DOI awards $2.2M R&D contract for environmental operations and construction to HDR Environmental

Contract Overview

Contract Amount: $2,243,851 ($2.2M)

Contractor: HDR Environmental, Operations and Construction, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-07-08

End Date: 2026-12-31

Contract Duration: 1,637 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: AT-20-05-02 RODEO II TASK 2

Place of Performance

Location: NEW BEDFORD, BRISTOL County, MASSACHUSETTS, 02740

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC. for work described as: AT-20-05-02 RODEO II TASK 2 Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The contract duration is over 4 years, indicating a long-term need. 5. The specific NAICS code (541715) points to a specialized R&D sector. 6. This award is a delivery order under a larger contract vehicle (RODEO II TASK 2).

Value Assessment

Rating: fair

The contract value of $2.2 million over approximately 4 years suggests a moderate investment in R&D. Benchmarking this specific R&D effort against similar contracts is challenging without more detail on the scope of work. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency and prevent scope creep, as it can lead to higher-than-expected costs if not managed diligently. The value proposition hinges on the successful outcomes of the research and development activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific award. While competition is generally positive, a low number of bidders could indicate a niche market or specialized requirements that limit the pool of potential offerors. The pricing and terms would have been evaluated against these bids.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bids received, there is a possibility that a more robust competition could have yielded even better pricing or terms.

Public Impact

The primary beneficiaries are likely the Bureau of Ocean Energy Management (BOEM) and potentially other entities within the Department of the Interior requiring specialized environmental R&D. The contract aims to deliver advancements in physical, engineering, and life sciences related to environmental operations and construction. The geographic impact is not specified but is likely focused on areas relevant to BOEM's mission, potentially including offshore energy development zones. Workforce implications may include the need for specialized scientists, engineers, and technical personnel within HDR Environmental and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited competition (2 bidders) may indicate a lack of market saturation or high barriers to entry.
The specific R&D outcomes and their practical application are not detailed, making value assessment difficult.
Long contract duration requires sustained oversight to ensure objectives remain aligned with evolving needs.

Positive Signals

Awarded through full and open competition, promoting a fair process.
Contractor (HDR Environmental) likely possesses specialized expertise in the required R&D fields.
The contract addresses a specific need within the Bureau of Ocean Energy Management's mission.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding nanotechnology and biotechnology). This is a broad category encompassing scientific discovery and applied research. The market for such services is often specialized, with a limited number of firms possessing the requisite expertise. Comparable spending benchmarks would depend heavily on the specific R&D focus, but government investment in scientific research is substantial across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, HDR Environmental, is likely a large business, and any subcontracting opportunities would be at their discretion and not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Ocean Energy Management (BOEM) within the Department of the Interior. As a Time and Materials contract, rigorous oversight of labor hours, material costs, and adherence to the statement of work is crucial. Transparency is facilitated through contract reporting mechanisms. The Inspector General for the Department of the Interior would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Bureau of Ocean Energy Management (BOEM) Research and Development Programs
Department of the Interior Scientific and Technical Services Contracts
Environmental Science and Engineering Research Contracts
Physical and Engineering Sciences R&D Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition may result in suboptimal pricing.
Scope creep risk given the R&D nature and T&M contract type.
Long duration requires sustained and effective contract management.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC.. AT-20-05-02 RODEO II TASK 2

Who is the contractor on this award?

The obligated recipient is HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2022-07-08. End: 2026-12-31.

What is the specific research and development focus of this contract, and what are the expected deliverables?

The contract, identified as AT-20-05-02 RODEO II TASK 2, is for Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology), with a value of $2,243,850.72 awarded to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC. by the Department of the Interior's Bureau of Ocean Energy Management (BOEM). While the NAICS code 541715 provides a general classification, the specific R&D focus and expected deliverables are not detailed in the provided data. Typically, BOEM's R&D efforts relate to the safe and environmentally responsible development of offshore energy resources. Expected deliverables could include scientific reports, feasibility studies, prototype development, or data analysis related to environmental impacts, engineering solutions, or operational safety in offshore environments. Further details would be found in the contract's statement of work.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar R&D services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which can be common in R&D. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This offers flexibility but carries inherent risks for the government, primarily cost uncertainty. If not managed diligently with strict oversight on labor hours and material costs, T&M contracts can exceed initial estimates and lead to cost overruns. For R&D, fixed-price or cost-plus-fixed-fee contracts might offer better cost predictability if the scope is well-defined, but T&M allows for adaptation to research findings. The key risk mitigation involves robust government monitoring and clear task orders.

What is the track record of HDR Environmental, Operations and Construction, Inc. with federal contracts, particularly within the Department of the Interior?

HDR Environmental, Operations and Construction, Inc. is a significant federal contractor. While the provided data does not detail their entire contract history, their ability to secure this award from the Bureau of Ocean Energy Management suggests a positive track record and relevant expertise. Companies like HDR often have extensive experience supporting government agencies with complex engineering, environmental, and construction-related projects. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts, and any history of disputes or performance issues. Their presence as a prime contractor on this R&D award indicates they meet the qualifications and past performance requirements set by the agency.

Given the $2.2 million value and 4-year duration, how does this contract's spending compare to broader federal R&D expenditures in similar scientific domains?

The $2.2 million contract value over approximately four years represents a modest investment within the vast landscape of federal Research and Development (R&D) spending. Federal R&D funding is substantial, often measured in the hundreds of billions annually, supporting a wide array of scientific domains across numerous agencies like the Department of Defense, National Science Foundation, National Institutes of Health, and NASA. This specific contract, focused on physical, engineering, and life sciences under the Department of the Interior's Bureau of Ocean Energy Management, likely addresses specialized needs related to offshore energy development. While significant for the specific project, its dollar amount is a small fraction of the total federal R&D budget. Benchmarking requires comparing it to other DOI R&D contracts or similar environmental/engineering R&D efforts across agencies, which often range from hundreds of thousands to tens or hundreds of millions of dollars depending on scope and duration.

What are the potential risks associated with the limited competition (2 bidders) for this contract, and how might it impact value for taxpayers?

Limited competition, such as the two bids received for this contract, can present several risks. Firstly, it may indicate a lack of robust market interest or a high barrier to entry for potential competitors, potentially due to specialized requirements or the nature of the contract vehicle (RODEO II TASK 2). This reduced competition could lead to less aggressive pricing than might be achieved in a more crowded marketplace, potentially resulting in a higher cost for taxpayers. Secondly, it might limit the government's options if the selected contractor underperforms, as finding and onboarding an alternative could be more challenging. While full and open competition was utilized, the low number of bids suggests that further market research or outreach might be beneficial for future procurements in this specific niche to ensure maximum competitive pressure and optimal value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Natural Resources and Environment R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: HDR, Inc

Address: 9781 S MERIDIAN BLVD STE 400, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $3,035,151

Exercised Options: $2,243,851

Current Obligation: $2,243,851

Actual Outlays: $1,382,321

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,895,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140M0121D0003

IDV Type: IDC

Timeline