DoD's $12.9M Radiological Characterization Contract Awarded to RSI Remediation, LLC for California Site

Contract Overview

Contract Amount: $12,921,288 ($12.9M)

Contractor: RSI Remediation, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2027-08-26

Contract Duration: 3,256 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF X024 PARCEL B RADIOLOGICAL CHARACTERIZATION, HUNTERS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to RSI REMEDIATION, LLC for work described as: IGF::OT::IGF X024 PARCEL B RADIOLOGICAL CHARACTERIZATION, HUNTERS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3256 days (approx. 9 years) indicates a long-term need for these services. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The North American Industry Classification System (NAICS) code 562910 points to a specialized remediation services market. 5. The contract's value is significant within the environmental remediation sector for federal agencies. 6. The award is a delivery order under a larger contract, implying a pre-existing framework agreement.

Value Assessment

Rating: fair

Benchmarking the value of this $12.9 million contract is challenging without specific details on the scope of radiological characterization required. However, the duration of nearly nine years suggests a substantial and ongoing need. Comparing the per-day cost (approximately $3,968) to similar long-term environmental remediation contracts would be necessary for a more precise value assessment. The firm fixed-price nature provides budget predictability, but the ultimate value depends on the efficiency of RSI Remediation, LLC in executing the defined scope.

Cost Per Unit: $3,968 per day (estimated based on total award and duration)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this specialized service. While full and open competition is generally preferred for maximizing value, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition, which aims to secure the best value for the government.

Public Impact

The Department of the Navy benefits from specialized radiological characterization services at a California site. This contract supports environmental compliance and safety at a federal facility. The services delivered are crucial for understanding and managing potential radiological hazards. The geographic impact is localized to the specific site in California where the characterization is performed. The contract likely supports a workforce skilled in environmental science, geology, and radiological safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or changing requirements over time.
Reliance on a single contractor for nearly a decade may reduce flexibility in adapting to new technologies or methodologies.
The firm fixed-price nature might incentivize cost-cutting that could impact the thoroughness of characterization if not properly monitored.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The firm fixed-price contract provides cost certainty for the government.
The contractor, RSI Remediation, LLC, is selected to perform a critical environmental service.
The contract duration suggests a sustained commitment to addressing radiological concerns.

Sector Analysis

The environmental remediation services sector is a critical component of federal contracting, particularly for agencies managing large land holdings or historical facilities. This contract falls under remediation services, specifically focusing on radiological characterization, a niche within environmental consulting and cleanup. The market involves specialized expertise and stringent regulatory compliance. Comparable spending benchmarks would involve analyzing other federal contracts for similar radiological surveys and environmental assessments, considering factors like site complexity and geographic location.

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 set-aside requirement. However, the prime contractor, RSI Remediation, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

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 adherence to the firm fixed-price terms are key oversight functions. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the DoD IG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Environmental Remediation Services
Radiological Surveys
Department of Defense Environmental Contracts
Naval Facilities Engineering Command Contracts
Hazardous Waste Management

Risk Flags

Long-term contract duration
Firm Fixed Price contract type
Specialized service requirement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to RSI REMEDIATION, LLC. IGF::OT::IGF X024 PARCEL B RADIOLOGICAL CHARACTERIZATION, HUNTERS

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 $12.9 million.

What is the period of performance?

Start: 2018-09-26. End: 2027-08-26.

What is the track record of RSI Remediation, LLC in performing radiological characterization services for the federal government?

Assessing the track record of RSI Remediation, LLC requires a deeper dive into their past performance on similar federal contracts. This would involve reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Specifically, looking for experience with radiological characterization at Department of Defense sites, the complexity of those projects, and client satisfaction would provide insight into their capability to successfully execute this current $12.9 million contract over its nearly nine-year duration. Without specific past performance data, it's difficult to definitively assess their reliability for this specialized task.

How does the estimated per-day cost of $3,968 compare to industry benchmarks for radiological characterization services?

The estimated per-day cost of approximately $3,968 for radiological characterization is a preliminary figure derived from the total award and contract duration. To benchmark this effectively against industry standards, one would need to compare it with similar long-term, large-scale radiological characterization projects. Factors influencing this benchmark include the specific type and level of radiological contamination, the size and complexity of the site, the required methodologies (e.g., field sampling, laboratory analysis, data reporting), and prevailing labor and equipment rates in California. A comprehensive market analysis of comparable federal and commercial contracts would be necessary to determine if this daily rate represents excellent, fair, or concerning value for the services rendered.

What are the primary risks associated with a nearly nine-year firm fixed-price contract for radiological characterization?

A significant risk with a long-term, firm fixed-price contract like this is the potential for unforeseen changes in scope, regulatory requirements, or site conditions that could impact the contractor's costs and the government's needs. If the characterization reveals unexpected complexities or requires advanced remediation planning beyond the initial scope, the fixed price could become disadvantageous for the contractor, potentially leading to disputes or a reduction in service quality if not managed carefully. Conversely, if the scope is less complex than anticipated, the government might overpay. Another risk is the contractor's ability to maintain consistent quality and expertise over such an extended period, and the potential for key personnel turnover.

How effective are delivery orders under larger contract vehicles for managing specialized services like radiological characterization?

Delivery orders under larger contract vehicles, such as the one this award falls under, can be an effective mechanism for procuring specialized services like radiological characterization. This approach allows agencies to establish pre-vetted contractors and pre-negotiated terms, streamlining the procurement process for specific task orders. It provides flexibility to order services as needed, potentially reducing overall administrative burden and lead times. However, the effectiveness hinges on the initial competition for the base contract and the clarity of the task order requirements. For specialized services, ensuring the base contract adequately covers the potential range of needs and that delivery orders are clearly defined is crucial for successful execution and value.

What historical spending patterns exist for radiological characterization services within the Department of the Navy or DoD?

Analyzing historical spending patterns for radiological characterization within the Department of the Navy and the broader DoD is essential for context. This involves examining the frequency, value, and duration of similar contracts awarded over the past several years. Understanding whether this $12.9 million, nine-year contract is an outlier or representative of typical spending for such services at comparable facilities would provide valuable insight. Trends in spending might indicate increasing or decreasing demand for these services, shifts in contracting strategies (e.g., towards longer-term agreements), or changes in average contract values due to market conditions or evolving environmental regulations.

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: 4

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: $14,077,034

Exercised Options: $14,077,034

Current Obligation: $12,921,288

Actual Outlays: $399,119

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