DoD's $12.5M contract for soil management in Puerto Rico awarded to Right Way Environmental Contractors, Inc

Contract Overview

Contract Amount: $12,510,751 ($12.5M)

Contractor: Right WAY Environmental Contractors, Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2028-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-PERSONAL SERVICES TO MANAGE CLEAN SOIL PLACEMENT AT LA CHULETA MMA FOR MAX CAPACITY. CONTRACTOR OVERSEES SITE OPS AND SOIL FROM RIO PUERTO NUEVO PROJECTS. PROVIDERS ARE ACCOUNTABLE TO THE CONTRACTOR, NOT DIRECTLY SUPERVISED BY THE GOVERNMENT.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

Department of Defense obligated $12.5 million to RIGHT WAY ENVIRONMENTAL CONTRACTORS, INC for work described as: NON-PERSONAL SERVICES TO MANAGE CLEAN SOIL PLACEMENT AT LA CHULETA MMA FOR MAX CAPACITY. CONTRACTOR OVERSEES SITE OPS AND SOIL FROM RIO PUERTO NUEVO PROJECTS. PROVIDERS ARE ACCOUNTABLE TO THE CONTRACTOR, NOT DIRECTLY SUPERVISED BY THE GOVERNMENT. Key points: 1. Contract focuses on managing clean soil placement, indicating a need for specialized environmental services. 2. The contractor is responsible for site operations and soil management, with sub-contractors not directly supervised by the government. 3. This contract is a definitive contract with a firm-fixed-price structure, suggesting predictable costs. 4. The duration of the contract is 1095 days, spanning three years. 5. The contract was awarded under full and open competition after exclusion of sources, implying a competitive process. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.

Value Assessment

Rating: good

The contract value of $12.5 million over three years for managing soil placement at a specific site in Puerto Rico appears reasonable given the scope of environmental management and site operations. Benchmarking against similar environmental remediation or soil management contracts would provide a more precise value assessment. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders is not specified, but the 'exclusion of sources' phrasing implies a potentially narrower competitive pool than a purely 'full and open' competition.

Taxpayer Impact: The exclusion of sources, if not justified by specific technical requirements or prior performance, could potentially limit price discovery and may not guarantee the most competitive pricing for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the local environment in Puerto Rico through proper soil management. Services delivered include site operations management and the placement of clean soil. The geographic impact is localized to the La Chuleta MMA site in Puerto Rico. Workforce implications may include employment for environmental specialists, site operators, and potentially subcontractors in the construction and environmental services sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of direct government supervision over subcontractors could lead to quality control issues.
The 'exclusion of sources' in the competition process warrants further investigation to ensure fair market access and optimal pricing.
Reliance on a single contractor for comprehensive site operations and soil management could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
The contract duration of three years allows for consistent management of the site.
Awarding to a single entity for site operations and soil management can streamline oversight and accountability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to environmental management and construction support. The market for environmental consulting and remediation services is substantial, driven by regulatory compliance and infrastructure development. This contract represents a specific, localized application of these services for a government entity, likely involving specialized expertise in soil handling and site operations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) is not a primary focus of this specific contract award. There is no indication of small business set-asides or explicit subcontracting requirements for small businesses. This suggests that the prime contractor is not a small business, and opportunities for small businesses may be limited to potential subcontracting roles determined by the prime contractor.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of the Army, with specific contract officers and technical representatives responsible for monitoring performance and ensuring compliance with the firm-fixed-price terms. Transparency is facilitated through contract award databases, but detailed operational oversight information is typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Construction Management
Site Development
Waste Management Services
Engineering Consulting

Risk Flags

Potential for reduced competition due to 'exclusion of sources'.
Risk of quality control issues due to lack of direct government supervision of subcontractors.
Dependence on prime contractor's internal quality assurance processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to RIGHT WAY ENVIRONMENTAL CONTRACTORS, INC. NON-PERSONAL SERVICES TO MANAGE CLEAN SOIL PLACEMENT AT LA CHULETA MMA FOR MAX CAPACITY. CONTRACTOR OVERSEES SITE OPS AND SOIL FROM RIO PUERTO NUEVO PROJECTS. PROVIDERS ARE ACCOUNTABLE TO THE CONTRACTOR, NOT DIRECTLY SUPERVISED BY THE GOVERNMENT.

Who is the contractor on this award?

The obligated recipient is RIGHT WAY ENVIRONMENTAL CONTRACTORS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2028-09-30.

What specific environmental regulations or concerns necessitate the management of clean soil placement at La Chuleta MMA?

The provided data does not specify the exact environmental regulations or concerns driving the need for clean soil placement at La Chuleta MMA. However, such contracts are typically initiated due to factors like site remediation requirements, compliance with environmental protection laws (e.g., EPA regulations), or to prepare the site for future use or development. The management of 'clean soil placement' suggests either the need to cap contaminated areas with clean material, establish proper drainage, or fulfill specific land use requirements that mandate the introduction of uncontaminated soil. Further details on the site's history and intended use would clarify the specific drivers.

How does the 'exclusion of sources' in the competition process impact potential cost savings for the government?

The 'exclusion of sources' in a competitive bidding process can potentially limit cost savings for the government. Full and open competition, where all responsible sources are allowed to compete, typically fosters the most robust price discovery and drives down costs through intense bidding. When specific sources are excluded, the pool of potential bidders is reduced. If the exclusions are not strictly based on unique capabilities or essential requirements, it could lead to less competitive pricing. The government might not receive the lowest possible price if a significant number of capable vendors are prevented from participating.

What are the potential risks associated with the government not directly supervising subcontractors?

The primary risk associated with the government not directly supervising subcontractors is a potential loss of control over the quality of work and adherence to contract specifications. While the prime contractor is ultimately responsible, direct government oversight allows for immediate identification and correction of issues. Without it, problems may escalate before the prime contractor addresses them, potentially leading to delays, cost overruns, or substandard outcomes. It also increases reliance on the prime contractor's internal quality assurance processes, which may not always be as rigorous as direct government oversight.

Can the firm-fixed-price (FFP) contract structure adequately account for unforeseen site conditions during soil management?

A firm-fixed-price (FFP) contract is designed to provide cost certainty, meaning the contractor assumes the risk of unforeseen site conditions. However, contracts often include clauses for equitable adjustments if unforeseen conditions are truly extraordinary and beyond the contractor's reasonable anticipation or control, as defined by the contract terms. For standard soil management, an FFP contract is generally suitable, assuming the contractor has adequately factored potential variations into their pricing. Significant, unanticipatable subsurface issues could still lead to contract modifications, but the baseline expectation is that the contractor bears the risk within the agreed price.

What is the typical market rate or benchmark for engineering services related to environmental site management of this scale?

Benchmarking engineering services for environmental site management is complex due to the variability in scope, location, regulatory environment, and specific technical requirements. However, for a three-year contract valued at approximately $12.5 million, this averages around $4.17 million per year. This figure would need to be compared against similar projects in Puerto Rico or comparable regions, considering factors like labor costs, material transport, specialized equipment, and permitting. Industry reports from organizations like the Environmental Business Journal or government cost-estimating databases could provide comparative data, but a precise benchmark requires detailed project scope comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 152 INTERIOR KM 7.6, BARRANQUITAS, PR, 00794

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,530,993

Exercised Options: $12,510,751

Current Obligation: $12,510,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline