DoD awards $12.5M for PFAS investigation at Florida bases, with completion expected in 2027

Contract Overview

Contract Amount: $12,541,296 ($12.5M)

Contractor: MSE Group LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-31

End Date: 2027-05-31

Contract Duration: 1,826 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO CONDUCT PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) PHASE I REMEDIAL INVESTIGATION (RI) AT PATRICK SFB, MACDILL AFB & AVON PARK AFR FLORIDA.

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to MSE GROUP LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO CONDUCT PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) PHASE I REMEDIAL INVESTIGATION (RI) AT PATRICK SFB, MACDILL AFB & AVON PARK AFR FLORIDA. Key points: 1. Contract focuses on environmental remediation, a critical area for military installations. 2. The firm-fixed-price structure aims to control costs for the multi-year investigation. 3. Competition was open, suggesting potential for competitive pricing and multiple bidder interest. 4. The duration of nearly five years indicates a complex and extensive scope of work. 5. This contract addresses emerging contaminant concerns, aligning with broader environmental protection efforts. 6. Performance is benchmarked against similar environmental investigation contracts.

Value Assessment

Rating: good

The contract's value of $12.5 million for a five-year PFAS investigation at multiple Air Force bases appears reasonable given the scope. While specific per-unit cost benchmarks for PFAS Phase I Remedial Investigations are not readily available, the firm-fixed-price nature suggests cost certainty for the government. Comparison to similar large-scale environmental remediation projects indicates that this award falls within expected ranges for complex investigations involving multiple sites and extensive testing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but open competition generally fosters a more robust price discovery process and encourages contractors to offer competitive terms. This approach is standard for significant federal contracts where a broad range of expertise is available in the market.

Taxpayer Impact: Taxpayers benefit from open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that the government receives the best value for its investment in environmental services.

Public Impact

The primary beneficiaries are the Department of Defense and the communities surrounding Patrick SFB, MacDill AFB, and Avon Park AFR, who will see environmental risks assessed. The contract delivers critical environmental investigation services to identify and characterize PFAS contamination. The geographic impact is concentrated in Florida, specifically at the named military installations. The contract supports the environmental engineering sector, potentially involving specialized scientific and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination complexities arise beyond the scope of Phase I.
Contractor performance risk associated with meeting the extensive timeline and technical requirements.
Environmental regulatory changes could impact the scope or cost of the investigation.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process, likely leading to better value.
Long-term duration allows for thorough investigation and planning.
Focus on PFAS addresses a significant and growing environmental concern for military bases.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically addressing environmental consulting and remediation. The market for environmental services supporting federal agencies, particularly the Department of Defense, is substantial, driven by regulatory compliance and legacy contamination issues. Comparable spending benchmarks for environmental investigations at large federal facilities often run into millions of dollars, reflecting the complexity and scale of such projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, the prime contractor, MSE Group LLC, may engage small businesses as subcontractors for specialized services, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and technical representatives within the Department of the Army, which is administering the task order for the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified investigation services. Transparency is facilitated through federal contract databases, though detailed technical reports may be subject to security or proprietary considerations.

Related Government Programs

Environmental Remediation Services
Military Base Environmental Compliance
Per- and Polyfluoroalkyl Substances (PFAS) Research and Development
Federal Facility Cleanup Programs
Department of Defense Environmental Programs

Risk Flags

Potential for scope creep due to complex environmental factors.
Contractor performance risk over a long duration.
Evolving regulatory landscape for PFAS.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to MSE GROUP LLC. THE PURPOSE OF THIS TASK ORDER IS TO CONDUCT PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) PHASE I REMEDIAL INVESTIGATION (RI) AT PATRICK SFB, MACDILL AFB & AVON PARK AFR FLORIDA.

Who is the contractor on this award?

The obligated recipient is MSE GROUP 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 $12.5 million.

What is the period of performance?

Start: 2022-05-31. End: 2027-05-31.

What is the track record of MSE Group LLC in performing similar environmental investigation contracts for the federal government?

MSE Group LLC has a history of performing engineering and environmental services for federal agencies. While specific details on past PFAS investigation contracts of this magnitude are not immediately available in the summary data, their experience in engineering services (NAICS 541330) suggests a capability to handle complex projects. A deeper dive into their contract history, past performance evaluations, and specific project portfolios would be necessary to fully assess their track record for this particular type of work. Reviewing federal procurement data and agency performance reports would provide more granular insights into their success rates, client satisfaction, and ability to manage large-scale environmental investigations.

How does the awarded amount of $12.5 million compare to similar PFAS Phase I Remedial Investigations at other military installations?

Benchmarking the $12.5 million award for this PFAS Phase I Remedial Investigation requires comparing it to similar contracts in terms of scope, duration, and number of sites. Phase I investigations typically involve initial site characterization, sampling, and risk assessment. Given that this contract covers three distinct military installations (Patrick SFB, MacDill AFB, Avon Park AFR) over a five-year period, the cost appears to be within a reasonable range for such a comprehensive effort. However, without specific data on the size and complexity of contamination at each site, or the number of samples collected, a precise comparison is difficult. Generally, multi-site, multi-year environmental investigations for the DoD can range from several million to tens of millions of dollars, depending on the factors mentioned.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep if unforeseen contamination complexities arise, contractor performance issues in meeting stringent technical requirements and deadlines, and the possibility of evolving environmental regulations impacting the investigation's scope or cost. Mitigation strategies are likely embedded within the contract's firm-fixed-price structure, which incentivizes the contractor to manage costs effectively. The multi-year duration allows for phased execution and adaptive management. Furthermore, the requirement for a Phase I Remedial Investigation itself is a risk mitigation step, designed to thoroughly characterize the extent of contamination before more costly remediation efforts are planned. Robust government oversight and clear performance metrics are also crucial mitigation tools.

How effective is the firm-fixed-price contract type in ensuring value for money for this environmental investigation?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and risks are manageable. For this PFAS investigation, the FFP structure shifts the cost risk to the contractor, MSE Group LLC, incentivizing them to perform the work efficiently and within budget. This provides the Department of Defense with cost certainty. However, the effectiveness hinges on the accuracy of the initial scope definition. If unforeseen complexities significantly alter the required work, the FFP contract could lead to disputes or require costly change orders. Nonetheless, for a defined investigation phase like this, FFP is a common and often value-maximizing approach, provided the government has a clear understanding of the requirements upfront.

What is the historical spending trend for PFAS-related environmental services at Department of Defense facilities?

Historical spending on PFAS-related environmental services at Department of Defense (DoD) facilities has seen a significant and accelerating increase over the past several years. Driven by growing awareness of PFAS health impacts, regulatory pressures (e.g., EPA actions, state-level regulations), and congressional mandates, the DoD has allocated substantial resources to investigating and remediating PFAS contamination across its installations. This spending encompasses a range of activities, including site investigations, sampling and analysis, risk assessments, and the development of remediation technologies. While specific aggregate historical spending figures require detailed analysis of federal budget data and contract awards, it is evident that PFAS management has become a major environmental priority and a significant cost center for the DoD, with annual expenditures likely in the hundreds of millions of dollars and projected to increase.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9127819R0059

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7254 BLANCO ROAD SUITE 207, SAN ANTONIO, TX, 78216

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,303,557

Exercised Options: $12,541,296

Current Obligation: $12,541,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127821D0058

IDV Type: IDC

Timeline