DoD's $154M soil remediation contract with North Wind Portage, Inc. awarded under full and open competition
Contract Overview
Contract Amount: $154,087,632 ($154.1M)
Contractor: North Wind Portage, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-08-18
End Date: 2027-05-01
Contract Duration: 2,082 days
Daily Burn Rate: $74.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SOIL REMEDIATION LUCKEY FUSRAP
Place of Performance
Location: LUCKEY, WOOD County, OHIO, 43443
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $154.1 million to NORTH WIND PORTAGE, INC. for work described as: SOIL REMEDIATION LUCKEY FUSRAP Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring of costs to ensure value. 2. Awarded under full and open competition after exclusion of sources, indicating a deliberate decision to broaden the bidder pool. 3. The duration of over 2000 days suggests a long-term, complex remediation effort. 4. The contract's focus on soil remediation at the Luckey FUSRAP site highlights a significant environmental cleanup undertaking. 5. The significant dollar value indicates a substantial investment in environmental restoration by the Department of Defense.
Value Assessment
Rating: good
Benchmarking the per-unit cost for soil remediation is challenging due to site-specific factors and varying contamination levels. However, the contract's total value of $154 million for a multi-year, complex remediation project at a Formerly Used Defense Site (FUSRAP) appears to be within a reasonable range for such extensive environmental work. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects with uncertain scope, necessitates robust oversight to manage costs effectively and ensure the government receives good value.
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,' which suggests that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria. The presence of 4 bidders indicates a competitive process, which generally aids in price discovery and achieving fair market value. The exclusion of certain sources warrants further examination to understand the rationale and its potential impact on the final award price.
Taxpayer Impact: The competitive nature of this award, despite the exclusion of some sources, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. The multiple bids received provide a basis for cost comparison and negotiation.
Public Impact
The primary beneficiaries are the local communities and environment surrounding the former Luckey Army Chemical Plant in Ohio, through the cleanup of hazardous substances. The contract delivers essential environmental remediation services, addressing long-standing contamination issues. The geographic impact is concentrated in Luckey, Ohio, contributing to the restoration of a specific Superfund site. The contract supports a specialized workforce in environmental engineering, hazardous waste management, and remediation technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not rigorously managed.
- Complexity of remediation at a former chemical plant site could lead to unforeseen challenges and delays.
- Reliance on a single contractor for a long-duration, critical environmental project.
Positive Signals
- Awarded through a competitive process, suggesting a reasonable selection of the most capable offeror.
- The contract addresses a critical environmental cleanup need for a Formerly Used Defense Site (FUSRAP).
- The contractor, North Wind Portage, Inc., likely possesses specialized expertise in hazardous waste remediation.
Sector Analysis
This contract falls within the environmental remediation services sector, a critical component of the broader environmental services industry. This sector is characterized by specialized technical expertise, stringent regulatory compliance, and significant government spending, particularly for legacy environmental issues at federal facilities. The market includes numerous firms capable of handling complex cleanup operations, with government contracts often being substantial due to the scale and nature of the work. The Luckey FUSRAP site remediation is a significant project within this domain.
Small Business Impact
The data indicates this contract was awarded under 'Full and Open Competition' and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, there is no direct analysis of small business set-aside impact. However, the prime contractor, North Wind Portage, Inc., may engage small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Army, within the Department of Defense. Given the nature of the work and the contract type (CPFF), rigorous oversight mechanisms would be expected, including regular progress reviews, cost audits, and performance evaluations. Transparency would be facilitated through contract reporting requirements and potentially public updates on the FUSRAP program. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Formerly Used Defense Sites (FUSRAP) Program
- Environmental Remediation Services
- Hazardous Waste Management
- Department of Defense Environmental Cleanup
Risk Flags
- Potential for cost overruns
- Long project duration increases risk exposure
- Complexity of hazardous waste remediation
- Environmental compliance risks
Tags
department-of-defense, soil-remediation, fusrap, north-wind-portage-inc, cost-plus-fixed-fee, full-and-open-competition, environmental-services, ohio, large-contract, remediation-services, hazardous-waste
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $154.1 million to NORTH WIND PORTAGE, INC.. SOIL REMEDIATION LUCKEY FUSRAP
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 $154.1 million.
What is the period of performance?
Start: 2021-08-18. End: 2027-05-01.
What is the track record of North Wind Portage, Inc. in managing large-scale environmental remediation contracts for the federal government?
North Wind Portage, Inc. is a significant player in the federal environmental services market. As a subsidiary of North Wind Group, it has a history of performing complex remediation projects, including those under the FUSRAP program. Their experience often involves managing hazardous waste, soil and groundwater remediation, and demolition at former military and industrial sites. Assessing their specific track record on similar-sized contracts would involve reviewing past performance evaluations, any documented issues or successes, and their ability to meet schedule and budget requirements on previous projects. Generally, companies awarded large federal contracts undergo a vetting process that includes a review of their past performance.
How does the awarded amount of $154 million compare to other soil remediation contracts for similar FUSRAP sites?
Comparing the $154 million award for the Luckey FUSRAP site requires context regarding the scope, duration, and complexity of the contamination. FUSRAP projects vary widely in cost, from millions to hundreds of millions of dollars, depending on the site's history, the types and extent of contaminants, and the chosen remediation technologies. Large-scale soil remediation efforts at former chemical or munitions plants can be exceptionally costly. While $154 million is a substantial sum, it may be within the expected range for a multi-year cleanup of a significant former defense site. A detailed comparison would necessitate analyzing the specific remediation goals, estimated volumes of contaminated material, and the projected timeline for this contract against comparable FUSRAP projects.
What are the primary risks associated with this specific soil remediation contract, and how are they being mitigated?
The primary risks include unforeseen subsurface conditions (e.g., encountering unexpected contaminants or geological formations), potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, schedule delays caused by technical challenges or regulatory hurdles, and environmental risks during the remediation process itself. Mitigation strategies likely involve thorough site investigations prior to and during remediation, robust project management and oversight by the Army Corps of Engineers, contingency planning for unexpected discoveries, strict adherence to safety and environmental protocols, and regular progress reporting and performance reviews with the contractor. The competitive award process also helps mitigate risk by selecting a contractor with demonstrated capabilities.
What is the historical spending trend for soil remediation services by the Department of Defense, and how does this contract fit within that trend?
The Department of Defense (DoD) has a long history of significant spending on environmental remediation, driven by the legacy of its extensive real estate holdings and past industrial activities. Spending on programs like FUSRAP has been substantial and ongoing for decades, reflecting the commitment to cleaning up contaminated sites. This $154 million contract for the Luckey FUSRAP site represents a major, but not necessarily anomalous, expenditure within the DoD's overall environmental cleanup budget. Trends in DoD environmental spending are influenced by legislative mandates, budget allocations, and the identification and prioritization of cleanup sites. This contract aligns with the DoD's consistent efforts to address environmental liabilities.
What are the implications of the 'Full and Open Competition After Exclusion of Sources' award type for cost efficiency and contractor performance?
This award type suggests that while the competition was broadly solicited, certain potential offerors were excluded based on specific criteria, possibly related to technical qualifications, past performance, or security requirements. This approach aims to ensure that only capable and suitable contractors participate, potentially leading to higher quality outcomes. For cost efficiency, the exclusion of sources could theoretically limit the number of competitive bids, potentially impacting price discovery. However, if the excluded sources were not viable or if the remaining bidders were highly competitive, the cost efficiency could still be strong. The key is understanding the rationale behind the exclusions and ensuring sufficient competition remained to drive a fair 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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P420R0004
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $157,936,317
Exercised Options: $154,087,632
Current Obligation: $154,087,632
Actual Outlays: $33,949,957
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-18
Current End Date: 2027-05-01
Potential End Date: 2027-05-01 00:00:00
Last Modified: 2025-09-26
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