DoD's $22M Fort Irwin environmental contract awarded to Engineering/Remediation Resources Group, Inc. shows fair value

Contract Overview

Contract Amount: $22,015,056 ($22.0M)

Contractor: Engineering/Remediation Resources Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-26

End Date: 2020-11-28

Contract Duration: 1,890 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FY15 FTI O&M MEC RANGE CLEARANCE MAINT BASE YEAR, FORT IRWIN, CA

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to ENGINEERING/REMEDIATION RESOURCES GROUP, INC. for work described as: IGF::OT::IGF FY15 FTI O&M MEC RANGE CLEARANCE MAINT BASE YEAR, FORT IRWIN, CA Key points: 1. The contract's value appears reasonable when benchmarked against similar remediation services. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The contract duration of 1890 days suggests a long-term need for these services. 4. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 5. The contractor has a history of performing similar environmental services for the government. 6. The contract is located in California, a state with significant environmental remediation needs.

Value Assessment

Rating: good

The contract's total value of approximately $22 million over five years suggests a significant investment in environmental remediation at Fort Irwin. Benchmarking against similar environmental remediation contracts awarded by the Department of Defense indicates that the pricing for this contract falls within a reasonable range. The firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. The robust competition suggests that multiple capable firms were interested in performing the work, which typically leads to more competitive pricing and better value for the government. The exclusion of sources clause indicates that while the competition was open, specific exclusions were made, which warrants further investigation into the rationale behind those exclusions.

Taxpayer Impact: The high level of competition is beneficial for taxpayers as it likely drove down the final contract price, ensuring that government funds are used efficiently for essential environmental services.

Public Impact

The primary beneficiaries are the residents and military personnel at Fort Irwin, California, who will experience improved environmental conditions. The services delivered include base clearance and maintenance, crucial for the operational readiness and safety of the military installation. The geographic impact is localized to Fort Irwin, California, addressing specific environmental challenges at this Army base. The contract supports jobs in the environmental remediation sector, potentially benefiting local and regional workforces in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires further scrutiny to ensure no viable small businesses were unfairly excluded.
While the contract is firm-fixed-price, the long duration could still present risks if unforeseen environmental conditions arise that were not adequately scoped.

Positive Signals

The use of full and open competition with 12 bidders is a strong positive signal for a competitive and fair award process.
The firm-fixed-price contract type provides significant cost control for the government over the contract's life.
The contract addresses critical environmental remediation needs at a major military installation, ensuring compliance and safety.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader Engineering and Construction industry. The market for environmental remediation is driven by regulatory compliance, industrial cleanup needs, and military base maintenance. Spending in this sector can fluctuate based on environmental regulations and the discovery of new contamination sites. Comparable spending benchmarks for large-scale military base environmental contracts often range in the tens of millions of dollars, aligning with the value of this award.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor may not be obligated to subcontract a significant portion of the work to small businesses, potentially limiting opportunities for the small business ecosystem in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense may conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases, but detailed performance reports are often internal. Accountability measures are inherent in the firm-fixed-price structure and performance metrics outlined in the contract.

Related Government Programs

Environmental Remediation Services
Military Base Operations and Maintenance
Department of Defense Contracts
Environmental Compliance
Engineering and Construction Services

Risk Flags

Potential for unaddressed environmental conditions due to contract scope limitations.
Risk of contractor performance issues over the long contract duration.
Need for clarification on 'after exclusion of sources' rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to ENGINEERING/REMEDIATION RESOURCES GROUP, INC.. IGF::OT::IGF FY15 FTI O&M MEC RANGE CLEARANCE MAINT BASE YEAR, FORT IRWIN, CA

Who is the contractor on this award?

The obligated recipient is ENGINEERING/REMEDIATION RESOURCES GROUP, 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 $22.0 million.

What is the period of performance?

Start: 2015-09-26. End: 2020-11-28.

What is the track record of Engineering/Remediation Resources Group, Inc. with similar environmental contracts?

Engineering/Remediation Resources Group, Inc. has a history of performing environmental remediation and engineering services for various government agencies, including the Department of Defense. Their past performance often includes site assessment, cleanup, hazardous waste management, and compliance support. Reviewing their contract history reveals multiple awards for similar services at military installations and other federal facilities. While specific details of past performance quality require deeper analysis of contract close-out reports and performance evaluations, their sustained presence in this market suggests a capacity to meet contractual obligations. Further investigation into any past performance issues or commendations would provide a more complete picture of their reliability for this specific Fort Irwin contract.

How does the pricing of this contract compare to other environmental remediation contracts of similar scope and duration?

The total contract value of approximately $22 million over roughly five years places this contract in the mid-to-large tier for environmental remediation projects at military bases. Benchmarking against publicly available data for similar contracts reveals that the per-year cost is within a competitive range. Factors influencing price include the specific types of contaminants, the complexity of the site, regulatory requirements, and the duration of the remediation effort. Without access to the detailed cost breakdowns and specific technical requirements of comparable contracts, a precise value-for-money assessment is challenging. However, the fact that 12 bids were received suggests that the initial pricing was perceived as fair by the market.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks associated with this contract include potential cost overruns if unforeseen environmental conditions are encountered (though mitigated by the firm-fixed-price structure), contractor performance issues, and potential delays due to regulatory changes or site access limitations. The firm-fixed-price contract type shifts much of the cost risk to the contractor. Risk management is also addressed through the contract's performance standards, reporting requirements, and the government's right to inspect work. The 'after exclusion of sources' clause introduces a risk of potential legal challenges or perceptions of unfairness if the exclusions were not fully justified. The long duration also presents a risk of contractor performance degradation over time, requiring ongoing oversight.

How effective has this contract been in achieving its stated objectives of environmental remediation at Fort Irwin?

Assessing the effectiveness of this contract requires access to performance reports, environmental monitoring data, and compliance audits conducted during its execution. The stated objectives are likely related to cleaning up contaminated sites, ensuring compliance with environmental regulations (e.g., RCRA, CERCLA), and maintaining a safe environment at Fort Irwin. Without specific performance metrics and outcomes, it's difficult to definitively state its effectiveness. However, the continuation or renewal of such contracts often implies a degree of success in meeting initial objectives, or at least a continued need for the services. A thorough evaluation would involve reviewing post-contract reports and environmental status updates for Fort Irwin.

What are the historical spending patterns for environmental remediation at Fort Irwin or similar Army installations?

Historical spending on environmental remediation at Fort Irwin and similar Army installations typically reflects the legacy of past industrial activities, training exercises, and waste disposal practices. These costs can be substantial and span decades, often involving multi-year contracts for assessment, cleanup, and long-term monitoring. Spending patterns are influenced by the discovery of new contamination, evolving environmental regulations, and the prioritization of cleanup efforts across the Army's portfolio. Contracts like this one, valued in the tens of millions, are not uncommon for large installations with complex environmental histories. Analyzing historical data would reveal trends in contract types, service providers, and the overall investment in environmental stewardship at these facilities.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PL15R0011

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4585 PACHECO BLVD STE 200, MARTINEZ, CA, 94553

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $22,015,056

Exercised Options: $22,015,056

Current Obligation: $22,015,056

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline