Army awards $41.7M environmental remediation contract to Oneida Environmental, LLC, for munitions response

Contract Overview

Contract Amount: $41,721,200 ($41.7M)

Contractor: Oneida Environmental, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2030-07-15

Contract Duration: 1,764 days

Daily Burn Rate: $23.7K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: $99.9M SINGLE AWARD TASK ORDER CONTRACT (SATOC) FOR ENVIRONMENTAL REMEDIATION SERVICES (ERS), INCLUDING MILITARY MUNITIONS RESPONSE PROGRAM (MMRP) SERVICES. THIS TASK ORDER SERVES AS THE SEED PROJECT FOR THIS SATOC.

Place of Performance

Location: PUEBLO, PUEBLO County, COLORADO, 81006

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $41.7 million to ONEIDA ENVIRONMENTAL, LLC for work described as: $99.9M SINGLE AWARD TASK ORDER CONTRACT (SATOC) FOR ENVIRONMENTAL REMEDIATION SERVICES (ERS), INCLUDING MILITARY MUNITIONS RESPONSE PROGRAM (MMRP) SERVICES. THIS TASK ORDER SERVES AS THE SEED PROJECT FOR THIS SATOC. Key points: 1. Contract focuses on environmental remediation, including military munitions response, indicating a specialized need. 2. The award is a single-source task order, raising questions about competition and potential cost efficiencies. 3. The contract duration of nearly five years suggests a long-term commitment to these services. 4. The firm-fixed-price structure aims to control costs, but the lack of competition could inflate the price. 5. This contract falls under the remediation services NAICS code, aligning with environmental cleanup efforts. 6. The seed project nature of this task order implies potential for future task orders under the same SATOC.

Value Assessment

Rating: questionable

The awarded amount of $41.7 million for environmental remediation services, specifically for munitions response, requires careful benchmarking. Without comparative data on similar sole-source contracts for specialized environmental cleanup, it is difficult to definitively assess value for money. The firm-fixed-price contract type is generally favorable for cost control, but the absence of competition means there's no market pressure to ensure the most competitive pricing. Further analysis would involve comparing the per-unit costs of specific remediation activities to industry standards and other government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures, indicating a sole-source award. The data explicitly states 'NOT COMPETED UNDER SAP'. This means that only one contractor, Oneida Environmental, LLC, was solicited or considered for this specific task order. The lack of competition limits the government's ability to explore a range of pricing and technical solutions from multiple vendors, potentially leading to higher costs than if the contract had been openly competed.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price. Without competitive bids, the government may be paying a premium for the services rendered, as there was no market pressure to drive down costs.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other military branches requiring environmental remediation, particularly for munitions. The services delivered include environmental remediation, with a specific focus on the Military Munitions Response Program. The geographic impact is likely concentrated in Colorado, where the contract is registered, but could extend to other locations requiring similar services. This contract supports specialized environmental cleanup jobs, contributing to the workforce in the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpricing.
The sole-source nature limits transparency in the pricing and selection process.
The long contract duration could lock in potentially suboptimal pricing if market conditions change.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a critical need for environmental remediation, particularly concerning military munitions.
The award to Oneida Environmental, LLC, suggests they possess the specialized capabilities required for this work.

Sector Analysis

The environmental remediation services sector is a critical component of infrastructure and compliance for government agencies, particularly those with historical land use or operational impacts. This sector includes a wide range of services from hazardous waste management to site cleanup and monitoring. The Military Munitions Response Program (MMRP) specifically addresses contamination from past military activities, a significant undertaking for the Department of Defense. While specific market size data for this niche is not provided, the broader environmental services industry is substantial, with government contracts forming a significant portion.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to Oneida Environmental, LLC, a company designated as 'ST' (likely indicating a specific business type, possibly small or disadvantaged, but not explicitly a small business set-aside for this contract), means that the primary contract is not structured to funnel work to the small business ecosystem through set-aside provisions. Further investigation into Oneida Environmental's size status and subcontracting plans would be needed to assess broader small business impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract structure, which obligates the contractor to deliver specified services for a set price. Transparency is limited due to the sole-source nature of the award. 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
Military Munitions Response Program
Hazardous Waste Management
Department of Defense Contracts
Environmental Cleanup Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Specialized environmental services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.7 million to ONEIDA ENVIRONMENTAL, LLC. $99.9M SINGLE AWARD TASK ORDER CONTRACT (SATOC) FOR ENVIRONMENTAL REMEDIATION SERVICES (ERS), INCLUDING MILITARY MUNITIONS RESPONSE PROGRAM (MMRP) SERVICES. THIS TASK ORDER SERVES AS THE SEED PROJECT FOR THIS SATOC.

