DoD Awards $13.7M Zinc Remediation Contract to PE Ayuda Joint Venture LLC

Contract Overview

Contract Amount: $13,739,457 ($13.7M)

Contractor: PE Ayuda Joint Venture LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-12

End Date: 2025-12-31

Contract Duration: 964 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: M&H ZINC RESIDENTIAL REMEDIATION

Place of Performance

Location: LA SALLE, LA SALLE County, ILLINOIS, 61301

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to PE AYUDA JOINT VENTURE LLC for work described as: M&H ZINC RESIDENTIAL REMEDIATION Key points: 1. Contract awarded for zinc residential remediation services. 2. PE Ayuda Joint Venture LLC is the sole awardee. 3. The contract falls under remediation services (NAICS 562910). 4. The award value is $13,739,456.70. 5. The contract duration is 964 days.

Value Assessment

Rating: good

The award value of $13.7M appears reasonable for a multi-year remediation project. Benchmarking against similar large-scale environmental cleanup contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a competitive process, but the exclusion of certain sources may limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: Taxpayer funds are being used for environmental remediation, which is a necessary public service. The competitive process, even with exclusions, aims to secure fair pricing.

Public Impact

Environmental cleanup of residential areas ensures public health and safety. Remediation projects can lead to improved property values and community well-being. The project addresses potential environmental hazards associated with zinc contamination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for cost overruns in complex remediation projects.

Positive Signals

Addresses critical environmental remediation need.
Long-term contract provides stability for awardee.
Firm fixed price contract offers cost certainty.

Sector Analysis

This contract falls within the Environmental Remediation sector, a critical area for government spending focused on public health and safety. Spending benchmarks for similar large-scale remediation projects vary significantly based on scope and complexity.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Army is the contracting agency, responsible for oversight. The contract type (firm fixed price) and duration provide a framework for accountability, but ongoing monitoring of performance and costs is crucial.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition due to source exclusion.
Potential for unforeseen site conditions increasing costs.
Long project duration increases exposure to market fluctuations.
Reliance on a single awardee for a critical service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to PE AYUDA JOINT VENTURE LLC. M&H ZINC RESIDENTIAL REMEDIATION

Who is the contractor on this award?

The obligated recipient is PE AYUDA JOINT VENTURE 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 $13.7 million.

What is the period of performance?

Start: 2023-05-12. End: 2025-12-31.

What specific environmental factors or historical contamination necessitated this particular remediation effort, and what are the projected long-term benefits of addressing the zinc contamination?

The specific environmental factors and historical contamination leading to this remediation effort are not detailed in the provided data. However, addressing zinc contamination in residential areas is crucial for mitigating potential health risks to residents, preventing environmental degradation, and ensuring the long-term safety and usability of the affected properties. The benefits include improved public health outcomes and ecological restoration.

How did the exclusion of sources in the full and open competition impact the final contract price and the range of available solutions for the remediation?

The exclusion of sources in the 'full and open competition after exclusion of sources' process likely narrowed the field of potential bidders. While competition still occurred, the exclusion may have limited the diversity of approaches and potentially prevented lower bids from excluded entities. The impact on the final price is difficult to ascertain without knowing the specific reasons for exclusion and the bids received from the included sources.

What are the key performance indicators (KPIs) for this remediation contract, and how will the Department of the Army measure the effectiveness of PE Ayuda Joint Venture LLC's work?

Key performance indicators for this remediation contract would likely include metrics related to the successful removal or containment of zinc contamination to specified levels, adherence to environmental regulations, project timelines, and safety protocols. The Department of the Army will likely measure effectiveness through regular site inspections, environmental testing of soil and water samples, progress reports from the contractor, and final project close-out assessments.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P920R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2665 SCOTT AVE, SAINT LOUIS, MO, 63103

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

Financial Breakdown

Contract Ceiling: $13,739,457

Exercised Options: $13,739,457

Current Obligation: $13,739,457

Actual Outlays: $2,677,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P922D0019

IDV Type: IDC

Timeline