DoD's $20.3M Remediation Services Contract Awarded to APTIM FEDERAL SERVICES, LLC

Contract Overview

Contract Amount: $20,287,895 ($20.3M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-20

End Date: 2028-09-26

Contract Duration: 3,294 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CORRECTIVE MEASURES IMPLEMENTATION PLANS AT REDSTONE ARSENAL, AL.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35816

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to APTIM FEDERAL SERVICES, LLC for work described as: CORRECTIVE MEASURES IMPLEMENTATION PLANS AT REDSTONE ARSENAL, AL. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3294 days indicates a long-term need for remediation services. 3. The firm-fixed-price contract type aims to control costs for the government. 4. This award is for corrective measures implementation plans at Redstone Arsenal, AL. 5. The contract value is approximately $20.3 million over its lifespan. 6. The specific remediation services fall under the NAICS code 562910.

Value Assessment

Rating: good

The contract value of $20.3 million over nearly 9 years suggests a significant scope of work. Without specific benchmarks for remediation projects of this nature and scale, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure is generally favorable for cost control. Further analysis would require comparing per-unit costs for specific remediation tasks against industry standards or similar government contracts.

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 a bid. The number of bidders is not specified, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of contractors to offer their best pricing and technical solutions.

Public Impact

The primary beneficiary is the Department of the Army, specifically the Redstone Arsenal in Alabama, which requires environmental remediation services. The contract will deliver corrective measures implementation plans, addressing environmental concerns at the facility. The geographic impact is localized to Redstone Arsenal, Alabama. The contract is likely to involve specialized environmental engineering and remediation workforce, potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Scope creep is a risk in long-term environmental remediation projects.
Dependence on a single contractor for an extended period may reduce future competitive opportunities.

Positive Signals

Firm-fixed-price contract type helps mitigate cost uncertainty for the government.
Full and open competition suggests a robust selection process.
The contract addresses critical environmental compliance and safety needs at a military installation.

Sector Analysis

The environmental remediation services sector is a critical component of industrial and government operations, focusing on cleaning up contaminated sites and implementing measures to prevent further environmental damage. This contract fits within the broader environmental consulting and remediation market, which is driven by regulatory compliance and the need to manage legacy environmental issues at facilities like military bases. Spending in this sector can vary significantly based on the scale and complexity of remediation efforts.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, APTIM FEDERAL SERVICES, LLC, is likely a large business. While there is no explicit mention of subcontracting requirements for small businesses, it is common practice for large prime contractors to engage small businesses for specialized services or support roles. The impact on the small business ecosystem would depend on the extent to which APTIM utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency would be enhanced through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Military Base Environmental Management
Corrective Measures Implementation
Department of Defense Environmental Contracts
Redstone Arsenal Operations

Risk Flags

Long contract duration may increase risk of scope creep and technological obsolescence.
Environmental remediation projects can be subject to unforeseen site conditions impacting cost and schedule.
Performance monitoring over a 9-year period requires sustained government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to APTIM FEDERAL SERVICES, LLC. CORRECTIVE MEASURES IMPLEMENTATION PLANS AT REDSTONE ARSENAL, AL.

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 $20.3 million.

What is the period of performance?

Start: 2019-09-20. End: 2028-09-26.

What is the historical spending pattern for environmental remediation services at Redstone Arsenal?

Analyzing historical spending patterns for environmental remediation at Redstone Arsenal is crucial for understanding the long-term investment in site cleanup and compliance. While this specific contract is valued at approximately $20.3 million, prior contracts for similar services at the arsenal would provide context. Without access to detailed historical contract data for Redstone Arsenal's environmental programs, it's difficult to establish a precise trend. However, military installations often have ongoing environmental management needs due to past industrial activities, necessitating consistent funding. A review of past awards, including their values, durations, and scopes, would reveal whether this $20.3 million award represents an increase, decrease, or continuation of previous spending levels. It would also highlight any shifts in the types of remediation services required over time.

How does the per-unit cost of remediation services in this contract compare to industry benchmarks?

Benchmarking the per-unit cost of remediation services within this $20.3 million contract against industry standards is essential for assessing value for money. However, 'remediation services' is a broad category encompassing diverse activities like soil excavation, groundwater treatment, hazardous waste disposal, and air quality monitoring. Each of these has its own cost drivers and market rates. To perform a meaningful comparison, specific line items within the contract, such as cost per cubic yard of contaminated soil removed or cost per gallon of water treated, would need to be isolated. These specific costs could then be compared to data from similar government contracts or private sector projects. Without such granular data, a precise per-unit cost comparison is not feasible, making it difficult to definitively state if the pricing is competitive or inflated.

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 track record in providing environmental remediation and related services to government agencies, including the Department of Defense. Their experience often involves complex projects at military installations, addressing issues such as hazardous waste management, site cleanup, and compliance with environmental regulations. Examining their past performance on similar large-scale contracts would involve reviewing contract awards, performance evaluations (if publicly available), and any history of disputes or corrective actions. A strong performance history with the DoD suggests familiarity with military operational requirements, procurement processes, and regulatory frameworks, which can be a positive indicator for successful contract execution. Conversely, any past performance issues would represent a risk factor.

What are the potential risks associated with the long duration (3294 days) of this contract?

The extended duration of this contract, approximately 9 years, presents several potential risks. Firstly, there's the risk of scope creep, where the requirements may evolve or expand beyond the original intent, potentially leading to cost increases if not managed through contract modifications. Secondly, long-term contracts can face challenges in adapting to new technologies or more efficient remediation methods that emerge during the contract period. Thirdly, maintaining consistent oversight and performance management over such an extended timeframe requires sustained effort and resources from the government. Finally, there's a risk of contractor performance degradation over time, or the contractor facing financial instability, which could disrupt critical remediation efforts. The firm-fixed-price nature helps mitigate cost escalation, but managing the scope and ensuring continued high performance remain key challenges.

How does the chosen contract type (Firm Fixed Price) influence the government's risk exposure for this remediation project?

The selection of a Firm Fixed Price (FFP) contract type for this $20.3 million remediation project significantly shifts the primary cost risk from the government to the contractor, APTIM FEDERAL SERVICES, LLC. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty, as the total expenditure is known upfront, assuming the scope of work remains unchanged. The contractor assumes the responsibility for managing their costs to achieve profitability. This structure incentivizes the contractor to be efficient and control expenses. However, the government bears the risk if the scope of work needs to be significantly altered due to unforeseen conditions or changes in requirements, which would necessitate contract modifications and potentially renegotiation of price.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1200 BRICKYARD LANE, SUITE 202, BATON ROUGE, LA, 70802

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: $21,580,862

Exercised Options: $20,287,895

Current Obligation: $20,287,895

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $96,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY17D0003

IDV Type: IDC

Timeline