DoD's $23.9M Remediation Contract Awarded to Bay West LLC for Shaw AFB

Contract Overview

Contract Amount: $23,934,475 ($23.9M)

Contractor: BAY West LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-15

End Date: 2027-07-11

Contract Duration: 2,521 days

Daily Burn Rate: $9.5K/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: SHAW AFB OPTIMIZED REMEDIATION CONTRACT

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to BAY WEST LLC for work described as: SHAW AFB OPTIMIZED REMEDIATION CONTRACT Key points: 1. Contract value represents a significant investment in environmental cleanup at a major military installation. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of over 6 years indicates a long-term commitment to remediation services. 4. Fixed-price contract type aims to control costs and provide predictability for the government. 5. The award to Bay West LLC positions them as a key player in environmental services for the Department of Defense. 6. Geographic focus on South Carolina highlights regional environmental management efforts.

Value Assessment

Rating: good

The contract's total value of approximately $23.9 million over a period of roughly 6.8 years suggests a substantial but potentially reasonable investment for comprehensive remediation services at Shaw Air Force Base. Benchmarking against similar large-scale environmental cleanup contracts for military installations would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control, assuming the scope of work was well-defined. Without specific per-unit cost data or detailed breakdowns of services, a precise value assessment is challenging, but the scale of the contract implies a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was intended to be open, specific sources may have been excluded based on predefined criteria or prior performance, or that a previous exclusion of sources was lifted. The number of bidders is not explicitly stated, but this approach suggests a more targeted competition than a completely unrestricted process. The implications for price discovery are mixed; while competition generally drives down prices, the exclusion of certain sources could limit the full range of competitive pressures.

Taxpayer Impact: This procurement approach aims to balance competitive pricing with the need to ensure qualified and potentially pre-vetted contractors are considered, potentially leading to more efficient project execution for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel at Shaw Air Force Base, ensuring a safe and environmentally compliant operational environment. The contract delivers essential environmental remediation services, addressing potential contamination and restoring affected areas. The geographic impact is concentrated at Shaw Air Force Base in Sumter, South Carolina, contributing to local environmental quality. Workforce implications include potential job creation for environmental scientists, engineers, technicians, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise that were not adequately addressed in the initial scope.
Dependence on a single contractor for a critical, long-term environmental service could pose risks if performance falters.
The 'after exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.
Long contract duration may lead to contractor complacency or reduced innovation over time.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding to a single entity for a comprehensive remediation effort can streamline management and execution.
The contract's duration suggests a commitment to thorough and complete remediation, rather than short-term fixes.
The scale of the contract indicates the contractor possesses the capacity and expertise for large-scale environmental projects.

Sector Analysis

The environmental remediation services sector is a critical component of government contracting, particularly for agencies managing large land holdings like the Department of Defense. This contract falls within the broader environmental consulting and remediation industry, which is characterized by specialized expertise in areas such as hazardous waste management, site cleanup, and regulatory compliance. The market size for federal environmental remediation is substantial, driven by ongoing cleanup requirements at military bases, Superfund sites, and other federal facilities. This specific contract for Shaw Air Force Base represents a significant project within this sector, likely involving complex technical challenges and adherence to stringent environmental standards.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business set-aside' field is false. While the prime contractor, Bay West LLC, may be a small business itself, the contract was not specifically set aside for small businesses. This means that larger firms were eligible to compete, and the primary contractor is not necessarily obligated to subcontract a significant portion to small businesses unless stipulated in the contract or through their own business practices. The impact on the small business ecosystem depends on whether Bay West LLC utilizes small business subcontractors for specialized services or support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, within the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to manage costs effectively. Transparency is typically facilitated through contract award databases and reporting requirements. Specific oversight mechanisms would likely include regular progress reviews, site inspections, and performance evaluations conducted by government contracting officers and technical representatives. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Military Base Cleanup Contracts
Department of Defense Environmental Programs
Hazardous Waste Management Contracts
Superfund Site Remediation

Risk Flags

Potential for scope creep if initial site assessments are incomplete.
Contractor performance risk over a long duration.
Environmental conditions may be more complex than initially assessed.
Ensuring adequate oversight for a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to BAY WEST LLC. SHAW AFB OPTIMIZED REMEDIATION CONTRACT

Who is the contractor on this award?

The obligated recipient is BAY WEST 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 $23.9 million.

What is the period of performance?

Start: 2020-08-15. End: 2027-07-11.

What is the track record of Bay West LLC in performing similar large-scale environmental remediation contracts for the federal government?

Bay West LLC has a history of performing environmental services for various government agencies, including the Department of Defense. Their experience often includes site investigation, remediation design, and construction oversight for contaminated sites. Analyzing their past performance on contracts of similar size and complexity, particularly those involving military installations, would be crucial. This includes reviewing past performance evaluations, any contract disputes or claims, and their ability to meet deadlines and budget requirements. A review of their project portfolio and client testimonials can further illuminate their capabilities and reliability in executing complex environmental remediation projects.

How does the awarded price compare to industry benchmarks for similar remediation projects at military bases?

To benchmark the awarded price of approximately $23.9 million against industry standards for similar remediation projects at military bases, one would need to compare it with data from contracts of comparable scope, complexity, and geographic location. Factors such as the type and extent of contamination, the specific remediation technologies employed, and the duration of the project are critical. Publicly available contract databases and industry reports can provide average costs per acre, per cubic yard of contaminated material, or per year of service for large-scale environmental cleanup. Without access to detailed cost breakdowns and specific project parameters, a precise comparison is difficult, but the overall value suggests a significant undertaking that should align with established market rates for such extensive environmental services.

What are the primary environmental risks associated with Shaw Air Force Base that this contract aims to address?

Shaw Air Force Base, like many long-standing military installations, may face various environmental risks stemming from historical operations. These can include contamination of soil and groundwater from leaking underground storage tanks, spills of fuels and chemicals, and legacy issues related to ordnance or industrial processes. Specific risks could involve volatile organic compounds (VOCs), heavy metals, petroleum hydrocarbons, or per- and polyfluoroalkyl substances (PFAS). This contract likely targets the investigation, assessment, and remediation of these identified or potential contamination sources to ensure compliance with environmental regulations (such as CERCLA/Superfund) and protect human health and the environment in and around the base.

What is the expected effectiveness of the remediation services under this contract in achieving long-term environmental compliance at Shaw AFB?

The expected effectiveness hinges on the thoroughness of the remediation plan, the chosen technologies, and the contractor's execution. A well-defined scope of work, based on comprehensive site investigations, should lead to the successful cleanup or containment of contaminants. Long-term compliance will depend on whether the remediation strategy addresses the root causes of contamination and meets stringent regulatory standards set by the EPA and state environmental agencies. Regular monitoring and post-remediation assessments will be crucial to verify the effectiveness of the cleanup efforts and ensure that the site remains in compliance throughout and after the contract period. The firm-fixed-price nature suggests a defined outcome is expected.

How has federal spending on environmental remediation at military installations trended over the past five years, and how does this contract fit into that trend?

Federal spending on environmental remediation at military installations has generally remained substantial over the past five years, driven by ongoing cleanup requirements under programs like the Defense Environmental Restoration Program (DERP). While specific annual figures fluctuate based on budget allocations and the initiation of new large-scale projects, the overall trend indicates a consistent need for these services. This $23.9 million contract for Shaw Air Force Base represents a significant, multi-year investment that aligns with this ongoing federal commitment. It is indicative of the continued focus on addressing legacy environmental issues at military facilities to ensure operational safety, regulatory compliance, and environmental stewardship.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 EMPIRE DR, SAINT PAUL, MN, 55103

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

Financial Breakdown

Contract Ceiling: $24,002,263

Exercised Options: $23,934,475

Current Obligation: $23,934,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912EP16D0007

IDV Type: IDC

Timeline