Coast Guard awards $40.8M contract for oil spill response services in Louisiana

Contract Overview

Contract Amount: $40,780,000 ($40.8M)

Contractor: Couvillion Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-01

End Date: 2028-01-31

Contract Duration: 1,094 days

Daily Burn Rate: $37.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPN13024 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR

Place of Performance

Location: BELLE CHASSE, PLAQUEMINES County, LOUISIANA, 70037

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.8 million to COUVILLION GROUP LLC for work described as: UCGPN13024 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR Key points: 1. Contract focuses on critical environmental protection services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract (5 years) suggests ongoing need for these services. 4. Geographic focus on Louisiana highlights regional environmental vulnerabilities. 5. Contract type (Time and Materials) can lead to cost overruns if not managed closely. 6. Small business participation is not explicitly detailed, warranting further investigation.

Value Assessment

Rating: fair

The contract's value of $40.8 million over five years for oil spill and hazardous chemical incident response appears reasonable given the critical nature of the services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored and controlled by the agency. Further analysis of the labor rates and material markups would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the U.S. Coast Guard did not solicit bids from multiple potential contractors. This approach is typically used when only one contractor possesses the unique capabilities or resources required for the service, or in emergency situations. The lack of competition means that taxpayers did not benefit from the price discovery that typically occurs in a competitive bidding environment, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price for these essential environmental response services. Without competition, there is less pressure on the contractor to offer the most cost-effective solutions.

Public Impact

The primary beneficiaries are the residents and ecosystems of Louisiana, which are vulnerable to oil spills and hazardous chemical incidents. The contract ensures the availability of specialized labor, materials, and equipment to mitigate the harmful effects of environmental disasters. Services will be delivered within Louisiana, a state with significant coastal and waterway infrastructure. The contract supports a specialized workforce skilled in emergency response and environmental remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Time and Materials contract type poses a risk of cost overruns without stringent oversight.
Limited transparency on specific performance metrics and success criteria.
Geographic concentration of services could be a vulnerability if the contractor's resources are stretched thin.

Positive Signals

Ensures critical environmental protection services are readily available.
Long-term contract provides stability for response capabilities.
Focus on a specific geographic region allows for tailored preparedness.

Sector Analysis

The oil spill and hazardous chemical incident response sector is a critical component of environmental protection and emergency management. This contract falls under remediation services, a niche within the broader environmental services industry. The market for such services is often characterized by specialized expertise and rapid deployment capabilities. While specific market size data for this precise service is not readily available, the federal government consistently invests in such capabilities due to the high stakes involved in environmental incidents. Comparable spending benchmarks are difficult to establish due to the specialized and often urgent nature of these contracts.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to have a small business set-aside component (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The U.S. Coast Guard's overall small business utilization goals and subcontracting requirements for prime contractors would apply to other contracts, but not this sole-source award.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. The Time and Materials contract type necessitates robust oversight to ensure that labor hours and material costs are reasonable and allocable to the contract. The Federal Acquisition Regulation (FAR) provides guidelines for managing such contracts. Transparency regarding performance metrics and expenditures would be enhanced through regular reporting requirements and potential audits by the DHS Office of Inspector General, though specific IG involvement is not detailed in the provided data.

Related Government Programs

National Contingency Plan
Oil Spill Response Plans
Hazardous Materials Emergency Response
Environmental Remediation Services
Coast Guard Operations Support

Risk Flags

Sole-source award lacks competitive pricing.
Time and Materials contract type carries cost overrun risk.
Limited public information on specific performance metrics.
Geographic concentration may limit surge capacity if multiple incidents occur simultaneously.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.8 million to COUVILLION GROUP LLC. UCGPN13024 PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL AFFECT OF OIL SPILL OR HAZARDOUS CHEMICAL INCIDENT, AS DIRECTED BY THE FEDERAL ON SCENE COORDINATOR

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 $40.8 million.

What is the period of performance?

Start: 2025-02-01. End: 2028-01-31.

What is the track record of Couvillion Group LLC in performing similar oil spill and hazardous chemical response services for the federal government?

Couvillion Group LLC has a history of providing oil spill response and related services. Their past performance data, often found in federal procurement databases like SAM.gov or through agency performance evaluations, would indicate their experience with similar incidents, the scale of operations they have managed, and their success in meeting contractual requirements. Analyzing their past contracts, including any awards or penalties, would provide insight into their reliability and capability. For instance, their involvement in significant past spills or environmental cleanup operations would be key indicators of their preparedness and effectiveness. Without specific contract performance reviews readily available in this data snippet, a deeper dive into their contract history is recommended.

How does the $40.8 million contract value compare to similar oil spill response contracts awarded by the U.S. Coast Guard or other federal agencies?

Benchmarking the $40.8 million contract value is challenging without more specific details on the scope of services, duration, and geographic coverage of comparable contracts. However, large-scale oil spill response can be extremely costly, involving specialized equipment, extensive labor, and long-term monitoring. Contracts for such services can range from a few million dollars for localized incidents to tens or hundreds of millions for major events or long-term preparedness contracts. Given this is a five-year contract for ongoing preparedness and response, the annual average of approximately $8.16 million appears within a plausible range for specialized environmental services. A more precise comparison would require analyzing contracts with similar response capabilities, geographic focus, and contract types (e.g., IDIQ vs. fixed-price).

What are the primary risks associated with a sole-source, Time and Materials contract for environmental response services?

The primary risks associated with a sole-source, Time and Materials (T&M) contract for environmental response services are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved through a competitive bidding process. The government does not benefit from the price discovery that competition provides. Secondly, the T&M contract type allows the contractor to bill for actual labor hours and costs of materials, plus a fee or profit. This structure can incentivize longer project durations or less efficient work if not rigorously monitored, increasing the risk of cost overruns. Effective oversight, detailed cost tracking, and clear performance standards are crucial to mitigate these risks and ensure value for taxpayer money.

What specific performance metrics or deliverables are expected under this contract to ensure effective oil spill and hazardous chemical incident mitigation?

The provided data does not specify the performance metrics or deliverables for this contract. However, typical performance expectations for oil spill and hazardous chemical incident response contracts would include rapid deployment of response teams and equipment, effective containment and cleanup of spills, adherence to environmental regulations, proper disposal of hazardous materials, and detailed reporting on response activities and outcomes. The contract likely includes clauses requiring the contractor to maintain a state of readiness, conduct drills, and provide timely incident reports. The U.S. Coast Guard would be responsible for monitoring the contractor's performance against these unstated but implied requirements, ensuring that the mitigation efforts are effective and meet established standards.

How has federal spending on oil spill and hazardous chemical response services evolved over the past five years, and does this contract align with historical trends?

Federal spending on oil spill and hazardous chemical response services can fluctuate based on the number and severity of incidents, regulatory changes, and agency budget allocations. While specific aggregate spending data for this niche category is not provided, agencies like the U.S. Coast Guard, EPA, and NOAA consistently allocate funds for preparedness and response. Historical trends often show sustained investment in these areas due to the persistent risk of environmental incidents. This $40.8 million, five-year contract, averaging over $8 million annually, suggests a consistent level of investment by the Coast Guard in maintaining response capabilities in a high-risk region. It aligns with the general understanding that such critical services require ongoing, significant federal funding.

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 › 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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,780,000

Exercised Options: $40,780,000

Current Obligation: $40,780,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08421GN0008700

IDV Type: BOA

Timeline