DoD's $8.8M Environmental Remedial Action Contract Awarded to EA-WOOD-1 MP JV for Pennsylvania Site

Contract Overview

Contract Amount: $8,882,356 ($8.9M)

Contractor: Ea-Wood-1 MP JV

Awarding Agency: Department of Defense

Start Date: 2021-07-27

End Date: 2029-06-30

Contract Duration: 2,895 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIAL ACTION CONTRACT

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to EA-WOOD-1 MP JV for work described as: ENVIRONMENTAL REMEDIAL ACTION CONTRACT Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance but requires careful oversight. 3. The duration of nearly 8 years indicates a long-term commitment to environmental remediation services. 4. The contract is for Remediation Services, a critical function for environmental protection and compliance. 5. The award was made by the Department of the Navy, highlighting defense sector environmental responsibilities. 6. The contract is not set aside for small businesses, implying larger firms were likely involved.

Value Assessment

Rating: fair

Benchmarking the value of this $8.8 million environmental remedial action contract is challenging without specific details on the scope of work and the nature of the contamination. However, the Cost Plus Award Fee (CPA) structure suggests that the government aims to control costs while incentivizing high performance. The duration of nearly 8 years implies a significant and complex remediation effort. Further analysis would require comparing the per-unit costs of specific remediation activities (e.g., per ton of soil treated, per gallon of water remediated) to industry benchmarks and similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources may have been excluded prior to the final award. The presence of 3 bidders suggests a moderate level of competition. The specific reasons for excluding certain sources would need further investigation to fully understand the competitive landscape and its potential impact on pricing.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions to win the contract.

Public Impact

The primary beneficiaries are the Department of Defense and the public, through the cleanup of environmental contamination. Services delivered include environmental remediation, crucial for restoring affected sites. The geographic impact is focused on Pennsylvania, where the remediation activities will take place. The contract supports a specialized workforce in the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Award Fee' structure requires robust oversight to ensure costs are reasonable and award fees are justified.
The 'after exclusion of sources' clause in the competition type warrants further inquiry into the rationale for exclusions.
The long contract duration (nearly 8 years) necessitates ongoing monitoring for performance degradation or cost overruns.

Positive Signals

The use of 'full and open competition' indicates an effort to solicit a wide range of potential contractors.
The award to a joint venture (EA-WOOD-1 MP JV) may indicate a strategic partnership to bring specialized expertise to the project.
The contract is for a critical environmental service, demonstrating the agency's commitment to environmental stewardship.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry, driven by regulatory compliance and the need to address historical contamination. Government contracts, particularly from defense agencies, form a substantial portion of this market. This contract fits within the broader category of environmental consulting and remediation, which includes services like site assessment, hazardous waste management, and site cleanup. Comparable spending benchmarks would depend on the specific type and scale of the environmental issues being addressed.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor is likely a larger entity or a joint venture composed of larger entities. The absence of small business set-asides may limit opportunities for smaller firms to participate directly in this specific contract, though they might be involved as subcontractors if not explicitly excluded.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically involve rigorous monitoring of costs, performance against defined award criteria, and adherence to environmental regulations. The Department of the Navy would be responsible for establishing the award fee structure and evaluating performance. Transparency would be enhanced through regular reporting requirements and potential audits by government agencies or Inspectors General, depending on the contract's value and sensitivity.

Related Government Programs

Environmental Remediation Services
Defense Environmental Cleanup Program
Hazardous Waste Management Contracts
Department of Defense Contracts
Navy Environmental Contracts

Risk Flags

Potential lack of transparency regarding source exclusions.
CPA contract type requires diligent oversight of costs and performance incentives.
Long contract duration increases risk of performance drift or cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to EA-WOOD-1 MP JV. ENVIRONMENTAL REMEDIAL ACTION CONTRACT

Who is the contractor on this award?

The obligated recipient is EA-WOOD-1 MP JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2021-07-27. End: 2029-06-30.

What is the specific nature of the environmental contamination being addressed under this contract, and what remediation technologies are planned?

The provided data does not specify the exact nature of the environmental contamination or the remediation technologies to be employed. This information is critical for a thorough assessment of the contract's value and effectiveness. Environmental remedial action contracts can cover a wide range of issues, from soil and groundwater contamination by hazardous substances to the cleanup of legacy military sites. Understanding the specific contaminants (e.g., heavy metals, volatile organic compounds, petroleum products) and the chosen remediation methods (e.g., excavation and disposal, in-situ treatment, bioremediation) would allow for a more accurate comparison to industry standards and cost benchmarks. Without this detail, the $8.8 million value is difficult to contextualize beyond its total amount and duration.

How does the Cost Plus Award Fee (CPA) structure for this contract compare to other environmental remediation contracts awarded by the Department of the Navy?

Cost Plus Award Fee contracts are common in government contracting, especially for services where the scope may evolve or where performance incentives are desired. For environmental remediation, a CPA structure allows the contractor to recover allowable costs while providing an incentive fee based on achieving specific performance objectives. Comparing this contract's CPA structure would involve examining the defined performance criteria, the potential award fee percentages, and the overall fee structure against similar contracts. Without access to the specific award fee plan for this contract and a portfolio of comparable Navy environmental contracts, a detailed comparison is not possible. However, the general principle of CPA is to balance cost control with performance quality, which is particularly relevant for complex environmental projects.

What were the key factors that led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be broad, specific potential offerors were deemed ineligible or unsuitable before the final evaluation. Reasons for exclusion can vary widely and might include failure to meet minimum technical qualifications, past performance issues, inability to meet security requirements, or specific regulatory limitations. Without further details from the solicitation or award documents, the precise reasons for excluding sources remain unknown. Understanding these exclusions is important for assessing the true level of competition and whether it may have impacted the final price or the range of solutions considered.

What is the historical spending pattern for environmental remediation services by the Department of the Navy in Pennsylvania?

The provided data focuses solely on this specific contract and does not offer historical spending patterns for environmental remediation services by the Department of the Navy in Pennsylvania. To analyze historical spending, one would need access to broader contract databases or agency budget reports that detail expenditures over multiple fiscal years. Such an analysis would reveal trends in contract awards, the types of services procured, the average contract values, and the primary contractors involved. This context is crucial for determining if the $8.8 million award represents a typical, increased, or decreased level of investment in environmental remediation in the region by the Navy.

What is the track record of EA-WOOD-1 MP JV in performing similar environmental remediation contracts for federal agencies?

The provided data identifies EA-WOOD-1 MP JV as the contractor but does not offer details on their specific track record or past performance on similar federal contracts. To assess their reliability and expertise, one would need to review their contract history, including the types of projects completed, their performance ratings on those projects, any past performance issues or disputes, and their experience with the specific remediation technologies relevant to this contract. A joint venture's track record can also be a composite of its individual members' experiences. Without this information, it's difficult to gauge the contractor's suitability and the associated risks beyond the general assessment of the contract type and competition.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 225 SCHILLING CIR STE 400, HUNT VALLEY, MD, 21031

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,882,356

Exercised Options: $8,882,356

Current Obligation: $8,882,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247018D7014

IDV Type: IDC

Timeline