DoD's $11M environmental remediation contract awarded to GSIA-PARSONS JV LLC in New Mexico

Contract Overview

Contract Amount: $11,011,792 ($11.0M)

Contractor: Gsia-Parsons JV LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-19

End Date: 2030-09-18

Contract Duration: 1,825 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ENVIRONMENTAL SERVICES TO INCLUDE MUNITIONS AND EXPLOSIVES OF CONCERN (MEC), SOIL, AND GROUNDWATER INVESTIGATIONS, MEC REMOVAL ACTIONS, AND MAINTENANCE OF ROADS AND SECURITY FENCES AT FWDA.

Place of Performance

Location: FORT WINGATE, MCKINLEY County, NEW MEXICO, 87316

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to GSIA-PARSONS JV LLC for work described as: PROVIDE ENVIRONMENTAL SERVICES TO INCLUDE MUNITIONS AND EXPLOSIVES OF CONCERN (MEC), SOIL, AND GROUNDWATER INVESTIGATIONS, MEC REMOVAL ACTIONS, AND MAINTENANCE OF ROADS AND SECURITY FENCES AT FWDA. Key points: 1. Contract focuses on critical environmental remediation, including munitions and explosives. 2. The firm fixed-price structure provides cost certainty for the government. 3. A single award suggests potential limitations in market competition or specific contractor qualifications. 4. The contract duration of five years allows for sustained environmental management. 5. Geographic focus on New Mexico highlights regional environmental priorities. 6. The contract's value is moderate within the broader environmental services sector.

Value Assessment

Rating: fair

The contract value of approximately $11 million over five years appears moderate for comprehensive environmental remediation services. Without specific benchmarks for similar munitions and explosives cleanup contracts in New Mexico, a precise value-for-money assessment is challenging. However, the firm fixed-price type suggests the government has negotiated a set price, which can be advantageous if the scope is well-defined. Further analysis would require comparing the per-unit costs for specific services (e.g., per acre remediated, per cubic yard of soil removed) against industry standards and historical government contracts for comparable work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Army identified GSIA-PARSONS JV LLC as the only responsible source capable of meeting the government's needs. This could be due to specialized expertise required for munitions and explosives of concern (MEC) remediation, unique site conditions, or other factors that limit the pool of qualified contractors. The lack of competition means the government did not benefit from price discovery through a bidding process, potentially leading to a higher price than if multiple bids were received.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive price. The government must ensure that the negotiated price is fair and reasonable, which requires robust justification and potentially independent cost analysis.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding communities in New Mexico, through the cleanup of hazardous environmental contaminants. Services delivered include investigations, removal actions, and ongoing maintenance related to munitions and explosives, soil, and groundwater. The geographic impact is localized to Fort Wingate Depot Activity (FWDA) in New Mexico. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and remediation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially reduces value for taxpayers.
The complexity of munitions and explosives remediation carries inherent risks that could impact cost and schedule if not managed effectively.
Long-term maintenance requirements could lead to future contract needs and associated costs.

Positive Signals

The contract addresses critical environmental safety and compliance issues at a military installation.
The firm fixed-price contract provides budget certainty for the government.
The five-year duration allows for sustained and comprehensive remediation efforts.

Sector Analysis

The environmental remediation services sector is a significant part of the government contracting landscape, particularly for agencies managing legacy sites with environmental contamination. This contract falls within the remediation services sub-sector, which includes specialized services like hazardous waste management, site cleanup, and environmental consulting. The market for such services is competitive, but contracts involving unique hazards like munitions and explosives often require specialized expertise, potentially narrowing the field of eligible contractors. Comparable spending benchmarks for large-scale environmental remediation projects can vary widely based on the type and extent of contamination, geographic location, and regulatory requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, GSIA-PARSONS JV LLC, is a joint venture, which can sometimes be structured to include small business participation. However, without further information on the joint venture's composition or subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem. If subcontracting opportunities exist, they could provide work for small businesses specializing in environmental services, but the sole-source nature of the award might limit the visibility and accessibility of these opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, specifically the contracting officer and the contract administration team at Fort Wingate Depot Activity. The firm fixed-price nature of the contract implies that oversight will focus on ensuring performance against the defined scope of work and adherence to quality standards. Transparency may be limited due to the sole-source award, but contract performance reports and any Inspector General involvement would be key accountability measures. The specific mechanisms for oversight, such as regular progress meetings and site inspections, would be detailed in the contract.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Munitions Response Program
Defense Environmental Programs
Site Investigation and Cleanup

Risk Flags

Sole-source award may limit competitive pricing.
Potential for unforeseen environmental conditions impacting cost and schedule.
Inherent safety risks associated with munitions and explosives remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to GSIA-PARSONS JV LLC. PROVIDE ENVIRONMENTAL SERVICES TO INCLUDE MUNITIONS AND EXPLOSIVES OF CONCERN (MEC), SOIL, AND GROUNDWATER INVESTIGATIONS, MEC REMOVAL ACTIONS, AND MAINTENANCE OF ROADS AND SECURITY FENCES AT FWDA.

Who is the contractor on this award?

The obligated recipient is GSIA-PARSONS JV 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 $11.0 million.

What is the period of performance?

Start: 2025-09-19. End: 2030-09-18.

What is the specific expertise or unique capability that GSIA-PARSONS JV LLC possesses that justified a sole-source award for this munitions and explosives remediation contract?

Sole-source awards are typically justified when a specific contractor possesses unique capabilities, proprietary technology, or an established track record with a particular type of complex work that cannot be replicated by other firms within a reasonable timeframe or cost. For munitions and explosives of concern (MEC) remediation, this could involve specialized detection equipment, advanced removal techniques, extensive experience with specific types of ordnance, or a deep understanding of the site's unique geological and historical context. The Department of the Army would have conducted a thorough market research and justification process to determine that GSIA-PARSONS JV LLC was the only responsible source capable of meeting the stringent requirements for safety, efficacy, and compliance associated with MEC removal and environmental remediation at Fort Wingate Depot Activity. This justification would be documented and available through federal procurement channels.

How does the $11 million contract value compare to similar environmental remediation contracts for munitions and explosives cleanup awarded by the Department of Defense in recent years?

Comparing the $11 million contract value requires access to detailed historical contract data, including the scope of work, duration, and specific services rendered for other munitions and explosives (MEC) remediation contracts. Generally, MEC remediation is a high-cost, high-risk endeavor due to the inherent dangers and specialized requirements. Contracts can range from a few million dollars for smaller investigations or removal actions to tens or hundreds of millions for large-scale, multi-year cleanup operations at extensive former military sites. Without specific comparable contract details, it's difficult to definitively benchmark this $11 million award. However, for a five-year contract involving investigations, removal actions, and ongoing maintenance at a facility like Fort Wingate Depot Activity, $11 million appears to be a moderate allocation, suggesting either a focused scope or a phased approach to remediation over the contract period.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

The primary risks associated with this contract revolve around the inherent dangers of working with munitions and explosives of concern (MEC), potential environmental contamination beyond initial assessments, and schedule delays. MEC presents significant safety risks to personnel and the environment, requiring stringent safety protocols and highly trained personnel. Unforeseen subsurface conditions or the discovery of additional contamination could lead to scope creep, cost overruns, and schedule slippage, even with a firm fixed-price contract. Mitigation strategies likely include rigorous site safety plans, detailed investigation protocols, contingency planning for unexpected discoveries, robust quality assurance/quality control (QA/QC) measures, and close collaboration between the contractor and the government's technical representatives. The five-year duration also allows for adaptive management, where findings from earlier phases can inform later remediation efforts.

What is the historical spending pattern for environmental remediation services at Fort Wingate Depot Activity, and how does this contract fit into that pattern?

To assess the historical spending pattern at Fort Wingate Depot Activity (FWDA), one would need to analyze past federal procurement data specifically for environmental remediation services at this location. FWDA has a history of environmental concerns, particularly related to its past use as a military depot, which often involves legacy contamination from ordnance, fuels, and other hazardous materials. This $11 million, five-year contract for MEC, soil, and groundwater investigations and removal actions suggests a continuation or intensification of ongoing remediation efforts. It is likely part of a larger, long-term environmental restoration program at the site. Understanding previous contract values, durations, and the specific types of services procured would provide context for whether this current award represents a typical expenditure, an increase in activity, or a shift in remediation strategy.

What are the performance metrics and key performance indicators (KPIs) that will be used to evaluate GSIA-PARSONS JV LLC's success under this contract?

Performance metrics and Key Performance Indicators (KPIs) for this environmental remediation contract would focus on safety, environmental compliance, schedule adherence, and quality of work. Specific KPIs could include: zero lost-time incidents related to MEC handling or environmental exposure; successful completion of investigation milestones within agreed-upon timelines; achievement of cleanup standards for soil and groundwater as defined by regulatory agencies and the contract; timely and accurate reporting of findings and progress; and adherence to all environmental permits and regulations. The government's technical representatives would monitor these KPIs through site visits, progress reports, and review of deliverables. Failure to meet critical KPIs could result in contract remedies, including potential termination for default.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912PP25RA003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17 CHURCH ST, FLEMINGTON, NJ, 08822

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,132,098

Exercised Options: $11,011,792

Current Obligation: $11,011,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline