Coast Guard awards $15M contract for oil spill response services to NRC Environmental Services Inc

Contract Overview

Contract Amount: $15,000 ($15.0K)

Contractor: NRC Environmental Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-05

End Date: 2026-06-04

Contract Duration: 60 days

Daily Burn Rate: $250/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UCGPS26006 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Place of Performance

Location: RAINIER, COLUMBIA County, OREGON, 97048

State: Oregon Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15,000 to NRC ENVIRONMENTAL SERVICES INC. for work described as: UCGPS26006 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC. Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Focus on emergency response suggests a need for rapid, specialized capabilities. 3. The contract duration of 60 days indicates a focus on immediate incident mitigation. 4. The 'Time and Materials' pricing structure can lead to cost uncertainty if not closely managed. 5. Geographic scope limited to Oregon, suggesting a regional focus for this specific award. 6. The North American Industry Classification System (NAICS) code 562910 points to remediation services.

Value Assessment

Rating: fair

The contract value of $15 million for a 60-day period for oil spill response is substantial. Without comparable contract data for similar emergency response services in the region, it is difficult to definitively benchmark value. The 'Time and Materials' (T&M) pricing model, while flexible for unpredictable incidents, carries inherent risks of cost overruns if not meticulously tracked and managed against pre-defined labor rates and material markups. The absence of competition further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the U.S. Coast Guard did not solicit bids from multiple potential contractors. Sole-source awards are typically justified when only one contractor possesses the unique capabilities, certifications, or geographic presence required for a specific service, or in emergency situations where time is critical. The lack of competition means that the government did not benefit from a competitive bidding process, which could have potentially driven down prices or led to innovative solutions from a wider pool of vendors.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered, as the price is negotiated directly with the chosen contractor without the pressure of competing bids.

Public Impact

The primary beneficiaries are the residents and environment of Oregon, protected from the harmful effects of oil spills or hazardous chemical incidents. The service delivered is critical emergency response and mitigation, aiming to minimize environmental damage and public health risks. The geographic impact is focused on the coastal and inland waterways of Oregon. This contract supports specialized labor and equipment necessary for hazardous material response, potentially involving local and regional emergency response professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Time and Materials pricing can lead to cost uncertainty.
Limited contract duration may necessitate follow-on awards.
Geographic limitation to Oregon may not cover broader regional needs.
Potential for contractor to leverage unique position due to sole-source award.

Positive Signals

Addresses critical environmental protection needs for oil spill response.
NRC Environmental Services Inc. likely possesses specialized expertise required for such incidents.
Contract ensures immediate availability of response capabilities.
Focus on specific geographic area allows for tailored response planning.

Sector Analysis

The remediation services sector, classified under NAICS code 562910, encompasses companies that clean up contaminated soil and groundwater, and provide services for hazardous waste management and spill response. This market is driven by environmental regulations, industrial activity, and the need for disaster preparedness. Federal contracts in this area are crucial for agencies like the Coast Guard to maintain readiness for environmental emergencies. Spending in this sector can fluctuate based on the frequency and severity of incidents, as well as proactive environmental protection initiatives.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a specific small business set-aside component based on the provided data. The prime contractor, NRC Environmental Services Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, though larger prime contractors may engage small businesses in their broader operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard contracting and program management offices. As a delivery order under a larger contract vehicle (implied by 'delivery order'), the terms and conditions of the base contract would govern. The 'Time and Materials' nature of the award necessitates rigorous oversight of labor hours, rates, and material costs to ensure compliance and prevent overcharging. Transparency would be facilitated through contract reporting mechanisms, though specific details on public accessibility of performance data are not provided.

Related Government Programs

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

Risk Flags

Sole-source award
Time and Materials pricing
Potential for cost overruns
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15,000 to NRC ENVIRONMENTAL SERVICES INC.. UCGPS26006 - PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICALS INCIDENT AS DIRECTED BY THE FOSC.

Who is the contractor on this award?

The obligated recipient is NRC ENVIRONMENTAL SERVICES INC..

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 $15,000.

What is the period of performance?

Start: 2026-04-05. End: 2026-06-04.

What is the track record of NRC Environmental Services Inc. in handling similar oil spill or hazardous chemical incidents for federal agencies?

NRC Environmental Services Inc. has a history of providing environmental services, including emergency response and remediation, to various government agencies. Their experience often involves responding to spills and hazardous material incidents. To fully assess their track record for this specific contract, a deeper dive into past performance evaluations, client feedback, and the scale and complexity of previous incidents they have managed would be necessary. This would include examining their response times, effectiveness in mitigation, adherence to safety protocols, and overall client satisfaction on similar federal contracts. Without specific past performance data tied to this contract, it's assumed they possess the requisite qualifications for this sole-source award.

How does the $15 million value for a 60-day response period compare to typical costs for similar emergency services?

The $15 million value for a 60-day period for oil spill and hazardous chemical incident response is significant, suggesting the potential for a large-scale or complex incident, or the need for extensive specialized equipment and personnel. Benchmarking this against similar contracts is challenging without access to a comprehensive database of emergency response procurements. However, the 'Time and Materials' (T&M) pricing structure means the final cost is dependent on actual hours and resources used. If the incident is minor, the cost could be substantially less than $15 million. Conversely, a major, prolonged event could exceed this ceiling. The absence of competition for this sole-source award further complicates a direct value-for-money comparison.

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

The primary risks associated with a sole-source award for emergency response services include a lack of price competition, potentially leading to higher costs for taxpayers. It also limits the government's ability to explore innovative solutions or leverage the expertise of a broader range of qualified contractors. Furthermore, the government may have less leverage in negotiating terms and conditions. In emergency situations, sole-sourcing is often justified by urgency, but it necessitates robust oversight to ensure fair pricing and adequate performance. The reliance on a single provider also introduces a risk if that provider experiences operational issues or fails to meet expectations.

What is the expected effectiveness of the services provided under this contract in mitigating environmental damage?

The expected effectiveness hinges on the specific nature of the oil spill or hazardous chemical incident, the promptness of the response, and the adequacy of the resources deployed by NRC Environmental Services Inc. The contract aims to 'mitigate the harmful effects,' which implies containment, cleanup, and stabilization. The Coast Guard's role as the directing authority (via the FOSC) ensures that the response aligns with federal objectives. The effectiveness will be measured by the degree to which environmental damage is minimized, safety is ensured, and the affected area is restored as much as possible, within the scope and duration of the contract.

How has federal spending on oil spill and hazardous material response services trended in recent years, particularly in the Pacific Northwest region?

Federal spending on oil spill and hazardous material response services can be highly variable, often driven by the occurrence and scale of incidents, as well as regulatory changes and preparedness initiatives. While specific regional spending trends for the Pacific Northwest are not detailed here, national spending often increases following major environmental events or heightened regulatory focus. Agencies like the Coast Guard, EPA, and NOAA are key players. The trend is generally towards ensuring rapid response capabilities and investing in technologies and services that minimize environmental impact. Data from previous years would be needed to establish a precise trend for this specific region and service category.

What are the implications of the 'Time and Materials' (T&M) pricing structure for cost control and accountability?

The 'Time and Materials' (T&M) pricing structure means the government pays for the actual labor hours expended by the contractor at agreed-upon rates, plus the cost of materials used, often with a markup. This structure offers flexibility, which is beneficial for unpredictable emergency response scenarios where the scope of work cannot be precisely defined upfront. However, it carries significant risks for cost control, as the total cost is not fixed. Accountability relies heavily on robust government oversight to verify the necessity and reasonableness of all labor hours, rates, and material costs. Without stringent monitoring, T&M contracts can lead to cost overruns and potential contractor inefficiency.

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: 1605 FERRY PT, ALAMEDA, CA, 94501

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

Financial Breakdown

Contract Ceiling: $30,000

Exercised Options: $30,000

Current Obligation: $15,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70Z08425GALAM0003

IDV Type: BOA

Timeline