DoD's $254M Oklahoma-Arkansas Remediation Contract Awarded to Hydrogeologic Under Full and Open Competition

Contract Overview

Contract Amount: $25,418,143 ($25.4M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-15

End Date: 2020-09-24

Contract Duration: 3,023 days

Daily Burn Rate: $8.4K/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 OKLAHOMA-ARKANSAS PERFORMANCE BASED REMEDIATION (PBR)

Place of Performance

Location: ALTUS, JACKSON County, OKLAHOMA, 73521

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to HYDROGEOLOGIC, INC. for work described as: IGF::OT::IGF OKLAHOMA-ARKANSAS PERFORMANCE BASED REMEDIATION (PBR) Key points: 1. The contract, valued at $254 million, focuses on performance-based remediation services in Oklahoma and Arkansas. 2. Awarded to Hydrogeologic, Inc., the contract utilized full and open competition after exclusion of sources. 3. The duration of the contract is over 8 years, indicating a long-term need for these services. 4. The firm-fixed-price structure aims to control costs for the Department of Defense. 5. The specific NAICS code 562910 points to the environmental remediation services sector.

Value Assessment

Rating: good

The contract's firm-fixed-price structure suggests a focus on cost control. Benchmarking against similar large-scale environmental remediation contracts would be necessary for a precise value assessment, but the scale indicates significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a competitive process was initiated, but specific sources were excluded. This could impact price discovery if the excluded sources represented significant competition.

Taxpayer Impact: The competitive bidding process, even with exclusions, aims to secure the best value for taxpayers. The firm-fixed-price contract type further helps in managing taxpayer funds by setting a clear cost ceiling.

Public Impact

Environmental cleanup services are crucial for public health and ecological preservation. Long-term contracts like this can provide stable employment for specialized environmental firms. The performance-based aspect incentivizes efficient and effective remediation outcomes. Geographic focus on Oklahoma and Arkansas highlights regional environmental concerns addressed by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 84 / 10

Warning Flags

Potential impact of source exclusion on competition.
Ensuring performance metrics are met for effective remediation.
Long contract duration may require ongoing budget allocation and oversight.

Positive Signals

Firm-fixed-price contract for cost certainty.
Performance-based structure incentivizes results.
Full and open competition, despite exclusions, suggests a competitive process.

Sector Analysis

This contract falls within the environmental remediation services sector, which is critical for addressing pollution and restoring contaminated sites. Spending in this sector can fluctuate based on regulatory requirements and historical contamination levels. The $254 million value is substantial for a single contract in this domain.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this large-scale remediation effort.

Oversight & Accountability

The contract's long duration and significant value necessitate robust oversight from the Department of the Air Force to ensure compliance, quality of work, and adherence to performance standards. Regular reviews and audits would be essential.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Complexity of long-term environmental remediation projects.
Ensuring contractor performance meets stringent environmental standards.
Budgetary implications of an 8-year contract.
Dependence on specific environmental regulations and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to HYDROGEOLOGIC, INC.. IGF::OT::IGF OKLAHOMA-ARKANSAS PERFORMANCE BASED REMEDIATION (PBR)

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 Air Force).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2012-06-15. End: 2020-09-24.

What specific environmental issues are being addressed by this performance-based remediation contract, and what are the expected outcomes?

The contract focuses on remediation services in Oklahoma and Arkansas. While specific contaminants or sites are not detailed, performance-based contracts typically aim to achieve defined environmental cleanup standards, such as reducing contaminant levels below regulatory thresholds or restoring land for specific uses. The expected outcomes are the successful remediation of environmental hazards, ensuring compliance with environmental laws, and protecting public health and ecosystems in the designated regions.

How did the exclusion of certain sources in the 'full and open competition' process potentially affect the final contract price and the range of solutions considered?

Excluding specific sources, even in a full and open competition, can limit the competitive landscape. If the excluded entities possessed unique capabilities or offered more competitive pricing, their absence might have led to a higher final price or a narrower range of technical approaches. The impact depends on the number and significance of the excluded sources relative to the overall market for these specialized remediation services.

What mechanisms are in place to measure and ensure the effectiveness of the 'performance-based' remediation services over the contract's 8-year duration?

Performance-based contracts typically include detailed performance work statements (PWS) with specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Effectiveness is measured against these metrics, often involving regular reporting, site monitoring, independent verification of cleanup levels, and milestone achievement. The Department of the Air Force would likely have quality assurance personnel overseeing the contractor's progress and verifying that remediation goals are met as defined in the contract.

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 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: 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: $28,580,318

Exercised Options: $25,418,143

Current Obligation: $25,418,143

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $97,486,612

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8566

IDV Type: IDC

Timeline