Interior's BLM Awards $30.8M for Alaska Oil Well Remediation to Marsh Creek, LLC
Contract Overview
Contract Amount: $30,821,659 ($30.8M)
Contractor: Marsh Creek, LLC
Awarding Agency: Department of the Interior
Start Date: 2007-09-06
End Date: 2009-03-31
Contract Duration: 572 days
Daily Burn Rate: $53.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REMEDIATION AND OIL WELL PLUGGING AND ABANDONMENT.
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99507
State: Alaska Government Spending
Plain-Language Summary
Department of the Interior obligated $30.8 million to MARSH CREEK, LLC for work described as: REMEDIATION AND OIL WELL PLUGGING AND ABANDONMENT. Key points: 1. Significant contract value for specialized environmental services. 2. Competition method is 'Competitive Delivery Order', suggesting some level of market engagement. 3. Risk associated with environmental remediation projects and remote Alaskan locations. 4. Sector focus is environmental services within the broader energy/natural resources domain.
Value Assessment
Rating: fair
The award amount of $30.8M for remediation and oil well plugging/abandonment is substantial. Benchmarking against similar contracts is difficult without more specific service details, but the duration and location suggest a complex undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded via 'Competitive Delivery Order', this indicates competition occurred, but the specifics of the competition (e.g., number of bidders, evaluation criteria) are not detailed. This method can be efficient but may not always yield the lowest price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, which is a necessary but potentially costly public service. The efficiency of the procurement process impacts the overall value for money.
Public Impact
Addresses environmental concerns related to legacy oil and gas operations. Supports regulatory compliance for resource extraction activities in Alaska. Potential for job creation in specialized environmental remediation services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Environmental remediation risks
- Potential for cost overruns in remote locations
- Contract duration and complexity
Positive Signals
- Addresses critical environmental cleanup needs
- Utilizes a competitive procurement method
Sector Analysis
This contract falls within the environmental remediation and oil and gas services sector. Spending in this area is often driven by regulatory requirements and the lifecycle of resource extraction industries. Benchmarks are highly project-specific.
Small Business Impact
The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Bureau of Land Management (BLM) is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, quality control, and financial management would apply.
Related Government Programs
- Remediation Services
- Department of the Interior Contracting
- Bureau of Land Management Programs
Risk Flags
- Environmental remediation complexity
- Potential for unforeseen site conditions
- Contract performance risk
- Geographic remoteness of Alaska
Tags
remediation-services, department-of-the-interior, ak, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $30.8 million to MARSH CREEK, LLC. REMEDIATION AND OIL WELL PLUGGING AND ABANDONMENT.
Who is the contractor on this award?
The obligated recipient is MARSH CREEK, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Land Management).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2007-09-06. End: 2009-03-31.
What specific remediation technologies and methodologies were employed, and how do they compare to industry best practices for oil well plugging and abandonment?
The provided data lacks specifics on the remediation technologies and methodologies used. A thorough analysis would require reviewing the contract's statement of work and performance reports to assess adherence to industry best practices and the effectiveness of the chosen techniques for plugging and abandoning oil wells.
What were the key factors that led to the 'Competitive Delivery Order' award, and did this method result in optimal pricing compared to other potential procurement strategies?
A 'Competitive Delivery Order' suggests that multiple vendors were considered, likely under an existing contract vehicle or framework. The specific factors influencing this choice are not detailed, but it implies a balance between speed and competition. Whether it yielded optimal pricing requires comparison with full and open bids or other competitive structures.
How effectively did Marsh Creek, LLC complete the remediation and plugging/abandonment tasks within the awarded budget and timeline, and what was the ultimate environmental impact?
Assessing the effectiveness requires examining performance metrics, final reports, and any post-remediation environmental monitoring data. The contract's duration (2007-2009) and value suggest a significant undertaking. Without access to these detailed performance outcomes, a definitive judgment on effectiveness and environmental impact cannot be made.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 E 88TH AVE, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,821,659
Exercised Options: $30,821,659
Current Obligation: $30,821,659
Parent Contract
Parent Award PIID: GS10F0184T
IDV Type: FSS
Timeline
Start Date: 2007-09-06
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2014-02-18
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