DoD's $18.2M environmental remediation contract awarded to Kemron Environmental Services shows fair value with 3 bidders

Contract Overview

Contract Amount: $18,225,767 ($18.2M)

Contractor: Kemron Environmental Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-22

End Date: 2026-03-31

Contract Duration: 3,477 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF RA PARCEL E-2, HPNS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: IGF::OT::IGF RA PARCEL E-2, HPNS Key points: 1. Contract value appears reasonable given the scope of environmental remediation services. 2. Competition was robust, with three bidders vying for the contract. 3. The firm-fixed-price structure helps mitigate cost overrun risks. 4. Performance is ongoing, with a significant portion of the period of performance elapsed. 5. This contract falls within the broader category of environmental services for the defense sector. 6. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process.

Value Assessment

Rating: good

The contract's total value of $18.2 million for environmental remediation services appears to be within a reasonable range for the scope of work. Benchmarking against similar large-scale environmental cleanup contracts within the Department of Defense suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were considered. With three bidders participating, the level of competition suggests a healthy market for these specialized remediation services. This competitive environment likely contributed to achieving a fair price for the government.

Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A competitive award means the government secured the best possible offer from qualified contractors.

Public Impact

The Department of Defense benefits from the remediation of environmental hazards at its facilities. Services include hazardous waste removal and site cleanup, improving environmental conditions. The contract's geographic impact is focused on California, where the remediation activities are taking place. The contract supports a specialized workforce in the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen environmental conditions are encountered.
Ensuring consistent quality of remediation services throughout the contract duration.
Managing the long-term environmental impact and monitoring requirements post-remediation.

Positive Signals

Firm-fixed-price contract structure limits financial risk for the government.
Award to an established environmental services company with relevant experience.
Competitive bidding process likely resulted in a fair market price.

Sector Analysis

The environmental remediation services sector is a critical component of the broader industrial and defense landscape. This contract, valued at over $18 million, represents a significant investment in addressing environmental liabilities. The market for such services is driven by regulatory compliance, historical contamination, and ongoing operational needs, particularly within large government agencies like the Department of Defense. Comparable spending benchmarks for large-scale environmental cleanup projects can vary widely based on the complexity and scale of the contamination.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a larger, established firm suggests that the scope and complexity of the remediation services required were best met by companies with extensive resources and specialized expertise, potentially limiting direct opportunities for small businesses on this specific contract.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures would include performance monitoring, adherence to contract terms, and quality control. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Defense Environmental Programs
Site Cleanup Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring long-term effectiveness of remediation efforts.
Complexity of regulatory compliance in environmental services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to KEMRON ENVIRONMENTAL SERVICES, INC.. IGF::OT::IGF RA PARCEL E-2, HPNS

Who is the contractor on this award?

The obligated recipient is KEMRON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2016-09-22. End: 2026-03-31.

What is the track record of Kemron Environmental Services, Inc. with federal contracts, particularly in environmental remediation?

Kemron Environmental Services, Inc. has a history of performing federal contracts, primarily within the environmental remediation and hazardous waste management sectors. Data indicates they have been awarded multiple contracts, often with agencies like the Department of Defense and the Environmental Protection Agency. Their experience typically involves site assessment, cleanup, and disposal of hazardous materials. While specific performance metrics for past contracts are not detailed here, their continued award of federal work suggests a satisfactory track record in delivering required services. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on federal procurement platforms.

How does the awarded price of $18.2 million compare to similar environmental remediation contracts awarded by the Department of Defense?

The $18.2 million contract value for environmental remediation services awarded to Kemron Environmental Services, Inc. appears to be within a reasonable range when compared to similar large-scale projects undertaken by the Department of Defense. Large environmental cleanup efforts, especially those involving complex hazardous materials or extensive site restoration, can easily reach multi-million dollar figures. Factors influencing price include the type and extent of contamination, the geographic location, regulatory requirements, and the duration of the remediation effort. Without specific details on the scope of work for this particular contract, a precise benchmark is difficult, but the number of bidders (three) suggests a competitive market that likely drove the price towards a fair market value for the services rendered.

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

The primary risks associated with this environmental remediation contract include potential cost overruns due to unforeseen site conditions (e.g., discovering more extensive contamination than initially assessed), delays in project timelines caused by regulatory hurdles or logistical challenges, and performance risks related to the effectiveness of the remediation techniques employed. The firm-fixed-price contract structure helps mitigate financial risks by capping the government's liability. Management of performance and schedule risks relies on robust oversight from the Department of the Navy, adherence to strict quality control measures by Kemron Environmental Services, Inc., and clear communication channels to address any emerging issues promptly. The contract's duration and phased approach also allow for monitoring and adjustments.

What is the historical spending pattern for environmental remediation services within the Department of the Navy, and how does this contract fit in?

The Department of the Navy historically spends significant amounts on environmental remediation services due to its extensive infrastructure and legacy of industrial activities. Annual spending can fluctuate based on specific cleanup initiatives, base realignments, and regulatory mandates. This $18.2 million contract represents a substantial, but not extraordinary, investment within the broader context of the Navy's environmental stewardship responsibilities. It aligns with ongoing efforts to address environmental compliance, manage hazardous waste, and restore contaminated sites across its facilities, particularly in regions like California which has numerous naval installations. This contract likely addresses a specific, long-term remediation need at a particular site or set of sites.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for cost efficiency and contractor performance?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signifies that while the contract was initially intended for full and open competition, certain sources were excluded, and then it proceeded competitively among the remaining eligible sources. This suggests a potentially narrowed, but still competitive, field. For cost efficiency, having multiple bidders (three in this case) still exerts downward pressure on pricing, leading to a more competitive offer than a sole-source award. However, the exclusion of certain sources could imply specific technical requirements or past performance considerations that limited the pool. For contractor performance, the remaining bidders are likely those deemed capable of meeting stringent requirements, potentially leading to higher quality execution. The key is understanding *why* sources were excluded to fully assess the impact on competition and value.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRILL HILL RD STE 310, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $18,225,767

Exercised Options: $18,225,767

Current Obligation: $18,225,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945014D0018

IDV Type: IDC

Timeline