DoD's $6.4M Remediation Services Contract Awarded to Hydrogeologic, Inc. for Hastings, NE Operations

Contract Overview

Contract Amount: $6,455,952 ($6.5M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-24

End Date: 2027-06-24

Contract Duration: 1,826 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLAINE NAD OU14 RA-O, OPERATIONS AND MAINTENANCE, HASTING, NE

Place of Performance

Location: HASTINGS, ADAMS County, NEBRASKA, 68901

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to HYDROGEOLOGIC, INC. for work described as: BLAINE NAD OU14 RA-O, OPERATIONS AND MAINTENANCE, HASTING, NE Key points: 1. Contract focuses on environmental remediation services, a critical area for defense installations. 2. The contract duration of 5 years suggests a long-term need for these services. 3. Fixed-price contract type aims to control costs, but requires careful scope management. 4. The award was made under full and open competition after exclusion of sources, indicating a competitive process. 5. Geographic focus on Hastings, Nebraska, highlights specific environmental challenges at that location. 6. The North American Industry Classification System (NAICS) code 562910 points to specialized hazardous waste management.

Value Assessment

Rating: good

The contract value of approximately $6.46 million over five years for remediation services appears reasonable given the scope and duration. Benchmarking against similar environmental remediation contracts for Department of Defense facilities is necessary for a definitive value assessment. However, the firm fixed-price structure suggests an expectation of cost control by the agency. Without specific details on the remediation scope, a precise per-unit cost comparison is difficult, but the overall award seems aligned with industry standards for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, certain sources were initially excluded before the final award. The presence of four bidders (no=4) suggests a moderate level of competition. This approach aims to ensure a fair selection process while potentially focusing on specific capabilities or past performance. The competition level is sufficient to provide price discovery and encourage competitive pricing among qualified firms.

Taxpayer Impact: The competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs through market forces. A moderate number of bidders suggests a balance between ensuring adequate competition and avoiding overly complex procurement processes.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the local environment in Hastings, Nebraska, through the cleanup of hazardous materials. Services delivered include essential environmental remediation, likely addressing contamination issues at a military installation. The geographic impact is localized to Hastings, Nebraska, focusing on a specific federal site. Workforce implications may include employment opportunities for environmental scientists, engineers, and technicians involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in remediation projects, which could increase costs beyond the fixed-price ceiling.
Dependence on a single contractor for a critical, long-term environmental service.
Environmental remediation can be complex and unpredictable, leading to unforeseen challenges and potential delays.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the agency.
Awarded after a competitive process, suggesting a fair market price was likely achieved.
Long contract duration allows for consistent service delivery and relationship building.

Sector Analysis

Environmental remediation services represent a significant sector within the broader professional, scientific, and technical services industry. This contract falls under hazardous waste management and remediation, a specialized niche. The market is characterized by a mix of large engineering firms and smaller, specialized environmental contractors. Federal spending in this area is driven by regulatory compliance, base closures, and ongoing operational needs at military installations. Comparable spending benchmarks would involve analyzing other DoD contracts for similar environmental services at other bases.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Hydrogeologic, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Department of Defense Facilities Maintenance
Environmental Compliance Contracts
Base Operations Support

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract.
Contract duration may exceed immediate needs if remediation is faster than anticipated.
Competition level was moderate ('full and open after exclusion of sources'), warranting scrutiny of the bidding process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to HYDROGEOLOGIC, INC.. BLAINE NAD OU14 RA-O, OPERATIONS AND MAINTENANCE, HASTING, NE

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 $6.5 million.

What is the period of performance?

Start: 2022-06-24. End: 2027-06-24.

What is the specific nature of the environmental remediation required at the Hastings, NE facility?

The provided data does not specify the exact nature of the environmental remediation required at the Hastings, NE facility. The NAICS code 562910, 'Remediation Services,' broadly covers establishments primarily engaged in cleaning up contaminated sites to prevent the spread of contaminants. This can include activities such as site assessment, soil and groundwater remediation, hazardous waste treatment and disposal, and site closure. Given it's a Department of Defense contract, potential contaminants could range from petroleum products and solvents to unexploded ordnance or chemical agents, depending on the historical use of the site. Further details would likely be found in the contract's Statement of Work (SOW).

How does the $6.46 million contract value compare to similar environmental remediation contracts awarded by the DoD?

Comparing the $6.46 million contract value requires access to a broader dataset of similar DoD environmental remediation contracts. However, for a 5-year duration (1826 days), this averages to approximately $1.3 million per year. This figure is within a plausible range for environmental remediation services at a federal facility, which can vary significantly based on the scale and complexity of contamination. Factors such as the type of contaminants, the size of the affected area, and the required remediation technologies heavily influence cost. Without specific benchmarks for comparable sites and services, a precise comparison is difficult, but the value does not appear immediately excessive or unusually low.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or deliverables for this contract. Typically, environmental remediation contracts include detailed requirements outlined in the Statement of Work (SOW). These often involve regular progress reports, completion of specific remediation phases (e.g., site characterization, pilot studies, full-scale remediation), achievement of cleanup standards, waste disposal manifests, and final site closure documentation. Performance would likely be assessed based on adherence to schedules, quality of work, compliance with environmental regulations, and cost control within the fixed-price framework.

What is Hydrogeologic, Inc.'s track record with the Department of Defense for similar remediation services?

The provided data indicates that Hydrogeologic, Inc. is the contractor for this specific Department of Defense (DoD) contract. To assess their track record, one would need to examine historical contract awards and performance evaluations for Hydrogeologic, Inc. with the DoD and other federal agencies. This would involve searching federal procurement databases (like SAM.gov or FPDS) for past contracts, their values, durations, and any associated performance ratings or past performance questionnaires. A positive track record with the DoD would suggest experience with federal regulations, reporting requirements, and operational environments specific to military installations.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include unforeseen site conditions leading to cost overruns (despite the fixed-price nature), contractor performance issues, delays in regulatory approvals, and environmental incidents. Mitigation strategies often involve robust contract oversight, clear performance standards in the SOW, contingency planning, and potentially performance bonds. The firm fixed-price contract itself is a risk mitigation tool for the government, shifting some cost uncertainty to the contractor. The 'exclusion of sources' in the competition type might also indicate a pre-identified risk or specific requirement that narrowed the initial pool of potential bidders.

How does this contract fit into the broader environmental management strategy of the Department of the Army at the Hastings, NE location?

This contract likely represents a specific component of the Department of the Army's broader environmental management strategy for the Hastings, NE installation. Environmental remediation contracts are often long-term and address specific contamination issues stemming from past activities. This award suggests a commitment to addressing these environmental liabilities. It could be part of a larger Installation Environmental Program, which encompasses compliance with regulations (like RCRA, CERCLA), pollution prevention, natural resource management, and ongoing monitoring. The duration of the contract implies it addresses a significant or persistent environmental challenge.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $7,195,900

Exercised Options: $6,455,952

Current Obligation: $6,455,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F21D0006

IDV Type: IDC

Timeline