Over $22.2 million awarded for lead paint and soil remediation at Midway Atoll National Wildlife Refuge

Contract Overview

Contract Amount: $22,294,850 ($22.3M)

Contractor: NW Demolition and Environmental, a Joint Venture

Awarding Agency: Department of the Interior

Start Date: 2011-07-18

End Date: 2018-07-17

Contract Duration: 2,556 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REMOVAL OF LEAD-BASED PAINT FROM STRUCTURES AND LEAD-CONTAMINATED SOIL AT MIDWAY ATOLL NWR

Place of Performance

Location: PORTLAND, WASHINGTON County, OREGON, 97223

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $22.3 million to NW DEMOLITION AND ENVIRONMENTAL, A JOINT VENTURE for work described as: REMOVAL OF LEAD-BASED PAINT FROM STRUCTURES AND LEAD-CONTAMINATED SOIL AT MIDWAY ATOLL NWR Key points: 1. Contract awarded to NW Demolition and Environmental, a joint venture, for comprehensive environmental remediation services. 2. The contract utilized full and open competition after exclusion of sources, indicating a deliberate procurement strategy. 3. A firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns. 4. The duration of the contract spans over seven years, from July 2011 to July 2018. 5. The North American Industry Classification System (NAICS) code 562910 points to Remediation Services as the primary industry focus. 6. The contract was awarded by the Department of the Interior, specifically the U.S. Fish and Wildlife Service.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and the environmental conditions at Midway Atoll. However, the total award of over $22.2 million over seven years suggests a significant environmental cleanup effort. The firm-fixed-price structure implies that the government secured a defined cost for the services, but the actual value depends on the effectiveness and completeness of the remediation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method indicates that while the competition was intended to be open, certain sources were specifically excluded, possibly due to specialized capabilities or prior involvement. The number of bidders (4) suggests a moderate level of competition, but the exclusion of sources might limit the full potential for price discovery.

Taxpayer Impact: The exclusion of sources, even with four bidders, may have prevented the most competitive pricing from emerging, potentially costing taxpayers more than if all qualified sources had been allowed to bid.

Public Impact

The primary beneficiaries are the wildlife and ecosystems of Midway Atoll National Wildlife Refuge, which will experience reduced environmental hazards. Services delivered include the removal of lead-based paint from structures and lead-contaminated soil. The geographic impact is localized to Midway Atoll, a remote island in the Pacific Ocean. Workforce implications would involve specialized environmental remediation personnel, potentially including local hires if feasible, though the remote location may necessitate bringing in external expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination levels or remediation challenges arise, despite the firm-fixed-price structure.
Logistical complexities and increased costs associated with performing work in a remote island environment like Midway Atoll.
Ensuring the long-term effectiveness of lead remediation in a sensitive marine ecosystem requires robust monitoring and validation.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected expenses.
The use of a joint venture may bring together diverse expertise and resources for complex environmental projects.
The contract's long duration allows for phased remediation and potentially more efficient execution of the cleanup.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector addresses the cleanup of hazardous substances and pollutants. The market for environmental remediation is driven by regulatory requirements, historical industrial activity, and conservation efforts. Comparable spending benchmarks would typically involve other large-scale hazardous material removal projects, particularly those in sensitive ecological areas or remote locations.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award went to a joint venture, which could potentially include small businesses, but the primary contract itself was not designated for small business participation. Subcontracting opportunities for small businesses may exist within the scope of the remediation work, but this would depend on the joint venture's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Fish and Wildlife Service contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases and public reporting, although specific oversight activities and inspector general involvement would depend on the nature of any issues that arise during contract performance.

Related Government Programs

Environmental Cleanup Contracts
Hazardous Material Removal
National Wildlife Refuge System Projects
Department of the Interior Environmental Programs
Pacific Region Environmental Management

Risk Flags

Logistical complexity due to remote location
Potential for unforeseen environmental conditions impacting cost and schedule
Effectiveness of remediation in a sensitive ecosystem requires long-term monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $22.3 million to NW DEMOLITION AND ENVIRONMENTAL, A JOINT VENTURE. REMOVAL OF LEAD-BASED PAINT FROM STRUCTURES AND LEAD-CONTAMINATED SOIL AT MIDWAY ATOLL NWR

Who is the contractor on this award?

The obligated recipient is NW DEMOLITION AND ENVIRONMENTAL, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2011-07-18. End: 2018-07-17.

What was the specific rationale for excluding certain sources in this 'full and open competition after exclusion of sources' procurement?

The specific rationale for excluding certain sources in this procurement is not detailed in the provided data. However, this contracting method is typically employed when the agency has identified a need for highly specialized capabilities, unique technologies, or when prior performance or specific security requirements necessitate limiting the pool of potential bidders. For instance, the agency might have determined that only a few contractors possessed the necessary expertise for lead-based paint and soil remediation in the unique environmental conditions of Midway Atoll, or perhaps specific security clearances were required for personnel operating in the refuge. The exclusion aims to ensure that the selected contractor is uniquely qualified, even if it means a smaller initial bidder pool than true full and open competition.

How does the firm-fixed-price contract type impact the government's financial risk compared to other contract types for this type of environmental remediation?

The firm-fixed-price (FFP) contract type shifts the majority of the financial risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This is advantageous for the government as it provides cost certainty and predictability, protecting against unexpected cost increases due to contractor inefficiencies or unforeseen site conditions. In contrast, cost-plus contracts would place more financial risk on the government. For environmental remediation, where unforeseen challenges like higher-than-expected contamination levels can arise, an FFP contract incentivizes the contractor to manage costs efficiently and perform the work within the agreed-upon budget. However, it also means the government might not benefit if the contractor completes the work under budget.

What are the key performance indicators (KPIs) likely used to assess the success of this lead remediation contract?

Key performance indicators for this lead remediation contract would likely focus on environmental compliance, project completion, and safety. Environmental KPIs would include the successful removal of lead-based paint and contaminated soil to meet or exceed regulatory standards set by agencies like the EPA. This would involve post-remediation testing and verification of lead levels. Project completion KPIs would track adherence to the schedule and milestones outlined in the contract, ensuring the remediation is completed within the defined timeframe. Safety KPIs would monitor the contractor's safety record, ensuring compliance with all occupational health and safety regulations during the hazardous material handling and removal process. The overall effectiveness of the remediation in protecting the refuge's ecosystem would also be a critical, albeit broader, measure of success.

What are the logistical challenges associated with performing environmental remediation in a remote location like Midway Atoll?

Performing environmental remediation in a remote location like Midway Atoll presents significant logistical challenges. These include the transportation of personnel, equipment, and supplies to the site, which is often costly and time-consuming due to the distance and limited access. Waste disposal is another major hurdle; contaminated materials must be safely transported off the island for proper treatment or disposal, adding complexity and expense. Furthermore, establishing and maintaining necessary infrastructure, such as temporary housing, power, and communication systems for the work crews, is essential. The harsh marine environment can also pose challenges, impacting work schedules and equipment durability. Finally, ensuring adequate medical support and emergency response capabilities in such an isolated setting requires careful planning and resources.

How does the duration of this contract (over 7 years) influence the approach to environmental remediation?

The extended duration of this contract, spanning over seven years, likely allows for a phased and systematic approach to the environmental remediation at Midway Atoll. Instead of a compressed, high-intensity cleanup, the longer timeframe permits more deliberate planning, execution, and monitoring. This can be particularly beneficial for complex projects involving hazardous materials in sensitive ecosystems, as it allows for adaptive management based on findings during different phases. It also enables the contractor to potentially optimize logistics, equipment utilization, and workforce deployment over time, possibly leading to greater efficiency and cost-effectiveness. Furthermore, a longer contract duration can facilitate thorough post-remediation monitoring to ensure the long-term effectiveness of the cleanup efforts and the stability of the remediated environment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7140 SW FIR LOOP STE 105, PORTLAND, OR, 97223

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,294,850

Exercised Options: $22,294,850

Current Obligation: $22,294,850

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline