DoD awards $4.1M Superfund site cleanup contract to Cape Remediation, LLC for Phase 1 upgrades

Contract Overview

Contract Amount: $4,139,221 ($4.1M)

Contractor: Cape Remediation, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2027-02-28

Contract Duration: 914 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OTT STORY SUPERFUND SITE OU2 UPGRADES PHASE 1

Place of Performance

Location: MUSKEGON, MUSKEGON County, MICHIGAN, 49445

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to CAPE REMEDIATION, LLC for work described as: OTT STORY SUPERFUND SITE OU2 UPGRADES PHASE 1 Key points: 1. Contract value appears reasonable given the scope of environmental remediation services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include project delays and unforeseen site conditions common in Superfund cleanups. 4. This contract addresses critical environmental upgrades at a designated Superfund site. 5. The remediation services sector is vital for environmental protection and regulatory compliance. 6. Contract duration of approximately 2.5 years aligns with typical project timelines for such work.

Value Assessment

Rating: good

The contract value of $4.14 million for Phase 1 upgrades at the OTT Story Superfund site appears to be within a reasonable range for complex environmental remediation projects. Benchmarking against similar Superfund site cleanup contracts, especially those involving significant infrastructure upgrades and hazardous material management, would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor has assumed a significant portion of the cost risk, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made after a broad competitive process. The presence of 2 bids suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions, but two competitive bids can still result in a fair market price.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down costs and ensuring the government receives the best value. Even with two bidders, the competitive pressure helps ensure a fair price.

Public Impact

The primary beneficiaries are the environment and public health through the remediation of a contaminated Superfund site. Services delivered include critical upgrades for the cleanup of Operable Unit 2 (OU2) at the OTT Story Superfund site. The geographic impact is localized to the specific Superfund site in Michigan. Workforce implications include employment opportunities for environmental engineers, technicians, and construction labor involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions are encountered.
Risk of schedule delays due to the complexity of Superfund site remediation.
Dependence on contractor's technical expertise for effective cleanup.

Positive Signals

Fixed-price contract structure shifts cost risk to the contractor.
Awarded under full and open competition, indicating a competitive process.
Contractor has a track record in remediation services, suggesting relevant experience.

Sector Analysis

The environmental remediation services sector is a critical component of the broader environmental services industry, focused on cleaning up contaminated sites. This contract falls within the government's ongoing efforts to address legacy pollution under the Superfund program. Spending in this sector is driven by regulatory requirements, environmental stewardship initiatives, and the need to mitigate risks associated with hazardous waste. Comparable spending benchmarks would typically be found in other EPA or DoD Superfund site remediation contracts.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions or subcontracting goals. Given the nature and scale of Superfund site remediation, prime contracts are often awarded to larger, specialized firms. However, opportunities may exist for small businesses to participate as subcontractors to Cape Remediation, LLC, particularly in areas like specialized testing, equipment rental, or logistical support.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with potential involvement from the Environmental Protection Agency (EPA) given the Superfund designation. Accountability measures will be tied to the contract's performance work statement, delivery schedules, and quality control requirements. Transparency is generally maintained through contract award databases and public reporting on Superfund site progress.

Related Government Programs

Superfund Program
Environmental Remediation Services
Department of Defense Environmental Contracts
Hazardous Waste Management

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Complexity of Superfund site remediation requires specialized expertise.
Contract duration extends over multiple fiscal years, requiring sustained funding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to CAPE REMEDIATION, LLC. OTT STORY SUPERFUND SITE OU2 UPGRADES PHASE 1

Who is the contractor on this award?

The obligated recipient is CAPE REMEDIATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-08-28. End: 2027-02-28.

What is the track record of Cape Remediation, LLC in handling similar Superfund site remediation projects?

Information regarding Cape Remediation, LLC's specific track record with Superfund sites is not detailed in the provided data. However, their presence as a contractor in this domain suggests they possess the necessary qualifications and experience. A deeper dive into their past performance, client references, and project history, particularly for projects of similar scale and complexity, would be crucial for a comprehensive assessment. Examining any past performance issues or successes on federal contracts would provide further insight into their reliability and capability to execute this critical environmental cleanup.

How does the awarded amount of $4.14 million compare to the estimated cost or budget for this phase of the Superfund site upgrades?

The provided data does not include the government's estimated cost or budget for this phase of the Superfund site upgrades. Therefore, a direct comparison to assess if the $4.14 million award represents a favorable or unfavorable outcome from a budgetary perspective is not possible. Understanding the initial cost estimates, the number of bids received, and the variance between bids would offer more context on whether the awarded price reflects competitive market conditions and efficient use of taxpayer funds for this specific project.

What are the primary risks associated with the 'Remediation Services' PSC code and how are they being mitigated in this contract?

The primary risks associated with 'Remediation Services' (NAICS 562910) often include unforeseen site conditions (e.g., discovering additional contaminants, unstable ground), potential for environmental incidents during cleanup, regulatory compliance challenges, and schedule delays due to the complexity of the work. This contract attempts to mitigate some risks through a Firm Fixed Price (FFP) structure, which shifts cost overruns to the contractor. However, the effectiveness of mitigation also depends on robust oversight, clear performance standards, and the contractor's own risk management protocols and technical expertise in handling hazardous materials and complex cleanup operations.

What is the historical spending pattern for Superfund site remediation by the Department of Defense?

Historical spending data for Superfund site remediation by the Department of Defense is not provided in this specific contract award notice. However, the DoD is a significant steward of federal lands and has been involved in numerous environmental cleanup efforts, including those under the Superfund program, often related to former military installations. Analyzing aggregate DoD spending on environmental remediation over several fiscal years, broken down by program or agency component, would reveal trends and the overall investment in addressing environmental liabilities. This specific contract represents a portion of that broader historical and ongoing investment.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact price discovery and potential for cost savings?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for broad competition, can sometimes limit the pool of potential bidders compared to a pure 'Full and Open' approach. If the exclusions were narrowly defined and relevant to specialized capabilities needed for this complex remediation, it might still yield competitive results. However, if the exclusions were overly broad, it could reduce the number of bidders, potentially leading to less aggressive pricing. With two bidders, the competition is present but may not be as robust as with a larger number, potentially impacting the extent of price discovery and cost savings achievable for the taxpayer.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911XK24R0058

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 PINNACLE CT STE 100, NORCROSS, GA, 30071

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

Financial Breakdown

Contract Ceiling: $4,139,221

Exercised Options: $4,139,221

Current Obligation: $4,139,221

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR19D0054

IDV Type: IDC

Timeline