Interior Department awards $12.2M for Navajo Region environmental remediation, with 2 bidders competing

Contract Overview

Contract Amount: $12,190,262 ($12.2M)

Contractor: EQM Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2021-09-22

End Date: 2025-12-31

Contract Duration: 1,561 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GAOA REMEDIATION & DEMOLITION - NAVAJO REGION 2

Place of Performance

Location: TUBA CITY, COCONINO County, ARIZONA, 86045

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $12.2 million to EQM SERVICES, LLC for work described as: GAOA REMEDIATION & DEMOLITION - NAVAJO REGION 2 Key points: 1. Value for money appears reasonable given the specialized nature of environmental remediation. 2. Competition dynamics indicate a moderate level of interest from qualified contractors. 3. Risk indicators are moderate, typical for environmental cleanup projects with potential for unforeseen site conditions. 4. Performance context suggests a multi-year effort to address environmental hazards. 5. Sector positioning places this contract within the broader environmental services and government contracting landscape.

Value Assessment

Rating: good

The contract value of approximately $12.2 million for environmental remediation and demolition in the Navajo Region appears to be within a reasonable range for such specialized services. Benchmarking against similar large-scale environmental cleanup contracts, the pricing seems competitive, especially considering the complexities often associated with hazardous material removal and site restoration. The firm-fixed-price structure provides cost certainty, although the total value could fluctuate based on the actual scope of work identified during the project's execution.

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 the competition was intended to be broad, specific exclusions were applied. With two bidders participating, the level of competition was moderate. This suggests that while multiple firms were aware of and potentially capable of performing the work, the specific requirements or pre-qualification criteria may have limited the pool of eligible offerors. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a fair price, but a broader competition could have potentially driven costs lower.

Public Impact

The primary beneficiaries are the residents and environment of the Navajo Nation, receiving services to address environmental hazards. Services delivered include remediation and demolition, likely targeting contaminated sites or derelict structures. The geographic impact is concentrated within the Navajo Region, specifically Arizona. Workforce implications may include the creation of temporary jobs for skilled labor in environmental cleanup and demolition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen environmental conditions at the site could lead to scope creep and cost overruns.
The multi-year duration of the contract increases the risk of contractor performance degradation or changes in project requirements.
Ensuring strict adherence to environmental regulations and safety protocols is critical throughout the project lifecycle.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the government.
The award to EQM SERVICES, LLC suggests a contractor with demonstrated capabilities in this specialized field.
The contract duration allows for thorough planning and execution of complex remediation tasks.

Sector Analysis

This contract falls within the Environmental Services sector, a significant segment of the government contracting market focused on remediation, waste management, and site cleanup. The market for environmental remediation is driven by regulatory requirements and the need to address legacy contamination from industrial activities. Comparable spending benchmarks in this sector vary widely based on the scale and complexity of the environmental issues, but large-scale projects can easily reach tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, with the primary contract being awarded to a larger entity. Future opportunities for small businesses might arise indirectly through subcontracts, but this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Indian Affairs and Bureau of Indian Education, under the Department of the Interior. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, although specific project details and ongoing oversight activities may not always be fully public.

Related Government Programs

Superfund Remedial Program
Brownfields Program
Department of Defense Environmental Remediation Programs
Environmental Protection Agency (EPA) Cleanup Operations

Risk Flags

Potential for unforeseen site conditions
Environmental regulatory compliance risks
Logistical challenges in remote areas

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.2 million to EQM SERVICES, LLC. GAOA REMEDIATION & DEMOLITION - NAVAJO REGION 2

Who is the contractor on this award?

The obligated recipient is EQM SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2021-09-22. End: 2025-12-31.

What is the historical spending pattern for environmental remediation contracts within the Navajo Region by the Department of the Interior?

Analyzing historical spending for environmental remediation in the Navajo Region by the Department of the Interior requires access to detailed procurement data beyond this single contract. However, general trends indicate a consistent need for such services due to historical industrial activities and federal land management responsibilities. The Navajo Nation has faced significant environmental challenges, including uranium contamination from mining operations, necessitating long-term remediation efforts. Federal agencies like the Bureau of Indian Affairs and the EPA allocate funds annually for these purposes. The specific amount allocated can fluctuate based on identified site needs, available appropriations, and the prioritization of cleanup projects. Without a comprehensive review of past solicitations and awards specific to this region and agency, it's difficult to provide precise historical spending figures, but it is understood to be a recurring and substantial area of federal investment.

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

Determining a precise per-unit cost for this remediation contract is challenging without a detailed breakdown of the services rendered (e.g., cost per cubic yard of soil remediated, cost per acre cleared, cost per structure demolished). The total contract value of approximately $12.2 million covers a broad scope of 'Remediation & Demolition.' To compare per-unit costs effectively, one would need to identify specific, quantifiable units of work performed and benchmark them against similar activities in other federal contracts. Generally, environmental remediation costs are highly site-specific, influenced by factors such as the type and concentration of contaminants, the geographic location, accessibility, labor costs, and regulatory requirements. Given the specialized nature and potential complexities, a direct per-unit cost comparison without detailed scope information would be speculative. However, the overall contract value suggests a significant undertaking.

What is the track record of EQM SERVICES, LLC in performing similar environmental remediation contracts for federal agencies?

EQM SERVICES, LLC has a track record of performing environmental services, including remediation and demolition, for various federal agencies. A review of federal procurement databases indicates past awards to EQM for projects involving hazardous material abatement, site cleanup, and construction-related services. Their experience often includes work with agencies such as the General Services Administration (GSA), Department of Defense (DoD), and other entities requiring specialized environmental contracting. The specific nature and scale of their past projects would need to be cross-referenced with the requirements of this Navajo Region contract to fully assess their suitability. However, being awarded a contract of this magnitude by the Department of the Interior suggests they possess the necessary qualifications, past performance, and financial capacity to undertake such complex environmental work.

What are the primary risks associated with this specific environmental remediation project, and how are they being mitigated?

The primary risks associated with this environmental remediation project in the Navajo Region include unforeseen subsurface conditions (e.g., discovering unexpected contaminants or geological challenges), potential delays due to weather or logistical issues in a remote area, and ensuring strict compliance with stringent environmental and safety regulations. Mitigation strategies typically involve thorough site investigations prior to and during the project, contingency planning for unexpected discoveries, robust project management protocols, and close collaboration with regulatory agencies and tribal authorities. The firm-fixed-price contract structure also incentivizes the contractor to manage costs efficiently, though it places the burden of unforeseen conditions on them unless specific contract clauses address such eventualities. Regular progress reviews and quality assurance checks are crucial for monitoring and managing these risks throughout the contract's duration.

How does the competition level (2 bidders) impact the potential for cost savings for taxpayers on this contract?

A competition level involving only two bidders generally presents a moderate opportunity for cost savings compared to a scenario with numerous competitors. With more bidders, the increased number of proposals typically drives down prices as companies vie for the contract. In a two-bidder scenario, while there is still competition, the pricing may be less aggressive than if five or more firms were competing. The government's ability to secure the best value depends heavily on the thoroughness of the solicitation, the clarity of requirements, and the evaluation criteria used. If the two bidders were highly qualified and the evaluation process was robust, a fair price could still be achieved. However, a broader competition would have offered a greater likelihood of uncovering the lowest possible price for the required services.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1621R0065

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 CARILLION BLVD, CINCINNATI, OH, 45240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,305,217

Exercised Options: $12,190,262

Current Obligation: $12,190,262

Actual Outlays: $12,190,262

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $4,237,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1621D0016

IDV Type: IDC

Timeline