Paragon Professional Services LLC awarded $13.2M for residential remediation in Missouri, with limited competition

Contract Overview

Contract Amount: $13,219,144 ($13.2M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-13

End Date: 2025-07-31

Contract Duration: 505 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOUTHEAST MINES RESIDENTIAL REMEDIATION TASK ORDER

Place of Performance

Location: PARK HILLS, SAINT FRANCOIS County, MISSOURI, 63601

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: SOUTHEAST MINES RESIDENTIAL REMEDIATION TASK ORDER Key points: 1. The contract value of $13.2 million for remediation services appears substantial, necessitating a close review of the scope and deliverables to ensure value. 2. The 'NOT AVAILABLE FOR COMPETITION' designation raises questions about the justification for limited competition and its potential impact on pricing. 3. The contract duration of 505 days suggests a significant undertaking, requiring robust performance monitoring. 4. The fixed-price contract type offers cost certainty but shifts risk to the contractor, which could influence bidding and final pricing. 5. The remediation services sector is critical for environmental protection and public health, making effective contract execution paramount.

Value Assessment

Rating: fair

Benchmarking the $13.2 million award for remediation services is challenging without specific details on the scope of work and the nature of the contamination. However, the award amount suggests a significant project. Comparing this to similar large-scale residential remediation contracts, particularly those involving hazardous materials or extensive cleanup, would be necessary to assess if the pricing is competitive. The fixed-price nature provides a degree of cost predictability, but the absence of a competitive bidding process makes a direct value-for-money assessment difficult without further justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (NAF) designation, indicating that the Army did not conduct a full and open competition. The specific reasons for this designation are not provided but typically involve circumstances where only one source is capable of meeting the requirement. The lack of competition means there was no opportunity for multiple bidders to propose solutions and prices, potentially leading to higher costs for the government than if a competitive process had been used.

Taxpayer Impact: The absence of competition means taxpayers may not have received the benefit of the lowest possible price achievable through a bidding process. This could result in a less efficient use of public funds.

Public Impact

Residents in the affected areas of Missouri will benefit from the remediation of their homes, improving safety and environmental conditions. The services delivered will involve the cleanup and removal of hazardous substances from residential properties. The geographic impact is focused on specific residential areas within Missouri, as indicated by the 'MISSOURI' location. The contract will likely involve a workforce of environmental technicians, project managers, and support staff, potentially creating or sustaining jobs in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to inflated costs for taxpayers.
The justification for a sole-source award needs thorough scrutiny to ensure it was truly necessary.
Performance risks associated with remediation projects can be high, requiring diligent oversight.
The specific nature of the contamination and remediation required is not detailed, making risk assessment difficult.

Positive Signals

The contract addresses a critical need for residential environmental remediation, directly benefiting affected communities.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contractor, Paragon Professional Services LLC, is tasked with a significant environmental cleanup project.

Sector Analysis

The remediation services sector is a specialized segment of the environmental services industry focused on cleaning up contaminated sites. This contract falls under NAICS code 562910 (Remediation Services). The market for environmental remediation is driven by regulatory requirements, historical industrial activity, and disaster response. Spending in this sector can fluctuate based on Superfund site cleanups, military base closures, and private property contamination issues. Comparable spending benchmarks would depend heavily on the scale and type of contamination being addressed.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is also false. This suggests that the contract was not specifically set aside for small businesses. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this particular award appears minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures will be tied to the contract's performance work statement and delivery schedules. Transparency regarding the justification for the sole-source award and the specific remediation activities undertaken will be crucial. While not explicitly stated, Inspector General (IG) jurisdiction would likely extend to investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Superfund Program
Military Base Realignment and Closure (BRAC) Environmental Actions
Residential Environmental Cleanup Programs

Risk Flags

Limited Competition Justification
Potential for Cost Overruns
Environmental Risk Management
Contractor Performance Verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to PARAGON PROFESSIONAL SERVICES LLC. SOUTHEAST MINES RESIDENTIAL REMEDIATION TASK ORDER

Who is the contractor on this award?

The obligated recipient is PARAGON PROFESSIONAL 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 $13.2 million.

What is the period of performance?

Start: 2024-03-13. End: 2025-07-31.

What specific environmental hazards are being remediated under this contract, and what is the justification for the 'NOT AVAILABLE FOR COMPETITION' award?

The provided data does not specify the exact environmental hazards requiring remediation. However, the NAICS code 562910 indicates 'Remediation Services,' which typically involves the cleanup of contaminated soil, groundwater, or structures. The 'NOT AVAILABLE FOR COMPETITION' (NAF) designation suggests that the Department of the Army determined that only one source, Paragon Professional Services LLC, was capable of meeting the requirement. Common justifications for NAF awards include unique capabilities, urgent and compelling needs where no other source can be found, or specific government property requirements. Without further documentation from the agency, the precise reason remains unconfirmed, but it implies a lack of readily available alternatives for this particular task.

How does the $13.2 million contract value compare to typical remediation projects of similar scope and complexity?

Directly comparing the $13.2 million contract value without knowing the specific scope of work, the type and extent of contamination, and the geographic area is difficult. Remediation projects can vary immensely in cost. For instance, cleaning up a single contaminated residential property might cost tens of thousands of dollars, while addressing widespread contamination across a neighborhood or a former industrial site could run into millions or even billions. Given the 'task order' nature, this $13.2 million likely represents a significant portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific, large-scale project. To benchmark effectively, one would need to analyze contracts for similar environmental hazards (e.g., asbestos, lead paint, chemical spills) in residential settings, considering factors like volume of material removed, treatment methods employed, and regulatory compliance requirements.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful completion of the remediation work?

The provided data does not detail the specific Key Performance Indicators (KPIs) or oversight mechanisms for this contract. However, standard practice for remediation contracts includes rigorous oversight by the contracting officer's representative (COR) and technical experts. KPIs would typically focus on adherence to the remediation plan, environmental compliance (e.g., air quality monitoring, waste disposal manifests), project timelines, budget adherence, and final site clearance or certification. Oversight would likely involve regular progress meetings, site inspections, review of contractor submittals (work plans, safety plans), and performance evaluations. The fixed-price nature of the contract implies that the contractor is incentivized to manage costs effectively, but the government's oversight must ensure quality and compliance are not compromised.

What is Paragon Professional Services LLC's track record in handling similar large-scale residential remediation projects, particularly under sole-source or limited-competition awards?

Information regarding Paragon Professional Services LLC's specific track record with large-scale residential remediation projects, especially under sole-source or limited-competition awards, is not included in the provided data snippet. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any publicly available project portfolios. Understanding their experience with similar environmental hazards, project sizes, and regulatory environments is crucial. Furthermore, examining their history with limited-competition awards could reveal patterns or justifications that might be relevant to this current contract's award rationale.

What are the potential long-term implications for the affected Missouri residents and the environment following the completion of this remediation contract?

The long-term implications for affected Missouri residents and the environment are expected to be positive, assuming the remediation is successful. The primary goal is to remove or mitigate environmental hazards, thereby improving the health and safety of residents living in the affected homes and surrounding areas. This could involve reducing exposure risks associated with contaminants like asbestos, lead, or chemical pollutants. Environmentally, successful remediation should lead to the restoration of land and water resources, preventing further degradation and potentially allowing for safer future land use. The effectiveness of the remediation will be determined by post-remediation testing and long-term monitoring, if required by regulatory agencies.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912P923R0019

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,219,144

Exercised Options: $13,219,144

Current Obligation: $13,219,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P923D0002

IDV Type: IDC

Timeline