DoD awards $19.9M for EPA Superfund site remediation, with Northwind-Jacobs JV as prime

Contract Overview

Contract Amount: $19,905,917 ($19.9M)

Contractor: Northwind-Jacobs Joint Venture

Awarding Agency: Department of Defense

Start Date: 2022-11-03

End Date: 2026-11-02

Contract Duration: 1,460 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TOWER CHEMICAL EPA SUPERFUND SITE ENVIRONMENTAL REMEDIATION SERVICES.

Place of Performance

Location: CLERMONT, LAKE County, FLORIDA, 34711

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to NORTHWIND-JACOBS JOINT VENTURE for work described as: TOWER CHEMICAL EPA SUPERFUND SITE ENVIRONMENTAL REMEDIATION SERVICES. Key points: 1. Contract value of $19.9M for environmental remediation services. 2. Competition was full and open after exclusion of sources. 3. Contract duration is 1460 days, ending November 2, 2026. 4. Services are for the Tower Chemical EPA Superfund Site. 5. Prime contractor is Northwind-Jacobs Joint Venture. 6. The contract type is Firm Fixed Price. 7. The award was a Delivery Order under a larger contract. 8. The North American Industry Classification System (NAICS) code is 562910 (Remediation Services).

Value Assessment

Rating: fair

The contract value of $19.9 million for environmental remediation services appears to be within a reasonable range for a Superfund site cleanup, given the complexity and duration typically involved. However, without specific benchmarks for this particular site's contamination levels and remediation scope, a precise value-for-money assessment is challenging. The firm-fixed-price structure suggests that the contractor assumes most of the cost risk, which can be beneficial for the government if managed effectively. Further analysis would require comparing this award to similar Superfund remediation contracts awarded by the EPA or DoD for sites with comparable environmental challenges and remediation requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders is not specified, but the 'limited' competition level suggests that the price discovery mechanism might not have been as robust as with a truly unrestricted full and open competition. The exclusion of sources warrants further investigation to understand the rationale and its potential impact on the final price and contractor selection.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to a scenario with broader participation from all qualified contractors. It is crucial to ensure that the exclusion of sources was justified and did not unduly restrict competition.

Public Impact

The primary beneficiaries are the communities impacted by the Tower Chemical Superfund Site, receiving services aimed at environmental cleanup and restoration. The services delivered include environmental remediation, crucial for mitigating hazardous substances and protecting public health. The geographic impact is focused on the specific location of the Tower Chemical Superfund Site in Florida. The contract supports specialized jobs in environmental engineering, hazardous waste management, and site remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The rationale for excluding certain sources needs further clarification to ensure fairness and optimal value.
The firm-fixed-price contract requires careful oversight to ensure quality and adherence to scope despite the contractor bearing cost risk.

Positive Signals

The contract addresses a critical environmental cleanup need at a Superfund site.
The firm-fixed-price contract shifts cost overrun risk to the contractor.
The Department of Defense is involved, potentially leveraging specialized capabilities for environmental remediation.

Sector Analysis

Environmental remediation services, particularly for Superfund sites, represent a specialized segment within the broader environmental services industry. This sector involves complex technical challenges, stringent regulatory compliance, and significant project management. The market size for Superfund remediation is substantial, driven by ongoing cleanup efforts mandated by the EPA. This contract fits within the government's broader efforts to address legacy environmental contamination, often involving large-scale, multi-year projects. Comparable spending benchmarks would typically be assessed against other large-scale hazardous waste cleanup contracts.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award, as it was not set aside for small businesses and the prime contractor is a joint venture. This suggests that the contract was likely awarded based on technical capabilities and price, rather than small business utilization goals. There is no explicit information on subcontracting plans for small businesses, which would be a key area for further inquiry to understand the downstream impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, given the agency listed. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. Transparency would be assessed through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

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

Risk Flags

Limited competition may impact price discovery.
Potential for scope creep or unforeseen technical challenges in complex remediation.
Need for rigorous oversight to ensure quality and effectiveness of remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to NORTHWIND-JACOBS JOINT VENTURE. TOWER CHEMICAL EPA SUPERFUND SITE ENVIRONMENTAL REMEDIATION SERVICES.

Who is the contractor on this award?

The obligated recipient is NORTHWIND-JACOBS JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2022-11-03. End: 2026-11-02.

What is the specific nature of the environmental contamination at the Tower Chemical Superfund Site, and how does it influence the remediation approach and cost?

