DoD Awards $30.2M Remediation Contract to AGVIQ LLC for Bethpage Site

Contract Overview

Contract Amount: $30,188,937 ($30.2M)

Contractor: Agviq LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-26

End Date: 2024-06-30

Contract Duration: 1,161 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: NORTH-NWIRP BETHPAGE SITE 1 RE108 PHASE II AND PHASE II EXTENSION

Place of Performance

Location: BETHPAGE, NASSAU County, NEW YORK, 11714

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to AGVIQ LLC for work described as: NORTH-NWIRP BETHPAGE SITE 1 RE108 PHASE II AND PHASE II EXTENSION Key points: 1. Contract awarded to AGVIQ LLC for environmental remediation services. 2. The Department of the Navy is the contracting agency. 3. The contract type is Cost Plus Award Fee. 4. This is a Delivery Order under a larger contract. 5. The contract duration is 1161 days.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for performance incentives, but can lead to higher costs if not managed tightly. Benchmarking against similar remediation contracts is difficult without more detailed cost breakdowns.

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 not have resulted in the most competitive pricing possible.

Taxpayer Impact: The pricing structure and limited competition raise questions about maximizing taxpayer value for these essential environmental services.

Public Impact

Environmental cleanup at a significant site. Potential impact on local community health and environment. Long-term implications for land use and redevelopment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may inflate costs.
  • Cost Plus Award Fee can be less predictable.
  • Lack of small business participation.

Positive Signals

  • Addresses critical environmental remediation needs.
  • Long contract duration allows for sustained effort.

Sector Analysis

Environmental remediation services fall under the broader professional, scientific, and technical services sector. Spending benchmarks vary widely based on the complexity and scale of the remediation project.

Small Business Impact

The data indicates no small business participation in this contract. Opportunities for small businesses in specialized remediation services are often limited, but should be explored.

Oversight & Accountability

The 'Delivery Order' nature suggests this is part of a larger IDIQ or similar contract, which should have its own oversight mechanisms. The specific oversight for this order needs further review.

Related Government Programs

  • Remediation Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Limited competition raises cost concerns.
  • Cost Plus Award Fee structure requires diligent oversight.
  • No small business participation noted.
  • Potential for cost overruns if performance incentives are not met.

Tags

remediation-services, department-of-defense, ny, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to AGVIQ LLC. NORTH-NWIRP BETHPAGE SITE 1 RE108 PHASE II AND PHASE II EXTENSION

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 $30.2 million.

What is the period of performance?

Start: 2021-04-26. End: 2024-06-30.

What specific remediation activities are included in Phase II and its extension, and how do they align with the overall site cleanup goals?

Phase II and its extension likely encompass detailed soil and groundwater remediation, containment system maintenance, and long-term monitoring. The specific activities are driven by the site's contamination profile and regulatory requirements, aiming to reduce environmental risks and prepare the site for future use.

How does the Cost Plus Award Fee structure incentivize AGVIQ LLC to achieve cost efficiencies while ensuring high-quality remediation outcomes?

The 'Cost Plus Award Fee' structure reimburses the contractor's allowable costs and adds a base fee, plus an award fee determined by performance metrics. Incentives are tied to meeting or exceeding targets for cost control, schedule adherence, and technical performance, encouraging efficient and effective cleanup.

What is the projected long-term environmental and economic impact of this remediation effort on the Bethpage community?

Successful remediation is expected to significantly reduce environmental risks, improving public health and ecological conditions. Economically, it can unlock land for redevelopment, attract investment, and potentially create jobs, contributing to the revitalization of the Bethpage area.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247017R8000

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tikigaq Corporation

Address: 2809 S LYNNHAVEN RD STE 200, VIRGINIA BEACH, VA, 23452

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

Financial Breakdown

Contract Ceiling: $30,188,937

Exercised Options: $30,188,937

Current Obligation: $30,188,937

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $20,181,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247018D7012

IDV Type: IDC

Timeline

Start Date: 2021-04-26

Current End Date: 2024-06-30

Potential End Date: 2024-06-30 00:00:00

Last Modified: 2023-08-29

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