DoD's $32.3M Newton County Superfund Remediation Contract Awarded to HydroGeoLogic, Inc

Contract Overview

Contract Amount: $32,313,084 ($32.3M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-26

End Date: 2027-02-27

Contract Duration: 2,711 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEWTON COUNTY MINE WASTE SUPERFUND SITE

Place of Performance

Location: GRANBY, NEWTON County, MISSOURI, 64844

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to HYDROGEOLOGIC, INC. for work described as: NEWTON COUNTY MINE WASTE SUPERFUND SITE Key points: 1. Contract value of $32.3 million for remediation services. 2. Awarded by the Department of the Army, part of the Department of Defense. 3. Contract type is Full and Open Competition after Exclusion of Sources. 4. Performance period spans from September 2019 to February 2027. 5. The North American Industry Classification System (NAICS) code is 562910 (Remediation Services). 6. The contract is a Firm Fixed Price type. 7. The base contract has a duration of 2711 days. 8. The award was made in Missouri.

Value Assessment

Rating: fair

The contract value of $32.3 million for remediation services appears to be within a reasonable range for a Superfund site of this nature, given the extended performance period. However, without specific benchmarks for the Newton County Mine Waste Superfund Site's complexity and the scope of work, a precise value-for-money assessment is challenging. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control. Further analysis would require comparing this contract's unit costs for specific remediation activities against similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the number of bidders. The exact reasons for the exclusion of sources are not detailed here, but it suggests a non-standard competitive process. The number of bidders is not explicitly stated, but the 'limited' competition level might imply fewer than a fully open solicitation, potentially impacting price discovery.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price that could have been achieved through a fully open and unrestricted bidding process. The exclusion of certain sources could have reduced competitive pressure, potentially leading to a higher overall cost.

Public Impact

The primary beneficiaries are the environmental stakeholders and the local community in Newton County, Missouri, who will see the remediation of a Superfund site. The services delivered include crucial remediation activities to address mine waste contamination. The geographic impact is focused on Newton County, Missouri, aiming to restore environmental quality. The contract supports specialized environmental engineering and remediation workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The 'Exclusion of Sources' clause requires further investigation to understand its impact on competition.
Long contract duration (2019-2027) increases the risk of scope creep or unforeseen cost adjustments.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded by the Department of Defense, indicating a significant federal commitment to environmental cleanup.
The contract addresses a critical Superfund site, demonstrating progress in environmental protection.

Sector Analysis

The environmental remediation sector is a significant part of the broader engineering and construction industry. Federal contracts for Superfund site cleanup are crucial for addressing legacy environmental contamination. This contract fits within the government's broader efforts to manage hazardous waste sites, often involving specialized firms with expertise in hydrogeology, environmental engineering, and site remediation. Comparable spending benchmarks would typically be assessed based on the complexity and scale of the contamination at the specific site.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, HydroGeoLogic, Inc., may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem within the environmental services industry.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Inspector General (IG) jurisdiction would apply to investigate fraud, waste, and abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight activities may not be publicly disclosed.

Related Government Programs

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

Risk Flags

Limited competition may impact price.
Long contract duration increases risk.
Potential for unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to HYDROGEOLOGIC, INC.. NEWTON COUNTY MINE WASTE SUPERFUND SITE

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 $32.3 million.

What is the period of performance?

Start: 2019-09-26. End: 2027-02-27.

What is the specific nature of the 'Exclusion of Sources' in this contract's competition?

The 'Full and Open Competition after Exclusion of Sources' designation suggests that while the solicitation was intended to be open, certain potential bidders were explicitly excluded from participating. The reasons for such exclusions can vary, including but not limited to, national security concerns, specific technical requirements that only a limited number of firms could meet, or prior performance issues with certain contractors. Without further documentation from the contracting agency (Department of the Army), the precise rationale behind excluding sources remains unclear. This type of competition can limit the number of bids received and potentially reduce the overall competitive pressure, which could impact the final price negotiated. It is a deviation from standard full and open competition where all responsible sources are permitted to submit offers.

How does the $32.3 million contract value compare to similar Superfund remediation projects?

Benchmarking the $32.3 million contract value for the Newton County Mine Waste Superfund Site requires detailed comparison with projects of similar scale, complexity, and duration. Superfund site cleanups are highly variable; costs can range from a few million to hundreds of millions of dollars depending on the type and extent of contamination, the chosen remediation technologies, and the site's geographic and geological characteristics. Given the contract's performance period extending to February 2027, the total value spread over approximately 7.5 years suggests a significant, long-term remediation effort. To provide a precise comparison, one would need data on the specific remediation activities (e.g., excavation, capping, groundwater treatment) and their associated unit costs for comparable sites managed by the EPA or DoD.

What are the primary risks associated with a long-term remediation contract like this?

Long-term remediation contracts, such as this one spanning from 2019 to 2027, carry several inherent risks. A primary risk is scope creep, where the initial scope of work expands due to unforeseen site conditions or evolving regulatory requirements, potentially leading to cost increases if not managed carefully under the contract's terms. Another risk is contractor performance; maintaining consistent quality and adherence to schedule over an extended period can be challenging. Economic risks, such as inflation impacting material and labor costs, can also affect the contractor's profitability and potentially lead to claims if the contract isn't structured to account for such fluctuations. Furthermore, technological obsolescence or the emergence of more effective remediation techniques during the contract's life could necessitate changes, adding complexity and cost.

What is HydroGeoLogic, Inc.'s track record with federal environmental remediation contracts?

HydroGeoLogic, Inc. (HGL) is a well-established environmental engineering and remediation firm that has a significant track record of performing work for various federal agencies, including the Department of Defense (DoD) and the Environmental Protection Agency (EPA). They have been involved in numerous Superfund site cleanups and other environmental restoration projects across the United States. Their experience typically includes site investigation, risk assessment, remedial design, and construction/remediation services. Information on their past performance, including specific contract values, project outcomes, and any past performance issues or awards, can often be found in federal procurement databases like SAM.gov or through agency-specific contract award announcements. Generally, HGL is considered a major player in the federal environmental services market.

How does the firm fixed-price contract type influence contractor behavior and risk?

A Firm Fixed Price (FFP) contract type places the primary risk of cost overruns on the contractor. This means that HydroGeoLogic, Inc. is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage costs efficiently, maintain productivity, and control quality to ensure profitability. For the government, an FFP contract offers the highest degree of cost certainty, as the final price is known upfront, barring any contract modifications. However, it can also lead contractors to be more conservative in their bidding, potentially inflating prices to account for unforeseen risks. It also means the government may not directly benefit from cost savings if the contractor performs more efficiently than anticipated, as the price remains fixed.

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: W912DQ15R3003

Offers Received: 3

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: $44,267,885

Exercised Options: $32,313,084

Current Obligation: $32,313,084

Actual Outlays: $769,300

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $9,607,435

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W912DQ16D3002

IDV Type: IDC

Timeline