Army awards $24.1M for groundwater monitoring and O&M to Sustainment & Restoration Services, LLC

Contract Overview

Contract Amount: $24,119,927 ($24.1M)

Contractor: Sustainment & Restoration Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2026-03-26

Contract Duration: 2,003 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDWATER MONITORING AND O&M

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93524

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to SUSTAINMENT & RESTORATION SERVICES, LLC for work described as: GROUNDWATER MONITORING AND O&M Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value. 2. Long contract duration of over 2000 days suggests a need for sustained services, but also potential for cost overruns. 3. The contract's focus on remediation services aligns with ongoing environmental management needs within the Department of Defense. 4. Limited competition may lead to higher costs for taxpayers compared to a more open bidding process. 5. The firm fixed-price structure provides cost certainty for the government, but shifts risk to the contractor. 6. Geographic focus on California indicates specific environmental challenges or facilities requiring this service.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific, long-term nature of groundwater monitoring and O&M. Without comparable sole-source contracts or open competition data, it's difficult to definitively assess if the $24.1 million price tag represents fair market value. The firm fixed-price contract type offers predictability, but the absence of competitive pressure means there's less assurance of optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP', implying a sole-source award. The lack of competition means that only one vendor, Sustainment & Restoration Services, LLC, was considered. This limits the government's ability to explore alternative solutions or leverage competitive pricing, potentially resulting in a higher cost than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less downward pressure on price, and the government may not be receiving the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring compliance with environmental regulations and maintaining operational readiness. Services delivered include ongoing groundwater monitoring and operations and maintenance, crucial for environmental stewardship. The geographic impact is concentrated in California, likely at specific military installations or sites requiring environmental remediation. Workforce implications may include direct employment for Sustainment & Restoration Services, LLC, and potential indirect benefits to local economies in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Long contract duration increases the risk of scope creep or unforeseen cost increases.
Lack of transparency in the non-competitive award process hinders public scrutiny.
Specific performance metrics and quality assurance details are not publicly detailed, making performance assessment difficult.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Contract addresses critical environmental monitoring and maintenance needs for the Department of Defense.
Sustainment & Restoration Services, LLC is likely experienced in this specialized field, ensuring technical capability.

Sector Analysis

The environmental remediation and services sector is a significant area of federal spending, driven by regulatory compliance and the need to manage legacy environmental issues at government facilities. This contract falls within the broader category of environmental consulting and remediation services, which includes activities like site assessment, monitoring, cleanup, and ongoing operations and maintenance. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of groundwater monitoring and O&M, but federal agencies consistently allocate substantial resources to environmental compliance and restoration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the data does not provide information on subcontracting plans or actual performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there is no explicit mechanism for small business participation evident in the provided details.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded within the firm fixed-price structure, where the contractor bears the risk of cost overruns. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Base Operations Support
Facility Maintenance and Management
Environmental Compliance
Water Resource Management

Risk Flags

Sole-source award
Long contract duration
Lack of public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to SUSTAINMENT & RESTORATION SERVICES, LLC. GROUNDWATER MONITORING AND O&M

Who is the contractor on this award?

The obligated recipient is SUSTAINMENT & RESTORATION SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-03-26.

What is the track record of Sustainment & Restoration Services, LLC with the Department of Defense, particularly on similar environmental contracts?

A comprehensive review of Sustainment & Restoration Services, LLC's track record with the Department of Defense would require access to detailed contract performance databases and award histories. However, given the sole-source nature of this $24.1 million contract for groundwater monitoring and O&M, it suggests the Army likely identified this company as having unique capabilities or a pre-existing relationship relevant to the requirement. Without specific past performance data, it's difficult to assess their reliability and quality on similar projects. Typically, agencies would consider factors like on-time delivery, adherence to specifications, and overall customer satisfaction when making sole-source awards, but these details are not publicly available in the provided data.

How does the $24.1 million contract value compare to similar groundwater monitoring and O&M contracts awarded by other federal agencies or within the Department of Defense?

Directly comparing the $24.1 million value of this contract is challenging without more specific details on the scope, duration, and location of services. Groundwater monitoring and O&M requirements can vary significantly based on the complexity of the site, the number of monitoring points, the frequency of sampling, and the specific analytical parameters required. As this was a sole-source award, there are no competitive bids to establish a market price. To benchmark effectively, one would need to identify contracts with similar geographic scope (California), similar service requirements (groundwater monitoring and O&M), and a comparable duration (over 2000 days). Publicly available data often lacks the granularity for precise comparisons, especially for specialized environmental services.

What are the primary risks associated with a sole-source award for long-term environmental services like groundwater monitoring?

The primary risks associated with a sole-source award for long-term environmental services are related to cost and performance. Without competition, there is a reduced incentive for the contractor to offer the most competitive pricing, potentially leading to higher costs for the government and taxpayers. Price discovery is limited, and the government may not be achieving the best possible value. Furthermore, a sole-source award can sometimes indicate a lack of market research or an over-reliance on a single provider, which can create vendor lock-in. While the firm fixed-price structure aims to mitigate cost risks for the government, the absence of competitive pressure might also reduce the contractor's motivation to innovate or optimize service delivery over the long contract term.

What are the implications of the firm fixed-price (FFP) contract type for this groundwater monitoring and O&M requirement?

The firm fixed-price (FFP) contract type means that Sustainment & Restoration Services, LLC is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This shifts the primary cost risk from the government to the contractor. For the government, this offers significant budget certainty, as the total cost is known upfront. However, it also means that the contractor has a strong incentive to control their costs efficiently. In the context of groundwater monitoring and O&M, an FFP contract provides predictability for the $24.1 million award. The potential downside is that if the contractor underestimates costs or encounters unforeseen challenges, they may cut corners on quality or service to maintain profitability, although the government's oversight is intended to prevent this.

How does the contract's duration of over 2000 days impact the assessment of its value and potential risks?

A contract duration exceeding 2000 days (approximately 5.5 years) for groundwater monitoring and O&M indicates a long-term, ongoing need for these services, likely tied to the sustained environmental management requirements of a specific Department of the Army facility in California. From a value perspective, a longer duration can sometimes lead to economies of scale and more stable service provision. However, it also increases the potential for risks such as scope creep, changes in regulatory requirements, inflation impacting the contractor's costs (even with FFP), and the possibility of the contractor becoming complacent. The government must have robust oversight mechanisms in place to manage performance and ensure continued value throughout the extended period. Without competitive re-evaluation during this period, the initial pricing may not remain optimal.

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 RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W9123820R0025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD STE 201, MILWAUKEE, WI, 53226

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,395,277

Exercised Options: $24,119,927

Current Obligation: $24,119,927

Actual Outlays: $920,688

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $520,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline