DoD's $38.4M Superfund cleanup contract awarded to Conti Federal Services shows strong competition and fair pricing

Contract Overview

Contract Amount: $38,376,807 ($38.4M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-21

End Date: 2021-04-17

Contract Duration: 1,304 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF HOPEWELL PRECISION SUPERFUND SITE OPERABLE UNIT 2 ALTERNATE WATER SUPPLY REMEDIAL ACTION.

Place of Performance

Location: HOPEWELL JUNCTION, DUTCHESS County, NEW YORK, 12533

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to CONTI FEDERAL SERVICES, LLC for work described as: IGF::OT::IGF HOPEWELL PRECISION SUPERFUND SITE OPERABLE UNIT 2 ALTERNATE WATER SUPPLY REMEDIAL ACTION. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar remediation projects. 3. The contract duration of 1304 days suggests a significant scope of work. 4. Performance context is crucial for understanding the value delivered for the investment. 5. This contract falls within the broader environmental remediation sector, a key area for federal spending. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract's total value of approximately $38.4 million for remediation services at the Hopewell Precision Superfund Site appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental cleanup contracts suggests that the pricing is within an acceptable range. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value for money. However, a detailed analysis of the specific remediation tasks and their associated costs would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally favorable as it encourages multiple contractors to offer their best pricing and technical solutions. The presence of three bidders suggests that the market for these specialized remediation services is sufficiently developed and that the government had a reasonable selection of qualified contractors to choose from, likely leading to a more competitive price discovery process.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the selection of the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the residents and environment surrounding the Hopewell Precision Superfund Site, who will see a reduction in hazardous substances. The services delivered include the remediation of Operable Unit 2, focusing on providing an alternate water supply. The geographic impact is localized to the Hopewell Precision Superfund Site in New York. This contract supports specialized jobs in environmental engineering, remediation, and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen contamination is discovered, though the fixed-price contract aims to mitigate this.
Dependence on contractor performance for timely and effective cleanup, requiring robust government oversight.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty and reduces financial risk for the government.
Contractor has a track record in federal contracting, suggesting familiarity with government requirements.

Sector Analysis

This contract operates within the environmental remediation services sector, a critical component of the federal government's efforts to address hazardous waste sites under the Superfund program. The market for these services is specialized, requiring significant technical expertise and adherence to strict regulatory standards. Comparable spending benchmarks in this sector often vary widely based on the complexity and scale of the contamination, but large-scale Superfund site cleanups typically represent substantial investments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated 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 services. Further investigation into subcontracting plans would be needed for a comprehensive assessment.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of the Army) through contract officers and technical representatives. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, although specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Superfund Program
Environmental Remediation Services
Hazardous Waste Management
Department of Defense Contracts
Federal Cleanup Contracts

Risk Flags

Potential for unforeseen site conditions
Contractor performance risk
Schedule adherence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to CONTI FEDERAL SERVICES, LLC. IGF::OT::IGF HOPEWELL PRECISION SUPERFUND SITE OPERABLE UNIT 2 ALTERNATE WATER SUPPLY REMEDIAL ACTION.

Who is the contractor on this award?

The obligated recipient is CONTI FEDERAL 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 $38.4 million.

What is the period of performance?

Start: 2017-09-21. End: 2021-04-17.

What is the track record of Conti Federal Services, LLC with federal contracts, particularly in environmental remediation?

Conti Federal Services, LLC has a history of performing federal contracts, including those related to environmental remediation and construction. Their experience with the Department of Defense and other federal agencies suggests a familiarity with government contracting processes and requirements. Analyzing their past performance on similar-sized projects, including any reported issues or successes, would provide further insight into their capabilities and reliability for complex environmental cleanup operations like the Hopewell Precision Superfund Site.

How does the pricing of this contract compare to other similar Superfund site remediation projects awarded by the federal government?

Benchmarking this $38.4 million contract against similar Superfund site remediation projects requires access to a comprehensive database of federal contract awards and their associated costs, adjusted for inflation and project complexity. However, given that it was awarded under full and open competition with three bidders, it suggests that the pricing was likely competitive. Without specific comparable project data, it's difficult to provide a precise comparison, but the competitive nature of the award is a positive indicator that the price was fair market value at the time of award.

What are the primary risks associated with this specific remediation contract and how are they being managed?

The primary risks associated with this remediation contract include potential unforeseen site conditions (e.g., discovering additional contamination), contractor performance issues, and schedule delays. The firm-fixed-price contract structure helps mitigate financial risks related to cost overruns. Risk management is further addressed through government oversight, requiring the contractor to adhere to strict performance standards, safety protocols, and reporting requirements. The contract's duration and phased approach likely allow for adaptive management of identified risks.

How effective has the federal government been in managing Superfund site cleanups, and does this contract align with broader program goals?

The effectiveness of the federal government's Superfund site cleanups is a complex issue with varying degrees of success across different sites. The program aims to address the nation's most contaminated sites, and contracts like this one are essential mechanisms for achieving cleanup goals. This contract's focus on providing an alternate water supply and remediation at Operable Unit 2 aligns with the core objectives of the Superfund program: protecting human health and the environment. Success is measured by the extent of cleanup achieved and the long-term protection of the surrounding community.

What are the historical spending patterns for environmental remediation services by the Department of Defense, and how does this contract fit within that trend?

The Department of Defense (DoD) is a significant federal spender on environmental remediation due to its historical use of land for military purposes. Historical spending patterns show a consistent need for cleanup services across numerous sites nationwide. This $38.4 million contract for the Hopewell Precision Superfund Site represents a substantial, but not unprecedented, investment within the DoD's broader environmental restoration budget. It aligns with the department's ongoing commitment to addressing environmental liabilities and complying with regulations.

What is the significance of the 'Operable Unit 2 Alternate Water Supply' aspect of this contract?

The 'Operable Unit 2 Alternate Water Supply' designation indicates that a specific part of the Superfund site cleanup involves addressing contamination that has impacted or could impact the local water supply. Remediation efforts here are critical for ensuring the safety and health of the surrounding community by providing a clean and reliable source of drinking water. This often involves complex engineering solutions, such as installing new water lines or treatment systems, and is a high-priority component of environmental restoration.

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

Solicitation ID: W912DQ14R3004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11486 CORPORATE BLVD STE 120, ORLANDO, FL, 32817

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,376,807

Exercised Options: $38,376,807

Current Obligation: $38,376,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ15D3001

IDV Type: IDC

Timeline