Army awards $8.18M for environmental remediation, with remediation services topping $13.8M in related contracts

Contract Overview

Contract Amount: $8,175,654 ($8.2M)

Contractor: Noreas Environmental Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-31

End Date: 2025-09-14

Contract Duration: 592 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JACOBSVILLE NEIGHBORHOOD ENVIRONMENTAL REMEDIATION TASK ORDER 3, PHASE 6

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to NOREAS ENVIRONMENTAL SERVICES LLC for work described as: JACOBSVILLE NEIGHBORHOOD ENVIRONMENTAL REMEDIATION TASK ORDER 3, PHASE 6 Key points: 1. Value for money appears fair, with a total contract value of $8.18M for Phase 6 of remediation. 2. Competition dynamics indicate a full and open competition, suggesting a healthy market for remediation services. 3. Risk indicators are moderate, given the multi-phase nature of the project and the fixed-price contract type. 4. Performance context shows this is Task Order 3, Phase 6, implying ongoing work and contractor familiarity. 5. Sector positioning places this contract within the broader environmental remediation services market, a critical area for government operations.

Value Assessment

Rating: fair

The $8.18M award for JACOBSVILLE NEIGHBORHOOD ENVIRONMENTAL REMEDIATION TASK ORDER 3, PHASE 6 represents a significant investment in environmental cleanup. Benchmarking against similar remediation contracts is challenging without more granular data on the scope of work. However, the total value of related contracts for NOREAS ENVIRONMENTAL SERVICES LLC, reaching $13.81M, suggests a sustained engagement and potentially competitive pricing over time. The firm fixed-price nature of this order aims to control costs, but the overall value proposition depends on the successful and complete remediation of the specified environmental hazards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a robust market for environmental remediation services. This approach generally leads to better price discovery and ensures that the government selects the most capable and cost-effective solution available.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is expected to drive down costs and ensure the most efficient use of public funds for environmental cleanup.

Public Impact

The primary beneficiaries are residents and the environment in the vicinity of the Jacobsville Neighborhood, through the cleanup of hazardous materials. Services delivered include environmental remediation, addressing contamination and restoring the affected area. The geographic impact is localized to the Jacobsville Neighborhood in Indiana. Workforce implications include employment opportunities for skilled environmental technicians and project managers involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, despite the firm-fixed-price structure.
Dependence on a single contractor for a multi-phase, long-term project could pose continuity risks if performance issues emerge.
The duration of the contract (592 days) requires sustained oversight to ensure progress and adherence to timelines.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially favorable pricing.
Task Order 3, Phase 6 indicates a structured, phased approach to remediation, allowing for iterative progress and learning.
Firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental consulting and services industry. This sector is characterized by specialized expertise in identifying, assessing, and cleaning up contaminated sites. Government spending in this area is often driven by regulatory compliance, legacy site cleanup, and infrastructure development. Comparable spending benchmarks are difficult to establish without specific details on the type and extent of contamination, but the overall market for environmental remediation is substantial, with significant government procurement activity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem for this specific task order may be limited unless the prime contractor actively engages small businesses in their subcontracting plan. Further analysis of subcontracting reports would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army, specifically the contracting officer and project managers responsible for environmental remediation. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified outcomes within budget. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Department of Defense Environmental Programs
Army Corps of Engineers Contracts
Superfund Site Remediation

Risk Flags

Potential for unforeseen environmental conditions impacting scope and cost.
Contract duration requires sustained oversight to ensure timely completion.
Dependence on contractor performance over multiple project phases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to NOREAS ENVIRONMENTAL SERVICES LLC. JACOBSVILLE NEIGHBORHOOD ENVIRONMENTAL REMEDIATION TASK ORDER 3, PHASE 6

Who is the contractor on this award?

The obligated recipient is NOREAS ENVIRONMENTAL SERVICES 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 $8.2 million.

What is the period of performance?

Start: 2024-01-31. End: 2025-09-14.

What is the historical spending pattern for environmental remediation contracts awarded by the Department of the Army in Indiana?

Analyzing historical spending patterns for environmental remediation contracts by the Department of the Army in Indiana reveals a consistent and significant investment in addressing environmental liabilities. Over the past five fiscal years, spending in this category has fluctuated, influenced by the identification of new contamination sites, the progression of long-term cleanup projects, and the availability of federal funding. Contracts typically range from smaller, localized cleanup efforts to large-scale, multi-year remediation programs at active military installations and formerly used defense sites. The average contract value can vary widely, but task orders for complex remediation efforts, similar to the Jacobsville Neighborhood project, often fall in the multi-million dollar range. Factors such as regulatory changes, technological advancements in cleanup methods, and the specific environmental challenges at each site contribute to the overall spending trends. Continued investment is expected due to the ongoing need to manage environmental risks and comply with stringent environmental regulations.

How does the pricing of this contract compare to similar environmental remediation task orders?

Directly comparing the pricing of this $8.18M task order to similar environmental remediation contracts is challenging without detailed scope-of-work and site-specific contamination data. However, the firm-fixed-price (FFP) structure suggests that the contractor, NOREAS ENVIRONMENTAL SERVICES LLC, has assumed the risk for cost overruns. In FFP contracts, pricing is typically based on the contractor's estimate of labor, materials, equipment, and overhead required to complete the defined scope. If this task order represents a standard phase of a known remediation process, its price might be considered competitive if it aligns with industry benchmarks for similar complexity and duration. The fact that it's Task Order 3, Phase 6 implies a degree of predictability in the work, which could allow for more accurate and potentially lower pricing compared to initial, less defined phases. Further analysis would require benchmarking against other FFP remediation contracts of comparable size and technical requirements.

What is NOREAS ENVIRONMENTAL SERVICES LLC's track record with the Department of the Army?

NOREAS ENVIRONMENTAL SERVICES LLC has a notable track record with the Department of the Army, as evidenced by the total value of related contracts exceeding $13.8M. This includes the current task order and potentially other prior or concurrent awards. A history of receiving multiple contracts, especially for complex services like environmental remediation, suggests a level of performance and capability that meets the Army's requirements. Examining the specific types of services rendered in previous contracts, their duration, and any performance reviews or past performance evaluations would provide a more comprehensive understanding of their reliability and expertise. The sustained engagement indicated by the cumulative contract value implies a positive working relationship and successful delivery on previous projects, making them a likely trusted partner for ongoing environmental services.

What are the key performance indicators (KPIs) for this environmental remediation contract?

Key performance indicators (KPIs) for this environmental remediation contract would likely focus on the successful and timely execution of the cleanup activities outlined in Task Order 3, Phase 6. These could include metrics such as the volume of contaminated material removed or treated, the percentage of the remediation area successfully restored, adherence to environmental quality standards (e.g., soil and groundwater contaminant levels), and compliance with health and safety protocols. Schedule adherence, measured by meeting key milestones and the final completion date (September 14, 2025), is also critical. Cost control, ensuring the project stays within the $8.18M firm-fixed-price budget, is another vital KPI. Finally, documentation and reporting accuracy, ensuring all remediation activities and results are properly recorded and submitted to the Army, would be essential for project closure and regulatory compliance.

What is the potential risk associated with the multi-phase nature of this environmental remediation project?

The multi-phase nature of the Jacobsville Neighborhood Environmental Remediation project, with this being Task Order 3, Phase 6, introduces several potential risks. Firstly, there's the risk of 'scope creep' where subsequent phases might expand in scope or complexity beyond initial projections, potentially leading to cost increases or schedule delays, even within a fixed-price framework if change orders become necessary. Secondly, unforeseen environmental conditions discovered in later phases could significantly impact remediation strategies and costs. Thirdly, maintaining consistent contractor performance and knowledge transfer across multiple phases and over an extended period (duration of 592 days for this task order) requires robust project management and oversight. Finally, there's a risk of project fatigue or loss of momentum if phases are not well-sequenced or if there are significant gaps between them, potentially affecting the overall effectiveness and efficiency of the long-term cleanup effort.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR22R0056

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16361 SCIENTIFIC WAY, IRVINE, CA, 92618

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

Financial Breakdown

Contract Ceiling: $9,216,352

Exercised Options: $9,216,352

Current Obligation: $8,175,654

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $6,446,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR23D0011

IDV Type: IDC

Timeline