Interior Department awards $4.9M contract for Formosa Mine Superfund Site removal to North Wind General Contractors

Contract Overview

Contract Amount: $4,915,033 ($4.9M)

Contractor: North Wind General Contractors LLC

Awarding Agency: Department of the Interior

Start Date: 2025-09-10

End Date: 2028-06-02

Contract Duration: 996 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FORMOSA MINE SUPERFUND SITE REMOVAL

Place of Performance

Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83402

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $4.9 million to NORTH WIND GENERAL CONTRACTORS LLC for work described as: FORMOSA MINE SUPERFUND SITE REMOVAL Key points: 1. Contract awarded for environmental remediation at a Superfund site, indicating a focus on hazardous waste cleanup. 2. The contractor, North Wind General Contractors LLC, has experience in environmental services, suggesting capability for the task. 3. The contract duration of nearly 1000 days points to a complex and lengthy remediation process. 4. The fixed-price contract type aims to control costs for the government, though scope creep could impact final expenditure. 5. The absence of a specific Product Service Code (PSC) might indicate a unique or specialized service requirement. 6. The contract's geographic focus is Idaho, potentially benefiting the local environment and economy.

Value Assessment

Rating: fair

The contract value of $4.9 million for a Superfund site cleanup appears to be within a reasonable range for such complex environmental projects. However, without specific details on the scope of work, it is difficult to benchmark against similar contracts. The firm fixed-price structure suggests an attempt to control costs, but the long duration could lead to unforeseen expenses if not managed carefully. The total obligated amount is close to the award value, indicating initial funding is aligned with the contract's scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach is typically used when only one contractor is capable of performing the work, often due to specialized expertise, proprietary technology, or urgent needs. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that a competitive bidding process might have yielded. This raises questions about whether the best possible value was obtained.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less certainty that the price reflects the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the environment and public health through the remediation of a hazardous Superfund site. The services delivered involve the removal and management of hazardous substances at the Formosa Mine Superfund Site. The geographic impact is localized to the state of Idaho, specifically the area surrounding the Formosa Mine. Workforce implications may include employment opportunities for environmental scientists, engineers, and laborers in Idaho.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration (996 days) increases the risk of cost overruns due to unforeseen site conditions or inflation.
Lack of detailed scope of work in the provided data makes it difficult to assess the full extent of the remediation effort and associated risks.

Positive Signals

Award to a contractor with presumed experience in environmental remediation suggests a focus on successful project execution.
Firm fixed-price contract type provides cost certainty if the scope is well-defined and managed.
The contract addresses a critical environmental need at a Superfund site, indicating a commitment to public health and safety.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on environmental remediation. The Superfund program, managed by the EPA (though this contract is with DOI), addresses the cleanup of hazardous waste sites across the nation. The market for environmental remediation services is substantial, driven by regulatory requirements and historical industrial activity. This contract represents a specific instance of federal investment in addressing environmental liabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. North Wind General Contractors LLC's size is not specified, but larger environmental firms often handle Superfund sites. This means opportunities for small businesses to participate in this specific contract may be limited unless they are direct subcontractors to the prime. Further analysis would be needed to determine if subcontracting plans exist and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely be provided by the Bureau of Land Management (BLM) and potentially the Department of the Interior's Office of Inspector General, given the nature of the work and the agency involved. Transparency would depend on the public availability of contract performance reports and site remediation progress updates. Accountability measures are typically embedded in contract clauses related to performance standards, milestones, and penalties for non-compliance.

Related Government Programs

Superfund Program
Environmental Remediation Services
Hazardous Waste Management
Heavy and Civil Engineering Construction

Risk Flags

Sole-source award
Long contract duration
Potential for cost overruns
Environmental remediation complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.9 million to NORTH WIND GENERAL CONTRACTORS LLC. FORMOSA MINE SUPERFUND SITE REMOVAL

Who is the contractor on this award?

The obligated recipient is NORTH WIND GENERAL CONTRACTORS 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 $4.9 million.

What is the period of performance?

Start: 2025-09-10. End: 2028-06-02.

What is the specific scope of work for the Formosa Mine Superfund Site removal, and what are the key remediation technologies expected to be employed?

The provided data does not detail the specific scope of work for the Formosa Mine Superfund Site removal. However, Superfund site cleanups typically involve identifying contaminants, assessing risks, and implementing remedies such as excavation, containment, treatment, or natural attenuation. Technologies can range from physical removal and disposal of contaminated soil and debris to in-situ treatment methods like soil vapor extraction or bioremediation. The exact technologies employed would depend on the nature and extent of contamination at the Formosa Mine site, which requires a detailed site-specific investigation and remedial design.

Can North Wind General Contractors LLC's past performance on similar environmental remediation projects be assessed to gauge their capability for this contract?

Assessing North Wind General Contractors LLC's past performance would require access to their contract history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and project portfolios. While the award of this contract suggests they were deemed capable by the Bureau of Land Management, a deeper dive into their track record on comparable Superfund sites or large-scale environmental cleanups would provide a more robust assessment. Factors to consider include their experience with similar contaminants, project complexity, safety record, and ability to meet deadlines and budgets on previous projects.

How does the $4.9 million contract value compare to the typical costs of Superfund site cleanups of similar complexity and scale?

The $4.9 million contract value for the Formosa Mine Superfund Site removal is a moderate figure in the context of Superfund cleanups. Superfund remediation costs can vary dramatically, ranging from hundreds of thousands to hundreds of millions of dollars, depending on the site's size, the type and concentration of contaminants, the chosen remedy, and the duration of the cleanup. Smaller sites or those requiring less intensive remediation might fall within this range. However, without specific details on the contamination levels and the planned remediation strategy for the Formosa Mine, a precise comparison to similar projects is challenging. It is crucial to understand if this value represents the full lifecycle cost or just an initial award amount.

What are the potential risks associated with a sole-source award for this environmental remediation contract, and how might they be mitigated?

The primary risk of a sole-source award is the potential for inflated pricing and reduced innovation due to the lack of competition. Taxpayers may not receive the best value if alternative contractors could have offered more competitive bids or more efficient solutions. Mitigation strategies include rigorous negotiation of the contract terms and price by the contracting agency, thorough market research to ensure the sole-source justification is valid, and robust oversight during contract performance to ensure efficiency and adherence to scope. Independent cost estimates and expert reviews can also help validate the reasonableness of the price.

What is the historical spending pattern for environmental remediation contracts awarded by the Department of the Interior or Bureau of Land Management?

Historical spending data for environmental remediation contracts by the Department of the Interior (DOI) and its bureaus like the Bureau of Land Management (BLM) would reveal trends in investment in hazardous site cleanup and ecosystem restoration. Analyzing this data could show fluctuations in annual spending, common types of remediation projects undertaken, and the prevalence of competitive versus sole-source awards. Such analysis helps contextualize the $4.9 million Formosa Mine contract within the broader fiscal landscape of the agency's environmental stewardship responsibilities and identify potential areas for increased or decreased future investment.

What are the performance metrics and oversight mechanisms in place to ensure the successful and timely completion of the Formosa Mine Superfund Site removal?

While specific performance metrics are not detailed in the provided data, typical oversight mechanisms for environmental remediation contracts include regular progress reports, site inspections, milestone reviews, and adherence to environmental quality and safety standards. The contract likely includes clauses for deliverables, payment schedules tied to performance, and potential penalties for delays or substandard work. The Bureau of Land Management contracting officer and technical representatives would be responsible for monitoring performance, approving payments, and ensuring compliance with the contract terms and relevant environmental regulations. The Inspector General's office may also conduct audits.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140L0625R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $4,933,813

Exercised Options: $4,915,033

Current Obligation: $4,915,033

Actual Outlays: $718,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline