DoD's $28.5M groundwater remediation contract awarded to Hydrogeologic, Inc. for Hastings, NE
Contract Overview
Contract Amount: $28,522,110 ($28.5M)
Contractor: Hydrogeologic, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-08-31
End Date: 2017-08-30
Contract Duration: 1,825 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION OF A PORTION OF A GROUNDWATER EXTRACTION AND TREATMENT SYSTEM; WETLANDS MITIGATION ELEMENTS;GRADE CONTROL STRUCTURES AND WET WELLS AND INSTALLATION PIPING, FORMER BLAINE NAD, HASTINGS, NE
Place of Performance
Location: HASTINGS, ADAMS County, NEBRASKA, 68902
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to HYDROGEOLOGIC, INC. for work described as: CONSTRUCTION OF A PORTION OF A GROUNDWATER EXTRACTION AND TREATMENT SYSTEM; WETLANDS MITIGATION ELEMENTS;GRADE CONTROL STRUCTURES AND WET WELLS AND INSTALLATION PIPING, FORMER BLAINE NAD, HASTINGS, NE Key points: 1. The contract's value of $28.5 million for groundwater remediation services appears substantial, warranting a close examination of its cost-effectiveness. 2. Competition dynamics for this contract, noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' require further clarification to understand the bidding landscape. 3. Risk indicators are not explicitly detailed but are inherent in large-scale environmental remediation projects. 4. Performance context is tied to the remediation of a groundwater extraction and treatment system, including wetland mitigation. 5. The contract falls within the environmental remediation services sector, a critical area for managing industrial and military site impacts. 6. The duration of 1825 days (5 years) suggests a long-term commitment to addressing the environmental issue.
Value Assessment
Rating: fair
Benchmarking the $28.5 million cost against similar large-scale groundwater remediation projects is challenging without more specific details on the scope of work and the complexity of the contamination. The contract type, COST PLUS FIXED FEE, can sometimes lead to higher costs if not carefully managed, but it also allows for flexibility in complex projects. The awarded amount represents a significant investment in environmental cleanup.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the impact on price discovery. A more transparent competition process could potentially yield better pricing.
Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified contractors had been able to bid without exclusion.
Public Impact
The primary beneficiaries are the environment and the local community in Hastings, Nebraska, through the cleanup of contaminated groundwater. Services delivered include the construction of a groundwater extraction and treatment system, wetland mitigation, and installation of related infrastructure. The geographic impact is localized to the former Blaine NAD in Hastings, Nebraska, addressing specific environmental concerns at that site. Workforce implications would involve skilled labor for construction, environmental engineering, and project management related to remediation activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts.
- Complexity of environmental remediation can lead to unforeseen challenges and delays.
- Limited competition may impact overall value for taxpayer dollars.
Positive Signals
- Addresses critical environmental remediation needs.
- Long-term commitment to resolving groundwater contamination.
- Awarded to a single contractor, potentially allowing for focused expertise.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, which is a subset of the broader Construction and Engineering industry. This sector is crucial for addressing legacy contamination from industrial and military activities. Market size for environmental remediation is substantial, driven by regulatory requirements and corporate responsibility. This contract represents a significant project within this specialized field, focusing on groundwater treatment and wetland restoration.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this contract. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, Hydrogeologic, Inc., is likely a larger entity, and the project's scale and technical requirements may not have been conducive to significant small business involvement as prime contractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Army) through contract officers and technical representatives. Accountability measures would be tied to performance milestones and deliverables outlined in the contract. Transparency is generally maintained through contract award databases, but detailed project-specific oversight reports are not always publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Environmental Remediation Services
- Groundwater Treatment Systems
- Wetland Mitigation Projects
- Department of Defense Environmental Programs
- Superfund Site Remediation
Risk Flags
- Potential for cost overruns
- Complexity of environmental remediation
- Limited competition impacts price discovery
- Long-term project duration
Tags
construction, department-of-defense, department-of-the-army, groundwater-remediation, environmental-services, cost-plus-fixed-fee, limited-competition, nebraska, remediation-services, large-contract, federal-contract, us-army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to HYDROGEOLOGIC, INC.. CONSTRUCTION OF A PORTION OF A GROUNDWATER EXTRACTION AND TREATMENT SYSTEM; WETLANDS MITIGATION ELEMENTS;GRADE CONTROL STRUCTURES AND WET WELLS AND INSTALLATION PIPING, FORMER BLAINE NAD, HASTINGS, NE
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 $28.5 million.
