DoD awards $29.4M contract for PFAS remediation at former Reese AFB, Texas

Contract Overview

Contract Amount: $29,405,522 ($29.4M)

Contractor: Fpm-Aecom JV1

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2026-09-21

Contract Duration: 1,095 days

Daily Burn Rate: $26.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUMP AND TREAT SYSTEM FOR PICNIC LAKE PFAS PLUME AREA FORMER REESE AIR FORCE BASE AFB, PROJECT NO. UBNY20217242PL, UBNY20227242PL - UBNY20237242PL NEW CONTRACT AWARD.

Place of Performance

Location: LUBBOCK, LUBBOCK County, TEXAS, 79416

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to FPM-AECOM JV1 for work described as: PUMP AND TREAT SYSTEM FOR PICNIC LAKE PFAS PLUME AREA FORMER REESE AIR FORCE BASE AFB, PROJECT NO. UBNY20217242PL, UBNY20227242PL - UBNY20237242PL NEW CONTRACT AWARD. Key points: 1. Contract addresses critical environmental cleanup needs for PFAS contamination. 2. The firm-fixed-price structure aims to control costs for the remediation services. 3. A single award suggests limited competition, potentially impacting price negotiation. 4. The contract duration of three years allows for sustained remediation efforts. 5. This award aligns with broader Department of Defense efforts to address PFAS across its installations.

Value Assessment

Rating: fair

The contract value of $29.4 million for a three-year PFAS remediation project appears within a reasonable range for environmental cleanup services of this nature. Benchmarking against similar large-scale PFAS remediation contracts, particularly those involving pump and treat systems for extensive contamination plumes, would provide a clearer picture of value for money. The firm-fixed-price contract type offers cost certainty, but the absence of detailed cost breakdowns makes a precise value assessment challenging without further data on labor, equipment, and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Army identified FPM-AECOM JV1 as the only responsible source capable of performing the required remediation services. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The lack of competition means that price discovery through a bidding process was bypassed, and the negotiated price is the primary determinant of cost.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not benefit from the potential cost savings that can arise from competitive bidding. The price is based on negotiation with a single entity, and oversight is crucial to ensure the price is fair and reasonable.

Public Impact

The primary beneficiaries are the environment and public health, through the cleanup of hazardous PFAS chemicals. Services delivered include the operation of a pump and treat system to contain and remove PFAS from groundwater. The geographic impact is focused on the former Reese Air Force Base in Texas, addressing contamination at this specific site. Workforce implications include the employment of environmental engineers, technicians, and support staff for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs than a competed contract.
The complexity of PFAS remediation can introduce unforeseen technical challenges and cost overruns.
Long-term effectiveness of pump and treat systems for PFAS can vary and may require adaptive management.

Positive Signals

The contractor, FPM-AECOM JV1, likely possesses specialized expertise in PFAS remediation, a critical environmental concern.
The firm-fixed-price contract provides cost predictability for the government over the contract term.
The contract duration allows for sustained and comprehensive remediation efforts at the site.

Sector Analysis

The environmental remediation sector is a significant market driven by regulatory requirements and historical industrial/military activities. PFAS contamination has emerged as a major focus, creating substantial demand for specialized services like pump and treat systems. This contract fits within the broader category of environmental consulting and remediation services, which includes site assessment, cleanup, and monitoring. Comparable spending benchmarks for large-scale PFAS remediation projects can vary widely based on the extent of contamination, site complexity, and chosen remediation technologies.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. The prime contractor is a joint venture, which may or may not include small business participation within its structure. The absence of set-aside provisions means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and environmental divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified remediation services. Transparency regarding the progress and effectiveness of the remediation efforts would typically be facilitated through regular reporting requirements and site inspections. The Inspector General's office for the Department of Defense may conduct audits or investigations if concerns regarding performance or financial integrity arise.

Related Government Programs

Department of Defense Environmental Restoration Program
EPA Superfund Program
PFAS Strategic Roadmap

Risk Flags

Sole-source award
Environmental remediation complexity
PFAS regulatory uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to FPM-AECOM JV1. PUMP AND TREAT SYSTEM FOR PICNIC LAKE PFAS PLUME AREA FORMER REESE AIR FORCE BASE AFB, PROJECT NO. UBNY20217242PL, UBNY20227242PL - UBNY20237242PL NEW CONTRACT AWARD.

Who is the contractor on this award?

The obligated recipient is FPM-AECOM JV1.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-09-21.

What is the track record of FPM-AECOM JV1 in managing large-scale PFAS remediation projects?

Assessing the track record of FPM-AECOM JV1 requires a review of their past performance on similar environmental remediation contracts, particularly those involving PFAS. Information on project scope, budget adherence, timeline management, and technical success would be crucial. While AECOM as a parent company has extensive experience in environmental services, the specific capabilities and performance history of the JV1 entity for this type of complex, large-scale PFAS cleanup need to be evaluated. Publicly available contract databases, past performance reviews, and industry reports can provide insights into their capabilities and reliability in executing such critical environmental projects.

How does the $29.4 million contract value compare to similar PFAS remediation efforts at other military installations?

The $29.4 million contract value for a three-year pump and treat system for PFAS remediation at former Reese AFB needs to be benchmarked against similar projects to assess value for money. Factors influencing cost include the size of the contaminated plume, the concentration of PFAS compounds, the chosen remediation technology (pump and treat in this case), and site-specific geological conditions. Large-scale PFAS remediation projects at other military bases can range from tens to hundreds of millions of dollars. Without specific details on the scope and complexity of the Picnic Lake PFAS plume, a direct comparison is difficult, but this award appears to be within the typical range for significant environmental cleanup actions.

What are the primary risks associated with this specific PFAS remediation contract?

The primary risks associated with this PFAS remediation contract include technical challenges inherent in treating complex groundwater contamination, potential for unforeseen site conditions impacting cost and schedule, and the evolving regulatory landscape for PFAS. The effectiveness and long-term sustainability of pump and treat systems for PFAS can also be a concern, as these systems may require ongoing monitoring and potential adjustments. Furthermore, the sole-source nature of the award presents a risk of suboptimal pricing due to the lack of competitive pressure. Contractor performance and adherence to environmental standards are also critical risk areas that require diligent oversight.

How effective are pump and treat systems for PFAS remediation, and what are the long-term implications?

Pump and treat systems are a common method for containing and removing PFAS from groundwater by extracting contaminated water and treating it above ground. Their effectiveness in plume containment is generally good, preventing further migration. However, PFAS compounds can be challenging to remove completely from water, often requiring advanced treatment technologies like granular activated carbon (GAC) or ion exchange resins. Long-term implications include the continuous operation and maintenance costs of the system, the disposal of spent treatment media (which can be hazardous waste), and the potential need for long-term monitoring to ensure the effectiveness of the remediation. They are often considered a component of a broader remediation strategy rather than a complete solution.

What is the historical spending trend for PFAS remediation by the Department of Defense?

The Department of Defense (DoD) has significantly increased its spending on PFAS remediation in recent years, reflecting a growing awareness of the widespread contamination across its installations and the associated health and environmental risks. Historically, spending was minimal, but it has escalated rapidly as research into PFAS impacts and remediation technologies has advanced. Annual budgets for PFAS-related activities, including investigation, cleanup, and research, have grown into the hundreds of millions of dollars. This trend is expected to continue as more sites are identified and remediation efforts are implemented under various programs and legislative mandates.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BV22R0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 181 KENWOOD AVE, ONEIDA, NY, 13421

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,405,522

Exercised Options: $29,405,522

Current Obligation: $29,405,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline