Army awards $24.17M contract for PFAS remediation in Northeast installations

Contract Overview

Contract Amount: $24,173,847 ($24.2M)

Contractor: Seres-Arcadis SB JV2 LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-03

End Date: 2029-02-02

Contract Duration: 2,556 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REMEDIAL INVESTIGATIONS FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED AREAS AT ARMY INSTALLATIONS IN THE NORTHEAST REGION

Place of Performance

Location: WATERTOWN, JEFFERSON County, NEW YORK, 13603

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SERES-ARCADIS SB JV2 LLC for work described as: REMEDIAL INVESTIGATIONS FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED AREAS AT ARMY INSTALLATIONS IN THE NORTHEAST REGION Key points: 1. Contract aims to address environmental contamination from PFAS chemicals at Army sites. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 2556 days indicates a long-term commitment to environmental cleanup. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The contractor is a joint venture, potentially indicating a specialized approach to remediation. 6. The contract is for remediation services, a critical environmental management function.

Value Assessment

Rating: good

The contract value of approximately $24.17 million for PFAS remediation services appears reasonable given the scope and duration. While specific benchmarks for PFAS remediation are difficult to establish due to site-specific complexities and evolving regulatory landscapes, the firm-fixed-price nature of the contract suggests that the government has negotiated a defined cost for the services. Further analysis would require comparing this contract's per-unit costs (if applicable and calculable) to similar PFAS investigation and remediation efforts at other Department of Defense installations or federal sites.

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. The presence of 5 bids suggests a healthy level of interest and competition for this environmental remediation work. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: For taxpayers, full and open competition typically results in more competitive pricing, ensuring that government funds are used efficiently. It also provides assurance that the selected contractor offers the best value proposition based on both cost and technical merit.

Public Impact

The primary beneficiaries are the Department of the Army and the communities surrounding the affected installations, who will see environmental improvements. The services delivered include remedial investigations to understand the extent of PFAS contamination. The geographic impact is focused on Army installations within the Northeast region of the United States. This contract supports environmental stewardship and compliance with federal regulations, protecting natural resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination complexities arise, despite firm-fixed-price.
Ensuring contractor expertise in highly specialized PFAS remediation techniques.
Long-term monitoring and potential for future remediation phases not fully captured in initial scope.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a joint venture may indicate specialized capabilities for complex environmental challenges.
Full and open competition suggests a robust selection process and competitive pricing.

Sector Analysis

The environmental remediation sector is a significant and growing market, driven by increasing regulatory scrutiny and public awareness of contaminants like PFAS. Federal agencies, particularly the Department of Defense, are major clients due to the vast number of legacy sites requiring cleanup. This contract fits within the broader category of environmental consulting and remediation services, which includes site assessment, investigation, design, and construction for hazardous waste and contaminant cleanup. Benchmarks for similar large-scale environmental remediation contracts can vary widely based on the type and extent of contamination, but multi-million dollar awards are common for complex projects.

Small Business Impact

This contract was not set aside for small businesses, and the contractor is a joint venture (SERES-ARCADIS SB JV2 LLC). While the 'SB' in the joint venture name might suggest small business participation, the overall contract award is not a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into the joint venture's structure and its procurement practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and environmental offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet specific deliverables and performance standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Environmental Remediation Programs
EPA Superfund Program
CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) cleanups
PFAS Strategic Roadmap Implementation

Risk Flags

Potential for scope creep if contamination is more extensive than initially assessed.
Reliance on evolving remediation technologies for PFAS.
Long contract duration increases exposure to regulatory changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SERES-ARCADIS SB JV2 LLC. REMEDIAL INVESTIGATIONS FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED AREAS AT ARMY INSTALLATIONS IN THE NORTHEAST REGION

Who is the contractor on this award?

The obligated recipient is SERES-ARCADIS SB JV2 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 $24.2 million.

What is the period of performance?

Start: 2022-02-03. End: 2029-02-02.

What is the specific nature of the PFAS contamination being addressed at these Army installations?

