DoD awards $16.6M for munitions site cleanup in Texas, with 4 bids received

Contract Overview

Contract Amount: $16,649,558 ($16.6M)

Contractor: EA Engineering, Science, and Technology, Inc., PBC

Awarding Agency: Department of Defense

Start Date: 2023-08-30

End Date: 2028-08-29

Contract Duration: 1,826 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MUNITIONS RESPONSE SITES (MRS) 17, ARTILLERY RANGE, NORTHWEST MRS 18, ARTILLERY RANGE, NORTH AND MRS 21, MORTAR AND RIFLE GRENADE RANGE

Place of Performance

Location: GAINESVILLE, COOKE County, TEXAS, 76240

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC for work described as: MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MUNITIONS RESPONSE SITES (MRS) 17, ARTILLERY RANGE, NORTHWEST MRS 18, ARTILLERY RANGE, NORTH AND MRS 21, MORTAR AND RIFLE GRENADE RANGE Key points: 1. Contract value represents a significant investment in environmental remediation. 2. Competition dynamics suggest a moderately contested market for these specialized services. 3. Potential risks include site complexity and the long-term nature of environmental cleanup. 4. Performance context is critical given the sensitive nature of munitions response sites. 5. This contract positions the awardee within the environmental services sector for defense. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $16.6 million for munitions site cleanup appears reasonable given the scope of work, which involves remediation and closure of multiple artillery and grenade ranges. Benchmarking against similar large-scale environmental remediation contracts for the Department of Defense suggests that pricing is competitive, especially considering the specialized nature of handling and removing hazardous materials. The firm-fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Four bids were received, suggesting a healthy level of interest and competition for this specialized service. While four bidders is a reasonable number, a higher number could potentially drive prices lower. However, the specialized nature of munitions response site cleanup may limit the pool of qualified contractors.

Taxpayer Impact: The full and open competition with four bidders provides a good basis for price discovery and ensures taxpayers benefit from a competitive bidding process, likely resulting in a fair market price for the services.

Public Impact

The primary beneficiaries are the Department of Defense and the state of Texas, ensuring safer land use and environmental protection. Services delivered include the removal of munitions and explosives of concern and the closure of designated response sites. The geographic impact is concentrated in Texas, specifically at Artillery Range Northwest, Artillery Range North, and Mortar and Rifle Grenade Range. Workforce implications include the potential for skilled labor in environmental remediation, engineering, and hazardous material handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen subsurface contamination requiring additional remediation efforts and costs.
Long duration of the contract (5 years) increases exposure to changing regulatory requirements or economic conditions.
Complexity of munitions removal and disposal can pose safety risks to personnel and the environment if not managed meticulously.

Positive Signals

Award to EA Engineering, Science, and Technology, Inc., PBC, a known entity in environmental services, suggests a degree of contractor capability.
Firm-fixed-price contract structure provides cost control and predictability for the government.
Multiple sites included in one contract may offer economies of scale for the contractor and streamlined management for the agency.

Sector Analysis

The environmental remediation services sector is a critical component of government contracting, particularly for agencies managing legacy sites with environmental hazards. The market includes specialized firms capable of handling hazardous materials, complex engineering challenges, and regulatory compliance. This contract fits within the broader category of environmental consulting and remediation, which is a multi-billion dollar industry. Comparable spending benchmarks for large-scale hazardous site cleanup often run into tens or hundreds of millions of dollars, depending on the scale and complexity.

Small Business Impact

This contract was not set aside for small businesses and the awardee, EA Engineering, Science, and Technology, Inc., PBC, is a large business. There is no explicit mention of small business subcontracting goals in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Environmental Remediation Programs
Munitions Response Program
Hazardous Waste Management Services
Environmental Compliance and Restoration

Risk Flags

Potential for unforeseen subsurface contamination.
Long contract duration increases exposure to changing conditions.
Safety risks associated with handling explosives.
Complexity of environmental remediation processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC. MUNITIONS AND EXPLOSIVES OF CONCERN REMOVAL AND CLOSURE OF MUNITIONS RESPONSE SITES (MRS) 17, ARTILLERY RANGE, NORTHWEST MRS 18, ARTILLERY RANGE, NORTH AND MRS 21, MORTAR AND RIFLE GRENADE RANGE

Who is the contractor on this award?

The obligated recipient is EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2023-08-30. End: 2028-08-29.

What is EA Engineering, Science, and Technology, Inc., PBC's track record with similar munitions site cleanup contracts?

EA Engineering, Science, and Technology, Inc., PBC has a documented history of performing environmental remediation services for various government agencies, including the Department of Defense. While specific details on prior munitions site cleanup contracts of this exact scale are not provided in the summary data, the company's profile generally indicates experience in hazardous waste management, site assessment, and remediation. Further investigation into their past performance reports and contract history within the FPDS would be necessary to fully assess their specific expertise and success rate with similar munitions response sites. Their status as a public benefit corporation (PBC) may also imply a focus on environmental stewardship in their project execution.

How does the $16.6 million award compare to the total spending on munitions site cleanup by the Department of the Army in recent years?

The $16.6 million award represents a specific allocation for the cleanup of three designated munitions response sites in Texas. To contextualize this against the Department of the Army's total spending, one would need to analyze historical budget allocations and contract awards for its Munitions Response Program (MRP) and broader environmental restoration efforts. The Army manages numerous Formerly Used Defense Sites (FUDS) and active ranges requiring remediation. A comprehensive comparison would involve aggregating all similar contracts over the past 3-5 fiscal years to understand if this award is typical, above, or below the average investment for such projects. Without broader spending data, it's difficult to definitively state its relative scale within the Army's overall environmental remediation budget.

What are the primary risks associated with the remediation of Artillery Range Northwest, Artillery Range North, and MRS 21?

The primary risks associated with the remediation of these artillery and grenade ranges stem from the inherent nature of munitions and explosives. These include the potential for unexploded ordnance (UXO) to remain buried, posing significant safety hazards during excavation and cleanup operations. Subsurface contamination from propellants, heavy metals, and other chemical compounds is also a major risk, potentially requiring extensive soil and groundwater remediation. Furthermore, the long-term stability and migration of contaminants, as well as the discovery of previously unknown hazards, present ongoing risks. Environmental risks also include potential impacts on local ecosystems and water sources if containment measures fail.

How effective are firm-fixed-price contracts in managing the costs and risks of long-term environmental remediation projects like this one?

Firm-fixed-price (FFP) contracts are generally favored by government agencies for cost control, as they shift the majority of the cost overrun risk to the contractor. For long-term environmental remediation, FFP contracts can be effective if the scope of work is well-defined and potential risks are thoroughly assessed upfront. However, the inherent uncertainties in environmental cleanup (e.g., unknown contamination levels, unexpected site conditions) can lead to significant challenges. If unforeseen issues arise that were not reasonably foreseeable during bidding, contractors may seek change orders, potentially increasing costs. Conversely, if the scope is too rigidly defined, contractors might build in substantial contingencies, leading to a higher initial price. The success of an FFP contract in this context often depends on the thoroughness of the initial site characterization and the contractor's ability to manage unforeseen circumstances efficiently.

What is the typical duration and cost range for similar munitions site cleanup contracts awarded by the Department of Defense?

The typical duration for munitions site cleanup contracts awarded by the Department of Defense can vary significantly based on the size and complexity of the sites, the types of munitions present, and the extent of contamination. Contracts can range from a few years to over a decade. Similarly, costs can span from hundreds of thousands to tens or even hundreds of millions of dollars. The $16.6 million award for three sites over five years falls within a moderate range for such projects. Larger, more complex sites with extensive UXO or widespread chemical contamination would naturally command higher price tags and longer timelines. The number of sites included and the specific remediation technologies employed also influence the overall cost and duration.

What are the potential long-term environmental and safety implications if these munitions response sites are not adequately remediated?

Inadequate remediation of munitions response sites carries significant long-term environmental and safety implications. Safety risks include the potential for accidental detonation of buried ordnance, endangering civilians and wildlife, and posing risks to future land users. Environmentally, residual contaminants such as heavy metals (lead, mercury, arsenic) and explosives compounds can leach into soil and groundwater, potentially contaminating drinking water sources and harming ecosystems for decades or even centuries. This contamination can restrict future land use, impacting economic development and recreational opportunities. Furthermore, failure to address these hazards can lead to long-term liability for the government and ongoing environmental degradation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 SCHILLING CIR STE 400, HUNT VALLEY, MD, 21031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,798,524

Exercised Options: $20,149,410

Current Obligation: $16,649,558

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $11,521,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0001

IDV Type: IDC

Timeline