DoD Awards $15.8M for Guam Remediation Services to Hydrogeologic, Inc

Contract Overview

Contract Amount: $15,791,434 ($15.8M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2029-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USARPAC GUAM NTO

Place of Performance

Location: SINAJANA, GUAM County, GUAM, 96910

Plain-Language Summary

Department of Defense obligated $15.8 million to HYDROGEOLOGIC, INC. for work described as: USARPAC GUAM NTO Key points: 1. Contract awarded to Hydrogeologic, Inc. for remediation services. 2. Full and open competition was utilized. 3. The contract has a duration of 5 years. 4. The award amount is approximately $15.8 million.

Value Assessment

Rating: good

The contract's cost-plus-fixed-fee structure allows for flexibility in addressing unforeseen remediation challenges. Benchmarking against similar environmental remediation contracts of this scale suggests the pricing is competitive, though specific per-unit cost data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, driving down costs and ensuring the government receives the best value.

Taxpayer Impact: The competitive bidding process is expected to yield a fair price for taxpayers, ensuring funds are used efficiently for necessary environmental remediation.

Public Impact

Ensures environmental cleanup in Guam, protecting public health and ecosystems. Supports critical infrastructure maintenance and compliance with environmental regulations. Provides employment opportunities within the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not closely monitored.
Dependence on a single contractor for a multi-year project.

Positive Signals

Full and open competition ensures a competitive bidding process.
Long-term contract provides stability for remediation efforts.
Award supports environmental protection in a key strategic location.

Sector Analysis

Environmental remediation services are crucial for maintaining ecological balance and public health. Spending in this sector can vary significantly based on the scale of contamination and regulatory requirements. This contract falls within the typical range for large-scale environmental cleanup projects.

Small Business Impact

While this contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Future contracts could explore opportunities for small businesses in specialized remediation tasks.

Oversight & Accountability

The Department of the Army's oversight will be critical in managing the cost-plus-fixed-fee structure and ensuring the contractor meets all remediation milestones and quality standards. Regular performance reviews and financial audits are essential for accountability.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost overruns due to the nature of cost-plus-fixed-fee contracts.
Potential for scope creep if initial site assessments are incomplete.
Long-term reliance on a single contractor.
Environmental conditions may be more complex than initially assessed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to HYDROGEOLOGIC, INC.. USARPAC GUAM NTO

Who is the contractor on this award?

The obligated recipient is HYDROGEOLOGIC, 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 $15.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-09-29.

What specific remediation activities are covered under this contract, and how do they align with long-term environmental goals for Guam?

The contract likely covers a range of activities such as site assessment, soil and groundwater remediation, waste disposal, and monitoring. These activities are crucial for addressing historical contamination and ensuring compliance with environmental regulations. The alignment with long-term goals depends on the specific environmental challenges present at the USARPAC Guam NTO site and the effectiveness of the chosen remediation technologies.

What are the primary risks associated with a cost-plus-fixed-fee contract for environmental remediation, and how are they mitigated?

The primary risk is potential cost overruns if the scope of work expands or unforeseen contamination is discovered, increasing the contractor's fee. Mitigation strategies include robust initial site assessments, clear contract language defining allowable costs and fee adjustments, strong government oversight, and regular progress reviews to manage scope creep and ensure efficient resource allocation.

How will the effectiveness of the remediation services be measured and ensured throughout the contract period?

Effectiveness will be measured through key performance indicators (KPIs) such as contaminant reduction levels, compliance with environmental standards, project completion timelines, and adherence to budget. The government will likely conduct regular site inspections, review monitoring data, and perform independent verification of remediation progress. Milestone payments will be tied to demonstrated progress and achievement of specific environmental targets.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY20R0016

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,235,936

Exercised Options: $15,791,434

Current Obligation: $15,791,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY22D0082

IDV Type: IDC

Timeline