DoD's $32.6M Remedial Investigation Contract Awarded to AeroStar SES LLC for Air Force Base in Michigan

Contract Overview

Contract Amount: $32,583,849 ($32.6M)

Contractor: Aerostar SES LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-14

End Date: 2026-06-29

Contract Duration: 2,176 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 30

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REMEDIAL INVESTIGATION AND RESPONSE ACTIONS

Place of Performance

Location: OSCODA, IOSCO County, MICHIGAN, 48750

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to AEROSTAR SES LLC for work described as: REMEDIAL INVESTIGATION AND RESPONSE ACTIONS Key points: 1. The contract focuses on environmental remediation services, a critical but often costly area for government agencies. 2. AeroStar SES LLC, a relatively small player in the federal contracting space, secured this significant award. 3. The fixed-price contract structure aims to control costs, but the long duration presents potential for cost overruns. 4. The 'MI' NAICS code suggests a specialized remediation service, potentially limiting the pool of qualified competitors.

Value Assessment

Rating: fair

The contract's value of $32.6 million over nearly 6 years suggests a substantial project. Benchmarking is difficult without specific scope details, but the fixed-price nature implies an expectation of cost control by the Air Force.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of remediation services and the potential for a limited number of highly qualified bidders could influence the final price.

Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value. The fixed-price contract further aims to ensure costs do not exceed the negotiated amount, protecting taxpayer funds.

Public Impact

Environmental cleanup at a military installation ensures public health and safety. Long-term contracts can provide stable employment for specialized environmental firms. The success of the remediation directly impacts the local environment and community. Transparency in the bidding process is crucial for public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases risk of scope creep and cost escalation.
Limited information on AeroStar SES LLC's past performance in similar large-scale projects.
Potential for unforeseen environmental conditions impacting remediation costs.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract provides cost certainty for the government.
Contract addresses critical environmental remediation needs for the Air Force.

Sector Analysis

Environmental remediation services are crucial for government agencies managing legacy contamination and ensuring compliance with environmental regulations. Spending in this sector can fluctuate based on regulatory changes and the identification of new environmental hazards.

Small Business Impact

While the contract was awarded under full and open competition, there is no indication that small businesses were specifically targeted or subcontracted. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts, including performance reviews and financial audits, should be in place to ensure accountability and proper execution.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration exceeds 5 years, increasing risk of cost escalation and scope creep.
Contractor's specific experience with large-scale environmental remediation projects is not detailed.
Potential for unforeseen environmental conditions to impact project costs and timeline.
Lack of explicit small business participation goals or reporting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to AEROSTAR SES LLC. REMEDIAL INVESTIGATION AND RESPONSE ACTIONS

Who is the contractor on this award?

The obligated recipient is AEROSTAR SES LLC.

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 $32.6 million.

What is the period of performance?

Start: 2020-07-14. End: 2026-06-29.

What specific environmental hazards are being addressed, and how does the scope of work compare to industry benchmarks for similar remediation projects?

The data indicates 'Remediation Services' under NAICS code 562910. This typically involves cleaning up contaminated soil, groundwater, or building materials. Without a detailed scope of work, comparing it to industry benchmarks is challenging. However, the $32.6 million price tag over nearly six years suggests a complex and extensive project, likely involving significant environmental challenges requiring specialized expertise and equipment.

What is AeroStar SES LLC's track record with large-scale, multi-year environmental remediation contracts, particularly for the Department of Defense?

Information on AeroStar SES LLC's specific experience with contracts of this magnitude and duration is not provided in the data. A thorough risk assessment would require reviewing their past performance, client references, and any history of successful completion of similar projects. Their ability to manage complex logistics, technical challenges, and regulatory compliance over an extended period is a key factor in assessing project risk.

How effectively will the firm fixed-price contract mitigate risks associated with potential cost overruns given the inherent uncertainties in environmental remediation?

A firm fixed-price contract is designed to shift cost risk to the contractor. However, environmental remediation projects often encounter unforeseen conditions (e.g., hidden contamination plumes, unexpected soil types) that can significantly increase costs. While the contract aims for cost certainty, the long duration and the nature of the work mean that the contractor bears the risk of these unknowns, potentially impacting their profit margin or leading to change orders if the scope is significantly altered.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 30

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1006 FLOYD CULLER CT, OAK RIDGE, TN, 37830

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,583,849

Exercised Options: $32,583,849

Current Obligation: $32,583,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890316D0047

IDV Type: IDC

Timeline