Interior Department awards $3.3M for Gulf of Mexico pipeline inspections and decommissioning

Contract Overview

Contract Amount: $331,716 ($331.7K)

Contractor: Chet Morrison Contractors LLC

Awarding Agency: Department of the Interior

Start Date: 2025-11-18

End Date: 2026-04-30

Contract Duration: 163 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN CONTRACTOR SUPPORT TO PERFORM PIPELINE INSPECTIONS AND POTENTIAL PIPELINE DECOMMISSIONING ON ORPHANED INFRASTRUCTURE IN THE MOBILE BAY (MO) AREA GULF OF AMERICA OCS.

Place of Performance

Location: HOUMA, TERREBONNE County, LOUISIANA, 70363

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $331,716 to CHET MORRISON CONTRACTORS LLC for work described as: THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN CONTRACTOR SUPPORT TO PERFORM PIPELINE INSPECTIONS AND POTENTIAL PIPELINE DECOMMISSIONING ON ORPHANED INFRASTRUCTURE IN THE MOBILE BAY (MO) AREA GULF OF AMERICA OCS. Key points: 1. Contract focuses on orphaned infrastructure in Mobile Bay, addressing environmental risks. 2. The firm fixed-price contract type suggests a defined scope and cost control. 3. A relatively short performance period of 163 days indicates a focused operational need. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for follow-on work. 5. The Bureau of Safety and Environmental Enforcement (BSEE) is responsible for overseeing offshore energy activities. 6. The contract is not set aside for small businesses, indicating a focus on specialized capabilities.

Value Assessment

Rating: good

The award amount of $3,317,160 for pipeline inspections and decommissioning in Mobile Bay appears reasonable given the specialized nature of the work and the environmental sensitivities involved. While direct comparisons are difficult without more specific contract details, BSEE typically awards contracts for similar offshore support activities. The firm fixed-price structure helps manage cost certainty for this defined scope. The duration of the task order (163 days) suggests a focused effort rather than a long-term program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this approach generally promotes competitive pricing and allows the government to select the most capable and cost-effective offeror. The use of a delivery order under an existing IDIQ contract suggests that a competitive process was likely conducted when the IDIQ was initially awarded.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value for its investment in environmental protection and infrastructure management.

Public Impact

Benefits the environment by addressing potential hazards from orphaned offshore infrastructure in the Gulf of Mexico. Ensures the safety and environmental integrity of the Outer Continental Shelf (OCS) in the Mobile Bay area. Supports the Bureau of Safety and Environmental Enforcement's mission to oversee offshore energy operations. May involve specialized technical personnel for inspection and decommissioning activities. Contributes to the responsible management of legacy oil and gas infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for undiscovered environmental hazards requiring scope adjustments.
Ensuring contractor compliance with stringent environmental regulations.
Logistical challenges associated with offshore operations in Mobile Bay.

Positive Signals

Clear objective to address orphaned infrastructure, indicating proactive environmental management.
Firm fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting competitive pricing.
Task order issued under an existing IDIQ, implying a pre-vetted contractor pool.

Sector Analysis

This contract falls within the Oil and Gas Support Services sector, specifically focusing on the inspection and decommissioning of offshore infrastructure. The Bureau of Safety and Environmental Enforcement (BSEE) manages a significant portfolio of such activities to ensure environmental protection and safety in the Outer Continental Shelf (OCS). Spending in this area is driven by regulatory requirements and the need to manage aging or abandoned platforms and pipelines. Comparable spending benchmarks would typically involve other BSEE contracts for similar offshore environmental services.

Small Business Impact

This contract was not set aside for small businesses, indicating that the requirement likely demanded specialized capabilities or certifications that were more readily available from larger firms. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary contractor, Chet Morrison Contractors LLC, will be responsible for fulfilling the majority of the work, potentially limiting direct opportunities for small businesses on this specific task order.

Oversight & Accountability

Oversight for this contract will be provided by the Bureau of Safety and Environmental Enforcement (BSEE), a division of the Department of the Interior. BSEE is responsible for ensuring compliance with safety and environmental regulations for offshore oil and gas operations. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon cost. Transparency is facilitated through public contract databases where award details are recorded.

Related Government Programs

Offshore Oil and Gas Operations Support
Environmental Remediation Services
Pipeline Integrity Management
Outer Continental Shelf (OCS) Management

Risk Flags

Potential for unknown environmental hazards with orphaned infrastructure.
Offshore operational risks (weather, logistics, safety).
Ensuring full compliance with environmental regulations during decommissioning.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $331,716 to CHET MORRISON CONTRACTORS LLC. THE OBJECTIVE OF THIS TASK ORDER IS TO OBTAIN CONTRACTOR SUPPORT TO PERFORM PIPELINE INSPECTIONS AND POTENTIAL PIPELINE DECOMMISSIONING ON ORPHANED INFRASTRUCTURE IN THE MOBILE BAY (MO) AREA GULF OF AMERICA OCS.

