DoD awards $29.6M for FUSRAP cleanup, with SevenSons Environmental Services to manage remediation in New Jersey

Contract Overview

Contract Amount: $29,570,360 ($29.6M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-22

End Date: 2025-12-09

Contract Duration: 901 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FORMER DUPONT CHAMBERS WORKS FUSRAP REMEDIAL ACTION, TO # 7: EXCAVATION, BACKFILL, GENERAL CONDITIONS, CUBIC YARDS, ETC.

Place of Performance

Location: DEEPWATER, SALEM County, NEW JERSEY, 08023

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: FORMER DUPONT CHAMBERS WORKS FUSRAP REMEDIAL ACTION, TO # 7: EXCAVATION, BACKFILL, GENERAL CONDITIONS, CUBIC YARDS, ETC. Key points: 1. Contract focuses on excavation, backfill, and general conditions for environmental remediation. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Competition was 'Full and Open After Exclusion of Sources,' indicating a specific but competitive process. 4. The duration of 901 days suggests a significant, multi-year cleanup effort. 5. This award falls under Remediation Services, a critical sector for environmental management. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or program.

Value Assessment

Rating: fair

Benchmarking the value of this specific remediation action is challenging without detailed cost breakdowns and comparable project scopes. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for unforeseen site conditions, inherently carries a higher risk of cost overruns compared to fixed-price contracts. The awarded amount of $29.6 million covers a defined scope of work, but the final cost will depend on actual expenses incurred and the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was open to all eligible sources, certain pre-qualification criteria or specific exclusions were applied, potentially limiting the pool of bidders. The number of bidders is not provided, making it difficult to fully assess the intensity of competition and its impact on price discovery.

Taxpayer Impact: The 'limited' competition level, while potentially necessary for specialized environmental work, may result in less aggressive pricing than a truly open competition. Taxpayers benefit from the specialized expertise required for such complex cleanup, but the specific bidding process warrants scrutiny to ensure optimal value.

Public Impact

The primary beneficiaries are the environment and public health in New Jersey, through the cleanup of hazardous sites. Services delivered include excavation, backfilling, and general site remediation activities. The geographic impact is localized to the specific FUSRAP site in New Jersey. Workforce implications include employment for environmental engineers, technicians, and construction labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces potential for cost escalation.
Limited competition details make it hard to confirm optimal price discovery.
FUSRAP projects can be complex and subject to unforeseen site conditions, impacting timelines and costs.

Positive Signals

Award to an established environmental services company suggests technical capability.
Remediation of FUSRAP sites is a critical environmental stewardship activity.
Delivery Order structure implies it fits within a broader, potentially pre-vetted, contracting framework.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a specialized niche within the broader professional services industry. The Federal Government, particularly agencies like the Department of Defense, frequently engages contractors for cleanup of Formerly Used Defense Sites (FUDS) and Formerly Utilized Sites Remedial Action Program (FUSRAP) locations. Market size for environmental remediation is substantial, driven by regulatory requirements and historical contamination. This contract represents a specific project within that larger market.

Small Business Impact

The data indicates that small business participation (sb) is false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The focus on a large-scale remediation project often requires significant resources and bonding capacity, which can favor larger, established firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures against the estimated cost and ensure the fixed fee is justified. Transparency is enhanced through contract reporting mechanisms, but specific details on public access to progress reports or cost breakdowns are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Formerly Used Defense Sites (FUDS) Remedial Action
Environmental Consulting Services
Hazardous Waste Management
Construction Remediation Services
Department of Defense Environmental Programs

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition details
Potential for unforeseen site conditions
Environmental remediation complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. FORMER DUPONT CHAMBERS WORKS FUSRAP REMEDIAL ACTION, TO # 7: EXCAVATION, BACKFILL, GENERAL CONDITIONS, CUBIC YARDS, ETC.

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 $29.6 million.

What is the period of performance?

Start: 2023-06-22. End: 2025-12-09.

What is the track record of SevenSons Environmental Services, Inc. with similar federal remediation contracts?

SevenSons Environmental Services, Inc. has a history of performing environmental remediation work for federal agencies. Analyzing their past performance on similar FUSRAP or FUDS projects, particularly those involving excavation and backfill under Cost Plus Fixed Fee contracts, would provide insight into their ability to manage costs and schedules effectively. Reviewing past contract awards, performance evaluations (e.g., CPARS), and any documented disputes or claims would offer a clearer picture of their reliability and expertise in handling complex environmental cleanup operations. Understanding their experience with the specific regulatory environment in New Jersey would also be beneficial.

How does the awarded amount compare to the estimated cost for similar FUSRAP remediation actions?

Direct comparison of the $29.6 million award to similar FUSRAP remediation actions is difficult without standardized metrics and detailed project scopes. FUSRAP sites vary significantly in contamination type, volume, and complexity. However, the award amount suggests a substantial cleanup effort. Benchmarking would ideally involve comparing the cost per cubic yard of material excavated and backfilled, or cost per acre remediated, against other large-scale federal environmental cleanup projects. The Cost Plus Fixed Fee structure means the final cost could deviate from the initial award, making a precise value comparison challenging until project completion.

What are the primary risks associated with this specific remediation contract?

The primary risks include unforeseen subsurface conditions (e.g., encountering unexpected hazardous materials, groundwater issues, or geological challenges) that could increase costs and extend the schedule. The Cost Plus Fixed Fee (CPFF) contract type itself is a risk, as it provides less incentive for the contractor to control costs compared to fixed-price contracts. There's also a risk related to regulatory compliance, ensuring all remediation activities meet stringent environmental standards. Finally, potential delays in permitting or stakeholder engagement could impact project timelines. The 'limited' competition also poses a risk if it resulted in less competitive pricing.

How effective are Cost Plus Fixed Fee contracts for managing complex environmental remediation projects like FUSRAP?

Cost Plus Fixed Fee (CPFF) contracts are often used for complex projects where the scope is not fully defined at the outset, such as environmental remediation, due to the potential for unforeseen site conditions. This contract type allows for flexibility in addressing unexpected issues while providing the contractor with an incentive to perform the work efficiently to earn their fixed fee. However, CPFF contracts place a significant burden on the government to closely monitor costs and contractor performance to prevent overspending. While they can be effective in enabling necessary work under uncertainty, they require robust oversight to ensure value for taxpayer money and mitigate the risk of cost overruns compared to fixed-price arrangements.

What is the historical spending trend for FUSRAP remediation services by the Department of Defense?

Historical spending on FUSRAP remediation by the Department of Defense has been substantial and ongoing for decades, reflecting the long-term commitment to addressing contamination from past nuclear weapons programs. Annual spending can fluctuate based on the number and complexity of active cleanup sites, available funding appropriations, and specific project milestones. While a precise trend requires detailed historical budget data, it's generally understood that FUSRAP cleanup represents a significant, multi-billion dollar program over its lifespan. The Army Corps of Engineers manages the majority of this work, awarding numerous contracts annually for various site-specific remediation activities.

What does 'Full and Open Competition After Exclusion of Sources' mean in the context of this contract?

This specific procurement method, 'Full and Open Competition After Exclusion of Sources,' indicates that while the competition was intended to be open to all responsible sources, certain sources were excluded based on pre-defined criteria. This often occurs when a specific technology, capability, or prior work is required, and only a subset of potential offerors meets those stringent requirements. It's a deviation from unrestricted full and open competition but aims to ensure that the most qualified contractors participate. The justification for excluding sources must be documented and approved, ensuring fairness while potentially narrowing the competitive field to those best suited for the specialized task.

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: $31,918,505

Exercised Options: $29,570,360

Current Obligation: $29,570,360

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