DoD Awards $22.5M Remediation Contract to Hydrogeologic, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $22,488,998 ($22.5M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-15

End Date: 2028-07-19

Contract Duration: 2,926 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FRONT RANGE OPTIMIZED REMEDIATION CONTRACT

Place of Performance

Location: GREAT FALLS, CASCADE County, MONTANA, 59401

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to HYDROGEOLOGIC, INC. for work described as: FRONT RANGE OPTIMIZED REMEDIATION CONTRACT Key points: 1. Contract value of $22.5M for remediation services. 2. Awarded by the Department of the Army, a component of DoD. 3. Utilized full and open competition after exclusion of sources. 4. Contract type is Firm Fixed Price, indicating price certainty. 5. Duration spans over 8 years, from 2020 to 2028.

Value Assessment

Rating: good

The contract value of $22.5M for an 8-year remediation project appears reasonable given the scope. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise assessment.

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, suggesting a competitive process was intended to find the best value. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary remediation services.

Public Impact

Ensures environmental cleanup at a DoD facility. Long-term contract provides stability for remediation services. Potential for follow-on work or similar contracts in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Limited detail on specific remediation activities.
Exclusion of sources in competition warrants further review.
Long duration may introduce scope creep risks.

Positive Signals

Firm Fixed Price contract type.
Full and open competition utilized.
Significant investment in environmental remediation.

Sector Analysis

This contract falls within the environmental remediation sector, often involving complex cleanup operations. Spending in this area is driven by regulatory requirements and historical contamination at government facilities.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further investigation would be needed to assess small business participation in this contract.

Oversight & Accountability

The Department of the Army is responsible for oversight. The contract's duration and fixed-price nature suggest a need for diligent performance monitoring to ensure objectives are met within budget.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of contractor performance issues over the long contract duration.
Limited transparency on specific remediation tasks.
Rationale for 'exclusion of sources' needs clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to HYDROGEOLOGIC, INC.. FRONT RANGE OPTIMIZED REMEDIATION CONTRACT

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 $22.5 million.

What is the period of performance?

Start: 2020-07-15. End: 2028-07-19.

What specific remediation activities are covered under this contract, and how do they align with the stated contract value?

The contract is for remediation services, but specific activities are not detailed in the provided data. A thorough review of the contract's statement of work would clarify the scope of work, including the types of contaminants, areas to be remediated, and methodologies employed. This would allow for a more accurate assessment of whether the $22.5M value is justified by the expected deliverables and complexity of the remediation tasks.

What was the rationale for 'exclusion of sources' within the full and open competition process, and did it impact the final price?

The 'exclusion of sources' clause within a full and open competition typically means that while the competition was open, certain pre-qualified or specific types of sources were considered, or perhaps some were excluded based on specific criteria. Understanding the exact reason for this exclusion is crucial. If it limited the pool of potential bidders significantly, it could have potentially reduced competitive pressure and impacted the final price discovery, possibly leading to a higher cost than if all potential sources were allowed.

How effectively will the firm fixed price contract manage risks associated with long-term environmental remediation projects?

A firm fixed price contract aims to transfer risk to the contractor, providing cost certainty for the government. However, long-term environmental remediation projects can be inherently unpredictable due to unforeseen site conditions or regulatory changes. While the FFP structure is beneficial for budget control, the contractor may price in contingencies for these uncertainties, potentially leading to a higher initial bid. Effective oversight is still critical to manage scope and ensure contractor performance.

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

Solicitation ID: W9128F16R0008

Offers Received: 5

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: $27,734,446

Exercised Options: $22,488,998

Current Obligation: $22,488,998

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $34,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F19D0016

IDV Type: IDC

Timeline