DoD awards $39.5M for environmental remediation services in New Jersey

Contract Overview

Contract Amount: $39,540,338 ($39.5M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-12-09

Contract Duration: 1,897 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REMEDIATION SERVICES. TASK ORDER #6.

Place of Performance

Location: DEEPWATER, SALEM County, NEW JERSEY, 08023

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: REMEDIATION SERVICES. TASK ORDER #6. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Task order is part of a larger contract for remediation services. 3. The contract duration of nearly 2000 days indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 5. Performance is located in New Jersey, potentially impacting local environmental quality and workforce. 6. The North American Industry Classification System (NAICS) code 562910 points to specialized environmental remediation.

Value Assessment

Rating: good

The contract value of $39.5 million for environmental remediation services over approximately five years appears reasonable given the scope and duration. While specific benchmarks for this exact type of remediation task order are not readily available, the pricing structure (Cost Plus Fixed Fee) allows for cost transparency and contractor incentive for efficiency. Further analysis would require comparing the fixed fee component and the estimated costs against similar large-scale environmental cleanup projects managed by the DoD or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while the competition was broad, specific sources may have been excluded based on predefined criteria. The term 'full and open' suggests multiple bidders were likely considered. The level of competition, even with exclusions, should contribute to price discovery and potentially more favorable pricing for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more competitive bid and a better price for the remediation services. It ensures that taxpayer funds are used efficiently by selecting the most capable and cost-effective offeror.

Public Impact

The Department of Defense benefits from the remediation of environmental hazards at its facilities. Residents and ecosystems in New Jersey will benefit from the cleanup of contaminated sites. The contract supports specialized environmental cleanup jobs within the remediation sector. The services delivered are critical for environmental compliance and restoration. The geographic impact is focused on New Jersey, addressing specific local environmental concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Complexity of environmental remediation can lead to unforeseen challenges and scope changes.
Ensuring contractor compliance with all environmental regulations and safety standards is crucial.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration suggests a stable and predictable need, allowing for efficient resource planning.
The fixed fee component provides a degree of cost certainty for the government.

Sector Analysis

Environmental remediation services represent a significant sector within the broader environmental services industry. This contract falls under the NAICS code 562910, which covers Remediation Services. The market for environmental remediation is driven by regulatory requirements, industrial cleanup needs, and government facility maintenance. Federal spending in this area is substantial, often related to legacy contamination at military bases and other government sites. This contract with the Department of Defense is a typical example of federal investment in addressing environmental liabilities.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this specific contract (ss: false, sb: false). While the prime contractor, SEVENSON ENVIRONMENTAL SERVICES, INC., is likely a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the remediation tasks. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, a component of the Department of Defense. Accountability measures will likely include regular progress reports, site inspections, and performance reviews to ensure the contractor meets contractual obligations and environmental standards. Transparency is typically maintained through contract databases and public reporting of federal spending. The Inspector General's office for the Department of Defense may also have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF Contract)
Unforeseen Site Conditions
Regulatory Compliance Changes
Contractor Performance Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. REMEDIATION SERVICES. TASK ORDER #6.

Who is the contractor on this award?

The obligated recipient is SEVENSON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $39.5 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-12-09.

What is the track record of SEVENSON ENVIRONMENTAL SERVICES, INC. with the Department of Defense for similar remediation projects?

SEVENSON ENVIRONMENTAL SERVICES, INC. has a history of performing environmental remediation services for various government agencies, including the Department of Defense. Analyzing their past performance on similar contracts would involve reviewing contract databases for prior awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A strong track record with the DoD suggests familiarity with their requirements, reporting protocols, and quality standards, which can be a positive indicator for this current task order. Conversely, a history of performance issues or disputes could raise concerns about the contractor's ability to successfully execute this project within budget and schedule.

How does the estimated cost per year for this contract compare to similar large-scale environmental remediation projects?

The total contract value is approximately $39.5 million over an estimated period of 1897 days (roughly 5.2 years). This equates to an average annual spending of approximately $7.6 million. To benchmark this value, one would need to compare it against similar large-scale environmental remediation projects undertaken by federal agencies, particularly the Department of Defense, in regions with comparable environmental conditions and labor costs. Factors such as the type of contaminants, complexity of the site, regulatory requirements, and the specific remediation technologies employed significantly influence costs. Without detailed project specifics, a direct comparison is challenging, but this annual figure provides a starting point for assessing cost-effectiveness against industry averages for major environmental cleanup efforts.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this environmental remediation project?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, carries inherent risks for the government in environmental remediation projects. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government reimburses allowable costs plus a predetermined fixed fee. If the contractor's actual costs exceed initial estimates, the government bears that additional expense. For complex remediation projects, unforeseen site conditions or technical challenges can significantly drive up costs. Effective oversight, rigorous cost tracking, and clear definition of the fixed fee are crucial to mitigate these risks and ensure the government receives good value.

What is the historical spending trend for environmental remediation services by the Department of the Army in New Jersey?

Analyzing historical spending by the Department of the Army (DoA) in New Jersey for environmental remediation services would involve examining contract data over several fiscal years. This would reveal whether this $39.5 million award represents an increase, decrease, or continuation of previous spending levels. Trends can be influenced by factors such as the identification of new contaminated sites, the progression of ongoing cleanup projects, changes in regulatory priorities, and budget allocations. Understanding these historical patterns can help contextualize the current award and assess its significance within the DoA's broader environmental management strategy for the region.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact the potential for cost savings?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. While it allows for multiple bidders, the exclusion of certain sources might limit the overall competitive pool. The impact on cost savings depends on how many qualified bidders remained and the competitiveness of their proposals. If the excluded sources were significant potential competitors, the savings might be less than in a truly unrestricted full and open competition. However, if the exclusions were based on necessary qualifications or security requirements, and a sufficient number of capable bidders still participated, significant cost savings can still be achieved through the competitive process.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BU17R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2749 LOCKPORT RD, NIAGARA FALLS, NY, 14305

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,456,431

Exercised Options: $39,540,338

Current Obligation: $39,540,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912BU17D0018

IDV Type: IDC

Timeline