PIKA INTERNATIONAL awarded $6.2M task order for USAR 81st RD remediation services

Contract Overview

Contract Amount: $6,206,786 ($6.2M)

Contractor: Pika International, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-12-31

Contract Duration: 1,918 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEW TASK ORDER FOR USAR 81ST RD

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to PIKA INTERNATIONAL, INC. for work described as: NEW TASK ORDER FOR USAR 81ST RD Key points: 1. Value for money assessed through firm-fixed-price contract type. 2. Competition dynamics indicate full and open competition after exclusion of sources. 3. Risk indicators include a multi-year duration and firm-fixed-price structure. 4. Performance context involves remediation services for the Army. 5. Sector positioning within defense contracting for environmental services.

Value Assessment

Rating: good

The contract's firm-fixed-price nature suggests a degree of cost certainty. Benchmarking against similar remediation contracts would provide a clearer picture of value. The award amount of $6.2 million for a nearly 5-year period (September 2021 - December 2026) appears reasonable for specialized environmental services, but a detailed cost breakdown and comparison to market rates for similar services in South Carolina would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' suggesting that while the competition was open, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the designation implies a competitive process was intended. The level of competition, even with exclusions, should theoretically drive price discovery and ensure a fair market price.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple offers and preventing price gouging.

Public Impact

The primary beneficiary is the Department of the Army, receiving essential remediation services. Services delivered include environmental remediation, crucial for site cleanup and compliance. Geographic impact is focused on South Carolina, where the 81st Readiness Division is located. Workforce implications may involve specialized environmental technicians and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen remediation challenges arise, despite fixed-price structure.
Dependence on PIKA INTERNATIONAL's specialized expertise for successful project completion.
Limited transparency on the specific 'exclusion of sources' criteria used in the competition.

Positive Signals

Firm-fixed-price contract provides budget predictability for the Army.
Long-term duration allows for sustained focus on remediation efforts.
Award to a single contractor can streamline project management and execution.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the Defense industry. The market for these services is substantial, driven by ongoing environmental compliance requirements for military installations. Comparable spending benchmarks would involve analyzing other federal contracts for similar remediation projects, considering factors like site complexity, geographic location, and the specific contaminants involved. PIKA INTERNATIONAL's role here is to provide specialized cleanup services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, PIKA INTERNATIONAL, Inc., is likely a mid-to-large sized firm. The impact on the broader small business ecosystem is indirect, as larger prime contractors may engage small businesses for specialized support services, but this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring PIKA INTERNATIONAL to deliver specified remediation services within the agreed budget and timeframe. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details and oversight activities may not always be publicly accessible.

Related Government Programs

Environmental Remediation Services
Department of Defense Contracts
Army Readiness Division Support
Federal Environmental Cleanup Programs

Risk Flags

Potential for unforeseen environmental conditions impacting fixed-price scope.
Limited competition due to 'exclusion of sources' criteria.
Contractor performance risk in specialized remediation services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to PIKA INTERNATIONAL, INC.. NEW TASK ORDER FOR USAR 81ST RD

Who is the contractor on this award?

The obligated recipient is PIKA INTERNATIONAL, 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 $6.2 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-12-31.

What is PIKA INTERNATIONAL, INC.'s track record with federal remediation contracts?

PIKA INTERNATIONAL, INC. has a history of performing federal contracts, including those related to environmental remediation. Analyzing their past performance ratings, contract values, and the types of services rendered on previous projects would provide insight into their capabilities and reliability. Specific data on their success rate, any past performance issues, or awards received for exceptional service would further inform an assessment of their track record. Without access to detailed contract performance databases, a comprehensive review is limited, but their presence in this task order suggests they meet the necessary qualifications and have likely demonstrated competence in prior engagements.

How does the $6.2 million award compare to similar remediation contracts awarded by the Department of Defense?

The $6.2 million award for nearly five years of remediation services is a moderate-sized contract within the federal environmental services landscape. To benchmark effectively, one would compare this to other firm-fixed-price delivery orders for similar scope (e.g., hazardous material removal, site cleanup) awarded by the Army or other DoD components. Factors such as the specific contaminants, geographic location (South Carolina), and the complexity of the remediation site are crucial. If comparable contracts for similar work are significantly higher or lower, it could indicate potential overpricing or exceptional value. The 'full and open competition after exclusion of sources' aspect also plays a role; a more competitive environment might typically yield lower prices.

What are the primary risks associated with this specific remediation contract?

The primary risks include potential cost overruns if unforeseen environmental conditions are discovered, despite the firm-fixed-price structure, which could lead to change orders or disputes. Performance risk exists if PIKA INTERNATIONAL lacks the specialized expertise or resources to effectively manage the remediation process, potentially causing delays or incomplete cleanup. There's also a risk related to the 'exclusion of sources' in the competition, which could limit the pool of qualified bidders and potentially impact the final price or quality. Furthermore, long-term environmental remediation projects carry inherent uncertainties regarding regulatory changes or evolving cleanup standards.

How effective are firm-fixed-price contracts in ensuring value for money in environmental remediation?

Firm-fixed-price (FFP) contracts are generally favored for ensuring value by shifting cost risk to the contractor. For environmental remediation, FFP can be effective when the scope of work is well-defined and potential risks are understood. It incentivizes the contractor to control costs and complete the work efficiently. However, if the scope is uncertain or significant unforeseen conditions are likely, FFP can lead to contractors bidding high to cover potential risks, or disputes over change orders. In such cases, other contract types like Cost-Plus-Fixed-Fee (CPFF) might be more appropriate, though they shift more risk to the government. For this specific contract, the effectiveness hinges on how well the remediation scope was defined prior to award.

What is the historical spending trend for remediation services within the 81st Readiness Division or similar Army units?

Analyzing historical spending for remediation services within the 81st Readiness Division or comparable Army units would provide context for the $6.2 million award. This involves examining past contracts for environmental cleanup, site maintenance, and hazardous material disposal awarded to various contractors over several fiscal years. Trends might reveal an increasing or decreasing need for such services, average contract values, and the typical duration of these engagements. Understanding this historical spending pattern can help determine if the current award is consistent with past investments or represents a significant shift in resource allocation for environmental management within the Army.

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: W912DY16R0077

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12723 CAPRICORN ST STE 500, STAFFORD, TX, 77477

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,387,000

Exercised Options: $6,362,000

Current Obligation: $6,206,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0019

IDV Type: IDC

Timeline