DoD Awards $62.6M Remediation Contract to Sevenson Environmental Services for Diamond Head OU1 and OU2
Contract Overview
Contract Amount: $62,583,691 ($62.6M)
Contractor: Sevenson Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-11-03
End Date: 2028-11-03
Contract Duration: 1,827 days
Daily Burn Rate: $34.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DIAMOND HEAD OU1 AND OU2 REMEDIAL ACTION
Place of Performance
Location: HARRISON, HUDSON County, NEW JERSEY, 07029
Plain-Language Summary
Department of Defense obligated $62.6 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: DIAMOND HEAD OU1 AND OU2 REMEDIAL ACTION Key points: 1. Contract awarded to Sevenson Environmental Services, Inc. for $62.6 million. 2. The contract is for remedial action at Diamond Head OU1 and OU2. 3. The contract duration is 1827 days, ending November 3, 2028. 4. This falls under Remediation Services (NAICS 562910). 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored. Benchmarking against similar remediation contracts is difficult without more 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 Cost Plus Fixed Fee structure may limit price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for environmental remediation. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure cost efficiency.
Public Impact
Environmental cleanup at a significant military site. Potential long-term environmental benefits for the region. Contract duration indicates a substantial, multi-year project. Job creation in the environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful oversight to control costs.
- Long project duration increases risk of scope creep or unforeseen issues.
- No small business participation indicated.
Positive Signals
- Awarded under full and open competition.
- Addresses critical environmental remediation needs.
- Significant investment in environmental cleanup.
Sector Analysis
Environmental remediation services are crucial for addressing legacy contamination at federal sites. Spending in this sector can vary significantly based on the scale and complexity of the cleanup required.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award. Future contracts could explore opportunities for small business participation in subcontracting roles.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates strong government oversight to ensure costs are reasonable and the work is performed efficiently. Regular reviews and audits will be critical.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long project duration (5 years)
- No indicated small business participation
- Potential for cost overruns without strict oversight
Tags
remediation-services, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.6 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. DIAMOND HEAD OU1 AND OU2 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 $62.6 million.
What is the period of performance?
Start: 2023-11-03. End: 2028-11-03.
What specific environmental hazards are being addressed at Diamond Head OU1 and OU2, and what is the expected outcome of the remediation?
The specific environmental hazards at Diamond Head OU1 and OU2 are not detailed in the provided data. However, remedial action contracts typically address contamination from past industrial or military activities. The expected outcome is the reduction of these hazards to acceptable levels, ensuring environmental safety and compliance with regulatory standards for the site.
How will the government ensure cost control and prevent overruns with a Cost Plus Fixed Fee contract for this extensive remediation project?
The government will likely implement rigorous oversight mechanisms, including detailed cost tracking, regular progress reviews, and independent audits. Establishing clear performance metrics and milestones, along with a robust change order process, will be crucial. The fixed fee component provides some incentive for the contractor to manage costs efficiently to maximize their profit.
What is the long-term environmental impact and public health benefit expected from this $62.6 million remediation effort?
The long-term environmental impact is expected to be positive, involving the cleanup of potentially hazardous substances and the restoration of the affected land. This directly benefits public health by reducing exposure risks associated with contaminated sites. The remediation aims to bring the site into compliance with environmental regulations, ensuring its safety for future use or ecological recovery.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DQ23R3008
Offers Received: 2
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: $62,583,691
Exercised Options: $62,583,691
Current Obligation: $62,583,691
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-03
Current End Date: 2028-11-03
Potential End Date: 2028-11-03 00:00:00
Last Modified: 2025-07-01
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