DoD's $33.8M Remediation Contract for Hunters Point Awarded to RSI Remediation, LLC

Contract Overview

Contract Amount: $33,820,308 ($33.8M)

Contractor: RSI Remediation, LLC

Awarding Agency: Department of Defense

Start Date: 2017-08-18

End Date: 2027-10-30

Contract Duration: 3,725 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF X007 PARCEL E REMEDIAL ACTION PHASE 2, HUNTERS POINT

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to RSI REMEDIATION, LLC for work described as: IGF::OT::IGF X007 PARCEL E REMEDIAL ACTION PHASE 2, HUNTERS POINT Key points: 1. Value for money assessed against similar environmental remediation contracts. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include contract duration and potential for cost overruns. 4. Performance context is within a long-term environmental cleanup project. 5. Sector positioning is in environmental services for defense infrastructure.

Value Assessment

Rating: fair

The contract's total value of $33.8 million over nearly 10 years suggests a significant investment in environmental remediation. Benchmarking against similar large-scale, long-term environmental cleanup projects is crucial to assess value for money. The firm-fixed-price structure aims to control costs, but the extended duration introduces potential for escalation if not managed effectively. Without specific cost breakdowns or comparable project data, a definitive value assessment is challenging, but the scale implies substantial work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders, as indicated by the data, points to a reasonably competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovative solutions from contractors.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding community through environmental cleanup. Services delivered include remedial action and environmental cleanup at Hunters Point. Geographic impact is localized to the Hunters Point area in California. Workforce implications include employment for environmental remediation specialists and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) increases risk of scope creep and cost escalation.
Potential for unforeseen environmental conditions requiring additional work and funding.
Dependence on a single contractor for a critical, long-term environmental task.

Positive Signals

Firm-fixed-price contract type provides cost certainty if scope is well-defined.
Awarded through full and open competition, suggesting a robust selection process.
Contractor has experience in remediation services, indicated by their name and industry.

Sector Analysis

This contract falls within the environmental services sector, specifically focusing on remediation for government facilities. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and the need to manage legacy contamination. This contract represents a significant portion of spending within this niche, particularly for defense-related cleanup.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, RSI Remediation, LLC, is likely a larger entity, and the contract's scale may not lend itself easily to significant subcontracting opportunities for smaller firms in this specialized field.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. The firm-fixed-price nature provides some cost control, but the long duration necessitates diligent monitoring of performance, schedule, and adherence to environmental regulations. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Environmental Remediation Services
Department of Defense Cleanup Programs
Superfund Site Remediation
Naval Facilities Engineering Command Contracts

Risk Flags

Long contract duration
Potential for unforeseen environmental conditions
Firm-fixed-price risk if scope is not perfectly defined

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to RSI REMEDIATION, LLC. IGF::OT::IGF X007 PARCEL E REMEDIAL ACTION PHASE 2, HUNTERS POINT

Who is the contractor on this award?

The obligated recipient is RSI REMEDIATION, 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 $33.8 million.

What is the period of performance?

Start: 2017-08-18. End: 2027-10-30.

What is the historical spending pattern for environmental remediation at Hunters Point Naval Shipyard?

Historical spending data for environmental remediation at Hunters Point Naval Shipyard prior to this specific contract (2017-2027) is not directly provided in the given data. However, the scale and duration of this $33.8 million contract suggest that significant prior investments have likely been made, and substantial future investment is anticipated. Such long-term projects are typical for large, complex sites with historical industrial use and environmental contamination. Comprehensive site assessments and phased remediation plans often span decades and involve multiple contracts, indicating a sustained commitment of resources over time. Further investigation into the Naval Facilities Engineering Command's (NAVFAC) historical contract awards and environmental reports for this site would be necessary to fully understand the cumulative spending.

How does the per-unit cost of this remediation contract compare to similar projects nationwide?

A direct per-unit cost comparison for this remediation contract is challenging without a clearly defined unit of measure (e.g., per cubic yard of soil remediated, per acre treated, per gallon of water processed). The contract is for 'Remediation Services' with a total value of $33.8 million over approximately 10 years. To benchmark effectively, one would need to identify comparable large-scale environmental remediation projects, ideally those managed by the Department of Defense or EPA at similar industrial sites. Key metrics for comparison would include the type of contaminants addressed, the complexity of the site, the remediation technologies employed, and the total contract value relative to the scope of work. Given the firm-fixed-price nature, the government has sought to establish a ceiling, but the actual cost-effectiveness depends on the contractor's efficiency and the unforeseen challenges encountered during the remediation process.

What are the primary risks associated with the long duration of this contract?

The primary risks associated with the nearly 10-year duration of this $33.8 million remediation contract include potential cost escalation due to inflation or unforeseen site conditions, scope creep if the remediation objectives evolve, and contractor performance degradation over an extended period. Regulatory changes or advancements in remediation technology could also necessitate contract modifications, potentially increasing costs or altering the approach. Furthermore, a long contract duration can reduce flexibility for the government to adopt more efficient or cost-effective solutions that might emerge later. Maintaining consistent oversight and managing the contractor's performance effectively over such a long timeframe presents a significant management challenge.

What is RSI Remediation, LLC's track record with similar large-scale environmental cleanup contracts?

Information regarding RSI Remediation, LLC's specific track record with large-scale environmental cleanup contracts, beyond this award, is not detailed in the provided data. The company's name suggests specialization in remediation services. To assess their capabilities and past performance, one would typically review their contract history with government agencies (e.g., EPA, DoD, DOE), including project scope, value, duration, and client satisfaction ratings. Experience with similar complex sites, regulatory compliance, and successful completion of projects within budget and schedule are key indicators. Without access to a broader performance database or client feedback, it's difficult to definitively evaluate their suitability beyond the fact they were selected through a competitive process for this significant contract.

How does the $33.8M contract value compare to the overall DoD budget for environmental remediation?

The $33.8 million contract value represents a specific investment in remediation services at a particular site (Hunters Point) over a defined period (2017-2027). The Department of Defense (DoD) has a substantial and ongoing commitment to environmental cleanup across numerous installations worldwide, often involving multi-billion dollar programs over decades. For instance, the DoD's Formerly Used Defense Sites (FUDS) program and base realignment and closure (BRAC) initiatives require extensive environmental restoration. While $33.8 million is a significant sum for a single contract, it is a relatively small fraction of the DoD's total annual environmental remediation budget, which can range from hundreds of millions to over a billion dollars depending on the year and specific program priorities. This contract is thus a component of a much larger, sustained environmental management effort.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247315R0811

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1485 BAY SHORE BLVD STE 425, SAN FRANCISCO, CA, 94124

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,678,534

Exercised Options: $34,678,534

Current Obligation: $33,820,308

Actual Outlays: $8,642,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D0005

IDV Type: IDC

Timeline