EPA awards $55.8M contract for Mississippi phosphate remediation, with remediation services as the primary NAICS code

Contract Overview

Contract Amount: $55,772,763 ($55.8M)

Contractor: Leisnoi Diversified Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2021-09-29

End Date: 2026-12-31

Contract Duration: 1,919 days

Daily Burn Rate: $29.1K/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: MISSISSIPPI PHOSPHATE PHASE 1C IN PASCAGOULA, MS. THIS PHASE WILL INCLUDE THE EARTHWORK NECESSARY TO COMPLETE THE REMAINING SLOPE AREA, INSTALL GEOTEXTILE TURF PRODUCT,WATER RETURN DITCH AND POND 5 AREAS.

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39581

State: Mississippi Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $55.8 million to LEISNOI DIVERSIFIED SERVICES, LLC for work described as: MISSISSIPPI PHOSPHATE PHASE 1C IN PASCAGOULA, MS. THIS PHASE WILL INCLUDE THE EARTHWORK NECESSARY TO COMPLETE THE REMAINING SLOPE AREA, INSTALL GEOTEXTILE TURF PRODUCT,WATER RETURN DITCH AND POND 5 AREAS. Key points: 1. The contract focuses on earthwork, geotextile installation, and water management for a phosphate site. 2. The award was made under a full and open competition after exclusion of sources, suggesting a deliberate procurement process. 3. The contract duration is substantial at 1919 days, indicating a long-term commitment to the remediation effort. 4. The fixed-price contract type aims to control costs and provide predictability for the government. 5. The geographic focus is specific to Pascagoula, Mississippi, addressing a localized environmental concern.

Value Assessment

Rating: good

The contract value of $55.8 million for remediation services appears reasonable given the scope of work, which includes extensive earthwork and installation of specialized materials. Benchmarking against similar large-scale environmental remediation projects would provide further context, but the fixed-price nature suggests an effort to manage costs effectively. The contract's duration of nearly five years also implies a significant undertaking, justifying the allocated funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted full and open competition. This procurement approach might be used when specific capabilities or prior performance are critical, potentially impacting the breadth of price discovery.

Taxpayer Impact: While the competition was not fully unrestricted, the 'full and open' aspect suggests an attempt to solicit from a broad base of qualified contractors. The exclusion of sources warrants further scrutiny to ensure it did not unduly limit competition and potentially increase costs for taxpayers.

Public Impact

The primary beneficiaries are the residents and environment of Pascagoula, Mississippi, through the cleanup of a phosphate site. The services delivered include critical earthwork, installation of geotextile turf, and water management infrastructure. The geographic impact is concentrated in Pascagoula, MS, addressing a specific local environmental issue. The contract supports specialized environmental remediation services, potentially involving a skilled workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method could limit the number of potential bidders and impact price competitiveness.
The long contract duration (1919 days) increases the risk of unforeseen cost escalations or changes in environmental regulations.
The specific nature of the remediation work may require specialized equipment and expertise, potentially leading to higher costs if not managed efficiently.

Positive Signals

The use of a Firm Fixed Price (FFP) contract type provides cost certainty for the government.
The contract is awarded to a single entity, Leisnoi Diversified Services, LLC, suggesting they possess the required capabilities for this complex task.
The Environmental Protection Agency (EPA) is overseeing the contract, indicating a focus on environmental compliance and public health.

Sector Analysis

This contract falls within the Environmental Remediation sector, a critical area for addressing legacy industrial pollution. The market for such services is driven by regulatory requirements and the need to mitigate environmental and health risks. The EPA's significant role underscores the importance of these activities. Comparable spending benchmarks would typically be assessed based on the scale and complexity of the contamination, the specific remediation technologies employed, and the geographic location.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses within the provided details. Therefore, the direct impact on the small business ecosystem from this particular award appears limited, though the prime contractor's own subcontracting practices would determine broader implications.

Oversight & Accountability

The Environmental Protection Agency (EPA) is the awarding agency, implying that standard EPA oversight mechanisms for contracts will be in place. This typically includes contract performance monitoring, financial reviews, and adherence to environmental regulations. The Inspector General's office of the EPA would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency would be facilitated through contract reporting requirements.

Related Government Programs

Superfund Remedial Action
Brownfields Program
RCRA Corrective Actions
Hazardous Waste Management

Risk Flags

Competition Limited by Source Exclusion
Long Contract Duration Risk
Potential for Unforeseen Site Conditions

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $55.8 million to LEISNOI DIVERSIFIED SERVICES, LLC. MISSISSIPPI PHOSPHATE PHASE 1C IN PASCAGOULA, MS. THIS PHASE WILL INCLUDE THE EARTHWORK NECESSARY TO COMPLETE THE REMAINING SLOPE AREA, INSTALL GEOTEXTILE TURF PRODUCT,WATER RETURN DITCH AND POND 5 AREAS.

Who is the contractor on this award?

The obligated recipient is LEISNOI DIVERSIFIED SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $55.8 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-12-31.

What is the specific nature of the 'phosphate' contamination being addressed, and what are the associated environmental risks?

The provided data does not detail the specific nature of the phosphate contamination beyond its presence at a site in Pascagoula, MS. Phosphate contamination can arise from various industrial processes, including fertilizer manufacturing or chemical production. Environmental risks associated with phosphate pollution often include eutrophication of nearby water bodies, leading to algal blooms that deplete oxygen and harm aquatic life. Depending on the specific compounds involved, there could also be risks to soil health and potential human health impacts if contaminants migrate into groundwater or air. Further investigation into the site's history and the specific chemical composition of the contamination would be necessary for a complete risk assessment.

How does the 'exclusion of sources' procurement method typically affect pricing and competition compared to a standard full and open competition?

The 'exclusion of sources' procurement method, as indicated in the contract details, means that the agency intentionally excluded certain potential offerors from the competition. This is often done when specific capabilities, past performance, or unique circumstances necessitate limiting the pool of bidders. While it can ensure that only highly qualified contractors participate, it generally leads to less robust price competition compared to a truly 'full and open' competition where all responsible sources are allowed to bid. With fewer bidders, there is a reduced incentive for contractors to offer the lowest possible price, potentially resulting in higher costs for the government and, consequently, taxpayers. The justification for excluding sources must be well-documented to ensure fairness and prevent undue restrictions on competition.

What are the key performance indicators (KPIs) likely to be used to measure the success of this remediation contract?

Key performance indicators (KPIs) for this remediation contract would likely focus on several critical areas. Firstly, adherence to the project schedule and completion milestones within the 1919-day duration will be crucial. Secondly, cost control, ensuring the project stays within the $55.8 million budget, will be paramount, especially given the firm fixed-price nature. Thirdly, the effectiveness of the remediation itself will be measured by environmental monitoring data, confirming the reduction or containment of phosphate contamination to meet regulatory standards. Finally, quality control related to the earthwork, geotextile installation, and water management systems will be assessed to ensure the long-term integrity and functionality of the completed work. Compliance with all environmental, health, and safety regulations throughout the project lifecycle will also be a key performance metric.

What is the historical spending pattern of the Environmental Protection Agency (EPA) on similar remediation services, and how does this award compare?

The provided data does not include historical spending patterns for the EPA on similar remediation services, making a direct comparison difficult. However, the EPA is a primary agency responsible for managing environmental cleanup efforts, including those under the Superfund program and other environmental statutes. Contracts for large-scale remediation projects, especially those involving significant earthwork and specialized installations like geotextile turf, can range from tens to hundreds of millions of dollars, depending on the site's complexity, size, and the extent of contamination. The $55.8 million award for this specific phase of the Mississippi Phosphate project appears to be a substantial investment, consistent with the significant scope of work described. A comprehensive analysis would require access to EPA's historical contract databases and data on comparable remediation projects.

What are the potential risks associated with the long duration (1919 days) of this contract, and what mitigation strategies might be in place?

The long duration of 1919 days (approximately 5.25 years) for this remediation contract presents several potential risks. These include the possibility of unforeseen site conditions emerging as work progresses, which could lead to scope changes and cost overruns, despite the firm fixed-price structure. Changes in environmental regulations or scientific understanding of phosphate remediation over the contract period could necessitate modifications to the approach. Inflation and economic fluctuations could also impact the cost of labor and materials over such an extended timeframe. Furthermore, contractor performance degradation or key personnel turnover over a long period can pose risks. Mitigation strategies likely include robust contract management by the EPA, contingency planning for unforeseen conditions, regular performance reviews, and potentially incorporating mechanisms for equitable adjustments if regulatory changes significantly impact the scope of work.

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 › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 68HE0421R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 W BENSON BLVD STE 202, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $60,003,609

Exercised Options: $60,003,609

Current Obligation: $55,772,763

Actual Outlays: $54,267,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline