DoD awards $277M sole-source contract for PFAS mitigation at Reese AFB, Texas

Contract Overview

Contract Amount: $27,700,140 ($27.7M)

Contractor: SES Civil and Environmental LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-31

End Date: 2026-11-30

Contract Duration: 1,552 days

Daily Burn Rate: $17.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PFAS MITIGATION AND MONITORING FORMER REESE AIR FORCE BASE (AFB), LUBBOCK, TX PROJECT NO. UBNY20227242C 8(A) SOLE SOURCE CONTRACT TO SES BASE TASKS ONLY L OPTION 1 AND 2 NOT EXERCISED

Place of Performance

Location: LUBBOCK, LUBBOCK County, TEXAS, 79416

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to SES CIVIL AND ENVIRONMENTAL LLC for work described as: PFAS MITIGATION AND MONITORING FORMER REESE AIR FORCE BASE (AFB), LUBBOCK, TX PROJECT NO. UBNY20227242C 8(A) SOLE SOURCE CONTRACT TO SES BASE TASKS ONLY L OPTION 1 AND 2 NOT EXERCISED Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant investment in environmental remediation, addressing PFAS contamination. 3. Long-term contract duration (approx. 4 years) suggests complex, ongoing work. 4. Firm-fixed-price structure shifts some cost risk to the government. 5. Contractor SES Civil and Environmental LLC is a small business. 6. No small business set-aside, but contractor is an 8(a) participant.

Value Assessment

Rating: fair

The contract value of $277 million for PFAS mitigation and monitoring over approximately four years appears substantial. Without specific benchmarks for PFAS remediation at similar Air Force bases or detailed scope of work, a precise value-for-money assessment is challenging. The firm-fixed-price structure, while providing cost certainty, may not capture the most economical solution if costs decrease significantly during performance. The absence of competition inherently limits the government's ability to secure the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using an 8(a) sole-source justification, meaning it was specifically directed to SES Civil and Environmental LLC without open competition. While this mechanism can support small disadvantaged businesses, it bypasses the standard competitive bidding process. The lack of multiple bidders means the government did not benefit from price proposals and innovative solutions that typically emerge from a competitive environment.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers.

Public Impact

The primary beneficiaries are the Department of the Air Force and the local community in Lubbock, Texas, through the cleanup of hazardous environmental contaminants. Services include PFAS mitigation and monitoring, crucial for environmental protection and public health. The geographic impact is localized to the former Reese Air Force Base in Lubbock, Texas. The contract supports specialized environmental engineering and remediation jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Firm-fixed-price contract shifts cost overrun risk to the government.
Long contract duration may not adapt well to potential technological advancements in PFAS remediation.
Scope of work for 'base tasks only' with options not exercised could lead to future contract modifications or separate procurements.

Positive Signals

Contract awarded to an 8(a) small disadvantaged business, supporting federal small business goals.
Focus on critical environmental remediation addresses significant public health and safety concerns.
Firm-fixed-price contract provides budget certainty for the agency.
Long-term engagement allows for sustained focus on a complex environmental challenge.

Sector Analysis

The environmental remediation sector, particularly concerning PFAS contamination, is a growing area of federal spending driven by regulatory pressures and public health concerns. This contract falls under environmental consulting and remediation services, a market characterized by specialized firms capable of handling complex hazardous waste management. Comparable spending benchmarks are difficult to establish without detailed project scopes, but federal agencies are increasingly allocating significant funds to address PFAS across numerous installations.

Small Business Impact

This contract was awarded under the 8(a) Sole Source program, specifically targeting SES Civil and Environmental LLC, which is a small disadvantaged business. While this directly supports the goals of the 8(a) program by providing a direct contracting opportunity, it means the contract was not competed among other small businesses or set aside for small businesses generally. There is no indication of subcontracting requirements for other small businesses within this sole-source award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers responsible for environmental remediation at Reese AFB. Transparency is limited due to the sole-source nature, reducing public visibility into the justification and pricing. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Environmental Remediation Programs
EPA PFAS Strategic Roadmap Initiatives
Superfund Remedial Actions
Military Base Realignment and Closure (BRAC) Environmental Activities

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns under firm-fixed-price contract.
Limited public data on contractor's large-scale PFAS experience.
Environmental remediation projects inherently carry technical and execution risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to SES CIVIL AND ENVIRONMENTAL LLC. PFAS MITIGATION AND MONITORING FORMER REESE AIR FORCE BASE (AFB), LUBBOCK, TX PROJECT NO. UBNY20227242C 8(A) SOLE SOURCE CONTRACT TO SES BASE TASKS ONLY L OPTION 1 AND 2 NOT EXERCISED

Who is the contractor on this award?

The obligated recipient is SES CIVIL AND 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 $27.7 million.

What is the period of performance?

Start: 2022-08-31. End: 2026-11-30.

What is the historical spending by the Department of the Army on PFAS remediation contracts?

The Department of the Army, like other branches of the DoD, has significantly increased its spending on PFAS remediation and monitoring in recent years. While specific aggregate data for PFAS remediation alone can be difficult to isolate from broader environmental services, federal spending databases show a consistent rise in contracts awarded for environmental cleanup at military installations. For instance, the EPA's PFAS Strategic Roadmap highlights the federal government's commitment to addressing this issue, implying substantial and growing budgetary allocations across agencies. The DoD's own environmental security programs often include line items for hazardous waste management and site remediation, with PFAS becoming a dominant focus. Analyzing trends in contract awards for NAICS code 562910 (Remediation Services) and related environmental categories can provide a broader context for this specific $277 million award, showing it as part of a larger, escalating federal effort.

How does the firm-fixed-price contract type impact cost control for PFAS remediation?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of the actual costs incurred. For the government, this offers budget certainty and shifts the risk of cost overruns to the contractor. However, in complex environmental remediation projects like PFAS cleanup, unforeseen challenges (e.g., subsurface conditions, contaminant spread, regulatory changes) can arise. If the FFP is set too high initially, the government may overpay if actual costs are lower. Conversely, if set too low, the contractor might cut corners or seek change orders, potentially compromising quality or safety. The effectiveness of FFP in this context depends heavily on the thoroughness of the initial scope definition and the contractor's ability to accurately estimate and manage costs under potentially variable conditions.

What are the risks associated with a sole-source award for a large environmental contract?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. Without competing proposals, the government cannot be assured it is receiving the best value or the most cost-effective solution available in the market. This can result in taxpayers paying more than necessary. Furthermore, sole-source contracts can limit the government's access to a wider pool of expertise and potentially more advanced technologies that might have been offered by other qualified firms. It also raises concerns about fairness and equal opportunity for other businesses in the sector. While sole-sourcing can be justified in specific circumstances (e.g., urgency, unique capabilities), it bypasses the standard due diligence inherent in a competitive procurement process.

What is the typical cost range for PFAS remediation at military installations of similar size?

Determining a typical cost range for PFAS remediation at military installations is complex due to significant variability in site conditions, contaminant levels, regulatory requirements, and the specific remediation technologies employed. Projects can range from hundreds of thousands to hundreds of millions of dollars. Factors influencing cost include the size of the affected area, the type and concentration of PFAS, the chosen remediation method (e.g., excavation, in-situ treatment, filtration), the duration of monitoring, and local labor and material costs. For a large base like the former Reese AFB, with an estimated contract value of $277 million over approximately four years, this suggests a comprehensive and potentially extensive remediation effort. Benchmarking requires detailed comparison of site-specific assessments and remediation plans, which are often not publicly available.

What is the track record of SES Civil and Environmental LLC in handling large-scale environmental contracts?

SES Civil and Environmental LLC is identified as an 8(a) participant, indicating it is a small disadvantaged business. Information regarding its specific track record on large-scale environmental contracts, particularly those involving PFAS remediation of this magnitude ($277 million), requires further investigation beyond the provided data. While its participation in the 8(a) program suggests eligibility for government contracts, its experience with projects of comparable size, complexity, and technical requirements would be a key factor in assessing performance risk. Government contract databases and past performance reviews would typically provide insights into the company's successful completion of similar projects, adherence to schedules and budgets, and overall quality of work.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BV22R0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1006 FLOYD CULLER CT STE 4, OAK RIDGE, TN, 37830

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,700,140

Exercised Options: $27,700,140

Current Obligation: $27,700,140

Actual Outlays: $1,671,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline