DoD's $21.4M Eglin AFB Remediation Contract Awarded to BHATE Environmental Associates, Inc

Contract Overview

Contract Amount: $21,418,909 ($21.4M)

Contractor: Bhate Environmental Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-20

End Date: 2021-03-16

Contract Duration: 2,734 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FLORIDA PANHANDLE PERFORMANCE BASED REMEDIATION PBR AT EGLIN AFB AND HURLBURT FIELD, FL

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32524

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to BHATE ENVIRONMENTAL ASSOCIATES, INC. for work described as: IGF::OT::IGF FLORIDA PANHANDLE PERFORMANCE BASED REMEDIATION PBR AT EGLIN AFB AND HURLBURT FIELD, FL Key points: 1. The contract, valued at $21.4 million, covers remediation services at Eglin AFB and Hurlburt Field. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract was 2734 days, spanning from 2013 to 2021. 4. BHATE ENVIRONMENTAL ASSOCIATES, INC. secured this contract for services in Florida.

Value Assessment

Rating: fair

The contract value of $21.4 million for remediation services over nearly 7.5 years appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental remediation contracts would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The $21.4 million expenditure represents taxpayer funds allocated for environmental cleanup at military installations, aiming to restore affected areas.

Public Impact

Environmental cleanup at major Air Force bases ensures compliance with environmental regulations. Remediation efforts contribute to the long-term sustainability and safety of military operations. The project's success impacts local communities by addressing potential environmental hazards. Contract performance directly affects the operational readiness and environmental stewardship of Eglin AFB and Hurlburt Field.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Long contract duration (2734 days) may introduce risks related to cost escalation and changing environmental regulations.
Firm Fixed Price contract type can shift risk to the contractor, potentially leading to higher initial bids or change order disputes if unforeseen issues arise.

Positive Signals

Awarded under full and open competition.
Clear scope of work for remediation services.
Contract awarded to a single entity, potentially simplifying management.

Sector Analysis

This contract falls within the environmental remediation sector, a critical area for government agencies managing large landholdings and historical operations. Spending benchmarks for similar remediation projects vary widely based on site complexity and scale.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to BHATE ENVIRONMENTAL ASSOCIATES, INC., a single entity, and further analysis would be needed to determine if they are a small business or if subcontracting opportunities were utilized.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract officers, CORs, and potentially IG oversight to ensure performance and proper use of funds.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration.
Firm Fixed Price contract type.
Potential for unforeseen environmental conditions.
Reliance on contractor performance for environmental outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to BHATE ENVIRONMENTAL ASSOCIATES, INC.. IGF::OT::IGF FLORIDA PANHANDLE PERFORMANCE BASED REMEDIATION PBR AT EGLIN AFB AND HURLBURT FIELD, FL

Who is the contractor on this award?

The obligated recipient is BHATE ENVIRONMENTAL ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2013-09-20. End: 2021-03-16.

What specific remediation activities were performed under this contract, and were they completed within budget and schedule?

The contract focused on performance-based remediation (PBR) at Eglin AFB and Hurlburt Field. While the total award was $21.4 million, detailed performance reports, completion status, and any budget variances would require access to contract performance data and inspection reports. PBR contracts aim for outcomes, so success is measured against defined environmental standards.

How did the firm fixed price structure impact the contractor's risk and the government's ability to manage costs over the long contract duration?

A firm fixed price contract places the cost risk on the contractor. For a long duration like 2734 days, this could incentivize efficiency but also lead to higher initial bids to cover potential unforeseen costs or inflation. It also limits the government's exposure to cost overruns unless significant scope changes occur.

What environmental outcomes were achieved, and how do they compare to the initial performance objectives set for the remediation services?

Performance-based remediation contracts are designed to achieve specific environmental cleanup standards. The effectiveness would be measured against these predefined objectives, such as contaminant reduction levels or site restoration milestones. Assessing the actual environmental outcomes requires reviewing final inspection reports and environmental monitoring data post-remediation.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1608 13TH AVE S STE 300, BIRMINGHAM, AL, 35205

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

Financial Breakdown

Contract Ceiling: $21,935,909

Exercised Options: $21,418,909

Current Obligation: $21,418,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8554

IDV Type: IDC

Timeline