DoD Awards $22.2M for Dupont Chambers Works Remediation Services to Sevenson Environmental

Contract Overview

Contract Amount: $22,192,742 ($22.2M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-13

End Date: 2026-11-13

Contract Duration: 730 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SEED TASK ORDER - MOBILIZATION AND REMEDIATION SERVICES AT FORMER DUPONT CHAMBERS WORKS FUSRAP IN DEEPWATER, NJ

Place of Performance

Location: DEEPWATER, SALEM County, NEW JERSEY, 08023

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: SEED TASK ORDER - MOBILIZATION AND REMEDIATION SERVICES AT FORMER DUPONT CHAMBERS WORKS FUSRAP IN DEEPWATER, NJ Key points: 1. Contract awarded to Sevenson Environmental Services, Inc. for significant remediation project. 2. Project involves mobilization and remediation at a former FUSRAP site in New Jersey. 3. Full and open competition was utilized after excluding sources, suggesting a competitive process. 4. The contract type is Cost Plus Fixed Fee, which can pose cost control challenges.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar large-scale environmental remediation contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies an initial limited search or pre-qualification, followed by a broader competition. The pricing impact depends on the rigor of the source exclusion and the subsequent competitive bidding.

Taxpayer Impact: Taxpayers bear the cost of remediation, with the potential for cost efficiencies depending on the effectiveness of the competitive process and contract management.

Public Impact

Environmental cleanup at a former industrial site, addressing potential hazards. Project located in Deepwater, NJ, impacting the local community and environment. Long-term remediation efforts are crucial for public health and ecological restoration. Government oversight is essential to ensure effective and responsible cleanup.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Potential for cost overruns if not closely monitored.
Environmental remediation projects are complex and can face unforeseen challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Addresses a critical environmental remediation need.
Long-term contract duration allows for thorough project completion.

Sector Analysis

This contract falls within the environmental remediation sector, specifically addressing Formerly Utilized Sites Remedial Action Program (FUSRAP) sites. Spending in this sector is driven by regulatory requirements and historical industrial activity, with significant government investment.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Sevenson Environmental Services, Inc., is a large business. Further analysis would be needed to determine small business participation as subcontractors.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is overseeing this contract. Robust oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the successful completion of the remediation project within budget and scope.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Complexity of environmental remediation.
Potential for unforeseen site conditions.
Effectiveness of 'Full and Open Competition After Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. SEED TASK ORDER - MOBILIZATION AND REMEDIATION SERVICES AT FORMER DUPONT CHAMBERS WORKS FUSRAP IN DEEPWATER, NJ

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 $22.2 million.

What is the period of performance?

Start: 2024-11-13. End: 2026-11-13.

What specific remediation technologies will be employed, and how do their costs compare to industry standards?

The specific remediation technologies are not detailed in the provided data. A thorough review of the contract's statement of work and technical proposals would be necessary to identify the methods. Benchmarking these against industry standards requires access to detailed cost breakdowns and performance data for similar projects, which is not available here.

What are the key risks associated with the 'Full and Open Competition After Exclusion of Sources' approach, and how are they mitigated?

This approach might limit the pool of potential bidders initially, potentially impacting price discovery. Mitigation strategies likely involve a clear justification for source exclusion and a robust competitive process during the open phase to ensure fair pricing and selection of the most capable contractor.

How will the effectiveness of the remediation be measured and verified to ensure long-term environmental protection?

Effectiveness will likely be measured through rigorous environmental monitoring, sampling, and analysis throughout and after the remediation process. Verification will involve independent third-party assessments and adherence to strict regulatory standards set by agencies like the EPA and state environmental departments.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BU24R0017

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: $34,516,256

Exercised Options: $22,192,742

Current Obligation: $22,192,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912BU25D0001

IDV Type: IDC

Timeline