DoD awards $11.5M for groundwater remediation at former Nebraska ordnance plant, highlighting long-term environmental cleanup needs

Contract Overview

Contract Amount: $11,546,974 ($11.5M)

Contractor: ECC Environmental LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-16

End Date: 2027-09-30

Contract Duration: 1,749 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDWATER EXTRACTION AND TREATMENT SYSTEM OPERATION AND MAINTENANCE AT THE FORMER NEBRASKA ORDNANCE PLANT

Place of Performance

Location: MEAD, SAUNDERS County, NEBRASKA, 68041

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to ECC ENVIRONMENTAL LLC for work described as: GROUNDWATER EXTRACTION AND TREATMENT SYSTEM OPERATION AND MAINTENANCE AT THE FORMER NEBRASKA ORDNANCE PLANT Key points: 1. Contract addresses critical environmental remediation, ensuring compliance with regulatory standards. 2. Long-term operation and maintenance suggest a sustained commitment to site closure. 3. The fixed-price contract structure aims to control costs over the performance period. 4. Competition dynamics will be key to assessing value for taxpayer dollars. 5. Performance context is crucial for understanding the effectiveness of remediation efforts. 6. Sector positioning within environmental services highlights the ongoing need for legacy site cleanup.

Value Assessment

Rating: good

The contract value of $11.5 million over approximately five years for groundwater extraction and treatment system operation and maintenance appears reasonable given the scope of environmental remediation. While direct comparisons are difficult without specific site complexities, similar long-term environmental O&M contracts for Superfund or formerly used defense sites often fall within a comparable cost range. The firm-fixed-price nature of the contract provides cost certainty for the government, assuming the contractor can accurately estimate and manage operational expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially limited pool of qualified bidders. With 6 bidders, the competition level is moderate, which can still lead to price discovery but may not achieve the same level of aggressive pricing as a fully open competition with a larger number of participants.

Taxpayer Impact: A moderate level of competition suggests that taxpayers are likely receiving a fair price, but there may be opportunities for greater cost savings if a broader range of qualified contractors could participate.

Public Impact

The primary beneficiaries are the local community and environment surrounding the former Nebraska Ordnance Plant, through the mitigation of hazardous groundwater contamination. The services delivered include the ongoing operation and maintenance of a groundwater extraction and treatment system, crucial for long-term site remediation. The geographic impact is localized to the former Nebraska Ordnance Plant site and its immediate vicinity in Nebraska. Workforce implications include employment for environmental engineers, technicians, and support staff involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions impact treatment system efficiency.
Risk of contractor performance issues impacting the effectiveness and timeline of remediation.
Dependence on specialized technical expertise may limit contractor options in the future.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Moderate competition among bidders suggests a reasonable price was likely achieved.
Long-term nature of the contract allows for sustained focus on environmental cleanup goals.

Sector Analysis

This contract falls within the environmental remediation services sector, a critical component of the broader environmental consulting and engineering industry. This sector is driven by regulatory compliance, legacy site cleanup (particularly for former industrial and defense sites), and ongoing environmental stewardship. The market size for environmental remediation is substantial, with significant government spending allocated to address contaminated sites across the nation. This contract represents a typical investment in long-term operational maintenance for such a site.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The prime contractor, ECC ENVIRONMENTAL LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem is therefore indirect, potentially through opportunities if ECC Environmental subcontracts, but not through direct set-aside provisions.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, under the purview of the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is facilitated through contract award data, but detailed operational reports and Inspector General oversight would be contingent on specific contract clauses and agency protocols.

Related Government Programs

Environmental Remediation Services
Formerly Used Defense Sites (FUDS) Program
Groundwater Treatment Systems
Environmental Compliance and Monitoring
Hazardous Waste Management

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Contract performance risk associated with long-term O&M.
Limited competition may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to ECC ENVIRONMENTAL LLC. GROUNDWATER EXTRACTION AND TREATMENT SYSTEM OPERATION AND MAINTENANCE AT THE FORMER NEBRASKA ORDNANCE PLANT

Who is the contractor on this award?

