Army's $25.4M FUSRAP Remediation Services contract awarded to Hydrogeologic, Inc. shows fair value

Contract Overview

Contract Amount: $25,435,163 ($25.4M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-08

End Date: 2020-12-31

Contract Duration: 1,637 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAMS (FUSRAP)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to HYDROGEOLOGIC, INC. for work described as: IGF::OT::IGF FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAMS (FUSRAP) Key points: 1. Contract value appears reasonable given the scope of environmental remediation services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of over 4 years indicates a significant, long-term environmental undertaking. 4. The contract's focus on remediation aligns with the Army's environmental stewardship responsibilities. 5. Performance was managed by the Department of the Army, indicating agency oversight. 6. The contract was awarded as a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract's total value of approximately $25.4 million over a period of roughly four years suggests a moderate annual expenditure for remediation services. Benchmarking this against similar environmental cleanup contracts is challenging without more specific details on the scope of work and the complexity of the sites involved. However, the cost-plus-fixed-fee (CPFF) contract type implies that costs were monitored, and a fixed fee provided incentive for efficient performance. Without direct cost comparisons or detailed performance metrics, a definitive value-for-money assessment is difficult, but the award suggests the pricing was deemed acceptable at the time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to pre-qualification requirements or specific technical expertise needed for the remediation tasks. The exact number of bidders is not specified, but the exclusion of sources suggests a more tailored competition than a completely unrestricted process. This approach aims to balance competition with the need for specialized capabilities.

Taxpayer Impact: The limited competition, while potentially ensuring specialized expertise, may have reduced the downward pressure on pricing that a broader competition could have provided. Taxpayers benefit from ensuring the work is done by qualified contractors, but the exclusion of some potential bidders could mean a less competitive price.

Public Impact

The primary beneficiaries are the Department of Defense and the public, through the cleanup of former military sites. Services delivered include remediation of contaminated sites, addressing environmental hazards. The geographic impact is concentrated in Virginia, where the sites are located. The contract supports a specialized workforce in environmental engineering and remediation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' could limit the pool of potential bidders, potentially impacting price competitiveness.
The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed rigorously, although the fixed fee provides some control.
The duration of the contract (over 4 years) requires sustained oversight to ensure performance remains on track and within budget.

Positive Signals

The contract was awarded under a competitive process, indicating that multiple firms likely vied for the work.
The focus on remediation services addresses critical environmental compliance and public health concerns.
The award to Hydrogeologic, Inc. suggests they possess the necessary technical expertise for complex environmental cleanup tasks.

Sector Analysis

The environmental remediation sector is a significant part of the broader professional, scientific, and technical services industry. Federal agencies, particularly the Department of Defense, are major clients due to the legacy of contamination at former military installations. Spending in this sector is driven by regulatory requirements (like CERCLA and RCRA) and the need for environmental stewardship. Comparable spending benchmarks would depend on the specific type and scale of contamination being addressed, but federal contracts for site remediation often run into millions of dollars.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business set-aside' field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor, Hydrogeologic, Inc., was likely responsible for the majority of the work, and opportunities for small businesses may have been limited unless they were specifically engaged by the prime contractor for specialized services not detailed here.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of the Army, likely through contracting officers and technical representatives who monitor performance, costs, and compliance. The Inspector General's office for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically not publicly available.

Related Government Programs

Environmental Remediation Services
Formerly Utilized Sites Remedial Action Program (FUSRAP)
Department of Defense Environmental Programs
Hazardous Waste Management
Site Cleanup Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Complexity of remediation technologies required.
Changes in environmental regulations affecting cleanup standards.
Contract type (CPFF) requires diligent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to HYDROGEOLOGIC, INC.. IGF::OT::IGF FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAMS (FUSRAP)

Who is the contractor on this award?

The obligated recipient is HYDROGEOLOGIC, 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 $25.4 million.

What is the period of performance?

Start: 2016-07-08. End: 2020-12-31.

What is the specific nature of the remediation work performed under this contract?

The contract falls under the Formerly Utilized Sites Remedial Action Programs (FUSRAP), managed by the Department of the Army. This program addresses sites that were used by the Atomic Energy Commission (AEC) or the U.S. Army Corps of Engineers for nuclear weapons production or testing and were subsequently released. The remediation services likely involved the cleanup of residual radioactive and hazardous materials, soil and groundwater remediation, demolition of contaminated structures, and long-term monitoring to ensure environmental safety and compliance with regulatory standards. The specific contaminants and remediation techniques would depend on the unique characteristics of each site covered by the contract.

How does the contract's value compare to other FUSRAP remediation contracts?

Direct comparison of the $25.4 million contract value to other FUSRAP contracts requires access to a comprehensive database of FUSRAP awards, including contract scope and duration. However, FUSRAP projects are often complex and long-term, involving significant environmental challenges. Contracts can range from a few million dollars for smaller site assessments or specific cleanup tasks to tens or hundreds of millions for large-scale remediation efforts at major sites. The value of this contract appears to be within a moderate range for a multi-year remediation effort, suggesting it addressed a substantial but not exceptionally large or complex FUSRAP undertaking compared to the program's largest projects.

What were the key performance indicators (KPIs) or metrics used to evaluate Hydrogeologic, Inc.'s performance?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for environmental remediation contracts, typical performance metrics often include adherence to project schedules, completion of remediation milestones, compliance with environmental regulations and cleanup standards, effectiveness of the chosen remediation technologies, cost control within the fixed-fee structure, and safety performance. The contracting officer's technical representative (COTR) would likely have monitored these aspects closely. Successful completion would be evidenced by the achievement of cleanup goals and regulatory closure for the affected sites.

What is Hydrogeologic, Inc.'s track record with federal environmental remediation contracts?

Hydrogeologic, Inc. has a history of performing environmental services for federal agencies. While this specific contract highlights their work with the Department of the Army under FUSRAP, their broader portfolio likely includes other remediation, environmental consulting, and engineering projects for various government entities. A deeper analysis would involve reviewing their contract history across agencies like the EPA, Navy, Air Force, and others to assess the volume, value, and types of environmental contracts they have successfully managed. Their ability to secure this FUSRAP contract suggests a demonstrated capability and positive past performance in the federal sector.

What are the potential risks associated with this type of environmental remediation contract?

Environmental remediation contracts carry inherent risks, including unforeseen site conditions (e.g., discovering more contamination than initially assessed), changes in regulatory requirements, technical challenges in implementing cleanup technologies, potential for environmental incidents, and cost overruns, especially with CPFF contracts if not managed tightly. For FUSRAP specifically, the historical nature of the sites means that documentation might be incomplete, and the extent of contamination could be underestimated. Contractor performance risk also exists, requiring diligent oversight to ensure quality and timely completion. Public health and environmental safety risks are paramount if remediation is not performed effectively.

How has spending on FUSRAP remediation evolved over the years?

Spending on FUSRAP has fluctuated over the years, influenced by congressional appropriations, the identification of new sites, and the prioritization of cleanup efforts. Historically, funding levels have varied significantly, with periods of increased investment driven by legislative mandates or major site cleanups, and periods of lower funding. The total program cost is substantial, reflecting the long-term nature of addressing legacy nuclear and hazardous waste sites. Analyzing annual appropriations and contract awards for FUSRAP provides insight into the government's commitment and the pace of remediation activities over time.

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: W912P916R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,435,163

Exercised Options: $25,435,163

Current Obligation: $25,435,163

Subaward Activity

Number of Subawards: 103

Total Subaward Amount: $23,763,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P916D0009

IDV Type: IDC

Timeline