Who is the contractor on this award?

The obligated recipient is CHET MORRISON CONTRACTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Safety and Environmental Enforcement).

What is the total obligated amount?

The obligated amount is $331,716.

What is the period of performance?

Start: 2025-11-18. End: 2026-04-30.

What is the track record of Chet Morrison Contractors LLC in performing similar pipeline inspection and decommissioning tasks for federal agencies?

Chet Morrison Contractors LLC has a history of performing various offshore services, including pipeline support, decommissioning, and environmental services. While specific details on their past federal contracts for pipeline decommissioning in the Mobile Bay area are not immediately available from this data alone, their general experience in the offshore oil and gas sector suggests they possess relevant capabilities. A deeper dive into their contract history with agencies like BSEE, BOEM, or even the Navy for similar offshore construction and environmental work would provide a more comprehensive understanding of their performance and suitability for this specific task order. Reviewing past performance evaluations and any reported issues on previous federal contracts would be crucial for a full assessment.

How does the awarded amount compare to similar pipeline decommissioning contracts in the Gulf of Mexico?

Directly comparing the $3.3 million award for this specific task order to other pipeline decommissioning contracts in the Gulf of Mexico is challenging without more granular data on the scope, complexity, and specific environmental conditions of those other contracts. However, the award amount appears to be within a reasonable range for specialized offshore environmental services. The Bureau of Safety and Environmental Enforcement (BSEE) manages numerous contracts for the inspection, maintenance, and decommissioning of offshore infrastructure. The value of these contracts can vary significantly based on the number of pipelines, their condition, depth, and the required remediation efforts. This particular contract's focus on 'orphaned infrastructure' in Mobile Bay suggests a targeted effort that may be less extensive than decommissioning entire platforms but still requires specialized expertise.

What are the primary risks associated with inspecting and decommissioning orphaned offshore pipelines in Mobile Bay?

The primary risks associated with inspecting and decommissioning orphaned offshore pipelines in Mobile Bay are multifaceted. Environmentally, there's the risk of encountering hazardous materials, potential leaks or spills during inspection or disturbance, and the impact on marine ecosystems. Technically, orphaned pipelines may have unknown structural integrity issues, making them unpredictable and potentially dangerous to work with. Logistical risks include challenging offshore weather conditions, the need for specialized equipment and vessels, and ensuring the safety of personnel operating in a remote and potentially hazardous environment. Furthermore, regulatory compliance risks are present, ensuring all decommissioning activities meet stringent federal and state environmental standards. The 'orphaned' nature implies a lack of readily available historical data, increasing uncertainty.

What is the expected effectiveness of this contract in mitigating environmental risks from orphaned infrastructure?

This contract is expected to be effective in mitigating environmental risks by proactively identifying and addressing potential hazards posed by orphaned pipelines in Mobile Bay. The inspection phase will allow for the assessment of pipeline integrity and the identification of any immediate threats, such as corrosion or structural weaknesses that could lead to leaks. The decommissioning component, if required, will involve the safe removal or securing of these pipelines, thereby preventing future environmental contamination. The Bureau of Safety and Environmental Enforcement's (BSEE) focus on these types of assets underscores a commitment to environmental stewardship in the Gulf of Mexico. The effectiveness will ultimately depend on the thoroughness of the inspections and the appropriate execution of the decommissioning plan.

How has federal spending on offshore pipeline management and decommissioning evolved over the past five years?

Federal spending on offshore pipeline management and decommissioning, primarily through agencies like the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM), has been influenced by factors such as regulatory changes, the aging of existing infrastructure, and fluctuations in oil and gas activity. While specific aggregate spending figures for 'pipeline decommissioning' as a distinct category are not always readily available, overall spending on OCS oversight, safety, and environmental compliance has remained a consistent priority. There has been an increasing emphasis on addressing 'idle' or 'orphaned' infrastructure, suggesting a potential shift or increase in funding allocated to managing these legacy assets. The trend likely reflects a growing awareness and regulatory push to mitigate long-term environmental liabilities associated with the extensive offshore infrastructure developed over decades.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Support Activities for Mining › Support Activities for Oil and Gas Operations

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140E0125F0078

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 BAYOU DULARGE RD, HOUMA, LA, 70363

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

Financial Breakdown

Contract Ceiling: $3,265,031

Exercised Options: $331,716

Current Obligation: $331,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140E0124D0003

IDV Type: IDC

Timeline