DoD awards $24M environmental remediation contract to APTIM FEDERAL SERVICES, LLC for New York site
Contract Overview
Contract Amount: $24,069,038 ($24.1M)
Contractor: Aptim Federal Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-28
End Date: 2027-07-27
Contract Duration: 1,460 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: A1540-VESTAL OU2 RA - CONSTRUCTION [5074
Place of Performance
Location: VESTAL, BROOME County, NEW YORK, 13850
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to APTIM FEDERAL SERVICES, LLC for work described as: A1540-VESTAL OU2 RA - CONSTRUCTION [5074 Key points: 1. Contract value appears reasonable for the scope of environmental remediation services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 4 years indicates a long-term commitment to the project. 4. Cost Plus Fixed Fee pricing structure requires careful monitoring of costs. 5. The contract is for remediation services, a critical environmental function. 6. Geographic focus on New York highlights regional environmental needs.
Value Assessment
Rating: good
The contract value of approximately $24 million for environmental remediation services over four years appears to be within a reasonable range for such projects. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common, necessitates robust oversight to ensure costs remain controlled and the fixed fee is justified by the complexity and risk involved. Without specific per-unit cost data, a definitive pricing assessment is challenging, but the overall award seems aligned with industry standards for complex remediation efforts.
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. The presence of 3 bidders suggests a healthy level of competition for this significant environmental remediation project. A competitive process generally leads to better price discovery and encourages contractors to offer their most competitive terms and innovative solutions. The agency's decision to use full and open competition is a positive indicator of seeking the best value.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the competitive pressure on bidders. This approach ensures that public funds are used efficiently by fostering a market where multiple companies vie for the contract.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the surrounding community in Vestal, New York, through the cleanup of environmental hazards. The contract delivers essential environmental remediation services, addressing contamination at the A1540-VESTAL OU2 site. The geographic impact is localized to Vestal, New York, addressing specific environmental concerns in that region. The contract supports specialized jobs in environmental engineering, construction, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can incentivize cost overruns if not closely monitored.
- Long contract duration increases the risk of scope creep or unforeseen challenges.
- Environmental remediation projects inherently carry risks related to unknown site conditions.
Positive Signals
- Full and open competition suggests a strong market assessment and potential for value.
- The contract is for a critical environmental service, aligning with public interest.
- The award to a single contractor implies a focused approach to remediation.
Sector Analysis
The environmental remediation sector is a significant part of the federal contracting landscape, particularly for agencies managing large land holdings or historical industrial sites. This contract falls within the broader Construction and Engineering services category, specifically focusing on hazardous waste management and site cleanup. The market for these services is competitive, with specialized firms like APTIM FEDERAL SERVICES, LLC playing a key role. Comparable spending benchmarks for similar remediation projects vary widely based on site complexity, contaminants, and geographic location, but a $24 million award over four years for a defined site is substantial.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities. APTIM FEDERAL SERVICES, LLC, as the prime contractor, will determine the extent to which small businesses are engaged for specialized services or support roles. The absence of a set-aside suggests the primary focus was on securing the best overall offer from the market, rather than specifically targeting small business participation.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and technical representatives within the Department of the Army. Accountability measures will include performance reviews, adherence to project milestones, and cost tracking against the fixed fee. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Construction Services
- Department of Defense Contracts
- Army Corps of Engineers Projects
Risk Flags
- Cost Plus Fixed Fee structure requires diligent oversight.
- Long contract duration may introduce unforeseen risks.
- Environmental remediation projects inherently carry unknown site condition risks.
Tags
department-of-defense, department-of-the-army, environmental-remediation, construction, new-york, full-and-open-competition, cost-plus-fixed-fee, large-contract, remediation-services, hazardous-waste
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to APTIM FEDERAL SERVICES, LLC. A1540-VESTAL OU2 RA - CONSTRUCTION [5074
Who is the contractor on this award?
The obligated recipient is APTIM 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 $24.1 million.
What is the period of performance?
Start: 2023-07-28. End: 2027-07-27.
What is APTIM FEDERAL SERVICES, LLC's track record with similar environmental remediation contracts for the Department of Defense?
APTIM FEDERAL SERVICES, LLC has a significant history of performing environmental remediation and related services for various government agencies, including the Department of Defense. Their portfolio often includes projects involving hazardous waste removal, site cleanup, and compliance with environmental regulations. Analyzing their past performance on similar-sized contracts, particularly those involving Cost Plus Fixed Fee structures and long durations, would reveal their ability to manage costs, meet deadlines, and deliver quality results. Specific contract performance reports and past performance evaluations, if publicly available, would offer deeper insights into their reliability and effectiveness in executing complex environmental projects for the DoD.
How does the $24 million contract value compare to other large-scale environmental remediation projects awarded by the DoD in recent years?
The $24 million award for environmental remediation services is a substantial but not unprecedented figure for the Department of Defense. Large-scale environmental cleanup projects, especially those involving complex sites with significant contamination or extensive remediation requirements, can easily reach tens or even hundreds of millions of dollars. When compared to other major DoD environmental contracts, this award appears to be in the mid-to-high range for a single site remediation effort over a four-year period. Factors such as the type of contaminants, the extent of the affected area, and the specific remediation technologies required heavily influence project costs. A detailed benchmark analysis against contracts with similar scopes and durations would provide a clearer picture of its relative value.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for environmental remediation?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government pays for allowable costs incurred. If not rigorously managed, this can lead to potential cost overruns, as the contractor may have less incentive to minimize expenses compared to a fixed-price contract. For environmental remediation, risks include unforeseen site conditions (e.g., discovering more contamination than initially assessed), changes in regulatory requirements, or technical challenges that increase the cost of cleanup. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.
What is the expected effectiveness of the remediation services to be delivered under this contract?
The expected effectiveness of the remediation services hinges on the specific goals outlined in the contract statement of work and the chosen remediation technologies. Typically, environmental remediation contracts aim to reduce or eliminate hazardous substances to levels that meet regulatory standards, thereby protecting human health and the environment. The effectiveness will be measured against predefined performance metrics, such as contaminant concentration reduction, containment of hazardous materials, and restoration of site usability. APTIM FEDERAL SERVICES, LLC's proposed approach, technical expertise, and adherence to best practices will be critical factors. Regular progress reports, site inspections, and final verification sampling will determine the ultimate success of the remediation efforts.
How does the historical spending on environmental remediation by the Department of the Army compare to this specific contract award?
The Department of the Army, like other branches of the DoD, consistently allocates significant funds towards environmental remediation due to its extensive real estate holdings and historical operations. Annual spending on environmental restoration can range from hundreds of millions to over a billion dollars, depending on the fiscal year and the number and scale of active cleanup sites. This $24 million contract represents a portion of that larger environmental program. Analyzing historical spending patterns would reveal trends in the types of remediation services procured, the average contract values, and the distribution of funds across different geographic regions and types of contamination. This specific award fits within the broader context of the Army's ongoing commitment to addressing environmental liabilities.
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: W912DQ19R3006
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,069,038
Exercised Options: $24,069,038
Current Obligation: $24,069,038
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $138,580
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DQ20D3005
IDV Type: IDC
Timeline
Start Date: 2023-07-28
Current End Date: 2027-07-27
Potential End Date: 2027-07-27 00:00:00
Last Modified: 2026-04-10
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