DoD awards $17.77M contract for munitions removal at Camp Swift, Texas, with limited competition

Contract Overview

Contract Amount: $17,767,367 ($17.8M)

Contractor: Dawson Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2023-11-16

End Date: 2028-11-15

Contract Duration: 1,826 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MRS 2, MAIN ARTILLERY RANGE AND IMPACT AREA/BUFFER ZONE AND MRS 4, ARTILLERY RANGE, CAMP SWIFT, TEXAS

Place of Performance

Location: BASTROP, BASTROP County, TEXAS, 78602

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to DAWSON SOLUTIONS, LLC for work described as: MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MRS 2, MAIN ARTILLERY RANGE AND IMPACT AREA/BUFFER ZONE AND MRS 4, ARTILLERY RANGE, CAMP SWIFT, TEXAS Key points: 1. Contract focuses on environmental remediation and closure of artillery ranges. 2. Limited competition raises questions about price discovery and potential cost efficiencies. 3. Contract duration of five years suggests a long-term commitment to site cleanup. 4. The firm-fixed-price structure aims to control costs for the government. 5. Geographic focus on Texas highlights regional environmental management efforts. 6. The award to Dawson Solutions, LLC, represents a significant investment in base closure and environmental services.

Value Assessment

Rating: fair

The contract value of $17.77 million for munitions removal and range closure appears substantial. Without specific benchmarks for similar large-scale environmental remediation projects involving artillery ranges, a precise value-for-money assessment is challenging. The firm-fixed-price contract type suggests an attempt to cap costs, but the limited competition could mean the government did not secure the most competitive pricing available. Further analysis would require comparing this contract's unit costs for specific remediation tasks against industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicating a limited competition scenario. The specific reasons for this limitation are not detailed in the provided data, but it suggests that only a select number of contractors were considered or eligible. This lack of broad competition may have restricted the pool of potential bidders, potentially impacting the government's ability to achieve the lowest possible price through robust market forces.

Taxpayer Impact: Limited competition can lead to higher costs for taxpayers as the government may not benefit from the full range of pricing and innovation that open competition typically fosters.

Public Impact

The primary beneficiaries are the Department of Defense and the state of Texas, ensuring environmental safety and compliance at Camp Swift. Services delivered include the removal of munitions and explosives of concern, and the closure of artillery ranges. The geographic impact is concentrated in Bastrop County, Texas, addressing environmental liabilities at a military installation. Workforce implications may include specialized environmental remediation professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs than if the contract were fully competed.
Lack of transparency regarding the reasons for limited competition raises accountability concerns.
The long duration of the contract could lead to cost overruns if not managed effectively.

Positive Signals

Firm-fixed-price contract type helps to control costs and provides budget certainty.
The contract addresses critical environmental safety and compliance requirements for a military installation.
The award signifies a commitment to responsible environmental stewardship by the Department of Defense.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of government contracting, particularly for military installations undergoing closure or modernization. The market for such services is specialized, requiring expertise in handling hazardous materials and complex site cleanup. Comparable spending benchmarks would typically involve other large-scale environmental cleanup contracts awarded by federal agencies like the EPA or DoD for similar types of sites.

Small Business Impact

The provided data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses detailed here. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within a set budget. Transparency regarding the contract's execution and performance would be managed through standard government reporting mechanisms, though specific details on oversight mechanisms beyond the contract type are not provided.

Related Government Programs

Military Base Realignment and Closure (BRAC) environmental cleanup programs
Department of Defense Environmental Restoration Program
Superfund site remediation contracts
Ordnance and Explosives Remediation Services

Risk Flags

Limited competition
Potential for cost overruns due to unforeseen environmental conditions
Contractor performance risk
Environmental hazards associated with munitions removal

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to DAWSON SOLUTIONS, LLC. MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MRS 2, MAIN ARTILLERY RANGE AND IMPACT AREA/BUFFER ZONE AND MRS 4, ARTILLERY RANGE, CAMP SWIFT, TEXAS

Who is the contractor on this award?

The obligated recipient is DAWSON SOLUTIONS, 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 $17.8 million.

What is the period of performance?

Start: 2023-11-16. End: 2028-11-15.

What is the track record of Dawson Solutions, LLC in performing similar environmental remediation contracts for the Department of Defense?

Assessing the track record of Dawson Solutions, LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without this specific data, it's difficult to definitively gauge their experience and capability in handling complex munitions removal and range closure projects. A strong past performance record would indicate a lower risk for the government, while a history of issues might suggest potential challenges in execution and adherence to schedule and budget.

How does the awarded value compare to similar munitions removal and range closure contracts?

A direct comparison of the $17.77 million award to similar contracts is challenging without access to a comprehensive database of comparable projects. Factors influencing cost include the size and complexity of the ranges, the types and quantities of munitions present, the specific remediation technologies required, and the duration of the cleanup effort. Generally, large-scale environmental remediation projects for military sites can range from millions to hundreds of millions of dollars. The firm-fixed-price nature of this contract aims to provide cost certainty, but the 'limited competition' aspect means a benchmark against fully competed contracts is crucial for assessing value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if unforeseen environmental conditions arise, delays in the remediation process due to the hazardous nature of munitions, and contractor performance issues. Mitigation strategies often involve robust government oversight, clear contract specifications, contingency planning, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The limited competition itself presents a risk of suboptimal pricing. The government's mitigation for this specific risk would ideally involve thorough pre-award negotiations and a clear understanding of the contractor's cost basis.

How effective is the firm-fixed-price contract type in ensuring successful program outcomes for environmental remediation?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty for the government, as the contractor assumes most of the risk for cost overruns. For environmental remediation, this can incentivize efficiency. However, FFP contracts can sometimes lead to contractors cutting corners on quality or safety if not rigorously overseen, or may result in higher initial bid prices to account for contractor risk. For complex projects like munitions removal, where unforeseen conditions are possible, an FFP contract requires very clear scope definition and strong government oversight to ensure all necessary work is completed to standard.

What are the historical spending patterns for munitions removal and range closure at Camp Swift or similar Army installations?

Analyzing historical spending patterns for munitions removal and range closure at Camp Swift or similar Army installations would provide crucial context for this $17.77 million award. This involves examining past contracts for these specific activities, their values, durations, and outcomes. Significant historical spending in this area suggests ongoing environmental challenges and a sustained need for these services. A review might reveal trends in cost escalation, the effectiveness of different contract types, and the typical number of bidders for such specialized work, helping to contextualize the current award's value and competitive landscape.

What are the implications of the 'limited competition' designation for taxpayer value and contractor accountability?

The 'limited competition' designation implies that the contract was not offered to the broadest possible market, potentially reducing the number of bids received. This can lead to several implications: 1) Reduced Price Competition: Without a wide array of bidders vying for the contract, the government may not achieve the lowest possible price. 2) Contractor Accountability: While accountability is built into the contract terms, limited competition might reduce the pressure on the contractor to perform exceptionally well, as the threat of losing future business to competitors is lessened. 3) Justification Required: Agencies typically must justify limited competition, suggesting specific circumstances (e.g., unique capabilities, urgent needs) led to this approach. Taxpayers may bear a higher cost due to the lack of robust market forces driving down the price.

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: W912BV23R0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4100 MARKET ST, HUNTSVILLE, AL, 35808

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

Financial Breakdown

Contract Ceiling: $18,995,993

Exercised Options: $17,767,367

Current Obligation: $17,767,367

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline