Over $31.8M awarded for environmental remediation at Atlantic Wood Industries Superfund Site, Portsmouth, Virginia

Contract Overview

Contract Amount: $31,894,902 ($31.9M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-17

End Date: 2017-10-21

Contract Duration: 1,130 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL DREDGING AND DREDGED MATERIAL HANDLING OF DENSE NON-AQUEOUS PHASE LIQUID (DNAPL) CREOSOTE CONTAMINATED SEDIMENTS AT THE ATLANTIC WOOD INDUSTRIES SUPERFUND SITE, PORTSMOUTH, VIRGINIA

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23704

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: ENVIRONMENTAL DREDGING AND DREDGED MATERIAL HANDLING OF DENSE NON-AQUEOUS PHASE LIQUID (DNAPL) CREOSOTE CONTAMINATED SEDIMENTS AT THE ATLANTIC WOOD INDUSTRIES SUPERFUND SITE, PORTSMOUTH, VIRGINIA Key points: 1. Contract focused on specialized handling of hazardous creosote-contaminated sediments. 2. Utilized a firm-fixed-price structure, indicating defined scope and cost control. 3. Awarded through full and open competition, suggesting a robust bidding process. 4. Duration of 1130 days highlights the complexity and scale of the remediation effort. 5. The contract falls under remediation services, a critical environmental sector. 6. Geographic focus on Portsmouth, Virginia, addressing a specific Superfund site.

Value Assessment

Rating: good

The contract value of approximately $31.9 million for environmental remediation services appears reasonable given the specialized nature of handling DNAPL creosote-contaminated sediments at a Superfund site. While direct comparisons are difficult without more granular data on similar complex remediation projects, the firm-fixed-price structure suggests that the government sought to establish a clear cost ceiling. The awarded amount is within a typical range for large-scale environmental cleanup operations involving hazardous materials.

Cost Per Unit: N/A

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 healthy level of interest and competition for this specialized environmental service. This competitive process is expected to drive more favorable pricing and ensure the selection of a qualified contractor capable of executing the complex remediation tasks.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring efficient use of public funds.

Public Impact

Benefits the local community in Portsmouth, Virginia, by addressing a Superfund site and improving environmental quality. Delivers critical environmental remediation services, specifically the removal and handling of hazardous creosote-contaminated sediments. Geographic impact is localized to the Atlantic Wood Industries Superfund Site in Portsmouth, VA. Supports a specialized workforce in environmental engineering and hazardous material handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen site conditions arise beyond the scope of 'dense non-aqueous phase liquid (DNAPL) creosote contaminated sediments'.
  • Long project duration (1130 days) increases the risk of contractor performance issues or changes in regulatory requirements.
  • Reliance on a single contractor for a complex, multi-year remediation project carries inherent execution risks.

Positive Signals

  • Firm-fixed-price contract structure provides cost certainty for the government.
  • Awarded through full and open competition, suggesting a thorough vetting of capabilities and pricing.
  • Specialized nature of the work implies the contractor possesses unique expertise, potentially leading to efficient and effective cleanup.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader Environmental Services industry. This sector involves the cleanup of contaminated sites, often under regulatory oversight like Superfund programs. The market for such services is driven by environmental regulations, industrial legacy sites, and government initiatives. Spending in this area can fluctuate based on the identification and prioritization of new cleanup sites and the availability of federal funding for agencies like the EPA and DoD.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Given the specialized and large-scale nature of Superfund site remediation, it is common for prime contracts to be awarded to larger, specialized environmental firms. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of the Army) through contract officers and technical representatives. The firm-fixed-price structure provides a degree of financial oversight by setting a clear ceiling. Transparency is generally maintained through contract award databases and public reporting of federal spending. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Superfund Remedial Action
  • Hazardous Waste Management
  • Environmental Cleanup Services
  • Department of Defense Environmental Programs

Risk Flags

  • Potential for unforeseen site conditions impacting cost and schedule.
  • Long project duration increases exposure to regulatory changes.
  • Complexity of DNAPL creosote remediation requires specialized expertise.

Tags

environmental-remediation, superfund-site, hazardous-waste, portsmouth-virginia, department-of-the-army, full-and-open-competition, firm-fixed-price, definitive-contract, remediation-services, creosote-contamination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. ENVIRONMENTAL DREDGING AND DREDGED MATERIAL HANDLING OF DENSE NON-AQUEOUS PHASE LIQUID (DNAPL) CREOSOTE CONTAMINATED SEDIMENTS AT THE ATLANTIC WOOD INDUSTRIES SUPERFUND SITE, PORTSMOUTH, VIRGINIA

Who is the contractor on this award?

The obligated recipient is SEVENSON ENVIRONMENTAL SERVICES, 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 $31.9 million.

What is the period of performance?

Start: 2014-09-17. End: 2017-10-21.

What is the track record of SEVENSON ENVIRONMENTAL SERVICES, INC. in handling similar Superfund site remediation projects?

SEVENSON ENVIRONMENTAL SERVICES, INC. has a significant history of performing environmental remediation projects, including those involving hazardous waste and contaminated sediments. Their experience often includes work at Superfund sites and other complex industrial cleanup operations. A detailed review of their past performance, including project scope, duration, budget adherence, and client satisfaction, would be necessary to fully assess their capability for this specific contract. Publicly available contract databases and agency performance evaluations can provide insights into their track record with similar projects, such as dredging, soil remediation, and waste disposal, particularly concerning hazardous materials like creosote.

How does the awarded amount of $31.89 million compare to the estimated cost or budget for this specific remediation effort?

The provided data indicates the awarded amount was $31,894,902.03. Without access to the original cost estimates or budget allocations for the Atlantic Wood Industries Superfund Site remediation, it is challenging to definitively state how the awarded amount compares. However, the fact that it was awarded under full and open competition with 4 bids suggests that the price was competitive. If the awarded amount was significantly below or above initial estimates, it could indicate different market conditions, contractor efficiencies, or unforeseen complexities. Further investigation into the agency's budget justification and the competitive bidding outcomes would be required for a precise comparison.

What are the primary risks associated with the 'dense non-aqueous phase liquid (DNAPL) creosote contaminated sediments' and how were they mitigated in the contract?

DNAPL creosote-contaminated sediments pose significant environmental and health risks due to their toxicity, persistence, and difficulty in removal. Creosote is a known carcinogen, and DNAPL can migrate through soil and groundwater, leading to widespread contamination. Risks in remediation include incomplete removal, potential for re-contamination, worker exposure, and environmental damage during the process. This contract likely mitigated these risks through a firm-fixed-price structure, which incentivizes efficient and thorough cleanup within a defined budget. The requirement for specialized handling and disposal methods, along with stringent environmental monitoring protocols, would also be crucial components of the mitigation strategy, likely detailed in the contract's statement of work and performance standards.

What was the historical spending pattern for environmental remediation at the Atlantic Wood Industries Superfund Site prior to this contract?

The provided data focuses on a single definitive contract awarded in 2014 for $31.89 million. It does not offer historical spending patterns for the Atlantic Wood Industries Superfund Site prior to this award. Superfund sites often involve multiple phases of investigation, design, and remediation, potentially spanning many years and involving various contracts and funding sources. To understand historical spending, one would need to consult EPA or Army Corps of Engineers records detailing all activities and expenditures related to this specific site over its entire Superfund lifecycle, including any prior site assessments, feasibility studies, or earlier cleanup actions.

How does the duration of 1130 days (approximately 3 years) impact the overall cost-effectiveness and risk profile of this remediation project?

A duration of 1130 days for a complex environmental remediation project like this indicates a substantial undertaking, involving significant logistical planning and execution. From a cost-effectiveness perspective, a longer duration can sometimes lead to increased overhead and potential for cost escalation if not managed tightly, although the firm-fixed-price structure aims to cap this. However, for complex hazardous material removal, a longer duration might be necessary to ensure thoroughness and minimize environmental impact, ultimately contributing to long-term cost-effectiveness by preventing future issues. The risk profile is elevated due to the extended timeline; risks include potential changes in regulations, unforeseen site conditions, contractor performance degradation, and economic fluctuations. Effective project management, clear communication, and robust oversight are critical to managing these risks over such a long period.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123614R0019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2749 LOCKPORT RD, NIAGARA FALLS, NY, 14305

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,302,325

Exercised Options: $31,894,902

Current Obligation: $31,894,902

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2014-09-17

Current End Date: 2017-10-21

Potential End Date: 2017-10-21 00:00:00

Last Modified: 2020-10-03

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