DOE awards $9.35M for former Naval Petroleum Reserve closure, focusing on site remediation and vegetation monitoring

Contract Overview

Contract Amount: $9,353,425 ($9.4M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Department of Energy

Start Date: 2024-09-10

End Date: 2026-03-05

Contract Duration: 541 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FORMER NAVAL PETROLEUM RESERVE NO. 1 CLOSURE PROJECT - REMEDIATION OF SIX SITES AND VEGETATION MONITORING

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301

State: California Government Spending

Plain-Language Summary

Department of Energy obligated $9.4 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: FORMER NAVAL PETROLEUM RESERVE NO. 1 CLOSURE PROJECT - REMEDIATION OF SIX SITES AND VEGETATION MONITORING Key points: 1. The contract value represents a significant investment in environmental cleanup and long-term monitoring. 2. Competition dynamics for this remediation service are crucial for ensuring cost-effectiveness and quality. 3. Performance monitoring will be key to assessing the success of remediation efforts and vegetation health. 4. This contract falls within the broader context of federal environmental stewardship and legacy site management. 5. The remediation services sector is vital for addressing historical environmental impacts across government facilities.

Value Assessment

Rating: good

The contract value of $9.35 million for remediation and monitoring services appears reasonable given the scope of work. Benchmarking against similar environmental cleanup contracts for federal sites would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive down costs and encourage innovation. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive marketplace where contractors vie for the best value.

Public Impact

The primary beneficiaries are the Department of Energy and the public, through the environmental cleanup of a former federal petroleum reserve. Services delivered include remediation of six contaminated sites and ongoing vegetation monitoring. The geographic impact is concentrated in California, specifically at the former Naval Petroleum Reserve No. 1. Workforce implications include employment for environmental scientists, engineers, remediation specialists, and monitoring technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The remediation services sector is a critical component of environmental management, particularly for legacy industrial and government sites. This contract fits within the broader federal efforts to address environmental liabilities and restore impacted lands. Comparable spending benchmarks for large-scale environmental remediation projects at federal facilities can range from millions to hundreds of millions of dollars, depending on the complexity and scale of contamination.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small businesses through set-asides is likely minimal for this specific award. However, the prime contractor, Paragon Professional Services LLC, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific details of ongoing oversight may not be publicly disclosed.

Related Government Programs

Risk Flags

Tags

remediation-services, environmental-cleanup, department-of-energy, california, firm-fixed-price, full-and-open-competition, bpa-call, legacy-sites, petroleum-reserve, vegetation-monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $9.4 million to PARAGON PROFESSIONAL SERVICES LLC. FORMER NAVAL PETROLEUM RESERVE NO. 1 CLOSURE PROJECT - REMEDIATION OF SIX SITES AND VEGETATION MONITORING

Who is the contractor on this award?

The obligated recipient is PARAGON PROFESSIONAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2024-09-10. End: 2026-03-05.

What is the track record of Paragon Professional Services LLC in handling similar large-scale environmental remediation projects for federal agencies?

Paragon Professional Services LLC's track record in federal environmental remediation is a key factor in assessing this contract's risk and potential for success. A review of their past performance, particularly on contracts with the Department of Energy or Department of Defense, would reveal their experience with similar site closures, remediation techniques, and regulatory compliance. Evidence of successful completion of projects of comparable size and complexity, along with positive past performance evaluations, would indicate a lower risk profile. Conversely, a history of cost overruns, schedule delays, or performance issues on similar contracts would raise concerns about their capability to execute this $9.35 million project effectively.

How does the $9.35 million contract value compare to the estimated costs of similar environmental remediation projects at federal sites?

Benchmarking the $9.35 million contract value against similar federal environmental remediation projects is essential for evaluating value for money. Factors influencing cost include the type and extent of contamination, the specific remediation technologies employed, site accessibility, and regulatory requirements. For instance, remediation of sites with hazardous waste or extensive soil/groundwater contamination typically incurs higher costs than projects focused on less severe impacts. Comparing this contract's value to the average cost per acre or per site for similar cleanup efforts managed by agencies like the EPA or DoD can indicate whether the pricing is competitive. A higher-than-average cost might suggest unique project complexities or potentially less competitive pricing, while a lower cost could indicate efficient execution or favorable market conditions.

What are the primary risks associated with the remediation of the six sites at the former Naval Petroleum Reserve No. 1, and how are they being mitigated?

The primary risks associated with remediating the six sites at the former Naval Petroleum Reserve No. 1 likely include encountering unforeseen subsurface conditions (e.g., buried hazards, unexpected contaminant plumes), the effectiveness and long-term stability of chosen remediation technologies, and potential environmental impacts during the cleanup process. Mitigation strategies typically involve thorough site characterization, contingency planning for unexpected discoveries, robust monitoring protocols during and after remediation, and adherence to strict environmental health and safety procedures. The firm-fixed-price contract structure also incentivizes the contractor to manage these risks efficiently to avoid cost overruns. The Department of Energy's oversight will be critical in ensuring these mitigation measures are effectively implemented.

What specific performance metrics will be used to evaluate the success of the remediation and vegetation monitoring efforts?

The success of the remediation and vegetation monitoring efforts will be evaluated based on a defined set of performance metrics outlined in the contract. For remediation, key metrics likely include the achievement of cleanup standards for specific contaminants in soil and groundwater, the successful removal or treatment of hazardous materials, and the restoration of site conditions to meet regulatory requirements. For vegetation monitoring, metrics could involve the survival rates of planted vegetation, the absence of invasive species, the establishment of a healthy, self-sustaining ecosystem, and the overall ecological health of the monitored areas. Regular reporting, site inspections, and potentially third-party verification will be used to track progress against these metrics.

How does this contract align with the Department of Energy's broader mission regarding environmental cleanup and stewardship of former energy production sites?

This contract directly aligns with the Department of Energy's (DOE) broader mission concerning environmental cleanup and the responsible stewardship of former energy production sites. The DOE manages a significant portfolio of legacy sites, many of which require extensive remediation to address historical contamination from past operations, including those related to petroleum reserves. Projects like the closure of the former Naval Petroleum Reserve No. 1 are critical for fulfilling the DOE's commitment to environmental restoration, reducing long-term environmental liabilities, and ensuring public and ecological safety. Successfully executing this contract contributes to the DOE's strategic goals of completing cleanup activities and returning impacted lands to safe and suitable conditions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTNATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $9,353,425

Exercised Options: $9,353,425

Current Obligation: $9,353,425

Actual Outlays: $8,949,004

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89243521AFE000001

IDV Type: BPA

Timeline

Start Date: 2024-09-10

Current End Date: 2026-03-05

Potential End Date: 2026-03-05 00:00:00

Last Modified: 2026-03-05

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