DoD's $20M landfill remediation contract awarded to AGVIQ LLC in Puerto Rico

Contract Overview

Contract Amount: $20,026,131 ($20.0M)

Contractor: Agviq LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-13

End Date: 2022-06-30

Contract Duration: 3,577 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: LANDFILL CAP COMPLETION ,SWMU 3, FORMER SOLID WASTE FACILITY, NAVAL ACTIVITY, PUERTO RICO

Place of Performance

Location: CEIBA, CEIBA County, PUERTO RICO, 00735

Plain-Language Summary

Department of Defense obligated $20.0 million to AGVIQ LLC for work described as: LANDFILL CAP COMPLETION ,SWMU 3, FORMER SOLID WASTE FACILITY, NAVAL ACTIVITY, PUERTO RICO Key points: 1. Contract value appears reasonable for complex environmental remediation services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risks include performance duration and cost overruns given the contract type. 4. This contract addresses critical environmental cleanup at a former naval facility. 5. The remediation services sector is vital for environmental protection and regulatory compliance.

Value Assessment

Rating: good

The contract value of $20,001,000 for landfill cap completion and remediation services at a former naval facility in Puerto Rico seems within a reasonable range for such specialized environmental work. While specific benchmarks for similar projects in Puerto Rico are not readily available, the scope of work, including SWMU 3 remediation, suggests a significant undertaking. The Cost Plus Award Fee (CPAF) structure allows for performance incentives, which can drive efficiency, but also introduces potential for cost growth if not managed tightly. Comparing this to other large-scale environmental cleanup contracts, the pricing appears competitive, assuming the quality of work meets expectations.

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 broad, specific sources may have been excluded for reasons not detailed in the provided data. The exclusion of sources can sometimes limit the competitive landscape, potentially impacting price discovery. Without further information on the rationale for excluding sources, it's difficult to definitively assess the impact on competition. However, the 'full and open' aspect suggests an attempt to solicit a wide range of qualified bidders.

Taxpayer Impact: The exclusion of certain sources, even within a full and open framework, could potentially lead to fewer competitive bids, which might result in higher costs for taxpayers compared to a truly unrestricted competition.

Public Impact

The primary beneficiaries are the Department of Defense and the local community in Puerto Rico, through the environmental cleanup of a former naval activity. The services delivered include landfill cap completion and remediation of Solid Waste Management Units (SWMUs). The geographic impact is localized to the former solid waste facility at the Naval Activity in Puerto Rico. Workforce implications may include the employment of environmental engineers, technicians, and construction labor for the remediation project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to cost overruns if performance metrics are not strictly managed.
The duration of the contract (over 3500 days) indicates a long-term project with inherent risks of scope creep or unforeseen environmental challenges.
Limited competition due to exclusion of sources might impact the final price paid by the government.

Positive Signals

Awarding to AGVIQ LLC suggests they possess the specialized expertise required for complex environmental remediation.
The contract addresses a critical environmental need at a former military installation, demonstrating commitment to environmental stewardship.
The Cost Plus Award Fee structure incentivizes contractor performance and quality.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry, driven by regulatory requirements and the need to address legacy contamination from industrial and military activities. This contract falls within the hazardous waste management and remediation sub-sector. Spending in this area is often project-specific and influenced by government mandates for cleanup. Comparable spending benchmarks are difficult to establish without detailed project scope and location, but large-scale landfill remediation projects can range from millions to tens of millions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the contract was likely awarded based on specialized capabilities rather than a focus on small business inclusion. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant environmental project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and technical representatives. The Cost Plus Award Fee structure implies performance monitoring to determine award fees. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Naval Facilities Environmental Programs
Superfund Site Remediation
Defense Environmental Cleanup Program

Risk Flags

Potential for cost overruns due to CPAF contract type.
Extended contract duration may indicate project complexity or risk.
Exclusion of sources could limit competition and impact price.
Long-term environmental monitoring and maintenance requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to AGVIQ LLC. LANDFILL CAP COMPLETION ,SWMU 3, FORMER SOLID WASTE FACILITY, NAVAL ACTIVITY, PUERTO RICO

Who is the contractor on this award?

The obligated recipient is AGVIQ LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2012-09-13. End: 2022-06-30.

What is the specific nature of the 'Solid Waste Management Unit 3' (SWMU 3) at the former Naval Activity in Puerto Rico, and what remediation challenges does it present?

SWMU 3 at the former Naval Activity in Puerto Rico likely refers to a specific area designated for the management or disposal of solid waste that has the potential to contaminate the environment. These units often contain hazardous materials or pose risks due to leachate generation, gas emissions, or soil/groundwater contamination. The remediation challenges for such a unit could include the complexity of the waste composition, the extent of environmental impact (e.g., depth of contamination, affected media like soil, groundwater, or surface water), the physical characteristics of the site (e.g., accessibility, topography), and the need for long-term monitoring and maintenance of the completed cap. The specific remediation approach would depend on detailed site investigations and regulatory requirements.

How does the 'Cost Plus Award Fee' (CPAF) contract type influence the contractor's performance and the government's cost control for this landfill remediation project?

The Cost Plus Award Fee (CPAF) contract type allows the contractor to be reimbursed for all allowable costs incurred, plus a fee that is composed of a fixed base amount and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria, such as quality, timeliness, and cost control. This structure incentivizes the contractor to perform exceptionally well to maximize their fee. For the government, it provides a mechanism to encourage high performance while managing costs, as the award fee is contingent on meeting or exceeding expectations. However, it requires robust government oversight to establish fair and objective performance metrics and to prevent potential cost escalation if the award criteria are not rigorously applied or if the base fee is too high.

What are the potential long-term environmental implications and monitoring requirements for the completed landfill cap at this former Naval Activity?

A completed landfill cap is designed to minimize the infiltration of precipitation, reduce gas emissions, and prevent direct contact with waste materials, thereby mitigating environmental risks. Long-term implications include preventing groundwater contamination from leachate and controlling methane gas release. Post-closure monitoring is crucial and typically involves regular inspections of the cap's integrity (e.g., for erosion, settlement, vegetation issues), groundwater quality sampling, and potentially landfill gas monitoring. The duration of this monitoring can extend for decades, depending on regulatory requirements and the nature of the waste. The effectiveness of the cap relies on diligent maintenance and ongoing environmental surveillance to ensure containment and protect human health and the environment.

Given the contract's duration of over 3500 days (approx. 9.8 years), what factors might contribute to such a lengthy remediation timeline?

A contract duration of nearly a decade for landfill cap completion and remediation suggests a project of significant scale and complexity. Several factors could contribute to this extended timeline. Firstly, the extent of contamination and the volume of waste requiring remediation are likely substantial. Secondly, phased remediation approaches, where different sections or aspects of the site are addressed sequentially, are common for large environmental projects. Thirdly, the process may involve extensive planning, design, permitting, and regulatory approvals at various stages. Unforeseen site conditions, weather-related delays (especially in Puerto Rico), and the need for long-term performance monitoring or post-remediation care can also extend the project duration. The Cost Plus Award Fee structure might also accommodate a longer timeline if performance objectives are met incrementally.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method differ from standard full and open competition, and what are its implications?

Standard 'Full and Open Competition' aims to provide maximum opportunity for all responsible sources to compete. 'Full and Open Competition After Exclusion of Sources,' as used here, implies that while the competition was intended to be broad, certain potential sources were deliberately excluded. This exclusion is typically based on specific justifications, such as national security concerns, proprietary information limitations, or unique capabilities required that only a limited number of firms possess. The implication is that the competitive pool, while potentially large, is not entirely unrestricted. This can affect the number of bids received and potentially the pricing dynamics, as the excluded sources might have offered competitive alternatives. The justification for exclusion needs to be well-documented and legally sound to ensure fairness and prevent undue restriction of competition.

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

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tikigaq Corporation

Address: 2121 ABBOTT RD, ANCHORAGE, AK, 99507

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,026,131

Exercised Options: $20,026,131

Current Obligation: $20,026,131

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $10,018,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247012D7004

IDV Type: IDC

Timeline