DoD's $37M environmental remediation contract awarded to APTIM Federal Services shows fair value and strong competition

Contract Overview

Contract Amount: $36,990,167 ($37.0M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-06-27

End Date: 2026-09-30

Contract Duration: 3,017 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF X007 PARCEL E PHASE III RA, HUNTERS POINT NAVAL SHIP

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $37.0 million to APTIM FEDERAL SERVICES, LLC for work described as: IGF::OT::IGF X007 PARCEL E PHASE III RA, HUNTERS POINT NAVAL SHIP Key points: 1. The contract's pricing appears reasonable when benchmarked against similar remediation projects. 2. Full and open competition suggests a healthy market for these services, likely driving competitive pricing. 3. The contract duration and scope indicate a significant, long-term commitment to environmental cleanup. 4. Performance context is crucial, as remediation success hinges on effective execution and regulatory compliance. 5. This contract positions APTIM as a key player in the environmental services sector for federal agencies. 6. The fixed-price structure shifts performance risk to the contractor, potentially benefiting the government.

Value Assessment

Rating: good

The contract's total value of approximately $37 million over its period of performance appears to be within a reasonable range for large-scale environmental remediation projects. Benchmarking against similar contracts for hazardous waste site cleanup and infrastructure repair at naval facilities suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by incentivizing the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of four bidders suggests a robust competitive environment for environmental remediation services. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of capable contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider pool of innovative solutions. It reduces the risk of overpayment and ensures that public funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and the Navy, ensuring compliance with environmental regulations and the safe remediation of hazardous sites. Services delivered include comprehensive environmental remediation, likely involving hazardous waste removal, site cleanup, and long-term monitoring. The geographic impact is focused on Hunters Point Naval Shipyard in California, addressing specific environmental challenges at this location. Workforce implications include the creation of specialized jobs in environmental science, engineering, and hazardous material handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to scope creep or unforeseen cost increases if not managed tightly.
Reliance on a single awardee for a significant remediation effort carries inherent performance risks.
Environmental remediation projects are complex and subject to regulatory changes, which could impact costs and timelines.

Positive Signals

Firm-fixed-price contract type aligns incentives for cost control and performance.
Full and open competition suggests a strong market and competitive pricing.
The contract is awarded to a known entity, APTIM Federal Services, which likely has relevant experience.

Sector Analysis

Environmental remediation services represent a critical segment within the broader government contracting landscape, particularly for agencies managing legacy industrial sites. The market is characterized by specialized firms with expertise in hazardous materials, regulatory compliance, and complex project management. Spending in this sector is driven by environmental regulations, infrastructure modernization, and the cleanup of former military installations. Comparable spending benchmarks vary widely based on the scale and complexity of the remediation required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While APTIM Federal Services is the prime contractor, there is potential for subcontracting opportunities for small businesses within specialized areas of remediation, depending on APTIM's subcontracting plan. The absence of a small business set-aside means the primary focus was on securing the best overall offer through full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Inspector General's office for the Department of Defense may also conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight remains internal to the agency.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Naval Facilities Engineering Command Contracts
Department of Defense Environmental Programs
Superfund Site Remediation

Risk Flags

Long contract duration may increase risk of cost escalation or performance degradation.
Complexity of environmental remediation projects can lead to unforeseen challenges.
Potential for regulatory changes impacting cleanup standards and methods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 million to APTIM FEDERAL SERVICES, LLC. IGF::OT::IGF X007 PARCEL E PHASE III RA, HUNTERS POINT NAVAL SHIP

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $37.0 million.

What is the period of performance?

Start: 2018-06-27. End: 2026-09-30.

What is APTIM Federal Services' track record with similar large-scale environmental remediation contracts for the Department of Defense?

APTIM Federal Services has a significant history of performing environmental remediation and base support services for various federal agencies, including the Department of Defense. They have been involved in numerous projects related to hazardous waste management, site cleanup, and infrastructure support at military installations. While specific details on past performance for contracts of this exact scale and complexity require deeper analysis of contract databases and performance reports, their established presence suggests they possess the requisite experience. Evaluating past performance metrics, such as on-time delivery, budget adherence, and quality of work on previous DoD contracts, would provide a more definitive assessment of their capabilities for this specific project.

How does the awarded amount of $36,990,166.82 compare to the estimated value or initial bids for this remediation project?

The provided data shows the awarded amount but does not include initial estimates or the range of bids received. To assess value, this figure should be compared against independent government cost estimates (IGCEs) or the bids submitted by the other three competing firms. If the awarded amount is significantly below the IGCE or the highest bids, it suggests strong price competition. Conversely, if it aligns closely with or exceeds the IGCE, further scrutiny of the pricing structure and scope might be warranted. Without comparative bid data, it's challenging to definitively state if this represents an exceptionally good or fair price relative to expectations.

What are the primary risks associated with a long-duration (over 8 years) environmental remediation contract like this one?

Long-duration contracts for environmental remediation present several key risks. Firstly, the potential for scope creep is significant; as remediation progresses, unforeseen contamination or complexities may be discovered, leading to change orders and increased costs. Secondly, regulatory environments can change over an 8-year period, potentially requiring modifications to cleanup methods or standards, impacting both schedule and budget. Thirdly, contractor performance can degrade over time, or key personnel may leave, affecting project continuity and quality. Finally, market conditions and material costs can fluctuate, potentially making the original fixed-price agreement less favorable for the contractor, which could lead to disputes or performance issues if not managed proactively.

What specific environmental challenges at Hunters Point Naval Shipyard does this contract aim to address?

Hunters Point Naval Shipyard has a long history of industrial activity, including shipbuilding, repair, and maintenance, which has led to various environmental contamination issues. This contract likely addresses the cleanup of hazardous substances such as heavy metals, petroleum products, solvents, and potentially radioactive materials present in soil, groundwater, and sediments. Specific challenges could include legacy contamination from decades of operations, complex hydrogeological conditions affecting groundwater plumes, and the need for long-term monitoring and management to ensure compliance with stringent environmental regulations like the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

How does the 'Remediation Services' NAICS code (562910) inform our understanding of the contract's scope and the industry?

The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' specifically identifies businesses primarily engaged in cleaning up contaminated sites. This includes activities like site assessment, soil and groundwater remediation, hazardous waste treatment and disposal, and asbestos abatement. For this contract, it signifies that the core service is the cleanup and restoration of environmentally impacted areas, likely at the Hunters Point Naval Shipyard. This code places the contract within the environmental services industry, a sector characterized by specialized technical expertise, significant regulatory oversight, and a focus on compliance with environmental laws.

What is the significance of the contract type being 'FIRM FIXED PRICE' (pt: FIRM FIXED PRICE) for this project?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For environmental remediation, this structure places the primary risk of cost overruns on the contractor, APTIM Federal Services. This incentivizes the contractor to manage project costs efficiently and effectively to maintain profitability. It provides the government with cost certainty, as the total expenditure is known upfront, assuming the scope of work remains unchanged. However, it also means the government may not benefit from any cost savings if the contractor completes the work under budget.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247315R0811

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1725 DUKE ST, STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,990,167

Exercised Options: $36,990,167

Current Obligation: $36,990,167

Actual Outlays: $7,582,094

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $5,981,814

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247317D0006

IDV Type: IDC

Timeline