Department of Defense awards $36.7M contract for environmental remediation services in Oregon
Contract Overview
Contract Amount: $36,748,694 ($36.7M)
Contractor: BAY West-Ahtna Joint Venture, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-25
End Date: 2026-09-24
Contract Duration: 1,825 days
Daily Burn Rate: $20.1K/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: BRAC - UMATILLA REMEDIAL ACTION, HERMISTON, OR
Place of Performance
Location: HERMISTON, UMATILLA County, OREGON, 97838
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $36.7 million to BAY WEST-AHTNA JOINT VENTURE, LLC for work described as: BRAC - UMATILLA REMEDIAL ACTION, HERMISTON, OR Key points: 1. The contract value represents a significant investment in environmental cleanup. 2. Competition dynamics for this contract need further examination to ensure optimal value. 3. Performance risk appears moderate given the nature of remediation services. 4. This contract is positioned within the broader environmental services sector for federal agencies. 5. The duration of the contract suggests a long-term commitment to the remedial action.
Value Assessment
Rating: fair
Benchmarking the value of this $36.7 million contract against similar environmental remediation projects is challenging without more specific service details. However, the firm-fixed-price structure suggests an attempt to control costs. The contract's duration of five years (1825 days) implies a substantial scope of work. Further analysis would require comparing the per-unit costs for specific remediation tasks against industry standards and historical government data to definitively assess value for money.
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 specific reason for limiting the initial pool of bidders. While not a sole-source award, this procurement method suggests that not all potential offerors were considered from the outset. The number of bids received (3) is on the lower side, which could potentially impact price negotiation and the overall competitiveness of the award.
Taxpayer Impact: The limited competition may have resulted in a higher price than could have been achieved through a fully open solicitation, potentially costing taxpayers more.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the local environment in Hermiston, Oregon, through the cleanup of hazardous substances. Services delivered include remediation activities, likely involving the cleanup and disposal of contaminated materials. The geographic impact is focused on Umatilla, Oregon, addressing specific environmental concerns at a federal site. Workforce implications may include the creation of jobs for environmental scientists, engineers, and technicians involved in the remediation process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to suboptimal pricing.
- The specific nature of remediation services can introduce unforeseen costs and delays.
- Ensuring contractor compliance with environmental regulations is critical.
Positive Signals
- Firm-fixed-price contract type helps manage cost uncertainty.
- The contract is for a defined period, allowing for focused project management.
- The award is to a joint venture, potentially bringing diverse expertise.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a critical component of the broader professional, scientific, and technical services industry. Federal agencies, particularly the Department of Defense, frequently engage contractors for environmental cleanup and compliance due to historical land use and regulatory requirements. The market for these services is substantial, driven by ongoing cleanup mandates and infrastructure maintenance. Comparable spending benchmarks would involve analyzing other large-scale environmental remediation contracts awarded by federal agencies for similar types of contaminants or sites.
Small Business Impact
The contract details do not indicate a specific small business set-aside. Given the nature and potential scale of environmental remediation projects, large prime contractors often dominate. It is important to assess whether subcontracting opportunities are being made available to small businesses to ensure broader economic participation and to meet any potential small business subcontracting goals.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the contract's performance standards and payment terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Environmental Restoration, Formerly Used Defense Sites (FUDS)
- Hazardous Waste Management
- Site Remediation Services
- Defense Environmental Services
Risk Flags
- Limited competition may impact price.
- Potential for unforeseen environmental conditions.
- Contract duration requires sustained oversight.
Tags
environmental-remediation, department-of-defense, department-of-the-army, oregon, full-and-open-competition-after-exclusion-of-sources, firm-fixed-price, large-contract, brac, remediation-services, joint-venture
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.7 million to BAY WEST-AHTNA JOINT VENTURE, LLC. BRAC - UMATILLA REMEDIAL ACTION, HERMISTON, OR
Who is the contractor on this award?
The obligated recipient is BAY WEST-AHTNA 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 $36.7 million.
What is the period of performance?
Start: 2021-09-25. End: 2026-09-24.
What is the specific nature of the environmental remediation required under this contract?
The contract is for the BRAC - UMATILLA REMEDIAL ACTION. BRAC stands for Base Realignment and Closure, indicating that the remediation is likely related to environmental cleanup at a former military installation. The specific type of remediation services would involve addressing contamination at the Umatilla site, which could include soil and groundwater cleanup, hazardous waste removal, or long-term monitoring, depending on the nature of the pollutants present and the site's history.
How does the awarded amount of $36.7 million compare to historical spending on similar remediation projects by the Department of Defense?
Without specific details on the scope and complexity of the remediation tasks, a direct comparison of the $36.7 million award to historical spending is difficult. However, large-scale environmental remediation contracts for BRAC sites can range from tens to hundreds of millions of dollars, depending on the extent of contamination and the cleanup technologies employed. The Department of Defense is a significant spender in this area, with numerous ongoing projects. Further analysis would require identifying comparable BRAC sites or remediation projects with similar environmental challenges and contract durations to establish a relevant benchmark.
What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?
Key performance indicators for environmental remediation contracts typically focus on adherence to cleanup standards, project timelines, budget management, safety protocols, and regulatory compliance. Specific metrics might include the volume of contaminants removed, the percentage of site cleanup achieved against milestones, compliance with environmental permits, and incident rates. The contract likely specifies detailed performance work statements (PWS) outlining these requirements and the associated evaluation criteria.
What is the track record of BAY WEST-AHTNA JOINT VENTURE, LLC in performing similar federal environmental remediation contracts?
BAY WEST-AHTNA JOINT VENTURE, LLC's track record in performing similar federal environmental remediation contracts is a critical factor in assessing performance risk. Information on past performance, including successful completion of projects, adherence to schedules and budgets, and any history of disputes or contract terminations, would be available through government performance evaluation systems (e.g., Contractor Performance Assessment Reporting System - CPARS). A review of their past project portfolio would reveal their experience with the specific types of contaminants and remediation techniques relevant to the Umatilla site.
What are the potential risks associated with this contract, and what mitigation strategies are in place?
Potential risks include unforeseen site conditions (e.g., discovering additional contamination), changes in regulatory requirements, contractor performance issues, and cost overruns, especially if the firm-fixed-price contract doesn't adequately account for all variables. Mitigation strategies typically involve thorough site investigations prior to award, robust contract oversight by the government, clear performance standards, contingency planning, and strong communication channels with the contractor. The joint venture structure itself might be a mitigation strategy, pooling resources and expertise.
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: W9128F20R0038
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5 EMPIRE DR, SAINT PAUL, MN, 55103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,055,262
Exercised Options: $36,748,694
Current Obligation: $36,748,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F21D0010
IDV Type: IDC
Timeline
Start Date: 2021-09-25
Current End Date: 2026-09-24
Potential End Date: 2026-09-24 00:00:00
Last Modified: 2025-10-02
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