DoD Awards $180M Remedial Action Contract to SEVENSON ENVIRONMENTAL SERVICES for New Jersey Site
Contract Overview
Contract Amount: $180,000,000 ($180.0M)
Contractor: Sevenson Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-12
End Date: 2032-09-11
Contract Duration: 2,921 days
Daily Burn Rate: $61.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CDE OU4 REMEDIAL ACTION
Place of Performance
Location: SOUTH PLAINFIELD, MIDDLESEX County, NEW JERSEY, 07080
Plain-Language Summary
Department of Defense obligated $180.0 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: CDE OU4 REMEDIAL ACTION Key points: 1. Significant investment in environmental remediation services for a Department of Defense project. 2. Contract awarded through full and open competition, suggesting a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure and long duration. 4. The remediation services sector is critical for environmental compliance and public health.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. The fixed fee component provides some cost control, but the variable cost component requires careful oversight. Benchmarking CPFF contracts in this sector is challenging without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer. The impact on price discovery is positive due to market forces.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best price for essential environmental remediation services. However, the CPFF structure necessitates vigilance to ensure costs remain reasonable and within budget.
Public Impact
Ensures environmental cleanup at a Department of Defense site, protecting local ecosystems and public health. Supports economic activity in New Jersey through contract spending and potential job creation. Addresses long-term environmental liabilities for the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Long contract duration (8 years) increases risk of scope creep and cost escalation.
- Potential for unforeseen environmental conditions requiring additional work and costs.
Positive Signals
- Awarded through full and open competition, promoting competitive pricing.
- Addresses critical environmental remediation needs for the DoD.
- Contract includes a fixed fee component to manage contractor profit.
Sector Analysis
The remediation services sector is vital for addressing environmental contamination and ensuring regulatory compliance. Spending in this area is often driven by government mandates and long-term infrastructure needs. Benchmarks vary widely based on project complexity and location.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Further analysis would be needed to determine if small businesses were involved in the bidding process or will be utilized.
Oversight & Accountability
The long duration and CPFF structure necessitate robust oversight from the Department of the Army to monitor costs, performance, and adherence to the contract scope. Regular audits and progress reviews will be crucial for accountability.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (8 years).
- Potential for unforeseen site conditions.
- Complexity of environmental remediation projects.
Tags
remediation-services, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.0 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. CDE OU4 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 $180.0 million.
What is the period of performance?
Start: 2024-09-12. End: 2032-09-11.
What specific environmental remediation activities are covered under this contract, and how will their effectiveness be measured?
The contract details 'Remedial Action' for a specific site. Effectiveness will likely be measured against predefined environmental standards and regulatory requirements set by agencies like the EPA. Key performance indicators would include contaminant reduction levels, site restoration progress, and compliance with safety and environmental protocols throughout the project lifecycle.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this long-term environmental project?
The primary risk with CPFF is that the contractor may not be sufficiently incentivized to control costs, as the government bears the majority of the direct costs. While the fixed fee provides some profit certainty, the contractor could still incur higher costs, leading to a higher overall price for the government. This necessitates strong government oversight to manage the variable cost component effectively.
How does the $180 million award compare to typical remediation contracts of similar scope and duration within the Department of Defense?
Without specific details on the site's contamination levels and the exact scope of work, direct comparison is difficult. However, $180 million for an 8-year remedial action contract is substantial, suggesting a complex or large-scale environmental challenge. Benchmarking would require analyzing similar DoD remediation projects in terms of acreage, contaminant types, and remediation technologies employed.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DQ24R3000
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: $199,458,751
Exercised Options: $199,458,751
Current Obligation: $180,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-12
Current End Date: 2032-09-11
Potential End Date: 2032-09-11 00:00:00
Last Modified: 2026-03-30
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