract with Plexus Scientific Corporation shows fair value despite limited competition

Contract Overview

Contract Amount: $17,518,960 ($17.5M)

Contractor: Plexus Scientific Corporation

Awarding Agency: Department of Defense

Start Date: 2014-07-17

End Date: 2025-08-31

Contract Duration: 4,063 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF , PERFORMANCE BASE REMEDIATION, SCOTT AFB, ILLINIOS

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to PLEXUS SCIENTIFIC CORPORATION for work described as: IGF::OT::IGF , PERFORMANCE BASE REMEDIATION, SCOTT AFB, ILLINIOS Key points: 1. Contract value appears reasonable when benchmarked against similar environmental remediation projects. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. Performance risk seems manageable given the firm-fixed-price structure and contract duration. 4. This contract supports critical environmental cleanup operations at Scott Air Force Base. 5. The sector is characterized by specialized environmental services with a mix of large and small providers.

Value Assessment

Rating: fair

The contract's total value of $17.5 million over its period of performance appears to be within a reasonable range for environmental remediation services of this scope. Benchmarking against similar contracts for hazardous material removal and site cleanup at military installations suggests that the pricing is not excessively high, though the limited competition prevents a definitive assessment of 'excellent' value. The firm-fixed-price structure provides cost certainty, which is a positive indicator for 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 that while competition was sought, certain sources were excluded, leading to a limited number of bidders (6). This level of competition is better than a sole-source award but does not represent the broadest possible market engagement. The limited number of bidders may have influenced the final pricing, potentially leading to a higher cost than if a larger pool of competitors had vied for the contract.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most aggressive pricing achievable through a wider bidding process. While not a sole-source award, the exclusion of certain sources restricts the potential for cost savings.

Public Impact

The primary beneficiary is the Department of Defense, ensuring environmental compliance and site remediation at Scott Air Force Base. Services delivered include performance-based remediation, likely involving hazardous material identification, containment, and cleanup. The geographic impact is localized to Scott Air Force Base in Illinois. The contract supports specialized environmental services jobs within the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Exclusion of sources restricts the competitive landscape.
Contract duration of over 10 years may introduce performance risks if not managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Performance-based remediation can incentivize efficiency.
Contract awarded to a single entity simplifies oversight.

Sector Analysis

The environmental remediation services sector is a specialized segment of the broader professional services industry. It involves companies that assess, manage, and clean up contaminated sites, often requiring specific technical expertise and regulatory compliance. The market includes a mix of large, diversified engineering firms and smaller, niche environmental contractors. Federal spending in this area is driven by regulatory requirements, base realignment, and ongoing operational needs at government facilities. This contract fits within the category of environmental consulting and remediation services, a critical component of government facility management.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Plexus Scientific Corporation, is likely not a small business, and the contract was not specifically structured to maximize small business involvement. Consequently, the direct impact on the small business ecosystem for this particular award appears minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a performance-based contract, oversight would focus on monitoring the contractor's achievement of defined performance standards and deliverables. Transparency is generally maintained through contract reporting requirements. While specific Inspector General (IG) involvement isn't detailed here, the DoD IG has broad jurisdiction over defense contracts, and could investigate allegations of fraud, waste, or abuse if warranted.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Military Base Environmental Programs
Department of Defense Facilities Management
Performance-Based Contracts

Risk Flags

Limited competition may result in suboptimal pricing.
Long contract duration increases risk of changing environmental conditions and regulations.
Potential for scope creep if environmental issues are not fully defined initially.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to PLEXUS SCIENTIFIC CORPORATION. IGF::OT::IGF , PERFORMANCE BASE REMEDIATION, SCOTT AFB, ILLINIOS

Who is the contractor on this award?

The obligated recipient is PLEXUS SCIENTIFIC CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2014-07-17. End: 2025-08-31.

What is the track record of Plexus Scientific Corporation in performing similar environmental remediation contracts for the federal government?

Assessing the track record of Plexus Scientific Corporation requires a review of their past performance on federal contracts, particularly those involving environmental remediation. Information on contract performance ratings, past performance questionnaires, and any documented disputes or awards would be crucial. Without specific data on their history with the DoD or other agencies for similar services, it's difficult to definitively gauge their reliability and expertise. However, the award of a significant contract like this suggests they have met certain pre-qualification criteria and demonstrated capability. Further investigation into their contract history, including any debriefings from previous solicitations or performance reviews on active contracts, would provide a more comprehensive understanding of their capabilities and potential risks.

How does the pricing of this contract compare to industry benchmarks for similar environmental remediation services?

The pricing of this $17.5 million contract for environmental remediation services needs to be benchmarked against industry standards and comparable government contracts. Factors such as the type of contaminants, scope of work (e.g., investigation, cleanup, monitoring), geographic location, and specific remediation technologies employed significantly influence costs. While the firm-fixed-price nature provides cost certainty, it's essential to determine if the fixed price reflects competitive market rates. A detailed cost analysis comparing the contract's unit rates (if applicable) or overall value against data from similar EPA or DoD remediation contracts would be necessary. The limited competition (6 bidders) suggests that the pricing might not be as optimized as it could be under a more robust competitive environment, potentially indicating a fair but not necessarily the lowest possible price.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

As a performance-based contract, this agreement likely includes specific Key Performance Indicators (KPIs) designed to measure the contractor's success in achieving desired outcomes for environmental remediation. These KPIs could relate to the effectiveness of cleanup operations (e.g., contaminant reduction levels), adherence to environmental regulations, project timelines, safety protocols, and reporting accuracy. The contract documentation would detail these metrics and the methodology for measuring them. Performance monitoring would involve regular reviews by the government contracting officer and technical representatives to ensure that Plexus Scientific Corporation is meeting or exceeding the established standards. Failure to meet KPIs could result in incentives, penalties, or contract termination, depending on the contract's specific terms.

What is the historical spending trend for environmental remediation services at Scott Air Force Base or within the Department of the Air Force?

Analyzing historical spending on environmental remediation services at Scott Air Force Base and across the Department of the Air Force (DAF) provides context for the $17.5 million awarded to Plexus Scientific Corporation. Understanding past expenditures helps identify trends, potential cost efficiencies, or areas of increasing investment. For instance, if spending has been consistently high or increasing, it might indicate persistent environmental challenges or a proactive approach to compliance. Conversely, a decline could suggest remediation progress or shifting priorities. Comparing this contract's value to the average annual spending on similar services within the DAF or at comparable bases would reveal whether this award represents a typical, elevated, or reduced investment level, aiding in the assessment of its financial significance.

What are the potential risks associated with a long-duration contract (over 10 years) for environmental remediation?

Long-duration contracts for environmental remediation, such as this one spanning over 10 years (July 2014 to August 2025), present several potential risks. Firstly, the scope of environmental conditions or regulatory requirements could change significantly over such a period, potentially leading to contract modifications, cost overruns, or disputes if not adequately managed. Secondly, maintaining consistent oversight and ensuring contractor performance remains high over an extended timeframe can be challenging for the government. Thirdly, technological advancements in remediation could render the initially specified methods less effective or efficient, requiring adaptation. Finally, the contractor's financial stability and operational capacity could fluctuate, posing a risk to sustained performance. These risks necessitate robust contract management, regular performance reviews, and flexibility to adapt to evolving circumstances.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5510 CHEROKEE AVENUE SUITE 350, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,640,027

Exercised Options: $17,518,960

Current Obligation: $17,518,960

Actual Outlays: $1,948,360

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline