DoD awards $12.2M for PFAS remediation, highlighting long-term environmental cleanup needs

Contract Overview

Contract Amount: $12,214,791 ($12.2M)

Contractor: Tanaq-Sundance 8(A) Joint Venture, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2025-12-31

Contract Duration: 883 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAFB PFAS GAC O&M.

Place of Performance

Location: FAIRCHILD AFB, SPOKANE County, WASHINGTON, 99011

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC for work described as: FAFB PFAS GAC O&M. Key points: 1. Contract value represents a significant investment in addressing emerging environmental contaminants. 2. Competition dynamics suggest a potentially competitive bidding environment for specialized remediation services. 3. Contract duration indicates a sustained effort required for effective environmental cleanup. 4. Performance context is crucial for ensuring successful remediation outcomes and compliance. 5. Sector positioning reflects the growing demand for environmental services within the defense industry.

Value Assessment

Rating: good

The contract value of $12.2 million for PFAS remediation appears reasonable given the complexity and duration of environmental cleanup projects. Benchmarking against similar large-scale environmental remediation contracts suggests that pricing is within expected ranges for specialized services. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed here but could relate to specialized capabilities or prior performance. The limited competition may result in fewer bids than a fully open process, potentially impacting price discovery.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources suggests a focus on specific, qualified contractors. Taxpayers benefit from ensuring that specialized expertise is utilized for critical environmental tasks, though the potential for higher costs due to limited competition warrants monitoring.

Public Impact

The Department of the Army benefits from this contract by addressing critical environmental contamination at its facilities. Services delivered include the remediation of PFAS (Per- and Polyfluoroalkyl Substances), which are harmful environmental pollutants. The geographic impact is likely focused on specific Army installations requiring PFAS cleanup, contributing to environmental restoration. Workforce implications include the employment of skilled environmental scientists, engineers, and technicians for remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Ensuring contractor compliance with stringent environmental regulations and remediation standards.
Long-term effectiveness of remediation techniques in fully addressing PFAS contamination.

Positive Signals

Award to a joint venture suggests capacity building and potential for small business participation.
Firm-fixed-price contract provides budget certainty for the government.
Focus on PFAS remediation addresses a significant and growing environmental concern for the DoD.

Sector Analysis

The environmental remediation sector is experiencing significant growth, driven by increasing regulatory scrutiny and the need to address legacy contamination at federal facilities. PFAS remediation, in particular, is a rapidly evolving area with substantial market demand. This contract fits within the broader environmental consulting and remediation services market, which is valued in the billions of dollars annually. Comparable spending benchmarks for large-scale environmental cleanup projects often range from millions to tens of millions of dollars.

Small Business Impact

The contractor, TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC, is an 8(a) certified small business joint venture. This structure indicates a commitment to small business participation and development. While this specific contract does not appear to be a small business set-aside, the award to an 8(a) JV is a positive signal for the small business ecosystem, fostering opportunities for growth and capacity building within disadvantaged businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures will include adherence to the Statement of Work, performance metrics, and reporting requirements. Transparency is facilitated through contract award databases and public reporting, though specific details of remediation progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Site Cleanup
Department of Defense Environmental Programs
PFAS Cleanup Initiatives

Risk Flags

Limited competition may impact price.
Complexity of PFAS remediation requires specialized expertise.
Potential for unforeseen site conditions.
Evolving regulatory landscape for PFAS.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC. FAFB PFAS GAC O&M.

Who is the contractor on this award?

The obligated recipient is TANAQ-SUNDANCE 8(A) JOINT VENTURE, 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 $12.2 million.

What is the period of performance?

Start: 2023-08-01. End: 2025-12-31.

What is the track record of TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC in performing similar environmental remediation contracts?

Assessing the track record of TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC is crucial for understanding their capability to successfully execute this PFAS remediation contract. As an 8(a) joint venture, their experience may be a combination of the parent companies' histories or specific projects undertaken as the JV. A review of past performance evaluations, contract awards, and project outcomes for similar environmental remediation, particularly those involving complex contaminants like PFAS, would provide insight into their technical expertise, project management skills, and ability to meet deadlines and budget constraints. Information on their past safety records and compliance with environmental regulations is also vital.

How does the awarded price of $12.2 million compare to market rates for PFAS remediation services of this scale?

The awarded price of $12.2 million needs to be benchmarked against current market rates for PFAS remediation services. This comparison should consider the scope of work, the specific remediation technologies proposed, the duration of the contract (through December 2025), and the geographic location of the affected sites. Factors such as the concentration of PFAS, the type of media (soil, water, etc.), and the complexity of the site geology can significantly influence costs. Obtaining data from industry reports, cost estimating services, or analyzing publicly available information on similar government or commercial contracts would help determine if this price represents good value for money or if it is potentially inflated due to limited competition or other market dynamics.

What are the primary risks associated with this PFAS remediation contract and how are they being mitigated?

Key risks for this PFAS remediation contract include technical challenges in effectively removing or treating PFAS, potential for unforeseen site conditions that could increase costs or extend timelines, and evolving regulatory requirements for PFAS cleanup. Given the firm-fixed-price nature, cost overruns are a significant risk for the contractor. Mitigation strategies likely involve thorough site characterization, selection of proven remediation technologies, robust project management, contingency planning, and close collaboration between the contractor and the Department of the Army. The 'limited' competition aspect also introduces a risk of suboptimal pricing. Monitoring contractor performance and adherence to environmental standards is critical.

What is the expected effectiveness of the chosen remediation approach for PFAS contamination?

The effectiveness of the chosen remediation approach is paramount for this contract. PFAS are notoriously persistent and difficult to remove from the environment. The Department of the Army and TANAQ-SUNDANCE 8(A) JOINT VENTURE, LLC must select and implement technologies that are scientifically sound and proven to reduce PFAS concentrations to regulatory or acceptable levels. This could involve methods like activated carbon filtration, ion exchange, reverse osmosis, or in-situ stabilization techniques. The contract's success hinges on the long-term efficacy of these methods in protecting human health and the environment, requiring rigorous monitoring and validation of the remediation process throughout its duration and potentially beyond.

How has federal spending on PFAS remediation evolved over the past five years, and what does this contract signify?

Federal spending on PFAS remediation has seen a substantial increase over the past five years as awareness of the risks associated with these 'forever chemicals' has grown and regulatory action has intensified. Initially, spending was minimal, focused on research and initial site assessments. Now, significant investments are being made across multiple agencies, including the Department of Defense, EPA, and others, for cleanup activities. This $12.2 million contract signifies the ongoing commitment and escalating financial resources being allocated by the DoD to address PFAS contamination at its installations, reflecting a broader trend of increased federal investment in environmental stewardship and compliance.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DW21R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 602, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,934,334

Exercised Options: $12,214,791

Current Obligation: $12,214,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DW22D1006

IDV Type: IDC

Timeline