What is the period of performance?
Start: 2012-08-31. End: 2017-08-30.
What is the track record of Hydrogeologic, Inc. in managing similar large-scale environmental remediation projects?
Hydrogeologic, Inc. has a history of involvement in various environmental consulting and engineering projects. While specific details on their track record with projects of this exact scale and complexity (groundwater extraction, treatment, and wetland mitigation) require deeper investigation into their project portfolio, their existence as a prime contractor suggests they possess the necessary qualifications. A review of past performance evaluations, any litigation, and the successful completion of comparable projects would provide a clearer picture of their capabilities and reliability in delivering complex environmental solutions on time and within budget.
How does the awarded amount of $28.5 million compare to the estimated costs for similar groundwater remediation projects?
Directly comparing the $28.5 million award to similar projects is challenging without a detailed breakdown of the scope of work, site-specific conditions, and the specific technologies employed. However, large-scale environmental remediation projects, especially those involving complex hydrogeology, extensive treatment systems, and regulatory compliance like wetland mitigation, can indeed run into tens of millions of dollars. Factors such as the volume of contaminated water, the type and concentration of contaminants, the required treatment duration, and the geographical location significantly influence costs. This figure is substantial but not necessarily outside the expected range for a project of this nature.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract include technical challenges in achieving remediation goals, potential for unforeseen site conditions (e.g., unexpected contaminant plumes or geological formations), cost overruns due to the Cost Plus Fixed Fee structure, and schedule delays. Management of these risks would typically involve rigorous site investigations, adaptive management strategies for the treatment system, robust project management oversight by the Army Corps of Engineers, and clear communication protocols between the contractor and the government. Contingency planning for unexpected issues and performance monitoring against defined milestones are crucial.
How effective has the groundwater extraction and treatment system been in achieving its remediation objectives to date?
As this contract was awarded in August 2012 and covers a period up to August 2017, assessing its effectiveness requires access to post-award performance reports and environmental monitoring data. The effectiveness would be measured against specific remediation goals outlined in the contract, such as contaminant concentration reduction in groundwater and compliance with environmental standards. Without access to these detailed performance metrics and monitoring results, a definitive statement on the system's effectiveness cannot be made. Typically, such data would be reviewed by the contracting officer's representative.
What has been the historical spending pattern for groundwater remediation at the former Blaine NAD or similar Army facilities?
Historical spending on groundwater remediation at facilities like the former Blaine NAD can vary significantly based on the extent of contamination, the chosen remediation technologies, and the duration of the cleanup effort. Army facilities, particularly those with a long operational history, often require substantial and sustained investment in environmental cleanup. While specific historical spending data for Blaine NAD is not provided here, it's common for such remediation efforts to span multiple years and involve multi-million dollar contracts. Trends in environmental remediation spending across the Department of Defense often reflect evolving regulatory standards and technological advancements.
What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the bidding process and potential cost savings?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for full and open competition, but certain potential sources were excluded before the final solicitation was issued. The reasons for exclusion could range from specific technical requirements that only a limited number of firms could meet, to national security concerns, or other justifications permitted by law. This exclusion inherently limits the pool of potential bidders compared to true full and open competition. While the remaining bidders competed openly, the initial exclusion might have reduced the overall competitive pressure, potentially impacting the final price achieved for the government and taxpayers.
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
Solicitation ID: W912DQ09R3005
Offers Received: 5
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: $28,522,110
Exercised Options: $28,522,110
Current Obligation: $28,522,110
Subaward Activity
Number of Subawards: 65
Total Subaward Amount: $40,960,993
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DQ10D3011
IDV Type: IDC
Timeline
Start Date: 2012-08-31
Current End Date: 2017-08-30
Potential End Date: 2017-08-30 00:00:00
Last Modified: 2019-04-19
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