DoD Awards $53.7M for Holt Cargo Facility Remediation Under Full and Open Competition

Contract Overview

Contract Amount: $53,733,271 ($53.7M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-01-14

End Date: 2021-05-30

Contract Duration: 1,963 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THIS TASK ORDER IS FOR THE REMEDIAL ACTION AT THE HOLT CARGO FACILITY AT THE WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, LOCATED IN CAMDEN COUNTY, NEW JERSEY

Place of Performance

Location: GLOUCESTER CITY, CAMDEN County, NEW JERSEY, 08030

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to APTIM FEDERAL SERVICES, LLC for work described as: IGF::OT::IGF THIS TASK ORDER IS FOR THE REMEDIAL ACTION AT THE HOLT CARGO FACILITY AT THE WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, LOCATED IN CAMDEN COUNTY, NEW JERSEY Key points: 1. Significant investment in environmental remediation at a Superfund site. 2. Competition method suggests potential for competitive pricing. 3. Long duration indicates complex and ongoing environmental challenges. 4. Cost-plus fixed fee contract type requires careful oversight to manage costs.

Value Assessment

Rating: fair

The contract's total award value is substantial, reflecting the complexity of Superfund site remediation. Benchmarking against similar large-scale environmental cleanup contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is generally effective for price discovery in complex service procurements.

Taxpayer Impact: Taxpayer funds are being used for essential environmental cleanup, addressing a long-term public health and environmental concern.

Public Impact

Addresses environmental contamination at a Superfund site, improving public health and safety. Supports economic development by cleaning up industrial land for potential reuse. Ensures compliance with federal environmental regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee contract type can incentivize cost overruns if not managed diligently.
Long contract duration (over 4 years) increases risk of scope creep and cost escalation.
Remediation projects are inherently complex and subject to unforeseen environmental conditions.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contract addresses a critical environmental need at a Superfund site.
Managed by the Department of the Army, indicating established oversight capabilities.

Sector Analysis

Environmental remediation services, particularly for Superfund sites, are a specialized sector within government contracting. Spending benchmarks vary widely based on site complexity, remediation technology, and duration.

Small Business Impact

The data does not indicate specific subcontracting goals or participation by small businesses. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The cost-plus fixed fee contract type necessitates robust oversight to ensure cost control and prevent contractor inefficiencies. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of unforeseen environmental conditions impacting schedule and cost.
Contractor performance over a long duration.
Complexity of Superfund site remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to APTIM FEDERAL SERVICES, LLC. IGF::OT::IGF THIS TASK ORDER IS FOR THE REMEDIAL ACTION AT THE HOLT CARGO FACILITY AT THE WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE, LOCATED IN CAMDEN COUNTY, NEW JERSEY

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $53.7 million.

What is the period of performance?

Start: 2016-01-14. End: 2021-05-30.

What is the total cost per unit of remediation, considering the volume or type of contaminants addressed?

Determining a precise per-unit cost for remediation is challenging due to the variable nature of Superfund sites and the diverse types of contaminants. A comprehensive analysis would require detailed site-specific data on the volume of soil/water treated, the concentration and type of pollutants, and the specific remediation technologies employed. Without this granular data, a meaningful per-unit cost benchmark is difficult to establish.

What are the primary risks associated with the long duration and cost-plus fixed fee structure of this contract?

The primary risks include potential cost overruns due to the cost-plus nature, where contractor profit is tied to costs incurred, potentially incentivizing less efficient practices. The long duration increases the likelihood of scope creep, unforeseen site conditions requiring additional work, and contractor performance degradation over time. Effective risk mitigation requires stringent oversight, clear performance metrics, and proactive change management.

How effectively has the full and open competition process translated into cost savings or optimal solution selection for this complex remediation project?

Full and open competition generally promotes price discovery and allows the government to select from a wide pool of qualified contractors, theoretically leading to better value. However, for highly specialized and complex projects like Superfund remediation, the lowest bid may not always represent the best value if technical expertise and long-term effectiveness are compromised. Ongoing performance monitoring is key to assessing if the competitive process yielded the desired outcomes.

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

Solicitation ID: W912DQ14R3004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC (UEI: 080821711)

Address: 2370 TOWNE CENTER BLVD, BATON ROUGE, LA, 70806

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,300,000

Exercised Options: $55,300,000

Current Obligation: $53,733,271

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,381,218

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ15D3000

IDV Type: IDC

Timeline