Hydrogeologic, Inc. awarded $48.6M for remediation services, with 3 bidders in a competitive process
Contract Overview
Contract Amount: $48,587,678 ($48.6M)
Contractor: Hydrogeologic, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-04
End Date: 2022-07-18
Contract Duration: 3,239 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PERFORMANCE BASED REMEDIATION SERVICES
Place of Performance
Location: PATRICK AFB, BREVARD County, FLORIDA, 32925
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $48.6 million to HYDROGEOLOGIC, INC. for work described as: IGF::OT::IGF PERFORMANCE BASED REMEDIATION SERVICES Key points: 1. Value for money appears reasonable given the multi-year duration and scope of environmental remediation. 2. Competition dynamics indicate a healthy market for these specialized services. 3. Performance context suggests a long-term engagement for ongoing environmental management. 4. Sector positioning places this contract within the broader environmental services industry supporting government operations. 5. Risk indicators are moderate, typical for long-term environmental projects with potential for unforeseen site conditions.
Value Assessment
Rating: good
The contract's total value of $48.6 million over approximately 9 years suggests a consistent need for remediation services. Benchmarking against similar large-scale environmental remediation contracts indicates that this award falls within a typical range for projects of this complexity and duration. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation may have had some restrictions, it ultimately allowed for broad participation. With three bidders, the competition level suggests a moderately competitive environment. This number of bidders is sufficient to drive some price discovery and ensure that the government receives proposals from multiple qualified firms. However, a higher number of bidders could potentially lead to even more aggressive pricing.
Taxpayer Impact: The competitive award process helps ensure that taxpayer funds are used efficiently by fostering a market where contractors vie for the best price and performance.
Public Impact
The primary beneficiaries are the Department of Defense and the specific Army installations requiring environmental remediation. Services delivered include the cleanup and management of hazardous substances and contaminants at various sites. The geographic impact is concentrated in Florida, where the contract is being performed. Workforce implications include the employment of environmental scientists, engineers, technicians, and support staff by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term environmental remediation projects.
- Unforeseen site conditions could lead to cost increases or schedule delays.
- Reliance on a single contractor for an extended period may reduce future competitive opportunities.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Competitive award process likely secured a fair market price.
- Long-term contract allows for sustained environmental management and expertise development.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a significant segment of the professional, scientific, and technical services industry. This sector is characterized by specialized expertise in areas such as hazardous waste management, site cleanup, and environmental consulting. The market size for federal environmental remediation services is substantial, driven by ongoing compliance requirements and the need to address historical contamination at government facilities. This contract represents a portion of the Department of Defense's broader environmental stewardship efforts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting reports would be needed to assess any indirect benefits.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Environmental Services
- Hazardous Waste Management
- Defense Environmental Programs
- Site Remediation Contracts
- Federal Environmental Cleanup
Risk Flags
- Long-term contract duration increases risk of unforeseen issues.
- Performance-based contracts require robust government oversight.
- Potential for regulatory changes impacting remediation scope or cost.
Tags
environmental-services, remediation, department-of-defense, department-of-the-army, florida, firm-fixed-price, delivery-order, full-and-open-competition, large-contract, environmental-cleanup, hazardous-waste
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.6 million to HYDROGEOLOGIC, INC.. IGF::OT::IGF PERFORMANCE BASED REMEDIATION SERVICES
Who is the contractor on this award?
The obligated recipient is HYDROGEOLOGIC, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $48.6 million.
What is the period of performance?
Start: 2013-09-04. End: 2022-07-18.
What is the specific nature of the remediation services being provided under this contract?
The contract, identified as 'IGF::OT::IGF PERFORMANCE BASED REMEDIATION SERVICES,' is for remediation services. While the specific contaminants or sites are not detailed in the provided data, performance-based remediation implies that the contractor is responsible for achieving specific environmental outcomes or cleanup standards rather than simply performing a set list of tasks. This could involve soil and groundwater remediation, hazardous waste disposal, monitoring, and long-term stewardship of contaminated sites. The duration of the contract (over 9 years) suggests ongoing or complex remediation efforts that require sustained management and expertise.
How does the awarded amount of $48.6 million compare to similar federal remediation contracts?
The $48.6 million awarded to Hydrogeologic, Inc. over a period of approximately 3239 days (about 9 years) places it as a significant, but not exceptionally large, federal remediation contract. Large-scale environmental cleanup projects for agencies like the EPA or DoD can range from tens of millions to hundreds of millions of dollars. For instance, Superfund site cleanups or extensive military base remediation efforts often exceed this value. However, for ongoing, performance-based remediation services at specific installations, $48.6 million represents a substantial commitment, suggesting a complex or multi-site scope. The firm-fixed-price nature provides budget certainty, which is a key consideration in value assessment.
What are the primary risks associated with a contract of this duration and type?
Contracts for environmental remediation, especially those spanning nearly a decade, carry inherent risks. A primary risk is the potential for unforeseen site conditions; initial assessments may not uncover the full extent or complexity of contamination, leading to scope creep and cost overruns, even under a firm-fixed-price contract if change orders are necessary. Technological obsolescence or changes in environmental regulations could also impact the effectiveness or cost of remediation methods over such a long period. Furthermore, contractor performance degradation over time or the loss of key personnel could pose risks to achieving the desired environmental outcomes. The government also faces the risk of vendor lock-in, making it difficult to switch providers if performance issues arise.
What is Hydrogeologic, Inc.'s track record with federal remediation contracts?
Hydrogeologic, Inc. has a history of performing environmental services for the federal government. The data shows this specific contract with the Department of the Army is substantial and long-term. To fully assess their track record, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any history of disputes or claims. A positive performance history on similar remediation projects, particularly those involving performance-based outcomes and firm-fixed-price structures, would indicate a lower risk profile for this contract. Conversely, any significant past performance issues would raise concerns.
How has federal spending on remediation services trended in recent years?
Federal spending on remediation services has remained a consistent and significant area of expenditure, driven by regulatory requirements (like RCRA and CERCLA) and the ongoing need to manage environmental liabilities at government facilities. While specific year-over-year trends can fluctuate based on major cleanup initiatives or budget allocations, the overall demand for these services is generally stable. Agencies like the Department of Defense, EPA, and Department of Energy are major spenders. Spending is often influenced by infrastructure investments, base realignment and closure actions, and evolving environmental standards. The trend is towards more complex, long-term solutions and increased emphasis on sustainable remediation practices.
What does the 'performance-based' aspect of this contract imply for accountability?
The 'performance-based' nature of this remediation contract implies that the contractor, Hydrogeologic, Inc., is primarily evaluated and paid based on achieving specific, measurable outcomes and results, rather than simply completing a list of tasks. This shifts the focus from effort to results. Accountability is established through clearly defined performance standards, metrics, and quality assurance surveillance plans. The government would monitor the contractor's progress against these metrics, and payment would be contingent upon meeting or exceeding the agreed-upon performance levels. This structure incentivizes the contractor to be efficient and effective in delivering the required environmental cleanup or management outcomes.
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 RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,587,678
Exercised Options: $48,587,678
Current Obligation: $48,587,678
Subaward Activity
Number of Subawards: 138
Total Subaward Amount: $71,870,109
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912QR12D0009
IDV Type: IDC
Timeline
Start Date: 2013-09-04
Current End Date: 2022-07-18
Potential End Date: 2022-07-18 00:00:00
Last Modified: 2023-02-23
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