The obligated recipient is ECC 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 $11.5 million.

What is the period of performance?

Start: 2022-12-16. End: 2027-09-30.

What is the track record of ECC ENVIRONMENTAL LLC in managing similar large-scale environmental remediation contracts for the Department of Defense?

ECC ENVIRONMENTAL LLC has a significant history of performing environmental services for government agencies, including the Department of Defense. Their experience often encompasses remediation, demolition, and base realignment and closure activities. Analyzing their past performance on contracts of similar scope and value, particularly those involving long-term groundwater treatment systems at ordnance or industrial sites, would be crucial. This includes reviewing past performance evaluations, any contract disputes or claims, and their ability to meet schedule and budget requirements on previous projects. A review of their contract history with the Army Corps of Engineers or other DoD entities would provide further insight into their capabilities and reliability in managing complex environmental operations.

How does the awarded amount compare to the estimated cost for similar groundwater extraction and treatment system operations and maintenance contracts?

Benchmarking the $11.5 million award for approximately 1749 days (roughly 5 years) requires detailed analysis of the specific technical requirements, site conditions, and treatment technologies involved. However, general industry cost data for operating and maintaining groundwater treatment systems can provide a comparative perspective. Factors such as flow rates, contaminant types and concentrations, energy costs, labor rates, and regulatory compliance requirements significantly influence per-gallon or per-year operational costs. Without these specifics, a precise comparison is challenging. However, if the average daily cost ($11.5M / 1749 days ≈ $6,577/day) is significantly higher or lower than comparable contracts for similar complexities, it could indicate either exceptional value or potential risk.

What are the primary risks associated with the long-term operation and maintenance of groundwater extraction and treatment systems at former ordnance sites?

Key risks include the potential for unforeseen geological or hydrological conditions that could impact extraction efficiency or treatment system performance. Changes in contaminant concentrations or the emergence of new contaminants could necessitate modifications to the treatment process, leading to increased costs and potential delays. Equipment failure, aging infrastructure, and the need for specialized maintenance personnel also pose risks. Furthermore, evolving environmental regulations could require upgrades to the treatment system. Ensuring consistent power supply and managing hazardous waste generated during the treatment process are ongoing operational challenges. Finally, the long-term nature of the contract introduces risks related to contractor performance stability and the potential for cost escalation if not managed effectively.

What is the expected effectiveness of the groundwater extraction and treatment system in achieving site closure goals at the former Nebraska Ordnance Plant?

The effectiveness of the groundwater extraction and treatment system is directly tied to its design specifications, operational efficiency, and the specific hydrogeological characteristics of the former Nebraska Ordnance Plant. The system's goal is typically to reduce contaminant concentrations in groundwater to levels that meet regulatory standards (e.g., EPA or state environmental agency requirements), thereby protecting human health and the environment. Achieving site closure requires demonstrating sustained compliance with these standards over a defined period. The long-term operation and maintenance contract suggests a commitment to this process. Performance metrics, such as contaminant removal rates, system uptime, and compliance monitoring data, will be critical indicators of the system's effectiveness in moving towards remediation goals.

How has federal spending on environmental remediation at formerly used defense sites evolved over the past decade?

Federal spending on environmental remediation at Formerly Used Defense Sites (FUDS) has been a consistent, albeit fluctuating, priority for the Department of Defense. Over the past decade, funding levels have generally remained substantial, reflecting the ongoing need to address environmental liabilities inherited from past military activities. While specific annual allocations can vary based on congressional appropriations, emerging environmental challenges, and the prioritization of cleanup projects, the overall trend indicates a sustained commitment. Factors influencing spending include the number of sites requiring remediation, the complexity of the contamination, and advancements in remediation technologies. Budgetary pressures and competing defense priorities can also impact funding levels, but the long-term nature of many FUDS cleanups necessitates continuous investment.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ21R3004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY STE 317, BURLINGAME, CA, 94010

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,326,092

Exercised Options: $13,222,642

Current Obligation: $11,546,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ22D3008

IDV Type: IDC

Timeline