Air Force awards $23.9M remediation contract to Versar, Inc. for 3,172 days of service

Contract Overview

Contract Amount: $23,917,449 ($23.9M)

Contractor: Versar, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-07-24

End Date: 2021-03-31

Contract Duration: 3,172 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGFF GREAT LAKES PERFORMANCE BASED REMEDIATION (PBR)

Place of Performance

Location: WRIGHT PATTERSON AFB, MONTGOMERY County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to VERSAR, INC. for work described as: IGF::OT::IGFF GREAT LAKES PERFORMANCE BASED REMEDIATION (PBR) Key points: 1. Contract value represents a significant investment in environmental remediation services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A long duration of over 8 years indicates a sustained need for these services. 4. The firm-fixed-price structure shifts performance risk to the contractor. 5. The contract's geographic focus is Ohio, impacting local environmental conditions and potentially workforce. 6. Performance-based remediation implies a focus on outcomes rather than specific tasks.

Value Assessment

Rating: good

The contract's total value of $23.9 million over approximately 8.6 years averages to about $2.78 million annually. Benchmarking this against similar large-scale environmental remediation contracts is challenging without more specific service details. However, the firm-fixed-price nature suggests that the contractor is responsible for managing costs to achieve the defined performance outcomes, which can be a good indicator of value if performance targets are met. The award amount appears reasonable for the extensive duration and scope implied by remediation services.

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 while the competition was broad, specific sources may have been excluded based on prior performance or other criteria. The presence of 5 bids suggests a moderate level of competition. A competitive process is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that multiple companies vied for the contract, driving down costs.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially the environment in Ohio, through remediation of contaminated sites. Services delivered include remediation activities aimed at environmental cleanup. The geographic impact is concentrated in Ohio, specifically where the remediation sites are located. Workforce implications may include local employment opportunities for environmental technicians, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm-fixed-price.
Ensuring consistent performance quality over the long contract duration.
Dependency on contractor expertise for effective and compliant remediation.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency.
Performance-based approach focuses on achieving desired environmental outcomes.
Long contract duration suggests a stable, ongoing need and established relationship.

Sector Analysis

Environmental remediation services fall under the broader environmental consulting and waste management sector. This sector is characterized by specialized technical expertise, stringent regulatory compliance, and significant project management demands. The market size for federal environmental remediation is substantial, driven by ongoing cleanup requirements at military bases, federal facilities, and Superfund sites. This contract represents a significant portion of spending within this niche, requiring contractors with proven capabilities in hazardous material handling and site restoration.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business set-aside' flag is false. There is no explicit information on subcontracting plans for small businesses. Without specific set-aside requirements or reported subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though Versar, Inc. may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring against the contract's requirements and milestones would be crucial. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Long contract duration may increase risk of performance degradation or cost escalation.
Firm-fixed-price contracts can be challenging if unforeseen site conditions arise.
Need to ensure robust oversight to maintain performance standards over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to VERSAR, INC.. IGF::OT::IGFF GREAT LAKES PERFORMANCE BASED REMEDIATION (PBR)

Who is the contractor on this award?

The obligated recipient is VERSAR, 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 $23.9 million.

What is the period of performance?

Start: 2012-07-24. End: 2021-03-31.

What is the historical spending trend for environmental remediation services by the Department of the Air Force?

Historical spending on environmental remediation by the Department of the Air Force (DAF) has been substantial and consistent over the years, driven by the need to address legacy contamination at numerous installations nationwide. While specific aggregate figures fluctuate annually based on budget allocations and emerging site needs, the DAF consistently allocates hundreds of millions of dollars to environmental restoration and compliance programs. This includes activities like site investigation, cleanup, munitions response, and natural resource damage assessment. Contracts like the one awarded to Versar, Inc. are part of this larger, ongoing commitment to environmental stewardship and regulatory compliance, reflecting a sustained demand for these specialized services across various installations and regions.

How does the per-unit cost or value of this contract compare to similar remediation projects?

Directly comparing the per-unit cost or value of this $23.9 million contract to similar remediation projects is challenging without detailed knowledge of the specific remediation activities, site conditions, and the scope of work. Remediation costs are highly variable, depending on factors such as the type and extent of contamination (e.g., soil, groundwater, hazardous waste), the complexity of the site, regulatory requirements, and the chosen remediation technologies. The firm-fixed-price nature of this contract suggests Versar, Inc. has assessed these variables and committed to a total price. Benchmarking would require access to detailed cost breakdowns of comparable projects, which are often proprietary or not publicly available in a standardized format. However, the contract's duration of over 8 years and its significant total value indicate a substantial and complex undertaking.

What are the key performance indicators (KPIs) typically associated with performance-based remediation contracts?

Performance-based remediation (PBR) contracts, like this one, focus on achieving specific, measurable outcomes rather than dictating the exact methods used. Key performance indicators (KPIs) commonly associated with PBR in environmental remediation include: achieving target contaminant concentration levels in soil or groundwater within specified timeframes, successful closure of regulatory permits, meeting established milestones for site cleanup progress, maintaining compliance with environmental regulations (e.g., air emissions, water discharge), minimizing environmental impact during remediation activities, and ensuring worker safety. The contract likely outlines specific metrics and acceptable performance ranges for these KPIs, with payment or incentives tied to meeting or exceeding them.

What is Versar, Inc.'s track record with federal environmental remediation contracts?

Versar, Inc. has a significant history of performing environmental remediation and related services for various U.S. federal agencies, including the Department of Defense, EPA, and others. Their contract portfolio often includes large-scale projects involving hazardous waste management, site cleanup, munitions response, and environmental consulting. Publicly available data and contract award histories indicate that Versar has secured numerous contracts, some of substantial value, across different geographic locations. Their experience suggests a capacity to manage complex environmental projects and comply with federal regulations. A thorough review of their past performance ratings, any past performance issues, and the successful completion of similar contracts would provide a more detailed assessment of their track record for this specific type of work.

What are the potential risks associated with a long-duration contract like this (over 8 years)?

Long-duration contracts, such as this 8+ year award, present several potential risks. For the government, there's the risk of contractor performance degradation over time, potential for cost increases if contract terms are not sufficiently robust against inflation or unforeseen changes, and the challenge of adapting to evolving technologies or regulatory landscapes within the contract's framework. For the contractor, risks include accurately forecasting costs and resource needs over an extended period, managing personnel retention and expertise, and adapting to potential changes in government requirements or priorities. Additionally, unforeseen site conditions or complexities that emerge over time can significantly impact project scope and cost, even under a firm-fixed-price agreement, potentially leading to disputes or change orders.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kingswood Capital Management, LLC

Address: 6850 VERSAR CTR, SPRINGFIELD, VA, 22151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,620,512

Exercised Options: $23,917,449

Current Obligation: $23,917,449

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $3,341,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8588

IDV Type: IDC

Timeline