The provided data does not specify the exact types or sources of PFAS contamination at the Army installations in the Northeast. PFAS (per- and polyfluoroalkyl substances) are a group of man-made chemicals used in numerous industrial applications and consumer products. Common sources at military installations include the use of aqueous film-forming foam (AFFF) for firefighting training and operations, as well as industrial processes and waste disposal. Remedial investigations, as stipulated in this contract, are designed to identify the specific PFAS compounds present, their concentrations, the extent of soil and groundwater contamination, and potential pathways for human and environmental exposure. The findings of these investigations will inform the subsequent remediation strategies.

How does the $24.17 million contract value compare to other PFAS remediation contracts awarded by the Department of Defense?

Comparing the $24.17 million contract value requires context regarding the scope, duration, and specific services. The Department of Defense manages a vast portfolio of environmental cleanup actions across numerous installations, many of which involve PFAS. While this contract is substantial, it represents one component of a much larger, ongoing effort. Other PFAS remediation contracts awarded by the DoD can range from tens of millions to hundreds of millions of dollars, depending on the complexity of the contamination, the size of the affected area, and the remediation technologies employed. For instance, contracts for large-scale groundwater treatment systems or extensive soil excavation and disposal at major bases could exceed this value significantly. Conversely, smaller contracts might focus solely on initial site assessments or specific treatment technologies at a single location. Therefore, this $24.17 million award appears to be a significant, but not exceptionally outlier, investment for comprehensive remedial investigations across multiple sites in a region.

What are the primary risks associated with this firm-fixed-price contract for PFAS remediation?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty to the government, they can introduce risks for the contractor, which may indirectly affect the project. For this PFAS remediation contract, key risks include: 1. Unforeseen Site Conditions: The full extent and complexity of PFAS contamination may not be entirely understood during the bidding phase. Discovering significantly higher concentrations or more widespread plumes than anticipated could lead to cost overruns for the contractor, potentially impacting their ability or willingness to complete the work as planned if not managed carefully. 2. Evolving Regulatory Landscape: PFAS regulations are still developing. New federal or state requirements could necessitate changes in investigation or remediation approaches, potentially increasing costs or scope beyond what was initially contracted. 3. Technical Challenges: PFAS remediation technologies are still maturing. If the chosen methods prove less effective or more costly than expected in practice, the contractor bears the brunt of the increased expense. 4. Contractor Performance Risk: Despite the FFP structure, the government still faces the risk of contractor underperformance, delays, or quality issues, which could necessitate corrective actions or contract disputes.

What is the historical spending trend for PFAS remediation at Army installations in the Northeast?

The provided data does not include historical spending trends for PFAS remediation at Army installations in the Northeast. However, it is widely acknowledged that federal spending on PFAS remediation has increased substantially in recent years across all branches of the Department of Defense, including the Army. This increase is driven by growing scientific understanding of PFAS risks, heightened regulatory pressure from the EPA and state environmental agencies, and public demand for environmental accountability. The Army, in particular, has identified numerous sites with PFAS contamination requiring investigation and cleanup. While specific historical data for the Northeast region is not available here, the trend nationwide indicates a significant upward trajectory in investments for PFAS-related environmental actions, with multi-million dollar contracts becoming increasingly common for comprehensive site management.

What are the potential long-term implications of this contract for environmental quality and public health in the affected regions?

This contract's primary goal is to conduct remedial investigations, which is the foundational step towards addressing PFAS contamination. The long-term implications for environmental quality and public health hinge on the success of these investigations and the subsequent remediation actions that will be informed by them. By identifying the extent and nature of PFAS contamination in soil and groundwater, this contract enables the Army to develop and implement effective cleanup strategies. Successful remediation can lead to the reduction or elimination of PFAS exposure pathways, thereby protecting drinking water sources, ecosystems, and potentially human health in communities surrounding the installations. Furthermore, this effort contributes to the Army's broader commitment to environmental stewardship and compliance, fostering greater trust and improving the ecological health of affected areas over time.

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: W912DR21R0020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 669 MARINA DR STE B-7, CHARLESTON, SC, 29492

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,046,278

Exercised Options: $24,173,847

Current Obligation: $24,173,847

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $755,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline