DoD awards $70.6M contract for Superfund site remediation in Washington, with Seven Sons Environmental Services Inc. selected

Contract Overview

Contract Amount: $70,651,589 ($70.7M)

Contractor: Sevenson Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-02

End Date: 2027-10-20

Contract Duration: 1,143 days

Daily Burn Rate: $61.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE A FAILING SHEET PILE WALL AT A U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) SUPERFUND REMEDIAL SITE ON THE NATIONAL PRIORITIES LIST (NPL) LOCATED ON BAINBRIDGE ISLAND, WASHINGTON.

Place of Performance

Location: BAINBRIDGE ISLAND, KITSAP County, WASHINGTON, 98110

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $70.7 million to SEVENSON ENVIRONMENTAL SERVICES, INC. for work described as: REPLACE A FAILING SHEET PILE WALL AT A U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) SUPERFUND REMEDIAL SITE ON THE NATIONAL PRIORITIES LIST (NPL) LOCATED ON BAINBRIDGE ISLAND, WASHINGTON. Key points: 1. Contract addresses critical environmental cleanup needs at a National Priorities List Superfund site. 2. The firm-fixed-price contract structure aims to control costs for the remediation project. 3. Competition was full and open after exclusion of sources, indicating a deliberate procurement approach. 4. The contract duration of over three years suggests a complex and lengthy remediation process. 5. The selected contractor has experience in environmental services, relevant to the scope of work. 6. Geographic focus on Washington state highlights regional environmental priorities.

Value Assessment

Rating: good

The awarded amount of $70.6 million for a Superfund site remediation appears reasonable given the complexity of environmental cleanup projects. While direct comparisons are difficult without more granular data on the specific remediation tasks, the firm-fixed-price structure suggests an effort to establish a predictable cost ceiling. Benchmarking against similar large-scale environmental remediation contracts would provide further insight into the value for money, but the scale and nature of Superfund cleanups generally command significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was open, certain sources may have been excluded based on specific criteria, possibly related to technical capabilities or past performance. The presence of multiple bidders (implied by 'full and open') is generally positive for price discovery, though the exclusion of sources warrants further investigation into the justification.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple firms to bid. This approach helps prevent inflated pricing and ensures that the selected contractor offers a compelling combination of technical expertise and cost-effectiveness.

Public Impact

The primary beneficiaries are the residents and environment of Bainbridge Island, Washington, through the cleanup of a contaminated Superfund site. The contract delivers essential environmental remediation services, addressing hazardous waste and pollution. The geographic impact is localized to Bainbridge Island, Washington, a key Superfund site. The project will likely involve a specialized workforce in environmental engineering, hazardous material handling, and construction.

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 the long-term effectiveness of the remediation and preventing future contamination.
The 'exclusion of sources' in the competition process could limit the pool of qualified bidders and potentially impact price competition.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The selection of a contractor with experience in environmental remediation suggests a focus on technical competence.
The contract is for a critical environmental cleanup, addressing a known hazard.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector is characterized by specialized technical expertise, stringent regulatory compliance, and significant project management demands. Superfund site cleanups, in particular, are complex, long-term projects often involving substantial government investment. The market size for environmental remediation is significant, driven by legacy contamination and ongoing industrial activity, with government contracts forming a substantial portion.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the contract was likely awarded based on the specialized capabilities required for large-scale environmental remediation, which may favor larger, more established firms. There is no explicit information on subcontracting plans for small businesses, which would be a key area for oversight to ensure opportunities are provided where feasible.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, given the agency is listed as the 'Department of Defense' and 'Department of the Army' as the servicing agency. Accountability measures will be embedded in the contract's performance clauses, milestones, and payment schedules. Transparency will be facilitated through contract award databases and potentially public reporting on Superfund site progress. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

EPA Superfund Program
Department of Defense Environmental Remediation
Hazardous Waste Management Contracts
Environmental Cleanup Services

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring long-term effectiveness of remediation efforts.
Justification for exclusion of sources in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.7 million to SEVENSON ENVIRONMENTAL SERVICES, INC.. REPLACE A FAILING SHEET PILE WALL AT A U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) SUPERFUND REMEDIAL SITE ON THE NATIONAL PRIORITIES LIST (NPL) LOCATED ON BAINBRIDGE ISLAND, WASHINGTON.

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 $70.7 million.

What is the period of performance?

Start: 2024-09-02. End: 2027-10-20.

What is the specific nature of the environmental hazard at the Bainbridge Island Superfund site that necessitates this remediation effort?

The provided data does not specify the exact nature of the contamination at the Bainbridge Island Superfund site. However, Superfund sites typically involve hazardous substances such as heavy metals, volatile organic compounds, pesticides, or industrial chemicals that pose a risk to human health and the environment. The remediation services contract implies the presence of significant contamination requiring specialized cleanup techniques to mitigate these risks and restore the site.

How does the awarded amount of $70.6 million compare to the estimated cost or historical spending for similar Superfund site remediation projects?

Without specific details on the scope of work and the type of contamination, a precise comparison of the $70.6 million award to similar projects is challenging. However, Superfund site cleanups are inherently complex and costly, often running into tens or hundreds of millions of dollars depending on the scale and technical difficulty. The duration of the contract (over three years) suggests a substantial undertaking. Benchmarking against other large-scale EPA or DoD environmental remediation contracts would be necessary for a more accurate value assessment, but the figure is within the expected range for significant environmental remediation efforts.

What are the key performance indicators (KPIs) or milestones that Seven Sons Environmental Services, Inc. must meet under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. Typically, environmental remediation contracts include phased milestones tied to specific cleanup objectives, environmental monitoring results, waste removal targets, and compliance with regulatory standards. Performance will likely be assessed based on adherence to the project schedule, quality of work, safety protocols, and achievement of agreed-upon remediation goals. The firm-fixed-price nature suggests that meeting these defined objectives within the budget is paramount.

What specific technical capabilities or past performance led to the selection of Seven Sons Environmental Services, Inc. for this complex remediation project?

The data indicates that Seven Sons Environmental Services, Inc. was selected for this contract, implying they possess the necessary technical capabilities and relevant past performance for complex environmental remediation. While specific details are not provided, such selections typically hinge on a contractor's demonstrated experience with similar Superfund sites, expertise in specific remediation technologies (e.g., excavation, capping, in-situ treatment), a strong safety record, and proven project management skills for large-scale, long-duration projects. The 'exclusion of sources' in the competition might also point to specific qualifications that only a limited number of firms could meet.

What is the expected timeline for the completion of the remediation work, and are there provisions for long-term monitoring or maintenance?

The contract has a stated period of performance from September 2, 2024, to October 20, 2027, indicating an expected completion timeline of approximately three years. This duration suggests the initial remediation activities are planned within this timeframe. However, Superfund sites often require long-term monitoring and potentially post-remediation maintenance to ensure the effectiveness of the cleanup and prevent future environmental risks. Whether this contract includes provisions for such long-term phases or if separate contracts will be issued for post-remediation activities is not specified in the provided data.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW24R0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $70,651,589

Exercised Options: $70,651,589

Current Obligation: $70,651,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline