DoD awards $28.9M for Superfund site cleanup, with 3 bidders competing for remediation services

Contract Overview

Contract Amount: $28,918,146 ($28.9M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-21

End Date: 2025-01-20

Contract Duration: 1,826 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CORNELL-DUBILIER ELECTRONICS SUPERFUND SITE OU4 PHASE 1/2 REMEDIAL ACTION

Place of Performance

Location: SOUTH PLAINFIELD, MIDDLESEX County, NEW JERSEY, 07080

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: CORNELL-DUBILIER ELECTRONICS SUPERFUND SITE OU4 PHASE 1/2 REMEDIAL ACTION Key points: 1. Contract value appears reasonable given the scope of environmental remediation. 2. Full and open competition suggests a healthy market for these specialized services. 3. Contract duration of 5 years indicates a complex, long-term project. 4. Cost-plus-fixed-fee structure requires careful monitoring of costs to ensure value. 5. The project is situated in New Jersey, a state with significant environmental cleanup needs. 6. This contract addresses a critical environmental hazard at a Superfund site.

Value Assessment

Rating: good

The contract value of $28.9 million for a 5-year remediation project at a Superfund site is within a reasonable range for complex environmental cleanup. Benchmarking against similar large-scale Superfund remediation contracts, which can range from tens to hundreds of millions of dollars depending on site complexity and duration, suggests this award is appropriately scaled. The cost-plus-fixed-fee (CPFF) pricing structure, while common for such projects, necessitates diligent oversight to manage costs effectively and ensure taxpayer funds are used efficiently. Without specific per-unit cost data for remediation activities, a direct cost comparison is difficult, but the overall award amount aligns with the anticipated scale of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bidders participated in this competition, which is a moderate level of competition for a specialized service like Superfund site remediation. While more bidders could potentially drive prices lower, three bidders suggest sufficient market interest and a degree of price discovery. The agency's decision to use full and open competition is generally positive for ensuring fair pricing and access to qualified contractors.

Taxpayer Impact: The use of full and open competition with multiple bidders helps ensure that taxpayer dollars are not overspent, as contractors are incentivized to offer competitive pricing to win the award. This approach maximizes the potential for cost savings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the residents and environment of New Jersey, who will see a Superfund site remediated. The services delivered include Phase 1/2 remedial action at the Cornell-Dubilier Electronics Superfund Site. The geographic impact is localized to the specific Superfund site in New Jersey. The contract supports specialized environmental engineering and construction workforce in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
The duration of the contract (5 years) increases the risk of unforeseen cost escalations.
Reliance on a limited number of bidders (3) could reduce competitive pressure over time.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
The contract addresses a critical environmental remediation need, aligning with public health and safety goals.
The selected contractor, SevenSon Environmental Services, Inc., likely possesses the necessary expertise for this complex task.

Sector Analysis

The environmental remediation services sector is a critical component of the broader construction and engineering industry, focused on cleaning up contaminated sites. This contract falls under the remediation services sub-sector, which is driven by regulatory requirements (like Superfund) and increasing environmental awareness. The market size for environmental remediation is substantial, with government contracts forming a significant portion due to the extensive number of federal Superfund and other contaminated sites. This specific contract for a Superfund site cleanup is a typical example of federal spending in this area, often involving complex technical challenges and long project timelines.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The award went to SevenSon Environmental Services, Inc., which is likely a large business given the contract value. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, though the prime contractor may engage small businesses as subcontractors if it aligns with their project execution strategy.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, within the Department of Defense. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure cost reasonableness. The contract's duration and complexity suggest regular reporting and performance reviews will be in place. Inspector General (IG) jurisdiction would typically apply to ensure the integrity of the procurement and contract execution processes, investigating fraud, waste, or abuse if necessary. Transparency is usually maintained through contract award databases and public reporting of federal spending.

