DoD awards $22M contract for environmental remediation in Montana, highlighting long-term cleanup needs

Contract Overview

Contract Amount: $22,057,670 ($22.1M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-06

End Date: 2029-05-02

Contract Duration: 1,822 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REMEDIATION ACTIVITIES CARPENTER SNOW CREEK OU1, NIEHART, MT

Place of Performance

Location: NEIHART, CASCADE County, MONTANA, 59465

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to APTIM FEDERAL SERVICES, LLC for work described as: REMEDIATION ACTIVITIES CARPENTER SNOW CREEK OU1, NIEHART, MT Key points: 1. Contract awarded to APTIM FEDERAL SERVICES, LLC for environmental remediation services. 2. The contract duration extends over five years, indicating a significant, long-term commitment to cleanup. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The North American Industry Classification System (NAICS) code 562910 points to a specialized environmental remediation market. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific remediation contract is challenging without more detailed cost breakdowns and comparison to similar projects of comparable scope and complexity. The Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses incurred, plus a fixed fee, which can lead to variations from initial estimates. While the total award value is substantial, its value-for-money depends heavily on the effectiveness and efficiency of the remediation activities performed over the contract's five-year term.

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 bidders had the opportunity to submit proposals. The presence of 5 proposals suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process, including the number of bidders and the evaluation criteria, would provide further insight into the level of competition achieved.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions to win the contract.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the local environment and community in Niehart, Montana, through the cleanup of contaminated sites. The services delivered involve environmental remediation activities, crucial for addressing legacy contamination. The geographic impact is localized to Niehart, Montana (OU1), addressing specific environmental concerns in that area. While not directly creating new jobs, this contract supports existing jobs within the environmental remediation sector and ensures compliance with environmental regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs if not closely monitored, potentially increasing the final price.
The long duration of the contract (over five years) requires sustained oversight to ensure performance remains on track and costs are managed effectively.
Environmental remediation projects can be complex and subject to unforeseen challenges, potentially leading to cost overruns or schedule delays.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that should yield reasonable pricing.
The contractor, APTIM FEDERAL SERVICES, LLC, is likely experienced in federal environmental remediation projects, suggesting a degree of capability.
The contract addresses critical environmental cleanup needs, contributing to regulatory compliance and environmental protection.

Sector Analysis

The environmental remediation services sector is a critical component of the broader industrial and government services market. This contract falls under NAICS code 562910, which covers Remediation Services. The market is driven by regulatory requirements, aging infrastructure, and the need to address historical contamination from industrial and military activities. Federal spending in this area is substantial, often involving long-term projects with significant financial commitments. Comparable spending benchmarks would typically involve analyzing other large-scale environmental cleanup contracts awarded by agencies like the EPA or DoD.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the primary contractor is likely a large business, and any subcontracting opportunities for small businesses would depend on APTIM FEDERAL SERVICES, LLC's own subcontracting plan and requirements. The impact on the small business ecosystem would be minimal unless significant subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the awarding agency, the Department of the Army, within the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, financial audits, and regular reporting requirements from the contractor. Transparency is typically managed through contract databases and public reporting, though specific project details might be sensitive. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Long contract duration necessitates sustained oversight.
Environmental remediation projects are inherently complex and can face unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to APTIM FEDERAL SERVICES, LLC. REMEDIATION ACTIVITIES CARPENTER SNOW CREEK OU1, NIEHART, MT

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, 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 $22.1 million.

What is the period of performance?

Start: 2024-05-06. End: 2029-05-02.

What is the track record of APTIM FEDERAL SERVICES, LLC with the Department of Defense for similar environmental remediation contracts?

APTIM FEDERAL SERVICES, LLC has a significant history of performing environmental remediation and related services for the Department of Defense and other federal agencies. Their portfolio often includes complex projects involving hazardous waste management, site cleanup, and compliance support. Analyzing their past performance on similar contracts, including their ability to meet deadlines, stay within budget, and adhere to quality standards, is crucial for assessing their capability for this specific $22 million award. Past performance reviews and contract close-out data from previous DoD engagements would provide valuable insights into their reliability and effectiveness in executing large-scale environmental projects.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for environmental remediation, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is common for complex projects where the scope of work can be difficult to define precisely upfront, such as environmental remediation. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, or cost-reimbursement contracts without a fixed fee. The primary risk of CPFF for the government is that it can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant. Effective oversight, detailed cost accounting, and robust auditing are essential to manage these risks and ensure the government receives good value. Other contract types like Firm-Fixed-Price (FFP) might offer better cost certainty if the scope is well-defined, but can be risky if unforeseen issues arise.

What are the potential environmental risks and challenges associated with the Carpenter Snow Creek OU1 site in Niehart, MT?

The designation 'OU1' (Operable Unit 1) for Carpenter Snow Creek suggests that this site has undergone or will undergo phased remediation efforts, indicating a history of contamination requiring specific cleanup actions. Without specific details on the contaminants present (e.g., heavy metals, volatile organic compounds, petroleum products), it's difficult to pinpoint exact risks. However, environmental remediation projects typically face challenges such as unpredictable subsurface conditions, the need for specialized equipment and personnel, potential impacts on local ecosystems during cleanup, and stringent regulatory compliance requirements. The specific geological and hydrological conditions at the Niehart site will influence the complexity and cost of remediation. Understanding the nature of the contamination and the site's characteristics is key to assessing the project's inherent risks.

What historical spending patterns exist for environmental remediation within the Department of the Army or similar agencies in Montana?

Historical spending patterns for environmental remediation within the Department of the Army and other federal agencies in Montana can provide context for the $22 million award. Agencies like the EPA, Bureau of Land Management, and Forest Service also engage in remediation activities. Analyzing past contract awards for similar services in the region would reveal average contract values, durations, and the types of contractors most frequently utilized. This data can help benchmark the current contract's value and identify any trends in federal environmental cleanup investments in Montana. Such analysis might also highlight specific sites or types of contamination that have historically required significant federal funding for remediation.

How does the competition level (5 bidders) for this contract influence the potential for cost savings or increased risk for the government?

A competition level of five bidders for this environmental remediation contract is generally considered healthy and suggests that the government had a reasonable pool of qualified offerors. A higher number of bidders typically increases the likelihood of receiving competitive pricing, as contractors vie for the award. This can lead to cost savings for the government compared to a sole-source or limited-competition scenario. However, the quality of the proposals also matters; a large number of bidders does not guarantee the best value if proposals are weak or non-compliant. Conversely, a lower number of bidders might indicate a less competitive market or specialized requirements, potentially leading to higher costs. The government's evaluation process is critical to ensure that the chosen contractor offers both competitive pricing and the best technical approach.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F21R0033

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 4171 ESSEN LN, BATON ROUGE, LA, 70809

Business Categories: 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: $26,386,819

Exercised Options: $22,057,670

Current Obligation: $22,057,670

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $410,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0007

IDV Type: IDC

Timeline