Army awards $11.18M for environmental remediation, with 3 bids received under full and open competition
Contract Overview
Contract Amount: $11,181,440 ($11.2M)
Contractor: Sevenson Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-29
End Date: 2028-08-28
Contract Duration: 1,826 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FORMER KIL-TONE OU2 PHASE 1 REMEDIAL ACTION
Place of Performance
Location: VINELAND, CUMBERLAND County, NEW JERSEY, 08360
Plain-Language Summary
Department of Defense obligated $11.2 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: FORMER KIL-TONE OU2 PHASE 1 REMEDIAL ACTION Key points: 1. Contract value represents a significant investment in environmental cleanup services. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of service. 3. Contract duration of five years indicates a long-term commitment to the remediation project. 4. The cost-plus-fixed-fee structure may incentivize efficient cost management by the contractor. 5. Geographic focus on New Jersey highlights regional environmental priorities. 6. The award falls within the broad category of remediation services, a critical environmental sector.
Value Assessment
Rating: good
Benchmarking the $11.18 million award for environmental remediation services is challenging without specific details on the scope of work and the complexity of the site. However, the presence of multiple bidders suggests a degree of market competitiveness that can help control costs. The cost-plus-fixed-fee (CPFF) contract type, while common for complex projects where costs are uncertain, requires careful oversight to ensure value for money. Compared to similar large-scale remediation projects, the pricing appears within a reasonable range, assuming the scope is comparable.
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. With three bids received, the competition level appears moderate. While more bidders could potentially drive prices lower, three offers suggest that the market for these specialized remediation services is not overly concentrated. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: The full and open competition with multiple bidders provides a reasonable assurance that taxpayer funds are being used efficiently, as the contractor had to compete on price and technical merit.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the local environment in New Jersey, through the cleanup of hazardous materials. Services delivered include remedial action, which involves the cleanup and containment of environmental contaminants. The geographic impact is concentrated in New Jersey, addressing specific environmental concerns within the state. Workforce implications include the employment of environmental scientists, engineers, and remediation technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Ensuring the long-term effectiveness of the remediation actions requires robust post-remediation monitoring.
- The specific nature of the contaminants and site complexity could present unforeseen challenges impacting cost and schedule.
Positive Signals
- Awarded under full and open competition, suggesting a fair and transparent procurement process.
- The contractor, SEVENSON ENVIRONMENTAL SERVICES, INC., has experience in environmental remediation projects.
- The contract duration allows for sustained effort to address the environmental issues.
Sector Analysis
The environmental remediation services sector is a critical component of the broader environmental services industry, which is driven by regulatory compliance, infrastructure development, and the need to address legacy contamination. This contract falls within the remediation sub-sector, focusing on cleaning up contaminated sites. The market size for environmental remediation is substantial, with significant government spending driven by federal mandates like CERCLA (Superfund). This contract represents a specific instance of federal investment in addressing environmental liabilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. The absence of a small business set-aside suggests that the competition was open to all qualified firms, and the focus was on securing the best offer regardless of business size. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Army. The cost-plus-fixed-fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is typically maintained through contract reporting mechanisms and public contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Superfund Program
- Defense Environmental Programs
- Site Remediation
Risk Flags
- Cost-Plus-Fixed-Fee contract type requires robust government oversight to manage potential cost overruns.
- Long contract duration (5 years) increases exposure to potential changes in scope, technology, or environmental regulations.
- Environmental remediation projects inherently carry risks related to unforeseen site conditions and contaminant complexities.
Tags
environmental-remediation, department-of-defense, department-of-the-army, new-jersey, remediation-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, hazardous-waste, environmental-cleanup
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. FORMER KIL-TONE OU2 PHASE 1 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 $11.2 million.
What is the period of performance?
Start: 2023-08-29. End: 2028-08-28.
What is the track record of SEVENSON ENVIRONMENTAL SERVICES, INC. with federal contracts, particularly in environmental remediation?
SEVENSON ENVIRONMENTAL SERVICES, INC. has a history of performing environmental remediation services for various federal agencies. While specific details on past performance metrics for this particular contractor require deeper database searches, their ability to win a contract of this magnitude from the Department of the Army suggests they have a demonstrated capability and a satisfactory performance record. Federal procurement databases often contain past performance evaluations, which would provide a more granular view of their success rates, adherence to schedule and budget, and overall client satisfaction on previous projects. It is common for agencies to review past performance as a key evaluation factor in awarding new contracts.
How does the awarded amount of $11.18 million compare to similar environmental remediation contracts awarded by the Department of Defense?
The $11.18 million award for this remedial action phase is a significant but not extraordinary amount for large-scale environmental cleanup projects. The Department of Defense manages numerous sites requiring remediation, and contract values can range widely based on the complexity, size, and duration of the cleanup effort. Contracts for initial site investigations might be in the hundreds of thousands, while full-scale remediation efforts, especially those involving hazardous waste or extensive site work over several years, can easily reach tens or hundreds of millions of dollars. This specific award appears to be for a defined phase of work, suggesting it fits within the typical range for substantial, multi-year remediation projects within the DoD portfolio.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for environmental remediation?
The primary risks associated with a CPFF contract for environmental remediation revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government bears the risk of actual project costs. If the contractor is not diligent in managing expenses, or if unforeseen site conditions significantly increase costs, the total expenditure for the government could exceed initial estimates. Effective oversight by the government is crucial to scrutinize all incurred costs, ensure they are reasonable and allocable, and prevent scope creep that inflates the base cost. The contractor's incentive is to complete the work efficiently to maximize their return on the fixed fee, but the government must remain vigilant against potential cost escalations.
What is the expected effectiveness of the remedial action based on the contract details?
The contract details specify 'FORMER KIL-TONE OU2 PHASE 1 REMEDIAL ACTION,' indicating this is a specific phase of a larger cleanup effort. The effectiveness of this phase will depend on the defined scope of work, the chosen remediation technologies, and the contractor's execution. Remedial actions aim to reduce or eliminate the risks posed by contaminants to human health and the environment. Phase 1 typically involves initial cleanup activities. The long-term effectiveness will be assessed through post-remediation monitoring, which is often a separate, ongoing requirement. The contract's success hinges on meeting the technical objectives outlined for this specific phase and contributing to the overall cleanup goals for the site.
How has federal spending on environmental remediation services evolved over the past five years, and where does this contract fit in?
Federal spending on environmental remediation services has remained a consistent and significant area of investment, driven by regulatory requirements and the need to manage legacy contamination across federal lands and facilities. While specific year-over-year figures fluctuate based on agency priorities and available funding, the overall trend shows sustained commitment. The Department of Defense, EPA (Superfund), and Department of Energy are major contributors to this spending. This $11.18 million award fits within the typical annual spending patterns for major remediation projects undertaken by the DoD. It represents a portion of the broader federal effort to address environmental liabilities and ensure compliance with environmental laws.
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: 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: $11,181,440
Exercised Options: $11,181,440
Current Obligation: $11,181,440
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: 2023-08-29
Current End Date: 2028-08-28
Potential End Date: 2028-08-28 00:00:00
Last Modified: 2026-02-11
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