DoD's $25.7M contract for BMEWS structure demolition awarded to Hydrogeologic, Inc

Contract Overview

Contract Amount: $25,730,282 ($25.7M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-30

End Date: 2020-12-20

Contract Duration: 1,208 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHARACTERIZATION/REMEDIATION/DEMOLITION OF THE BMEWS STRUCTURES IGF::OT::IGF

Place of Performance

Location: CLEAR, DENALI County, ALASKA, 99704

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to HYDROGEOLOGIC, INC. for work described as: CHARACTERIZATION/REMEDIATION/DEMOLITION OF THE BMEWS STRUCTURES IGF::OT::IGF Key points: 1. Contract awarded for demolition and remediation services, indicating a need for specialized environmental and structural expertise. 2. The firm fixed-price contract type suggests a clear scope and budget, potentially mitigating cost overruns. 3. A 1208-day duration indicates a substantial project requiring long-term planning and execution. 4. The contract was awarded under full and open competition, implying a robust bidding process. 5. The project is located in Alaska, which may present logistical and environmental challenges. 6. The North American Industry Classification System (NAICS) code 562910 points to hazardous waste treatment and disposal services.

Value Assessment

Rating: fair

The contract value of $25.7 million for demolition and remediation of BMEWS structures appears to be within a reasonable range for a project of this scale and complexity, especially considering the potential environmental and logistical challenges associated with a remote location like Alaska. Without specific benchmarks for BMEWS structure demolition, a direct comparison is difficult. However, the firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specialized service. While not an extremely high number of bidders, full and open competition generally provides a mechanism for price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which is intended to secure the best value and prevent inflated pricing.

Public Impact

The primary beneficiaries are the Department of Defense, which will see the removal of aging BMEWS structures. The services delivered include demolition and environmental remediation, addressing potential hazards associated with the structures. The geographic impact is localized to Alaska, where the BMEWS structures are situated. The project may involve a specialized workforce skilled in demolition, environmental cleanup, and potentially heavy equipment operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen environmental remediation costs beyond the initial scope.
Logistical challenges in a remote Alaskan location could impact project timelines and costs.
Ensuring proper disposal of hazardous materials according to strict environmental regulations.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive bidding process.
Firm fixed-price contract type provides budget certainty for the government.
Long contract duration allows for thorough planning and execution of complex tasks.

Sector Analysis

This contract falls within the environmental remediation and demolition services sector, a critical component of infrastructure management and environmental protection. The market for such services is driven by government needs for site cleanup, facility decommissioning, and infrastructure renewal. The value of this contract is significant, reflecting the specialized nature and potential complexities of dealing with legacy military structures, particularly in challenging environments like Alaska.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of demolition and remediation, it is possible that larger firms with specific expertise were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature and the defined duration provide a framework for monitoring performance. The Department of the Army, as the awarding agency, would be responsible for oversight. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Realignment and Closure (BRAC) Programs
Environmental Remediation Services
Demolition and Deconstruction Services
Department of Defense Infrastructure Modernization

Risk Flags

Potential for environmental hazards
Logistical challenges in remote location
Complexity of demolition of specialized structures

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to HYDROGEOLOGIC, INC.. CHARACTERIZATION/REMEDIATION/DEMOLITION OF THE BMEWS STRUCTURES IGF::OT::IGF

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 $25.7 million.

What is the period of performance?

Start: 2017-08-30. End: 2020-12-20.

What is the historical spending pattern for BMEWS structure demolition and remediation by the Department of Defense?

Historical spending on BMEWS structure demolition and remediation by the Department of Defense is not readily available as a consolidated figure. Such projects are typically project-specific and awarded based on the lifecycle of military installations and equipment. Spending would fluctuate based on the number of aging BMEWS sites requiring decommissioning and the environmental conditions at each site. The $25.7 million awarded to Hydrogeologic, Inc. represents a significant, albeit isolated, investment in addressing a specific set of BMEWS structures. To understand broader patterns, one would need to analyze individual contract awards for similar services across various military branches and installations over time, considering factors like geographic location and the complexity of the remediation required.

How does the awarded amount compare to similar BMEWS structure demolition contracts?

Direct comparisons for BMEWS structure demolition contracts are challenging due to the rarity of such specific projects and the variability in scope, size, and location. The $25.7 million awarded to Hydrogeologic, Inc. is a substantial sum, reflecting the potential complexity and environmental considerations involved in dismantling aging radar structures, especially in a remote location like Alaska. Without access to a database of comparable BMEWS demolition projects, it's difficult to definitively benchmark this award. However, large-scale environmental remediation and demolition projects for government facilities can often run into tens of millions of dollars, suggesting this contract is within the expected range for a project of this nature and scale.

What are the key risks associated with this contract, and how are they being managed?

Key risks associated with this contract include unforeseen environmental contamination requiring extensive remediation, logistical challenges due to the Alaskan location (e.g., weather, transportation, limited infrastructure), and potential structural complexities during demolition that could increase costs or timelines. The contract is managed through a firm fixed-price structure, which shifts some cost risk to the contractor, incentivizing efficient execution. The long duration (1208 days) allows for phased execution and adaptive management. Specific risk mitigation strategies would likely involve detailed site assessments, robust environmental monitoring plans, contingency planning for logistical hurdles, and strict adherence to safety protocols during demolition. The government's oversight would focus on ensuring compliance with environmental regulations and project milestones.

What is the track record of Hydrogeologic, Inc. in performing similar environmental remediation and demolition services for the federal government?

Hydrogeologic, Inc. has a track record of performing environmental consulting and remediation services for various federal agencies. While specific data on their performance for BMEWS structure demolition is not detailed here, their general experience in hydrogeology, environmental assessment, and remediation suggests they possess relevant technical capabilities. Federal contract databases would provide a more comprehensive view of their past performance, including contract values, types of services rendered, and client agencies. Assessing their past performance on similar environmental cleanup or large-scale demolition projects would be crucial for a thorough evaluation of their suitability for this contract.

What is the estimated value of the market for environmental remediation and demolition services for legacy military infrastructure?

Estimating the precise market value for environmental remediation and demolition services specifically for legacy military infrastructure is complex, as it's a niche within the broader environmental services industry. However, it represents a significant and ongoing market driven by the aging of military installations worldwide and the need for site closure, modernization, and environmental compliance. Factors influencing this market include the number of legacy sites, the type and extent of contamination, regulatory requirements, and government budget allocations. While specific figures are elusive, the continuous need to address environmental liabilities and upgrade facilities suggests a multi-billion dollar annual market globally for environmental remediation and demolition services, with a substantial portion attributable to defense sector needs.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY14R0068

Offers Received: 2

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: $26,628,232

Exercised Options: $25,730,282

Current Obligation: $25,730,282

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $40,813,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY17D0004

IDV Type: IDC

Timeline