Related Government Programs

Superfund Remedial Action Contracts
Environmental Remediation Services
Department of Defense Environmental Programs
Hazardous Waste Management

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration (5 years) increases exposure to potential cost escalations and scope creep.
Environmental remediation projects inherently carry risks related to unforeseen site conditions and regulatory changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. CORNELL-DUBILIER ELECTRONICS SUPERFUND SITE OU4 PHASE 1/2 REMEDIAL ACTION

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 $28.9 million.

What is the period of performance?

Start: 2020-01-21. End: 2025-01-20.

What is the track record of SevenSon Environmental Services, Inc. in performing similar large-scale environmental remediation projects, particularly for the Department of Defense or EPA Superfund site

SevenSon Environmental Services, Inc. has a history of performing environmental remediation work. While specific details on their track record for large-scale DoD or EPA Superfund projects require deeper investigation beyond the provided data, their selection for this $28.9 million contract suggests they possess the requisite experience and qualifications. A thorough review would involve examining past performance evaluations, project complexity, client satisfaction, and any history of disputes or contract modifications on similar projects. Understanding their experience with the specific types of contaminants and remediation technologies relevant to the Cornell-Dubilier Electronics Superfund Site would be particularly important for assessing their capability and the potential risks associated with this contract.

How does the awarded amount of $28.9 million compare to the estimated costs for similar Superfund site remediation projects of comparable complexity and duration?

The awarded amount of $28.9 million for a 5-year remedial action at a Superfund site is within the expected range for such complex environmental projects. Superfund cleanups can vary significantly in cost, often ranging from millions to hundreds of millions of dollars, depending on factors like the extent and type of contamination, the chosen remediation technologies, site accessibility, and the duration of the work. Given that this is a Phase 1/2 remedial action, it represents a significant but potentially not the entirety of the cleanup effort. Benchmarking against publicly available data for similar EPA or DoD-led Superfund site cleanups of comparable scale and duration would provide a more precise comparison. However, the figure itself does not immediately suggest overpricing, especially considering the specialized nature of the work and the regulatory oversight involved.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific remediation project, and what mitigation strategies are in place?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the burden, although the fixed fee provides the contractor with a predictable profit margin. For this remediation project, risks could include unforeseen site conditions, changes in regulatory requirements, or difficulties in implementing chosen remediation technologies. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear definition of work scope, and strong contract management to ensure all costs are reasonable, allocable, and necessary. The fixed fee itself acts as a ceiling on the contractor's profit, incentivizing efficiency to some degree, but close monitoring of the 'cost' portion is paramount.

What is the historical spending pattern for remediation services at the Cornell-Dubilier Electronics Superfund Site, and how does this award fit into the overall cleanup program?

The provided data indicates this is a Phase 1/2 Remedial Action award for the Cornell-Dubilier Electronics Superfund Site, valued at $28.9 million over five years. This suggests it is a significant component of the site's overall cleanup program. Historical spending patterns for this specific site would need to be researched through EPA or DoD databases, as this single award does not provide a complete picture. Superfund sites often involve multiple phases of work (e.g., Remedial Investigation, Feasibility Study, Remedial Design, Remedial Action, Long-Term Monitoring) and can span decades and involve numerous contracts. This award likely represents a major phase of the active cleanup, following earlier investigation and design phases. Understanding the total estimated cost and timeline for the entire site cleanup would place this contract in better context.

Given the 'full and open competition' with three bidders, what does this level of competition imply about the market for specialized environmental remediation services in New Jersey?

The fact that this contract was awarded under full and open competition with three bidders suggests a moderately competitive market for specialized environmental remediation services in New Jersey. While more bidders could potentially lead to lower prices, three bidders indicate that there are multiple qualified firms capable of undertaking complex Superfund site cleanups. This level of competition is generally sufficient to ensure some degree of price discovery and to allow the agency to select a capable contractor. It implies that the market is not so niche that only one or two firms can perform the work, nor is it so saturated that an overwhelming number of bidders compete. The agency likely has a reasonable pool of qualified contractors to choose from for such projects in the region.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ16R3001

Offers Received: 3

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: $28,918,146

Exercised Options: $28,918,146

Current Obligation: $28,918,146

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ18D3000

IDV Type: IDC

Timeline