Interior's $8.9M Alaska well remediation contract awarded to ASRC Consulting & Environmental Services

Contract Overview

Contract Amount: $8,899,255 ($8.9M)

Contractor: Asrc Consulting & Environmental Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2025-08-12

End Date: 2027-05-31

Contract Duration: 657 days

Daily Burn Rate: $13.5K/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: ALASKA LEGACY AND ABANDONED WELL REMEDIATION IDIQ - EAST SIMPSON #1 P&A, MEADE #1 CHARACTERIZATION

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $8.9 million to ASRC CONSULTING & ENVIRONMENTAL SERVICES, LLC for work described as: ALASKA LEGACY AND ABANDONED WELL REMEDIATION IDIQ - EAST SIMPSON #1 P&A, MEADE #1 CHARACTERIZATION Key points: 1. Contract focuses on critical environmental cleanup in Alaska, addressing legacy and abandoned oil and gas wells. 2. The award to ASRC Consulting & Environmental Services, LLC, highlights the need for specialized environmental services in remote regions. 3. Performance period extends over two years, indicating a sustained effort required for site characterization and plugging/abandonment. 4. The contract's value is moderate, suggesting a focused scope of work rather than a large-scale program. 5. This award contributes to the broader federal effort to mitigate environmental risks associated with historical energy extraction.

Value Assessment

Rating: good

The contract value of $8.9 million for a two-year period for well remediation and characterization in Alaska appears reasonable given the specialized nature of the work and the remote location. Benchmarking against similar environmental remediation contracts is challenging due to the unique geographic and operational context of Alaska. However, the fixed-price nature of the award suggests a degree of cost certainty for the government, provided the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific criteria or circumstances led to the exclusion of certain potential bidders. The presence of two bidders suggests some level of competition, but the exclusion of sources may limit the full spectrum of market capabilities and potentially impact price discovery. Further details on the exclusion rationale would be needed for a complete assessment.

Taxpayer Impact: The limited competition, even after an initial broad solicitation, may mean taxpayers did not benefit from the most aggressive pricing possible. However, the government likely sought specialized expertise essential for the unique Alaskan environment.

Public Impact

The primary beneficiaries are the environment of Alaska, through the remediation of potentially hazardous legacy oil and gas wells. Services delivered include characterization of well conditions and the plugging and abandonment of specific wells (East Simpson #1 and Meade #1). The geographic impact is concentrated in Alaska, specifically the areas where the targeted wells are located. This contract supports specialized environmental services jobs within the region, likely requiring skilled labor in geology, engineering, and environmental science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions are encountered during characterization and remediation.
Dependence on a single contractor for critical environmental cleanup tasks in a remote area.
Limited competitive landscape could impact long-term cost-effectiveness for similar future contracts.

Positive Signals

Award to a company with apparent ties to the region (ASRC) may indicate local expertise and understanding of environmental challenges.
Firm Fixed Price contract structure provides cost certainty for the government.
Clear definition of specific wells to be addressed (East Simpson #1, Meade #1) suggests a well-defined scope.

Sector Analysis

This contract falls within the Oil and Gas Support Services sector, specifically focusing on environmental remediation. The market for such services is driven by regulatory requirements, historical industry practices, and the need to mitigate environmental liabilities. Spending in this area is often project-specific and influenced by the age and type of infrastructure, as well as the geographic location and associated logistical challenges, such as those found in Alaska.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless ASRC Consulting & Environmental Services, LLC actively engages small businesses for specialized support services.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Land Management (BLM) contracting officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring completion of specific deliverables (characterization, plugging, abandonment) by the specified deadline. Transparency is facilitated through federal contract databases, but detailed operational oversight reports are typically internal.

Related Government Programs

Federal Oil and Gas Well Plugging and Abandonment Programs
Environmental Remediation Services Contracts
Bureau of Land Management Alaska Operations
Abandoned Mine Land Reclamation

Risk Flags

Environmental Risk
Logistical Complexity
Potential for Unforeseen Conditions
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.9 million to ASRC CONSULTING & ENVIRONMENTAL SERVICES, LLC. ALASKA LEGACY AND ABANDONED WELL REMEDIATION IDIQ - EAST SIMPSON #1 P&A, MEADE #1 CHARACTERIZATION

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 $8.9 million.

What is the period of performance?

Start: 2025-08-12. End: 2027-05-31.

What is the track record of ASRC Consulting & Environmental Services, LLC with federal contracts, particularly in environmental remediation?

ASRC Consulting & Environmental Services, LLC has a history of federal contracting, primarily with agencies like the Department of the Interior and the Department of Defense. Their experience often involves environmental services, including site assessment, remediation, and compliance support. While specific details on past performance for similar well remediation projects would require deeper analysis of contract databases, their presence as a prime contractor suggests a demonstrated capability to manage and execute federal environmental projects. Further investigation into past performance reviews and any documented issues on previous contracts would provide a more comprehensive understanding of their reliability and effectiveness.

How does the awarded value compare to similar well remediation projects in remote or challenging environments?

Direct comparison of the $8.9 million contract value for 657 days (approx. 2 years) is difficult without specific project details and scope equivalency. However, environmental remediation in remote locations like Alaska typically incurs significant logistical premiums due to transportation, specialized equipment, and personnel support requirements. Contracts for plugging and abandonment can vary widely based on well depth, complexity, geological conditions, and the extent of characterization needed. Generally, such specialized services command higher unit costs than standard construction or support activities. The value appears aligned with the inherent complexities and costs associated with operating in Alaska.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include unforeseen subsurface conditions at the wells that could increase remediation complexity and cost, potential delays due to extreme weather in Alaska, and logistical challenges in accessing remote well sites. Mitigation strategies likely involve thorough pre-award planning, detailed site assessments (even if preliminary), contingency planning for weather delays, and robust project management by the contractor. The firm-fixed-price structure incentivizes the contractor to manage these risks effectively to maintain profitability. The government's mitigation involves clear contract terms and oversight by the Bureau of Land Management.

What is the historical spending pattern for oil and gas well remediation by the Bureau of Land Management in Alaska?

Historical spending by the Bureau of Land Management (BLM) on oil and gas well remediation in Alaska reflects a long-term commitment to addressing environmental legacies from past exploration and production activities. While specific annual figures fluctuate based on available funding, identified priorities, and the number of wells requiring attention, the BLM consistently allocates resources to these efforts. Spending is often driven by regulatory mandates and the agency's stewardship responsibilities over federal lands. The current contract represents a continuation of this ongoing effort, focusing on specific high-priority sites identified through the agency's inventory and assessment processes.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the procurement process and potential savings?

This designation suggests that the initial solicitation was intended for full and open competition, but specific sources were later excluded from consideration. This exclusion could be due to various reasons, such as the need for highly specialized capabilities, national security concerns, or prior performance issues with certain entities. While it implies some level of competition occurred, the exclusion of potential bidders may have limited the overall competitive pressure on pricing. Consequently, the government might not have achieved the lowest possible price compared to a scenario with unrestricted full and open competition among all capable firms.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3900 C STREET, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $8,899,255

Exercised Options: $8,899,255

Current Obligation: $8,899,255

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140L0624D0006

IDV Type: IDC

Timeline