DHS Coast Guard awards $37.1M contract for oil spill response, raising value-for-money questions

Contract Overview

Contract Amount: $37,150,704 ($37.2M)

Contractor: Couvillion Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-11-19

End Date: 2019-08-01

Contract Duration: 255 days

Daily Burn Rate: $145.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF N18034 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE (FOSC)

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70005

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.2 million to COUVILLION GROUP LLC for work described as: IGF::OT::IGF N18034 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE (FOSC) Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. Significant portion of the contract value ($14.5M) was exercised as a delivery order, indicating urgent or evolving needs. 3. The contract's duration of 255 days suggests a focus on immediate response rather than long-term preparedness. 4. The North American Industry Classification System (NAICS) code 562119 points to waste collection services, a critical but potentially broad category. 5. The contractor, Couvillion Group LLC, has a track record with the Coast Guard, but the lack of competition warrants scrutiny. 6. The contract's value is substantial for a single incident response, necessitating a review of cost-effectiveness.

Value Assessment

Rating: questionable

The contract's total value of $37.1 million for oil spill and hazardous chemical incident mitigation appears high, especially given the sole-source award. Without competitive bids, it is difficult to benchmark the pricing against market rates or similar contracts. The delivery order value of $14.5 million suggests a significant portion of the work was executed under this specific award, further emphasizing the need for cost justification. The absence of a competitive process means potential savings for taxpayers were likely forgone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific emergency situations or when only one vendor possesses the required unique capabilities, they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the potential cost savings that a competitive bidding process could have generated. The government may have paid a premium due to the absence of alternative offers.

Public Impact

The primary beneficiaries are the U.S. Coast Guard and the Department of Homeland Security, who receive critical services for environmental protection. The services delivered include labor, materials, and equipment necessary to mitigate the harmful effects of oil spills or hazardous chemical incidents. The geographic impact is primarily focused on Louisiana (st), where the contractor is based, but the services are deployable nationwide in response to incidents. The contract supports a specialized workforce skilled in emergency response and environmental remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
High contract value for incident response raises questions about cost-effectiveness.
Lack of transparency in pricing due to non-competitive nature.
Potential for cost overruns if not closely managed.
Limited visibility into alternative solutions or technologies not considered.

Positive Signals

Addresses critical environmental protection needs for oil spills and hazardous materials.
Contractor provides essential labor, materials, and equipment.
Supports the U.S. Coast Guard's mission in incident response.
Focus on mitigating harmful environmental effects.

Sector Analysis

The oil spill and hazardous chemical incident response sector is a specialized niche within the broader environmental services industry. This contract falls under waste collection and related services (NAICS 562119). The market for such services is often characterized by the need for rapid deployment, specialized equipment, and trained personnel, which can limit the number of capable providers. Government contracts in this area are crucial for ensuring national environmental security and responding to emergencies, but the inherent risks and specialized nature can lead to higher costs compared to more commoditized services.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The sole-source nature of the award further reduces opportunities for small businesses to participate as subcontractors unless specifically included by the prime contractor. This contract does not appear to actively contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures would be tied to the performance requirements outlined in the contract and the delivery orders issued. Transparency is limited due to the sole-source award, making it difficult for the public to assess the fairness of the pricing and selection process. The Department of Homeland Security's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Oil Spill Response
Hazardous Material Mitigation
Environmental Remediation Services
Emergency Response Contracts
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

Sole-source award
Lack of competition
High contract value for incident response
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.2 million to COUVILLION GROUP LLC. IGF::OT::IGF N18034 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE (FOSC)

Who is the contractor on this award?

The obligated recipient is COUVILLION GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2018-11-19. End: 2019-08-01.

What is the track record of Couvillion Group LLC with the U.S. Coast Guard and other federal agencies for similar services?

Couvillion Group LLC has a history of contracts with the U.S. Coast Guard and other federal entities, primarily related to oil spill response, salvage, and marine services. Publicly available data indicates previous awards for similar incident response capabilities. While this suggests a level of established performance and familiarity with government requirements, the specific details of past performance, including any issues or successes, would require a deeper dive into contract performance reports and agency records. The consistency of sole-source awards to this contractor for such critical services warrants examination to ensure fair opportunity and competitive pricing are not being consistently overlooked.

How does the pricing of this contract compare to similar oil spill response contracts awarded competitively?

Directly comparing the pricing of this sole-source contract to competitively awarded contracts is challenging without access to detailed pricing structures and scope of work for comparable agreements. However, sole-source awards are generally expected to be less cost-effective than competitive ones due to the absence of market pressure. If similar incident response services were procured through full and open competition, it is likely that the government would have achieved a lower overall cost. Benchmarking would require identifying contracts with similar service requirements, geographic scope, and response capabilities that were awarded through a competitive process, and then analyzing their unit costs and total values relative to this award.

What specific risks are associated with a sole-source award for emergency response services?

A primary risk of a sole-source award for emergency response services is the potential for inflated pricing, as the government lacks the leverage of competitive bids. This can lead to inefficient use of taxpayer funds. Another risk is the potential for complacency from the awarded contractor, who may face less pressure to innovate or maintain high service standards compared to a competitive environment. Furthermore, sole-source awards can limit the government's access to a broader range of specialized capabilities or emerging technologies that might be offered by other qualified vendors. Ensuring the necessity and justification for a sole-source award is critical to mitigate these risks.

What is the typical duration and value of contracts for oil spill and hazardous chemical incident mitigation?

The duration and value of contracts for oil spill and hazardous chemical incident mitigation can vary significantly based on the scope of services, geographic area of responsibility, and the nature of potential threats. Contracts can range from short-term, incident-specific task orders to longer-term, indefinite-delivery/indefinite-quantity (IDIQ) contracts covering broader response capabilities. Incident mitigation contracts, like the one awarded here, often have a shorter duration focused on immediate response, as seen with the 255-day period. Values can range from hundreds of thousands to tens of millions of dollars, depending on the scale of potential incidents and the required preparedness levels. This $37.1 million award appears to be on the higher end for a single, relatively short-duration contract, underscoring the need for detailed justification.

What are the performance metrics and oversight mechanisms in place for this contract?

Performance metrics for this contract would be detailed within the contract's statement of work and any subsequent delivery orders. These typically include response time, effectiveness of mitigation efforts, adherence to safety protocols, and proper disposal of hazardous materials. Oversight is primarily the responsibility of the U.S. Coast Guard contracting officer and their representatives, who monitor contractor performance, approve invoices, and ensure compliance with contract terms. Given the sole-source nature, robust oversight is crucial to ensure value for money and prevent potential overcharges. The Department of Homeland Security's Office of Inspector General also provides an independent layer of oversight to detect and prevent fraud, waste, and abuse.

How does this contract align with the U.S. Coast Guard's overall mission and budget for environmental response?

This contract directly supports the U.S. Coast Guard's statutory mission to protect the marine environment, which includes responding to and mitigating the effects of oil spills and hazardous substance releases. Funding for such activities typically comes from specific appropriations allocated for environmental response and contingency operations. The $37.1 million awarded represents a significant investment in ensuring readiness and capability for such emergencies within a specific region or for a defined period. Analyzing this award in the context of the Coast Guard's overall environmental response budget would reveal whether it represents a typical allocation or an outlier, and how it fits into their broader strategy for maintaining environmental protection capabilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 371 WALKER RD, BELLE CHASSE, LA, 70037

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,150,704

Exercised Options: $37,150,704

Current Obligation: $37,150,704

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCG8417AN00066

IDV Type: BOA

Timeline