Who is the contractor on this award?

The obligated recipient is ONEIDA ENVIRONMENTAL, 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 $41.7 million.

What is the period of performance?

Start: 2025-09-15. End: 2030-07-15.

What is the track record of Oneida Environmental, LLC in performing similar environmental remediation services, particularly for the Department of Defense?

Assessing the track record of Oneida Environmental, LLC is crucial for understanding their capability to successfully execute this $41.7 million contract. While the provided data confirms they were awarded this task order for environmental remediation and MMRP services, it does not detail their past performance history. A thorough review would involve examining past federal contract awards to Oneida Environmental, their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past issues or disputes, and their experience with similar scope, scale, and complexity of work. Specifically, their experience with munitions response is a key factor, as this is a highly specialized and potentially hazardous field requiring specific expertise and safety protocols. Without this historical data, the assessment of their reliability and capability remains incomplete.

How does the pricing of this contract compare to similar environmental remediation contracts awarded by the Department of the Army or other federal agencies?

Benchmarking the pricing of this $41.7 million contract is challenging without access to detailed cost breakdowns and comparative contract data. The contract is a sole-source award for environmental remediation and MMRP services, making direct comparisons difficult as each site and remediation effort has unique characteristics. To perform a robust comparison, one would need to identify similar contracts (e.g., by scope, geographic location, type of contamination, and remediation techniques) awarded around the same time period. Analyzing the per-unit costs for specific activities (e.g., soil excavation, hazardous material disposal, site monitoring) against industry averages and other government contracts would be essential. The firm-fixed-price nature provides cost certainty but, in the absence of competition, the initial price may not reflect the most economical option available in the market.

What are the primary risks associated with this sole-source environmental remediation contract, and how are they being mitigated?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without multiple bids, there is less market pressure to ensure the government receives the best possible value. Another risk is contractor performance; if Oneida Environmental, LLC lacks the necessary expertise or resources, the project could face delays, cost overruns, or incomplete remediation, posing environmental and safety hazards. Mitigation strategies could include rigorous government oversight, detailed performance metrics, and clear deliverables outlined in the contract. The firm-fixed-price structure itself is a risk mitigation tool for cost certainty, but it doesn't guarantee the lowest price. The government should also have contingency plans in place for potential contractor failure or performance issues.

How effective is the Military Munitions Response Program (MMRP) in addressing environmental contamination from past military activities, and how does this contract contribute to its goals?

The Military Munitions Response Program (MMRP) is a critical initiative by the Department of Defense (DoD) to identify, assess, and remediate or manage munitions contamination at current and former military sites across the globe. Its effectiveness is measured by the reduction of risks to human health and the environment posed by legacy munitions. This contract, awarded to Oneida Environmental, LLC, directly contributes to MMRP goals by providing essential environmental remediation services, including the handling and cleanup of munitions-related hazards. The specific task order serves as a 'seed project,' suggesting it's a foundational effort that will likely inform or lead to further MMRP activities under the same contract vehicle. The success of this contract in achieving specific cleanup targets and risk reduction will be a key indicator of its contribution to the broader MMRP objectives.

What are the historical spending patterns for environmental remediation services within the Department of the Army, and how does this award fit into that trend?

The Department of the Army, like other branches of the DoD, has a long history of significant spending on environmental remediation due to extensive land use and historical operations. This spending is driven by regulatory requirements (e.g., CERCLA, RCRA) and the ongoing need to address contamination from past activities, including munitions. Historical spending patterns often show a consistent demand for these services, with fluctuations based on new site discoveries, regulatory changes, and budget allocations. This $41.7 million award for environmental remediation and MMRP services fits within this established trend, addressing a persistent need. The fact that it's a sole-source task order under a SATOC might indicate a strategic approach to managing specific types of environmental work or a pre-existing relationship with the contractor for these specialized services, rather than a deviation from the overall spending trajectory on environmental compliance and cleanup.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, 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: $69,534,661

Exercised Options: $41,721,200

Current Obligation: $41,721,200

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9128F25DA015

IDV Type: IDC

Timeline