DOI awards $19.7M contract for NPRA legacy well remediation in Alaska

Contract Overview

Contract Amount: $19,741,682 ($19.7M)

Contractor: Asrc Consulting & Environmental Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2023-08-17

End Date: 2025-04-15

Contract Duration: 607 days

Daily Burn Rate: $32.5K/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: NPRA LEGACY WELL REMEDIATION - TULAGEAK TEST WELL #1 & RESERVES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99513

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $19.7 million to ASRC CONSULTING & ENVIRONMENTAL SERVICES, LLC for work described as: NPRA LEGACY WELL REMEDIATION - TULAGEAK TEST WELL #1 & RESERVES Key points: 1. Contract focuses on environmental remediation of legacy oil and gas infrastructure. 2. Competition was full and open after exclusion of sources, indicating a deliberate process. 3. The contract duration of 607 days suggests a significant scope of work. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The awardee, ASRC Consulting & Environmental Services, LLC, is a key player in Alaska's environmental sector. 6. This contract addresses environmental liabilities associated with historical resource extraction.

Value Assessment

Rating: good

The contract value of $19.7 million for well remediation services appears reasonable given the scope and location. While direct comparisons are difficult without more specific project details, environmental remediation projects in remote or challenging environments like Alaska often incur higher costs due to logistics and specialized requirements. The firm fixed-price structure provides cost control, and the awardee's experience in the region suggests potential for efficient execution. Further analysis would benefit from benchmarking against similar legacy well remediation projects in Alaska or other Arctic regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be broad, there might have been initial considerations or exclusions that were later resolved to allow for full competition. The presence of two bidders indicates a level of competition, though the exact number of interested parties and the reasons for any initial exclusions would provide a clearer picture of the competitive landscape and its impact on price discovery.

Taxpayer Impact: The full and open competition, even with initial exclusions, aims to ensure the government receives the best value by allowing multiple qualified contractors to bid, driving down costs through market forces and benefiting taxpayers.

Public Impact

The primary beneficiaries are the residents of Alaska, who will see the remediation of environmental hazards. Services delivered include the testing and remediation of legacy oil and gas wells, specifically Tulageak Test Well #1 & Reserves. The geographic impact is concentrated in Alaska, addressing specific environmental concerns in the state. The contract supports specialized environmental services jobs within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered.
Logistical challenges in remote Alaskan locations could impact project timelines and costs.
Dependence on a single contractor for a critical environmental remediation task.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awardee has experience in environmental services in Alaska.
Contract addresses long-standing environmental liabilities.

Sector Analysis

This contract falls within the Environmental Services sector, specifically focusing on oil and gas well remediation. The market for such services is driven by regulatory requirements, aging infrastructure, and corporate environmental responsibility. Spending in this area can fluctuate based on new regulations, discoveries of legacy sites, and the economic health of the energy sector. Comparable spending benchmarks would typically involve other government contracts for hazardous material cleanup, site remediation, and decommissioning of industrial facilities, particularly in challenging environmental settings.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of handling the complex remediation task. The impact on the small business ecosystem is likely minimal unless the prime contractor engages small businesses for specialized support services not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Land Management (BLM), a division of the Department of the Interior. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to meet specific deliverables and performance standards. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Bureau of Land Management Environmental Remediation Programs
Department of the Interior Oil and Gas Oversight
Alaska Native Claims Settlement Act (ANCSA) Corporation Contracts
Legacy Well Plugging and Abandonment Programs

Risk Flags

Potential for unforeseen site conditions
Logistical challenges in remote Arctic environment
Environmental compliance risks
Contract performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $19.7 million to ASRC CONSULTING & ENVIRONMENTAL SERVICES, LLC. NPRA LEGACY WELL REMEDIATION - TULAGEAK TEST WELL #1 & RESERVES

Who is the contractor on this award?

The obligated recipient is ASRC CONSULTING & ENVIRONMENTAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2023-08-17. End: 2025-04-15.

