DoD Awards $23M Superfund Remedial Action Contract to Sevenson Environmental Services

Contract Overview

Contract Amount: $22,979,576 ($23.0M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-18

End Date: 2027-02-12

Contract Duration: 969 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: WACC SUPERFUND OU1 REMEDIAL ACTION

Place of Performance

Location: RIDGEWOOD, QUEENS County, NEW YORK, 11385

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: WACC SUPERFUND OU1 REMEDIAL ACTION Key points: 1. Contract value of $22.98M for Superfund OU1 Remedial Action. 2. Awarded by the Department of the Army, a component of DoD. 3. Sevenson Environmental Services, Inc. is the prime contractor. 4. Contract type is Cost Plus Fixed Fee. 5. Performance period spans from June 2024 to February 2027.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar remediation contracts is difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not yield the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for environmental remediation, which is a necessary public service. The pricing structure and competition method will impact the overall value for money.

Public Impact

Environmental cleanup of a Superfund site, improving public health and safety. Potential for long-term environmental benefits and restoration of affected areas. Contract execution will create jobs in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may result in higher costs.
  • Cost Plus Fixed Fee contracts carry inherent cost overrun risks.
  • Lack of small business participation noted.

Positive Signals

  • Addresses critical environmental remediation needs.
  • Clear performance period and delivery order structure.

Sector Analysis

Environmental remediation services are crucial for addressing hazardous waste sites. Spending in this sector is driven by regulatory requirements and public health concerns. Benchmarks are highly site-specific.

Small Business Impact

The contract data indicates that small businesses were not prime contractors on this award (ss: false, sb: false). Opportunities for subcontracting to small businesses are not detailed in this summary.

Oversight & Accountability

The Department of the Army is responsible for oversight. The contract type and limited competition warrant close monitoring to ensure cost control and effective performance.

Related Government Programs

  • Remediation Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition raises concerns about potential price inflation.
  • Cost Plus Fixed Fee structure increases risk of cost overruns.
  • No indication of small business subcontracting goals.
  • Specific remediation details and cost drivers are not fully transparent.

Tags

remediation-services, department-of-defense, ny, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. WACC SUPERFUND OU1 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 $23.0 million.

What is the period of performance?

Start: 2024-06-18. End: 2027-02-12.

What specific remediation activities are included in this contract, and how do they align with the Superfund site's cleanup goals?

The contract covers 'WACC SUPERFUND OU1 REMEDIAL ACTION.' This implies activities related to the cleanup of Operable Unit 1 at the WACC Superfund site. Specific tasks would include containment, removal, or treatment of hazardous substances as defined by the EPA's Record of Decision for OU1. The alignment with cleanup goals depends on the detailed scope of work and performance metrics established within the contract.

What factors led to the exclusion of sources in the competition, and what is the potential impact on cost-effectiveness?

The exclusion of sources suggests that only specific contractors met certain criteria, possibly related to specialized expertise, past performance, or unique capabilities required for this particular Superfund site's remediation. While intended to ensure technical suitability, this limitation can reduce competitive pressure, potentially leading to higher costs than a fully open competition might achieve. The impact on cost-effectiveness hinges on whether the selected contractor's specialized skills truly justify the premium.

How will the performance and costs of this Cost Plus Fixed Fee contract be monitored to ensure taxpayer value?

Effective oversight of a Cost Plus Fixed Fee contract requires rigorous monitoring of allowable costs, contractor performance against defined milestones, and adherence to the fixed fee structure. The Department of the Army must implement robust auditing procedures and performance metrics. Regular reviews of progress reports and cost submissions are essential to identify potential inefficiencies or cost overruns early and ensure the contractor delivers the required remediation effectively within the agreed-upon fee.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ24R3007

Offers Received: 4

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: $27,543,269

Exercised Options: $27,543,269

Current Obligation: $22,979,576

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ22D3004

IDV Type: IDC

Timeline

Start Date: 2024-06-18

Current End Date: 2027-02-12

Potential End Date: 2027-02-12 00:00:00

Last Modified: 2025-11-05

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