Department of Defense contract for environmental services awarded to NOREAS ENVIRONMENTAL SERVICES LLC for over $43 million

Contract Overview

Contract Amount: $43,167,195 ($43.2M)

Contractor: Noreas Environmental Services LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-01

End Date: 2022-06-30

Contract Duration: 1,916 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF::ENVIRONMENTAL SERVICES BASE YEAR

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $43.2 million to NOREAS ENVIRONMENTAL SERVICES LLC for work described as: IGF::CL::IGF::ENVIRONMENTAL SERVICES BASE YEAR Key points: 1. The contract value of over $43 million for environmental services indicates a significant need for hazardous waste management within the Department of Defense. 2. The contract was awarded using 'Full and Open Competition After Exclusion of Sources,' suggesting a specific justification for limiting the initial pool of bidders. 3. The duration of the contract, spanning over five years, implies a long-term requirement for these environmental services. 4. The firm-fixed-price contract type aims to provide cost certainty for the government, shifting some financial risk to the contractor. 5. The North American Industry Classification System (NAICS) code 562211 points to specialized hazardous waste treatment and disposal services. 6. The contract was awarded to a single entity, NOREAS ENVIRONMENTAL SERVICES LLC, highlighting the importance of specialized capabilities in this sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires detailed analysis of the specific environmental services rendered and their associated market rates. Given the firm-fixed-price nature, the government has a degree of cost certainty. However, without comparable contract data for similar hazardous waste treatment and disposal services within the Department of Defense or other federal agencies, a precise value-for-money assessment is challenging. The contract's duration and scope suggest a substantial requirement, but the pricing efficiency relative to market standards remains to be fully determined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, prior performance, or other justifiable reasons. The number of bidders is not explicitly stated, but the designation suggests that the initial competition may have been more restricted than a standard full and open process. This could potentially impact price discovery if a wider range of qualified bidders were not considered.

Taxpayer Impact: The 'Exclusion of Sources' aspect warrants scrutiny to ensure that taxpayer funds were used efficiently and that the most competitive pricing was achieved despite the narrowed competition.

Public Impact

The Department of Defense benefits from the contracted services, ensuring compliance with environmental regulations and maintaining operational readiness by managing hazardous waste. The services delivered include hazardous waste treatment and disposal, critical for environmental protection and public health. The contract's geographic impact is primarily within California, where the services are likely performed or managed. The contract supports specialized jobs in the environmental services sector, contributing to the workforce in hazardous waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition method raises questions about whether the most competitive pricing was obtained.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The specific nature of hazardous waste services can involve inherent risks that require robust oversight.
The contract's significant dollar value necessitates diligent monitoring to ensure continued value for taxpayer money.

Positive Signals

The use of a firm-fixed-price contract provides cost predictability for the government.
The contract's long duration suggests a stable and reliable provider for essential environmental services.
The award to a single entity implies specialized expertise in hazardous waste treatment and disposal.
The contract is associated with a specific NAICS code, indicating a focus on a defined and critical service area.

Sector Analysis

The environmental services sector, particularly hazardous waste treatment and disposal, is a critical component of industrial operations and government functions. This contract falls within the broader environmental consulting and waste management industry, which is characterized by stringent regulatory compliance and specialized technical expertise. The market size for such services is substantial, driven by environmental protection laws and the need for safe disposal of various waste streams. Comparable spending benchmarks would typically involve analyzing other large-scale hazardous waste contracts awarded by federal agencies or large industrial clients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, NOREAS ENVIRONMENTAL SERVICES LLC, is likely a larger entity capable of handling the scope and complexity of this contract. The absence of small business set-aside provisions means that opportunities for small businesses to participate in this specific contract are limited unless they are part of the supply chain for the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Environmental Remediation Services
Hazardous Material Management
Defense Environmental Programs
Waste Disposal Contracts
Federal Environmental Compliance

Risk Flags

Competition Method Concerns
Lack of Detailed Performance Data
Potential for Unforeseen Costs in Hazardous Waste Management
Long Contract Duration Requires Sustained Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.2 million to NOREAS ENVIRONMENTAL SERVICES LLC. IGF::CL::IGF::ENVIRONMENTAL SERVICES BASE YEAR

Who is the contractor on this award?

The obligated recipient is NOREAS ENVIRONMENTAL SERVICES 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 $43.2 million.

What is the period of performance?

Start: 2017-04-01. End: 2022-06-30.

What is the track record of NOREAS ENVIRONMENTAL SERVICES LLC with federal contracts, particularly for environmental services?

A comprehensive review of NOREAS ENVIRONMENTAL SERVICES LLC's federal contract history would be necessary to fully assess their track record. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the successful completion of previous environmental service contracts. Understanding their experience with similar hazardous waste treatment and disposal requirements, especially for large government agencies like the Department of Defense, is crucial. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a reliable contractor. Conversely, any significant past issues could signal potential risks for this current contract.

How does the pricing of this contract compare to similar environmental services contracts awarded by the Department of Defense or other federal agencies?

To benchmark the pricing, one would need to identify comparable contracts for hazardous waste treatment and disposal services awarded around the same period by agencies like the EPA, Army Corps of Engineers, or other branches of the DoD. Key comparison points would include the type and volume of waste handled, the specific treatment and disposal methods employed, geographic location (as regional labor and disposal costs vary), and contract duration. Analyzing the per-unit costs for specific services (e.g., per ton of hazardous waste treated or disposed) would provide a more granular comparison. Without access to detailed pricing breakdowns and comparable contract data, it is difficult to definitively state whether this contract represents excellent, fair, or questionable value.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential cost overruns if unforeseen hazardous materials are encountered, contractor non-performance leading to environmental non-compliance or operational disruptions, and fluctuations in market prices for disposal or treatment. Risks also exist in the 'Exclusion of Sources' procurement method, potentially limiting competition and impacting price. Mitigation strategies typically involve robust contract oversight, clear performance standards, contingency planning for unexpected site conditions, and strong communication channels between the government and the contractor. The firm-fixed-price nature shifts some financial risk to the contractor, but the government must still ensure proper execution and compliance.

How effective has NOREAS ENVIRONMENTAL SERVICES LLC been in delivering hazardous waste treatment and disposal services under this contract?

Assessing the effectiveness requires access to performance reports, quality assurance reviews, and any feedback from the government's technical representatives or end-users of the services. Key performance indicators (KPIs) for hazardous waste contracts often include compliance rates with environmental regulations, timeliness of waste pickup and disposal, accuracy of waste characterization and manifesting, and incident rates (e.g., spills or accidents). Without specific performance data or evaluations, it's challenging to quantify the contractor's effectiveness. A review of past performance reviews, if publicly available, would provide insights into their delivery quality and reliability.

What are the historical spending patterns for environmental services within the Department of the Navy, and how does this contract fit within that trend?

Analyzing historical spending patterns for environmental services within the Department of the Navy would involve examining contract data over several fiscal years. This would reveal trends in the total amount spent, the types of environmental services procured (e.g., remediation, waste management, compliance support), and the primary contractors utilized. This specific contract, valued at over $43 million for hazardous waste treatment and disposal, represents a significant investment in a critical area. Its size and duration would need to be compared against the Navy's typical annual expenditures for similar services to determine if it aligns with historical norms, represents an increase, or is an outlier, potentially indicating a new initiative or a shift in environmental management strategy.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247316R0814

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16361 SCIENTIFIC WAY, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $43,167,195

Exercised Options: $43,167,195

Current Obligation: $43,167,195

Actual Outlays: $2,075,108

Subaward Activity

Number of Subawards: 601

Total Subaward Amount: $352,481,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline