Army awards $25M+ remediation contract to Hydrogeologic, Inc. for Missouri-based environmental services

Contract Overview

Contract Amount: $25,078,633 ($25.1M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2025-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FY21 SLDS HGL

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63103

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to HYDROGEOLOGIC, INC. for work described as: FY21 SLDS HGL Key points: 1. Contract focuses on environmental remediation, a critical area for defense infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration extends over three years, indicating a significant, ongoing need. 4. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, Hydrogeologic, Inc., has a track record in environmental services. 6. The specific remediation services are not detailed, making a precise value-for-money assessment challenging without further context. 7. The contract is for Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight.

Value Assessment

Rating: fair

Benchmarking the value of this $25M+ contract is difficult without knowing the specific remediation tasks and the scale of the environmental issues. The CPFF pricing structure means actual costs could vary. Comparing it to similar remediation contracts awarded by the Army or other agencies for comparable sites would provide better insight into whether the fixed fee and estimated costs are reasonable. The absence of detailed performance metrics in the provided data limits a thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of full and open competition. This suggests that while the initial intent might have been to exclude certain sources, the final award was made through a process open to all eligible responsible sources. The number of bidders is not specified, but this method generally aims to maximize competition and ensure fair pricing.

Taxpayer Impact: A competitive bidding process, even with initial exclusions, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Army, which receives essential environmental remediation services. Services delivered include remediation of contaminated sites, crucial for environmental protection and compliance. The geographic impact is focused on Missouri, where the remediation activities will take place. The contract supports a workforce skilled in environmental engineering, geology, and remediation technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The specific nature of the remediation work is not detailed, making it difficult to assess potential risks associated with unforeseen site conditions.
The 'After Exclusion of Sources' clause in the competition type warrants further investigation to understand the initial rationale and its impact.

Positive Signals

Awarding to a single contractor for a multi-year project provides continuity and allows for specialized expertise development.
The use of full and open competition, even with modifications, indicates an effort to secure competitive pricing.
The contract addresses a critical environmental need for the Department of Defense.

Sector Analysis

Environmental remediation services represent a significant segment within the broader professional, scientific, and technical services sector. This contract falls under the NAICS code 562910 (Remediation Services). The market for environmental consulting and remediation is driven by regulatory compliance, infrastructure development, and the need to address historical contamination. Federal spending in this area is substantial, supporting agencies like the EPA and military branches in managing environmental liabilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Hydrogeologic, Inc., may engage small businesses as subcontractors, depending on the scope and requirements of the remediation tasks. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures against the estimated costs and ensure the fixed fee is earned. Transparency would be enhanced by public reporting of contract performance and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Defense Environmental Programs
Army Corps of Engineers Contracts
Hazardous Waste Management
Site Remediation

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of unforeseen site conditions impacting scope and cost.
Need for clear performance metrics and oversight.
Complexity introduced by 'After Exclusion of Sources' competition clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to HYDROGEOLOGIC, INC.. FY21 SLDS HGL

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 $25.1 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-03-31.

What is the track record of Hydrogeologic, Inc. with federal environmental remediation contracts?

Hydrogeologic, Inc. has a history of performing environmental services for federal agencies. While specific details of past contracts are not provided here, their involvement in this $25M+ Army contract suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations, types of projects undertaken (e.g., soil, groundwater, hazardous waste), and client agencies (e.g., EPA, Navy, Air Force), would offer a more comprehensive understanding of their capabilities and reliability in executing complex remediation projects. Examining any past performance issues or commendations would also be crucial for a complete assessment.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for environmental remediation?

The CPFF structure is common for complex projects where the scope is not fully defined at the outset, such as environmental remediation. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for cost savings. CPFF can be advantageous when unforeseen site conditions are likely, as it shifts some cost risk to the government. However, it requires stringent government oversight to control costs and ensure the fixed fee remains appropriate for the work performed. For taxpayers, CPFF can potentially lead to higher costs if not managed effectively, compared to well-defined fixed-price contracts.

What are the potential risks associated with environmental remediation projects of this scale?

Environmental remediation projects, especially those exceeding $25 million, carry inherent risks. These include unforeseen subsurface conditions (e.g., discovering more extensive contamination than initially assessed), changes in regulatory requirements during the project lifecycle, contractor performance issues, and potential environmental incidents during cleanup operations. For this specific contract, the 'After Exclusion of Sources' clause in its competition type might indicate initial complexities or specific requirements that could introduce risk if not fully understood. Effective risk management by the Army, including thorough site investigations, clear performance standards, and robust oversight, is critical to mitigating these potential issues and ensuring successful project completion.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation suggests a nuanced approach to competition. Initially, the Army may have intended to limit the pool of potential bidders based on specific criteria or prior relationships (exclusion of sources). However, the final award was made under a 'full and open' framework, meaning all responsible sources were ultimately allowed to compete. This could imply that the initial exclusions were either lifted, found to be unnecessary, or that the process evolved to ensure broader competition. For taxpayers, this generally signals an effort to achieve competitive pricing, although the initial exclusion phase might warrant scrutiny to ensure it didn't unduly limit the competitive landscape or inflate initial expectations.

How does this contract fit into the broader context of federal environmental spending?

This $25M+ contract for environmental remediation in Missouri is part of a larger federal commitment to addressing environmental contamination, particularly on military installations. Federal agencies, led by the Department of Defense and the EPA, spend billions annually on cleanup activities mandated by laws like CERCLA (Superfund). This contract likely supports the Army's compliance with environmental regulations and its efforts to restore potentially impacted lands. Its value and scope should be viewed within the context of numerous similar contracts awarded nationwide, reflecting the ongoing challenge and cost associated with managing legacy environmental issues across federal property.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P919R0020

Pricing Type: COST PLUS FIXED FEE (U)

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: $25,078,633

Exercised Options: $25,078,633

Current Obligation: $25,078,633

Actual Outlays: $5,780,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P919D0011

IDV Type: IDC

Timeline