DoD's $14.4M Environmental Remedial Action Contract Awarded to SEVENSON-USA for Rhode Island Cleanup

Contract Overview

Contract Amount: $14,448,097 ($14.4M)

Contractor: Sevenson-Usa Environmental Joint Venture II

Awarding Agency: Department of Defense

Start Date: 2022-07-26

End Date: 2028-09-30

Contract Duration: 2,258 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIAL ACTION CONTRACT

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II for work described as: ENVIRONMENTAL REMEDIAL ACTION CONTRACT Key points: 1. The contract focuses on environmental remediation services, a critical but often complex sector. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The cost-plus-award-fee structure incentivizes performance but requires careful oversight to manage costs. 4. The contract duration extends over five years, indicating a significant, long-term environmental project.

Value Assessment

Rating: fair

The contract uses a Cost Plus Award Fee (CPAF) structure, which can lead to higher costs if not managed effectively. Benchmarking against similar remediation contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement was conducted under 'full and open competition after exclusion of sources,' indicating a competitive process that aimed to ensure fair pricing while potentially addressing specific source capabilities. The CPAF structure allows for flexibility but requires robust performance metrics to ensure value.

Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, a necessary but potentially costly undertaking. The CPAF structure necessitates diligent oversight to ensure funds are used efficiently and effectively.

Public Impact

Environmental cleanup in Rhode Island will be addressed, potentially improving local ecological conditions. The contract supports specialized environmental remediation services, contributing to a niche industry. Long-term environmental projects can have lasting impacts on local communities and ecosystems. The use of a CPAF contract requires transparency in how award fees are determined and justified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires vigilant oversight to prevent cost overruns.
The 'after exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.
Lack of detailed cost data makes independent benchmarking challenging.

Positive Signals

Addresses critical environmental remediation needs.
Utilizes a competitive procurement process.
Long-term contract provides stability for remediation efforts.

Sector Analysis

Environmental remediation services are crucial for addressing legacy pollution and ensuring public health and safety. Spending in this sector can vary significantly based on the scale and complexity of cleanup projects, regulatory requirements, and the specific contaminants involved. This contract falls within the broader professional services category for the Department of Defense.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is a joint venture. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates strong oversight from the Department of the Navy to ensure contractor performance aligns with award fee criteria and to prevent unnecessary cost escalation. Regular performance reviews and audits will be critical for accountability.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPAF structure.
Limited transparency on specific environmental hazards and remediation goals.
Exclusion of sources in competition warrants further investigation.
Lack of direct small business awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II. ENVIRONMENTAL REMEDIAL ACTION CONTRACT

Who is the contractor on this award?

The obligated recipient is SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2022-07-26. End: 2028-09-30.

What specific environmental hazards are being addressed by this contract, and what is the expected outcome of the remediation?

The contract is for 'Environmental Remedial Action,' implying the cleanup of hazardous substances or pollutants. Specific details on the hazards (e.g., chemical spills, contaminated soil, groundwater pollution) and the expected outcomes (e.g., reduced contaminant levels, site restoration, compliance with environmental standards) are not provided in this data. Further documentation would be required to understand the precise scope and anticipated environmental benefits.

How does the 'full and open competition after exclusion of sources' procurement method impact the overall cost-effectiveness and risk mitigation for this contract?

This procurement method suggests that while the competition was intended to be broad, certain sources were excluded based on specific criteria. This could potentially limit the pool of bidders, possibly impacting price competition. However, if the exclusions were justified by unique capabilities or specific project requirements, it might mitigate risks associated with less experienced or less qualified contractors, potentially leading to better project outcomes despite a potentially higher initial cost.

What are the key performance indicators (KPIs) tied to the award fee structure, and how will they ensure effective environmental remediation?

The effectiveness of the remediation hinges on the specific KPIs defined within the Cost Plus Award Fee (CPAF) contract. These likely include metrics related to cleanup progress, adherence to environmental standards, safety protocols, project timelines, and cost control. Robust KPIs, transparently monitored and evaluated by the agency, are essential to incentivize the contractor to achieve desired environmental outcomes efficiently and safely, ensuring taxpayer value.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247019R4003

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 2749 LOCKPORT RD, NIAGARA FALLS, NY, 14305

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

Financial Breakdown

Contract Ceiling: $14,448,097

Exercised Options: $14,448,097

Current Obligation: $14,448,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247020D0015

IDV Type: IDC

Timeline