What is the track record of ASRC Consulting & Environmental Services, LLC in performing similar legacy well remediation projects for the federal government?

ASRC Consulting & Environmental Services, LLC has a documented history of providing environmental consulting and remediation services, particularly within Alaska. While specific details on their track record with legacy well remediation for the federal government require deeper database searches, their presence as an awardee for this significant contract suggests they possess the necessary qualifications and experience. Their expertise is often leveraged for projects involving hazardous materials, site cleanup, and environmental compliance in challenging Arctic environments. Further investigation into their past performance ratings and specific project outcomes would provide a more comprehensive understanding of their capabilities in this specialized niche.

How does the awarded amount of $19.7 million compare to similar legacy well remediation contracts in Alaska or other regions?

Benchmarking the $19.7 million award requires careful consideration of project scope, complexity, and location. Environmental remediation in Alaska, especially for legacy oil and gas infrastructure, is inherently costly due to logistical challenges, harsh climate, and specialized environmental conditions. Without detailed project specifications (e.g., number of wells, depth, type of contamination, remediation techniques), a direct comparison is difficult. However, large-scale environmental cleanup projects in remote or sensitive areas can easily run into tens of millions of dollars. This contract's value appears within a plausible range for a significant remediation effort in such a demanding environment, assuming it covers comprehensive testing and remediation activities.

What are the primary risks associated with this specific legacy well remediation contract?

The primary risks associated with this contract include unforeseen subsurface conditions that could lead to cost overruns or schedule delays, especially given the nature of legacy infrastructure which may have undocumented issues. Logistical challenges inherent to working in remote Alaskan locations pose significant risks to timely execution and budget adherence, including transportation, personnel, and equipment availability. Environmental risks, such as unexpected discoveries of hazardous materials or the need for more complex remediation techniques than initially planned, are also present. Furthermore, reliance on a single contractor for a critical environmental task introduces performance risk if the contractor encounters significant operational difficulties.

What is the expected effectiveness of the remediation services to be provided under this contract?

The expected effectiveness of the remediation services hinges on the thoroughness of the testing and the chosen remediation strategies for Tulageak Test Well #1 & Reserves. The contract aims to address environmental liabilities associated with legacy oil and gas operations, likely involving the assessment and mitigation of potential soil and groundwater contamination, and ensuring the structural integrity of the wells. Successful execution should lead to a reduction in environmental hazards, improved land use potential, and compliance with environmental regulations. The firm fixed-price nature of the contract incentivizes the contractor to achieve these objectives efficiently, though the ultimate effectiveness will be measured by post-remediation environmental monitoring and assessment.

What are the historical spending patterns for legacy well remediation by the Bureau of Land Management in Alaska?

Historical spending patterns for legacy well remediation by the Bureau of Land Management (BLM) in Alaska are influenced by factors such as the number of identified legacy sites, available appropriations, and regulatory priorities. The BLM manages vast federal lands, including areas with historical oil and gas exploration. Spending in this category can be cyclical, often increasing when new environmental assessments identify critical risks or when federal funding initiatives are launched. Analyzing past BLM budgets and contract awards for similar remediation activities in Alaska would reveal trends in investment, the types of projects funded, and the average cost per project, providing context for the current $19.7 million award.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced procurement approach. It implies that while the ultimate goal was to solicit bids from all responsible sources, there may have been an initial phase where certain sources were excluded, possibly due to specific pre-qualification requirements or a misunderstanding of the solicitation. However, the 'full and open' designation means that after any initial exclusions were addressed or resolved, the solicitation was made broadly available. This method aims to balance the need for specialized capabilities with the principle of maximizing competition to achieve the best value for the government. The fact that it progressed to full and open competition suggests a commitment to competitive principles.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140L0623R0021

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3900 C ST STE 701, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,741,682

Exercised Options: $19,741,682

Current Obligation: $19,741,682

Actual Outlays: $19,639,557

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $15,252,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline