DoD's $23.9M Remediation Services Task Order Awarded to Cabrera Remediation and Construction LLC

Contract Overview

Contract Amount: $23,930,415 ($23.9M)

Contractor: R8I Cabrera Remediation and Construction "LLC"

Awarding Agency: Department of Defense

Start Date: 2019-05-07

End Date: 2023-03-28

Contract Duration: 1,421 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER 0002, ST. LOUIS DISTRICT FUSRAP

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to R8I CABRERA REMEDIATION AND CONSTRUCTION "LLC" for work described as: TASK ORDER 0002, ST. LOUIS DISTRICT FUSRAP Key points: 1. Value for money assessed against similar remediation contracts. 2. Competition dynamics indicate a potentially competitive bidding process. 3. Risk indicators include contract type and performance duration. 4. Performance context is within the St. Louis District FUSRAP program. 5. Sector positioning is in environmental remediation services.

Value Assessment

Rating: fair

The contract's value of $23.9 million for remediation services appears within a reasonable range for large-scale environmental projects. However, a precise value-for-money assessment requires benchmarking against similar FUSRAP projects or other complex environmental cleanup contracts. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in complex, evolving remediation scenarios. Further analysis of the fixed fee component and the contractor's historical performance on similar contracts would provide a clearer picture of value.

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, specific criteria or circumstances led to the exclusion of certain potential bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes limit the pool of qualified offerors. The number of bidders is not specified, making it difficult to fully assess the impact on price discovery. A more open competition would typically yield more competitive pricing.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader, unrestricted competition had been conducted. It suggests that fewer companies were eligible or considered, potentially reducing the pressure on bidders to offer the lowest possible price.

Public Impact

The primary beneficiaries are the communities impacted by Formerly Used Defense Sites (FUDS) requiring environmental remediation. Services delivered include the cleanup and remediation of contaminated sites under the FUSRAP program. Geographic impact is focused on the St. Louis District, Missouri. Workforce implications include employment opportunities for environmental scientists, engineers, and construction personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Cost Plus Fixed Fee contracts require diligent oversight to control costs.
The duration of the contract (over 3 years) increases the potential for cost overruns or scope creep.

Positive Signals

Awarded to a specific LLC, potentially supporting specialized small business capabilities.
The contract addresses critical environmental cleanup needs for the Department of Defense.

Sector Analysis

This contract falls within the environmental remediation services sector, a critical component of the broader environmental services industry. This sector involves companies specializing in hazardous waste management, site cleanup, and compliance with environmental regulations. The market size for environmental remediation is substantial, driven by government mandates for cleaning up contaminated sites, including those managed by the Department of Defense under programs like FUSRAP. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies.

Small Business Impact

The contract data indicates that the awardee is 'R8I CABRERA REMEDIATION AND CONSTRUCTION "LLC"', suggesting it is a limited liability company. However, without further information on its size classification (e.g., small business status), it's difficult to definitively assess its impact on the small business ecosystem. If Cabrera Remediation and Construction LLC is a small business, this represents a significant contract award. If it is a large business, the implications for small businesses would depend on subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, specifically the St. Louis District of the Army Corps of Engineers. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Formerly Used Defense Sites (FUDS) Program
Environmental Remediation Services
Department of Defense Cleanup Programs
Army Corps of Engineers Contracts

Risk Flags

Limited competition may impact price.
CPFF contract type requires robust oversight.
Potential for cost overruns in complex remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to R8I CABRERA REMEDIATION AND CONSTRUCTION "LLC". TASK ORDER 0002, ST. LOUIS DISTRICT FUSRAP

Who is the contractor on this award?

The obligated recipient is R8I CABRERA REMEDIATION AND CONSTRUCTION "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: 2019-05-07. End: 2023-03-28.

What is the track record of R8I Cabrera Remediation and Construction LLC on similar federal contracts?

Information regarding the specific track record of R8I Cabrera Remediation and Construction LLC on similar federal contracts is not directly provided in the data. To assess their track record, one would typically review their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented issues or successes on comparable environmental remediation projects. A thorough review would involve examining the complexity, scale, and outcomes of their prior work, particularly within the FUSRAP or similar DoD cleanup programs. Without this detailed performance history, it is difficult to definitively gauge their capability and reliability for this specific task order.

How does the awarded amount compare to the estimated cost or ceiling of the task order?

The provided data indicates an 'awarded amount' of $23,930,415.13. However, the data does not explicitly state the 'estimated cost' or 'ceiling' for this specific task order. For Cost Plus Fixed Fee (CPFF) contracts, the total price is composed of the estimated cost plus the fixed fee. The awarded amount represents the total obligated funds at the time of award or modification. To compare the awarded amount to the estimated cost or ceiling, one would need access to the full contract documentation, which would detail the initial estimates, any negotiated changes, and the maximum potential liability (ceiling). Without this information, a direct comparison to assess if the award was significantly above or below initial estimates is not possible.

What are the primary risks associated with a Cost Plus Fixed Fee contract for environmental remediation?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded here, present specific risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides some incentive for efficiency, there's a risk of cost overruns if the project scope is not well-defined or if unforeseen issues arise, potentially increasing the total contract value beyond initial expectations. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is profitable, especially in complex projects with inherent uncertainties like environmental remediation. Effective government oversight is crucial to mitigate these risks by monitoring costs, ensuring efficiency, and managing scope changes.

What is the historical spending pattern for FUSRAP remediation services in the St. Louis District?

Analyzing historical spending patterns for FUSRAP remediation services in the St. Louis District requires access to historical contract data over multiple fiscal years. This would involve querying databases like FPDS or SAM.gov for all contracts awarded under the FUSRAP program specifically for the St. Louis District. Key metrics to examine would include the total annual spending, the number of contracts awarded, the average contract value, and the types of services procured. Understanding these patterns can reveal trends in funding allocation, the prevalence of specific remediation technologies, and the typical duration and cost of such projects. Without this historical data, it's challenging to contextualize the $23.9 million award within the broader spending landscape of the St. Louis District's FUSRAP activities.

How does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') typically affect pricing for environmental remediation contracts?

The competition level 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the initial intent was broad competition, certain sources were excluded. This exclusion can limit the number of qualified bidders, potentially reducing the competitive pressure on pricing. In a truly full and open competition with numerous bidders, the market dynamics usually drive prices down as contractors vie for the award. When sources are excluded, the remaining pool of bidders might be smaller, potentially leading to higher prices if the remaining bidders face less pressure to be the absolute lowest cost provider. The specific impact depends heavily on how many sources were excluded and the number of remaining qualified bidders.

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: SEALED BID

Solicitation ID: W912P918R0019

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 36424 FOREST TRL, ELIZABETH, CO, 80107

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,930,415

Exercised Options: $23,930,415

Current Obligation: $23,930,415

Actual Outlays: $6,527,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P918D0023

IDV Type: IDC

Timeline