Army awards $17.9M remediation contract to Oneida Total Integrated Enterprises LLC for services in South Dakota

Contract Overview

Contract Amount: $17,887,019 ($17.9M)

Contractor: Oneida Total Integrated Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-19

End Date: 2028-09-30

Contract Duration: 3,056 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDWEST ORC

Place of Performance

Location: ELLSWORTH AFB, MEADE County, SOUTH DAKOTA, 57706

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to ONEIDA TOTAL INTEGRATED ENTERPRISES LLC for work described as: MIDWEST ORC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 8 years indicates a long-term need for remediation services. 3. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 4. The award to a single entity suggests specialized capabilities or a competitive landscape favoring this contractor. 5. The contract is for remediation services, a critical environmental function for the Department of Defense. 6. The geographic focus on South Dakota highlights specific regional environmental needs.

Value Assessment

Rating: good

Benchmarking the value of this $17.9 million contract requires comparison to similar remediation services contracts awarded by the Department of Defense or other federal agencies. Without specific per-unit cost data or detailed scope of work, a precise value assessment is challenging. However, the firm-fixed-price contract type suggests an effort to establish a predictable cost for the government. The duration of the contract (over 8 years) implies a significant scope of work, and the award amount should be evaluated against the expected deliverables and the complexity of the remediation tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a less common competition type. This suggests that while the initial intent might have been full and open, certain sources were excluded, leading to a limited competition. The number of bids received is not explicitly stated, but the designation implies that the pool of eligible bidders was narrowed down at some point. This type of competition can sometimes lead to higher prices compared to unrestricted full and open competition if the exclusion criteria significantly limit the number of capable offerors.

Taxpayer Impact: Taxpayers may face slightly higher costs due to the exclusion of certain potential bidders, potentially limiting the downward pressure on pricing that a broader competition could provide.

Public Impact

The primary beneficiaries are the Department of the Army and potentially the environment in South Dakota, through the remediation of contaminated sites. Services delivered include remediation, which addresses environmental hazards and ensures compliance with regulations. The geographic impact is concentrated in South Dakota, addressing specific environmental cleanup needs within the state. Workforce implications may include employment opportunities for environmental scientists, engineers, and technicians involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to less favorable pricing for the government.
The long contract duration may present challenges in adapting to evolving remediation technologies or regulatory changes.
Specific details on the remediation scope and performance metrics are needed for a comprehensive risk assessment.

Positive Signals

Firm-fixed-price contract structure helps in cost control and predictability.
Awarding to a single entity suggests specialized expertise in remediation services.
The contract addresses critical environmental cleanup needs for the Department of Defense.

Sector Analysis

The remediation services sector within the federal contracting landscape is crucial for environmental compliance and restoration. This contract falls under the broader category of environmental services, which includes hazardous waste management, site cleanup, and pollution control. The federal government, particularly the Department of Defense, is a significant spender in this sector due to the extensive landholdings and historical operations that may have resulted in contamination. Comparable spending benchmarks would involve analyzing other large-scale environmental remediation contracts awarded to private firms for government facilities or Superfund sites.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, Oneida Total Integrated Enterprises LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The focus is on a large prime contractor, and any subcontracting opportunities would depend on the contractor's own strategy and the nature of the remediation work required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Department of Defense Environmental Programs
Superfund Site Cleanup Contracts
Federal Environmental Compliance

Risk Flags

Limited competition may impact price.
Long contract duration increases risk of scope creep or regulatory changes.
Need for detailed performance metrics to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to ONEIDA TOTAL INTEGRATED ENTERPRISES LLC. MIDWEST ORC

Who is the contractor on this award?

The obligated recipient is ONEIDA TOTAL INTEGRATED ENTERPRISES 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 $17.9 million.

What is the period of performance?

Start: 2020-05-19. End: 2028-09-30.

What is the track record of Oneida Total Integrated Enterprises LLC in performing similar remediation contracts for the federal government?

Assessing the track record of Oneida Total Integrated Enterprises LLC requires a review of their past performance on federal contracts, particularly those involving environmental remediation. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A strong track record would indicate successful completion of similar projects, adherence to timelines and budgets, and positive feedback from previous government clients. Conversely, a history of performance issues, disputes, or contract terminations would raise concerns about their capability to successfully execute this current $17.9 million award over its multi-year duration.

How does the awarded amount of $17.9 million compare to the typical cost of similar remediation projects of comparable scope and duration?

To benchmark the $17.9 million award, one would need to compare it against similar environmental remediation contracts awarded by the Department of Defense or other federal agencies for projects of comparable size, complexity, and duration (over 8 years). This involves analyzing data from sources like the Federal Procurement Data System (FPDS) to identify contracts with similar North American Industry Classification System (NAICS) codes (e.g., 562910 for Remediation Services) and similar contract values and lengths. Factors such as geographic location, specific contaminants involved, and the extent of the remediation required significantly influence costs. Without access to detailed project scopes and specific cost breakdowns, a precise comparison is difficult, but the award should be evaluated against the average cost per year or per acre for similar federal remediation efforts.

What are the primary risks associated with a firm-fixed-price contract for environmental remediation services, especially over an 8-year period?

A firm-fixed-price (FFP) contract for environmental remediation, particularly over an extended period of more than 8 years, carries inherent risks. The primary risk for the government is that the contractor may cut corners on quality or scope to maximize profit if unforeseen complexities arise or costs escalate beyond initial estimates. Conversely, the contractor bears the risk of cost overruns if initial estimates were inaccurate or if unexpected site conditions (e.g., discovery of more hazardous materials, difficult geological formations) significantly increase the cost of performance. For long-term contracts, there's also the risk of technological obsolescence or changes in environmental regulations that may require modifications to the scope or approach, potentially leading to change orders and increased costs.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the competition level and its potential impact on pricing?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced competition process. Initially, the solicitation may have been intended for all responsible sources (full and open). However, specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. This could be due to specific technical requirements, past performance issues with certain contractors, or other justifications approved by the agency. While it's not a sole-source award, the exclusion of sources inherently limits the competitive pool compared to unrestricted full and open competition. This reduced competition might lessen the downward pressure on pricing, potentially resulting in a higher contract value than if all capable sources had been allowed to bid.

How does this contract align with the Department of Defense's broader environmental stewardship and compliance goals?

This contract directly supports the Department of Defense's (DoD) environmental stewardship and compliance goals by addressing the critical need for remediation services. The DoD manages vast amounts of real property, and historical activities at many installations have resulted in environmental contamination requiring cleanup. Awarding contracts for these services ensures that the DoD meets its legal obligations under environmental statutes (like CERCLA and RCRA) and demonstrates a commitment to restoring and protecting the environment. Successful execution of this contract contributes to the safety of surrounding communities, the health of ecosystems, and the long-term sustainability of DoD operations by mitigating environmental risks associated with its activities.

What are the potential implications of this contract award for the small business ecosystem in South Dakota, given it was not a small business set-aside?

Since this $17.9 million contract was not a small business set-aside and was awarded to Oneida Total Integrated Enterprises LLC (presumably a larger entity), its direct impact on the small business ecosystem is likely limited. There is no requirement for a specific small business subcontracting goal tied to this award. However, the prime contractor might voluntarily engage small businesses as subcontractors for specialized tasks within the remediation scope, depending on their capabilities and the project's needs. The primary benefit to the small business ecosystem would be indirect, potentially through the prime contractor's procurement practices or through the general economic activity generated in South Dakota by the contract's execution.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F16R0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD, MILWAUKEE, WI, 53226

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,475,198

Exercised Options: $17,887,019

Current Obligation: $17,887,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F19D0032

IDV Type: IDC

Timeline