The Tower Chemical Superfund Site in Florida was contaminated primarily by volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs), and heavy metals due to historical chemical manufacturing and waste disposal practices. The remediation approach typically involves a combination of technologies such as soil excavation and off-site disposal, in-situ treatment, groundwater pump-and-treat systems, and long-term monitoring. The complexity and extent of contamination directly influence the remediation strategy, the duration of the project, and consequently, the overall cost. For instance, extensive soil contamination requiring large-scale excavation and disposal would significantly increase costs compared to a site primarily requiring groundwater treatment. The $19.9 million award reflects the anticipated costs for addressing these specific contaminants over the contract's four-year period, encompassing site characterization, remediation activities, and post-remediation monitoring.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method compare to unrestricted full and open competition in terms of potential cost savings?

Unrestricted full and open competition generally offers the greatest potential for cost savings because it allows all responsible prospective contractors to submit offers. This broadens the competitive landscape, increasing the likelihood of receiving a wide range of proposals and potentially driving down prices through intense bidding. 'Full and Open Competition After Exclusion of Sources,' while still aiming for competition, limits the pool of potential bidders by excluding specific entities. The rationale for exclusion could be based on factors like past performance, specific technical requirements, or security concerns. However, if the exclusion is not strictly justified by essential needs, it can reduce competition, potentially leading to higher prices for the government. The savings potential is therefore generally lower compared to unrestricted competition, as the market is artificially narrowed.

What are the key performance indicators (KPIs) and quality assurance measures expected for this environmental remediation contract?

Key performance indicators (KPIs) for environmental remediation contracts typically focus on schedule adherence, cost control, environmental compliance, and the effectiveness of the remediation activities. For this contract, KPIs would likely include meeting milestones for site characterization, completing remediation tasks within the planned timeframe, achieving target cleanup levels for contaminants in soil and groundwater, and maintaining compliance with all relevant environmental regulations (e.g., RCRA, CERCLA). Quality assurance measures would involve rigorous site inspections, regular sampling and analysis of environmental media, independent verification of contractor work, and detailed progress reporting. The firm-fixed-price nature of the contract necessitates strong government oversight to ensure the contractor meets these performance and quality standards, as the government relies on the contractor's successful execution to achieve the desired environmental outcomes.

What is the track record of Northwind-Jacobs Joint Venture in handling large-scale environmental remediation projects, particularly for government agencies?

Assessing the track record of Northwind-Jacobs Joint Venture (NWJ) is crucial for understanding their capability to successfully execute this $19.9 million EPA Superfund site remediation contract. NWJ is a joint venture formed by Northwind, Inc. and Jacobs Engineering Group. Both parent companies have extensive experience in environmental services and government contracting. Jacobs, in particular, is a major global engineering firm with a significant portfolio of environmental remediation projects, including work on Superfund sites for the EPA and Department of Defense. Northwind, Inc. also has a history of providing environmental and engineering services to federal agencies. Therefore, the combined expertise within the NWJ should provide a strong foundation for managing the technical complexities, regulatory requirements, and logistical challenges associated with this specific remediation effort. A detailed review of their past performance on similar contracts, including client feedback and project outcomes, would offer further insight.

How does the $19.9 million contract value compare to historical spending on environmental remediation services by the Department of Defense?

The Department of Defense (DoD) historically spends billions of dollars annually on environmental remediation and compliance programs, driven by the need to address contamination at current and former military installations worldwide. The $19.9 million awarded for the Tower Chemical Superfund Site remediation is a significant sum for a single project but represents a relatively small portion of the DoD's overall environmental budget. For context, the DoD's environmental restoration program often involves multi-year, multi-million dollar projects for site cleanup, munitions response, and natural resource management. While this specific contract value is substantial, it is not unusual within the DoD's extensive environmental cleanup portfolio. Benchmarking this award against other large-scale remediation contracts awarded by the DoD or EPA for similar types of contamination and site complexity would provide a more precise comparison of its relative scale and cost-effectiveness.

What are the potential risks associated with a firm-fixed-price contract for complex environmental remediation, and how are they mitigated?

Firm-fixed-price (FFP) contracts place the primary cost risk on the contractor, which can be advantageous for the government by providing cost certainty. However, for complex environmental remediation projects like Superfund cleanups, FFP contracts carry inherent risks. One major risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges or cost overruns arise, potentially compromising the effectiveness of the remediation. Another risk is that the initial price may be inflated to account for the contractor's perceived risk, leading to a higher overall cost if the project proceeds smoothly. Mitigation strategies employed by the government include robust pre-award technical evaluations to ensure realistic cost estimates and scope definition, stringent contract oversight and quality assurance to monitor performance and compliance, clear performance standards and deliverables, and well-defined change order procedures. The government also relies on the contractor's reputation and past performance to ensure commitment to quality outcomes.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 MAIN ST, SHELOCTA, PA, 15774

Business Categories: American Indian Owned Business, Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $19,905,917

Exercised Options: $19,905,917

Current Obligation: $19,905,917

Actual Outlays: $3,459,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN18D1006

IDV Type: IDC

Timeline