Dod Awards $26.7M Superfund Remediation Contract to Sevenson Environmental Services
Contract Overview
Contract Amount: $26,704,375 ($26.7M)
Contractor: Sevenson Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2025-09-28
Contract Duration: 1,095 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: UNIMATIC SUPERFUND OU1 RA
Place of Performance
Location: FAIRFIELD, ESSEX County, NEW JERSEY, 07004
Plain-Language Summary
Department of Defense obligated $26.7 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: UNIMATIC SUPERFUND OU1 RA Key points: 1. Contract awarded for Superfund site remediation in New Jersey. 2. SEVENSON ENVIRONMENTAL SERVICES, INC. secured the contract. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is environmental remediation, a critical but often complex area.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully. Benchmarking against similar remediation contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF structure may limit price discovery and incentivize cost escalation.
Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, which is a necessary public service. The CPFF structure warrants close monitoring to ensure cost efficiency.
Public Impact
Addresses environmental contamination at a Superfund site. Ensures compliance with environmental regulations. Potential for long-term environmental and public health benefits. Remediation efforts can impact local communities and ecosystems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Long duration of contract
Positive Signals
- Full and open competition
- Addresses critical environmental issue
Sector Analysis
Environmental remediation services are crucial for addressing legacy pollution and ensuring public health. Spending in this sector can vary significantly based on the scale and complexity of contamination.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of the Army is overseeing this contract. Robust oversight is essential for CPFF contracts to manage costs and ensure effective remediation.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract structure
- Potential for cost escalation
- Complexity of environmental remediation
- Long contract duration
- Lack of detailed cost breakdown for benchmarking
Tags
remediation-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. UNIMATIC SUPERFUND OU1 RA
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 $26.7 million.
What is the period of performance?
Start: 2022-09-29. End: 2025-09-28.
What is the typical cost range for similar Superfund remediation projects of this scale?
The cost range for Superfund remediation projects varies widely based on site complexity, contaminants, and remediation methods. Projects involving extensive soil and groundwater cleanup can range from tens to hundreds of millions of dollars. Without specific details on the OU1 RA scope, a precise benchmark is challenging, but the $26.7M award suggests a significant but not exceptionally large-scale remediation effort.
What are the primary risks associated with a Cost Plus Fixed Fee contract for environmental remediation?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less efficient cost management if not closely monitored. For environmental remediation, unforeseen site conditions or technical challenges can significantly increase costs, impacting the fixed fee's adequacy or leading to contract modifications.
How effectively will this contract address the specific environmental hazards at UNIMATIC SUPERFUND OU1?
The effectiveness hinges on the contractor's technical expertise, adherence to the remediation plan, and the Department of the Army's oversight. The contract's success will be measured by the reduction in contaminant levels and compliance with regulatory standards. The chosen remediation strategy and the contractor's execution are key determinants of the environmental impact.
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: W912DQ19R3006
Offers Received: 7
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: $26,704,375
Exercised Options: $26,704,375
Current Obligation: $26,704,375
Actual Outlays: $3,372,731
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DQ20D3010
IDV Type: IDC
Timeline
Start Date: 2022-09-29
Current End Date: 2025-09-28
Potential End Date: 2025-09-28 00:00:00
Last Modified: 2024-08-27
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