DoD's $82.3M Remediation Services Contract Awarded to North Wind Portage, Inc. for FUSRAP Site
Contract Overview
Contract Amount: $82,302,199 ($82.3M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-27
End Date: 2021-12-31
Contract Duration: 1,648 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF BASE PERIOD, FUSRAP LUCKEY SATOC
Place of Performance
Location: LUCKEY, WOOD County, OHIO, 43443
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $82.3 million to NORTH WIND PORTAGE, INC. for work described as: IGF::OT::IGF BASE PERIOD, FUSRAP LUCKEY SATOC Key points: 1. Contract value represents a significant investment in environmental remediation. 2. Competition dynamics suggest a potentially competitive bidding process for specialized services. 3. Risk indicators include the Cost Plus Fixed Fee pricing structure, which can incentivize cost overruns. 4. Performance context is tied to the complex and long-term nature of FUSRAP site cleanups. 5. Sector positioning is within the environmental services industry, supporting critical government cleanup missions.
Value Assessment
Rating: fair
The contract value of $82.3 million for remediation services appears substantial, reflecting the complexity of FUSRAP sites. Benchmarking against similar large-scale environmental remediation contracts is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for uncertain scope work, carries inherent risks of cost escalation compared to fixed-price contracts. Without detailed cost breakdowns and performance metrics, it's challenging to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific justification for limiting the initial pool of bidders. While this suggests some level of competition, it is not as broad as full and open competition from the outset. The number of bidders and the specific reasons for excluding other sources would provide further insight into the actual competitive landscape and its impact on price discovery.
Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader range of qualified contractors had been solicited from the start. Taxpayers benefit from specialized expertise, but the pricing could be less optimized due to restricted bidding.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the public through the cleanup of hazardous sites. Services delivered include environmental remediation and site management at FUSRAP locations. Geographic impact is focused on the specific FUSRAP site in Ohio (Luckey). Workforce implications include employment for environmental scientists, engineers, and remediation technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to higher costs than anticipated.
- Limited competition could reduce pressure on the contractor to offer the lowest possible price.
- Long-term nature of remediation projects introduces potential for scope creep and cost increases.
Positive Signals
- Award to a single contractor suggests specialized capabilities were met.
- Contract duration indicates a commitment to addressing the remediation needs comprehensively.
- Focus on a specific FUSRAP site demonstrates targeted environmental stewardship.
Sector Analysis
This contract falls within the environmental remediation services sector, a critical component of government operations, particularly for agencies managing legacy contamination. The market for environmental remediation is substantial, driven by regulatory requirements and historical land use. This contract represents a significant portion of spending for a specific FUSRAP site, requiring specialized technical expertise and project management capabilities. Comparable spending benchmarks would involve analyzing other large-scale environmental cleanup contracts awarded by federal agencies.
Small Business Impact
The provided data indicates that small business participation (ss and sb flags) was not a primary consideration or requirement for this specific contract award. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, North Wind Portage, Inc., is likely a larger entity capable of performing the extensive remediation work independently or through its own established supply chain, potentially limiting direct subcontracting opportunities for small businesses on this particular award.
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. Accountability measures would be tied to contract performance requirements, milestones, and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- Formerly Used Defense Sites (FUDS) Program
- Formerly Utilized Sites Remedial Action Program (FUSRAP)
- Environmental Remediation Services
- Department of Defense Cleanup Programs
- Hazardous Waste Management
Risk Flags
- Cost Plus Fixed Fee pricing structure
- Limited competition award type
- Potential for scope creep in long-term remediation projects
Tags
environmental-remediation, department-of-defense, department-of-the-army, fusrap, cost-plus-fixed-fee, limited-competition, remediation-services, north-wind-portage-inc, ohio, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.3 million to NORTH WIND PORTAGE, INC.. IGF::OT::IGF BASE PERIOD, FUSRAP LUCKEY SATOC
Who is the contractor on this award?
The obligated recipient is NORTH WIND PORTAGE, 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 $82.3 million.
What is the period of performance?
Start: 2017-06-27. End: 2021-12-31.
What is the track record of North Wind Portage, Inc. in managing large-scale environmental remediation projects, particularly for FUSRAP sites?
North Wind Portage, Inc. has a history of performing environmental services for government agencies. Their experience with FUSRAP sites, specifically, would need to be examined through contract performance reports and past performance evaluations. A review of their portfolio would reveal the scale and complexity of projects they have successfully managed, including their ability to meet deadlines, stay within budget (relative to CPFF structures), and adhere to environmental regulations. Information on any past performance issues or commendations would be crucial for a comprehensive assessment of their capabilities for this specific contract.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar environmental remediation services?
The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not fully defined or is expected to change significantly, as is common in complex environmental remediation. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but carries a higher risk of cost overruns for the government, as the contractor is incentivized to incur costs to earn their fee. Firm-fixed-price contracts, conversely, provide greater cost certainty for the government but require a well-defined scope and can deter contractors from taking on highly uncertain projects. Hybrid structures also exist. For FUSRAP sites, CPFF is frequently employed due to the inherent uncertainties in subsurface contamination and remediation techniques.
What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this contract?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type implies that while the competition was intended to be open, specific sources were excluded from the initial solicitation phase, likely due to pre-qualification requirements or specific contract vehicles. The primary risk for taxpayers is that this exclusion might have limited the pool of potential bidders, potentially leading to less competitive pricing than a truly unrestricted full and open competition. It could also indicate a reliance on specific contract vehicles or existing relationships that may not always yield the best value. Understanding the justification for the exclusion is key to assessing whether this approach was appropriate and did not unduly restrict competition.
What is the historical spending trend for environmental remediation services at FUSRAP sites managed by the Department of the Army?
Historical spending on environmental remediation at FUSRAP sites managed by the Department of the Army has been substantial and ongoing, reflecting the long-term nature of these cleanup efforts. Annual expenditures can fluctuate based on the number of active sites, the phase of remediation (investigation, design, remediation, long-term monitoring), and specific site complexities. The Army, through programs like FUSRAP, has consistently allocated significant resources to address contamination from past atomic energy activities. Analyzing multi-year spending data would reveal trends in contract awards, average contract values, and the types of services most frequently procured, providing context for the $82.3 million awarded in this instance.
How does the performance of North Wind Portage, Inc. on this contract compare to industry benchmarks for remediation project completion times and cost adherence?
Assessing North Wind Portage, Inc.'s performance against industry benchmarks requires access to detailed contract performance data, including schedule adherence, cost performance indices (if available for CPFF), and quality metrics. Industry benchmarks for environmental remediation projects vary widely depending on site complexity, regulatory environment, and remediation technology used. Generally, large-scale remediation projects often face delays and cost increases due to unforeseen site conditions or evolving regulatory requirements. A comparative analysis would involve examining metrics such as the percentage of projects completed on time and within budget (adjusted for CPFF structure), the number of change orders, and client satisfaction ratings, benchmarked against similar projects undertaken by other major environmental service providers.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P414R0002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cook Inlet Region Inc (UEI: 076630334)
Address: 1075 S UTAH AVE STE 200, IDAHO FALLS, ID, 83402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,302,199
Exercised Options: $82,302,199
Current Obligation: $82,302,199
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912P415D0006
IDV Type: IDC
Timeline
Start Date: 2017-06-27
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2021-09-29
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