DoD Awards $25.7M for Groundwater Remediation Services to TLI-BAY West Joint Venture
Contract Overview
Contract Amount: $25,661,688 ($25.7M)
Contractor: Tli-Bay West Joint Venture, LLC
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2025-12-31
Contract Duration: 1,917 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PCD, SWT GROUND WATER TX SYSTEM RA-O
Place of Performance
Location: PUEBLO, PUEBLO County, COLORADO, 81001
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to TLI-BAY WEST JOINT VENTURE, LLC for work described as: PCD, SWT GROUND WATER TX SYSTEM RA-O Key points: 1. Significant contract value for environmental remediation. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with long-term remediation projects and potential for cost overruns. 4. Sector focus on environmental services within the defense industry.
Value Assessment
Rating: good
The award of $25.7M for remediation services appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental cleanup contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential environmental cleanup, with the effectiveness of the competition method influencing the final cost.
Public Impact
Ensures environmental protection and compliance at a military site. Supports long-term cleanup efforts for contaminated groundwater. Potential for job creation in the environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Long contract duration increases risk of scope creep or unforeseen issues.
- Firm Fixed Price contract may not fully account for unknown remediation complexities.
Positive Signals
- Addresses critical environmental remediation needs.
- Awarded by a major federal agency (DoD).
- Clear project scope for groundwater treatment.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical area for government agencies managing legacy contamination. Spending benchmarks for similar large-scale remediation projects can vary widely based on site complexity and cleanup technology.
Small Business Impact
The contract data does not indicate any specific set-asides or participation goals for small businesses. Analysis of subcontracting opportunities would be necessary to assess small business impact.
Oversight & Accountability
Oversight will be crucial given the long duration and complexity of groundwater remediation. The Department of the Army's contracting and program management offices are responsible for ensuring performance and cost control.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Long contract duration.
- Potential for unforeseen site conditions.
- Firm Fixed Price contract risks.
- Lack of explicit small business participation noted.
Tags
remediation-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to TLI-BAY WEST JOINT VENTURE, LLC. PCD, SWT GROUND WATER TX SYSTEM RA-O
Who is the contractor on this award?
The obligated recipient is TLI-BAY WEST JOINT VENTURE, 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 $25.7 million.
What is the period of performance?
Start: 2020-10-01. End: 2025-12-31.
What specific factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award?
The exclusion of sources typically occurs when only a limited number of contractors possess the specialized capabilities, technology, or security clearances required for a specific project. For environmental remediation, this could involve unique patented treatment processes, extensive experience with particular contaminants, or specific site access requirements that only a few firms can meet. Understanding these specific requirements is key to assessing the justification for limited competition.
What are the primary risks associated with a Firm Fixed Price contract for a long-term environmental remediation project?
A Firm Fixed Price (FFP) contract for a long-term remediation project carries the risk that unforeseen site conditions, changes in regulatory requirements, or unexpected complexities in contaminant behavior could lead to significant cost overruns for the contractor. While FFP shifts risk to the contractor, it can also incentivize cutting corners or lead to disputes if the initial scope or cost estimates were inaccurate. The government might pay a premium upfront to mitigate this risk.
How does the limited competition impact the overall value for taxpayer money in this groundwater remediation contract?
The 'full and open competition after exclusion of sources' suggests that while competition occurred, it was among a pre-selected group of qualified vendors. This can lead to a higher price than if all potential bidders were allowed to compete. However, if the exclusion was justified by highly specialized requirements, the resulting price might still represent good value for the unique services rendered. A thorough cost realism analysis and comparison to similar specialized contracts are needed to confirm value.
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: W9128F17R0013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5 EMPIRE DR, SAINT PAUL, MN, 55103
Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,400,945
Exercised Options: $27,199,971
Current Obligation: $25,661,688
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F18D0029
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-08
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