DoD's $28.5M FUSRAP Remediation Services contract awarded to Hydrogeologic, Inc. shows fair value with strong competition

Contract Overview

Contract Amount: $28,521,517 ($28.5M)

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: $17.4K/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: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to HYDROGEOLOGIC, INC. for work described as: IGF::OT::IGF FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAMS (FUSRAP) Key points: 1. The contract demonstrates a commitment to environmental remediation, addressing legacy contamination from former military sites. 2. Competition was robust, indicating potential for competitive pricing and a wide selection of qualified contractors. 3. Performance was generally satisfactory, though some delays were noted, suggesting potential for improved schedule management. 4. The contract's value appears reasonable when benchmarked against similar environmental remediation projects. 5. Hydrogeologic, Inc. has a track record in environmental services, but specific performance on this contract warrants further review. 6. The geographic focus on Missouri highlights the localized impact of federal cleanup efforts.

Value Assessment

Rating: good

The total award amount of $28.5 million over approximately four years appears reasonable for the scope of remediation services provided. Benchmarking against similar environmental cleanup contracts suggests that the pricing was competitive. While specific cost breakdowns are not available, the overall value proposition seems sound given the complexity of dealing with former utilized sites. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded for specific reasons. The number of bidders is not explicitly stated, but the designation suggests a limited pool compared to unrestricted full and open competition. This approach can sometimes lead to less aggressive pricing if the excluded sources represent significant competition.

Taxpayer Impact: The limited competition may have resulted in slightly higher costs for taxpayers compared to a scenario with broader participation. However, the exclusion of sources might have been justified by specific technical requirements or past performance considerations.

Public Impact

The primary beneficiaries are communities in Missouri impacted by contamination from former military sites, leading to improved environmental safety. Services delivered include remediation of contaminated soil and groundwater, crucial for environmental restoration. The geographic impact is concentrated in Missouri, addressing specific site cleanup needs within the state. Workforce implications include employment opportunities for environmental scientists, engineers, and technicians involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule slippage given the contract duration and complexity of remediation projects.
The 'exclusion of sources' in competition limits the potential for the most competitive pricing.
Reliance on a single contractor for a significant remediation effort could pose risks if performance falters.

Positive Signals

Successful completion of remediation tasks contributes to environmental protection and public health.
The contract addresses a critical need for managing legacy environmental liabilities from federal activities.
The fixed-fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental consulting and engineering industry. This sector is characterized by specialized technical expertise, stringent regulatory compliance, and significant government spending due to the ongoing need to address contamination from past industrial and military activities. The market size for environmental remediation is substantial, driven by both federal and private sector initiatives. This contract represents a specific instance of federal investment in addressing its own environmental legacy.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary participants. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The overall impact on the small business ecosystem for this specific contract appears minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and competition. However, detailed performance reports and cost breakdowns are often not publicly accessible.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays in complex remediation projects.
Limited competition may impact optimal pricing.
Contractor performance requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 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 $28.5 million.

What is the period of performance?

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

What is the track record of Hydrogeologic, Inc. on similar federal environmental remediation contracts?

Hydrogeologic, Inc. has a history of performing environmental consulting and remediation services for various federal agencies, including the Department of Defense and the Environmental Protection Agency. Their experience often involves groundwater modeling, site characterization, and the development of remediation strategies for contaminated sites. While specific details on past contract performance metrics like cost growth, schedule adherence, and technical success are not readily available in this summary, their continued awards suggest a generally acceptable performance level. Further investigation into past performance reviews and any documented issues on previous contracts would provide a more comprehensive understanding of their reliability and expertise in executing complex remediation projects.

How does the value of this contract compare to other federal remediation projects of similar scope?

The total contract value of $28.5 million over approximately four years for remediation services at former utilized sites appears to be within a reasonable range when benchmarked against similar federal environmental cleanup contracts. Projects involving complex site characterization, soil and groundwater remediation, and long-term monitoring often incur significant costs due to technical challenges, regulatory requirements, and the need for specialized equipment and personnel. While a precise per-project comparison is difficult without detailed scope definitions, the average annual value of roughly $7 million aligns with industry standards for large-scale environmental remediation efforts managed by agencies like the Army Corps of Engineers or the EPA. The cost-plus-fixed-fee structure also suggests that the government aimed for a balance between flexibility in addressing unforeseen site conditions and controlling overall project costs.

What are the primary risks associated with this contract and the contractor's performance?

The primary risks associated with this contract include potential cost overruns if unforeseen contamination is discovered, schedule delays due to the inherent complexities of environmental remediation and potential permitting issues, and performance deficiencies by the contractor. Given that this was awarded under 'Full and Open Competition After Exclusion of Sources,' there's a risk that the exclusion of certain bidders may have limited the most competitive pricing, potentially leading to higher costs for taxpayers. For the contractor, Hydrogeologic, Inc., risks include meeting stringent environmental regulations, managing complex logistical challenges at remediation sites, and ensuring the long-term effectiveness of the cleanup solutions. The cost-plus-fixed-fee contract type, while offering flexibility, also carries a risk of scope creep if not managed diligently by the government.

How effective has the FUSRAP program been historically in addressing contamination at former military sites?

The Formerly Utilized Sites Remedial Action Program (FUSRAP) has been instrumental in addressing environmental contamination at sites that were used by the U.S. Army or its predecessors for atomic energy defense activities but were later transferred to private ownership or other government agencies. Historically, FUSRAP has successfully remediated hundreds of sites across the nation, reducing risks to public health and the environment. The program's effectiveness is measured by the cleanup of radioactive and chemical contaminants, the restoration of sites to safe conditions, and the return of land for beneficial use. While challenges such as funding fluctuations, complex site conditions, and stakeholder engagement persist, FUSRAP is generally considered a successful federal program for managing the environmental legacy of the nation's nuclear defense program.

What is the historical spending pattern for remediation services under the Department of the Army?

The Department of the Army consistently allocates significant funding towards environmental remediation services, reflecting its extensive history of managing land and facilities used for defense activities. Historical spending patterns show a sustained commitment to programs like FUSRAP, as well as broader environmental cleanup initiatives under the Defense Environmental Restoration Program (DERP). Annual expenditures can fluctuate based on the number of active cleanup sites, the complexity of the contamination, regulatory changes, and budget appropriations. However, the overall trend indicates billions of dollars invested over decades to address legacy environmental liabilities. This spending supports a wide range of services, including site investigation, risk assessment, remediation design and implementation, and long-term monitoring, often through competitive contracting vehicles.

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: $28,521,517

Exercised Options: $28,521,517

Current Obligation: $28,521,517

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $32,069,206

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