Department of the Navy awards $19.16M contract for environmental remediation services at Naval Station Newport, RI

Contract Overview

Contract Amount: $19,155,699 ($19.2M)

Contractor: Sevenson-Usa Environmental Joint Venture II

Awarding Agency: Department of Defense

Start Date: 2022-08-22

End Date: 2026-08-31

Contract Duration: 1,470 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: EO14042 SITE 13, TANK FARM 5 SOIL/DEBRIS PILE CHARACTERIZATION, TRANSPORT AND DISPOSAL, NORTH, NAVSTA NEWPORT, RI (RAC)

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02840

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II for work described as: EO14042 SITE 13, TANK FARM 5 SOIL/DEBRIS PILE CHARACTERIZATION, TRANSPORT AND DISPOSAL, NORTH, NAVSTA NEWPORT, RI (RAC) Key points: 1. Contract awarded for soil and debris characterization, transport, and disposal. 2. Services are critical for environmental compliance and base operations. 3. Contract duration extends over three years, indicating a significant scope of work. 4. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II, has experience in environmental services. 6. The contract type is Cost Plus Award Fee, incentivizing performance. 7. Geographic focus is on Rhode Island, impacting local environmental conditions.

Value Assessment

Rating: good

The contract value of $19.16 million for environmental remediation services appears reasonable given the scope of work, which includes characterization, transport, and disposal of soil and debris. While specific cost breakdowns are not provided, the Cost Plus Award Fee (CPAF) structure suggests an incentive for the contractor to manage costs effectively while achieving performance targets. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise value assessment, but the amount is within the expected range for a project of this nature at a naval installation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation was open, certain sources were excluded, potentially due to specific qualifications or prior involvement. The exact number of bidders is not specified, but the 'exclusion of sources' suggests a more targeted competition than a fully open process. This approach can sometimes lead to higher prices if the pool of qualified bidders is significantly reduced.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a broader, unrestricted competition. However, it could also ensure specialized expertise necessary for complex environmental tasks.

Public Impact

Naval Station Newport personnel and the surrounding community benefit from improved environmental conditions. Services delivered include characterization, transport, and disposal of contaminated soil and debris. The geographic impact is localized to Naval Station Newport in Rhode Island. The contract supports the environmental stewardship mission of the Department of the Navy. Workforce implications include employment for environmental technicians, engineers, and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance incentives are not well-defined or monitored.
Environmental remediation projects can face unforeseen complexities, leading to schedule delays and increased costs.
Reliance on a specific joint venture may limit future competition if they become the incumbent provider for similar services.

Positive Signals

The Cost Plus Award Fee structure incentivizes high performance and cost efficiency.
The contractor has experience in environmental services, suggesting capability to perform the required tasks.
The contract addresses critical environmental compliance and safety requirements for a military installation.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector involves the cleanup of contaminated sites, waste management, and compliance with environmental regulations. The market is driven by government mandates, industrial activity, and increasing environmental awareness. Comparable spending benchmarks for large-scale military base environmental cleanup projects can vary significantly based on the type and extent of contamination, but contracts in the tens of millions of dollars are common for comprehensive remediation efforts.

Small Business Impact

The data indicates that small business participation (sb) is false, meaning this contract was not set aside for small businesses. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor is likely a larger entity or joint venture, and the direct impact on the small business ecosystem through this specific award may be limited unless subcontracting opportunities are actively pursued.

Oversight & Accountability

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

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Defense Environmental Cleanup Program
Naval Facilities Engineering Command Contracts
Base Realignment and Closure (BRAC) Environmental Services

Risk Flags

Limited competition may impact price.
Cost Plus Award Fee contracts require diligent oversight to manage costs.
Environmental remediation projects can encounter unforeseen complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II. EO14042 SITE 13, TANK FARM 5 SOIL/DEBRIS PILE CHARACTERIZATION, TRANSPORT AND DISPOSAL, NORTH, NAVSTA NEWPORT, RI (RAC)

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 $19.2 million.

What is the period of performance?

Start: 2022-08-22. End: 2026-08-31.

What is the track record of SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II with the Department of Defense?

SEVENSON-USA ENVIRONMENTAL JOINT VENTURE II is a joint venture that has likely been formed for specific projects, potentially bringing together expertise from its constituent companies. While specific contract history for this exact joint venture entity might be limited, its member companies typically possess extensive experience in environmental remediation, hazardous waste management, and construction services for government and private sector clients. A thorough review would involve examining the past performance of the individual companies comprising the joint venture on similar Department of Defense contracts, focusing on their ability to meet cost, schedule, and technical requirements for environmental cleanup projects. This includes assessing their history with regulatory compliance, safety performance, and client satisfaction on projects of comparable scale and complexity.

How does the $19.16 million contract value compare to similar environmental remediation contracts awarded by the Navy?

The $19.16 million contract value for environmental remediation services at Naval Station Newport is substantial and falls within the typical range for significant cleanup operations at military installations. Large-scale projects involving soil and debris characterization, transport, and disposal can easily reach these figures, especially when dealing with potentially hazardous materials and extensive site areas. Comparable contracts awarded by the Naval Facilities Engineering Command (NAVFAC) or other branches of the Department of Defense for similar services often range from several million to tens of millions of dollars, depending on the complexity, duration, and specific contaminants involved. Without detailed scope-of-work comparisons, it's difficult to provide a precise benchmark, but this award appears consistent with the scale of environmental management required for active naval bases.

What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract, such as this one, revolve around cost control and performance measurement. While CPAF incentivizes performance through award fees, there's a risk that the "cost plus" component could lead to higher-than-expected expenditures if the contractor's costs are not rigorously managed and scrutinized. The "award fee" itself introduces subjectivity; defining clear, objective, and measurable performance criteria is crucial to ensure fair evaluation and prevent disputes. If the criteria are vague or the oversight is insufficient, the government might pay higher fees than warranted, or conversely, under-reward excellent performance. Additionally, the contractor might focus on achieving award fee targets at the expense of other critical, but less incentivized, aspects of the project.

How effective are environmental remediation contracts like this in achieving long-term environmental protection goals for military bases?

Environmental remediation contracts like this are crucial for achieving long-term environmental protection goals for military bases by addressing legacy contamination and ensuring ongoing compliance with stringent environmental regulations. By characterizing, transporting, and disposing of contaminated soil and debris, these contracts directly mitigate immediate environmental hazards and prevent further pollution. Effective execution leads to the restoration of land for safe use, protection of groundwater resources, and safeguarding of surrounding ecosystems and communities. The success hinges on thorough site assessments, appropriate remediation technologies, diligent contractor performance, and robust government oversight. When well-managed, these contracts are fundamental to the Department of Defense's commitment to environmental stewardship and maintaining operational readiness without compromising ecological health.

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

The Department of the Navy has a consistent and significant historical spending pattern for environmental remediation services, driven by the vast number of active and former installations requiring cleanup. This spending is allocated across various programs, including compliance with federal laws like CERCLA (Superfund) and RCRA, as well as addressing munitions response and operational needs. Annual expenditures can fluctuate based on the number and scale of active remediation projects, but they typically amount to hundreds of millions, if not billions, of dollars across the Navy enterprise. This spending is often managed through large IDIQ contracts that allow for task orders like the one awarded to SEVENSON-USA, facilitating efficient procurement of specialized services across diverse geographic locations and environmental challenges.

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: $19,155,699

Exercised Options: $19,155,699

Current Obligation: $19,155,699

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