DoD's $32.8M Remedial Action Contract Awarded to Hydrogeologic, Inc. for Missouri Site

Contract Overview

Contract Amount: $32,796,970 ($32.8M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-09-30

Contract Duration: 547 days

Daily Burn Rate: $60.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FY25 HGL REMEDIAL ACTION, VPS (FY25 FAD)

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to HYDROGEOLOGIC, INC. for work described as: FY25 HGL REMEDIAL ACTION, VPS (FY25 FAD) Key points: 1. Contract focuses on environmental remediation services, a critical but often costly area for the Department of Defense. 2. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight to manage costs. 3. Awarded via full and open competition after exclusion of sources, suggesting a potentially competitive process with specific justifications. 4. The duration of 547 days indicates a significant scope of work for the remedial action. 5. The contract's value is substantial, reflecting the complexity and scale of environmental cleanup operations. 6. Performance will be monitored by the Department of the Army, a key agency within the DoD. 7. The specific remediation services are crucial for environmental compliance and site restoration.

Value Assessment

Rating: fair

The contract value of $32.8 million for a 547-day remedial action project requires benchmarking against similar environmental cleanup contracts. Without specific details on the scope of work and the nature of the contamination, a precise value-for-money assessment is challenging. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as contractor incentives are tied to cost accumulation. Comparing this to other DoD remediation projects of similar complexity and duration would be necessary to determine if the pricing is competitive and represents good value.

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.' This designation implies that while the competition was intended to be broad, specific sources were excluded for documented reasons. The process suggests that multiple capable contractors were likely considered, but a narrower field ultimately participated. The level of competition, even with exclusions, should ideally drive competitive pricing, but the specific justifications for exclusion warrant scrutiny to ensure they did not unduly limit the bidder pool.

Taxpayer Impact: While the competition was broad, the exclusion of certain sources could potentially impact the final price achieved for taxpayers. A thorough review of the exclusion justification is needed to confirm that the most cost-effective solution was pursued.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the surrounding environment and community through the cleanup of hazardous substances. Services delivered include remedial actions, which are critical for environmental restoration and compliance with regulations. The geographic impact is localized to the specific site in Missouri where the remedial action is being conducted. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and construction labor involved in the cleanup process. This contract supports the DoD's environmental stewardship mission and its commitment to addressing legacy contamination issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type necessitates robust oversight to prevent cost overruns and ensure efficiency.
The 'exclusion of sources' in a full and open competition requires careful review to ensure it did not limit competition unnecessarily.
Lack of specific details on the contamination type and remediation technology makes it difficult to benchmark cost-effectiveness.
The duration of the contract suggests a complex and potentially long-term environmental challenge.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement approach.
The contract addresses critical environmental remediation needs for the Department of Defense.
The Department of the Army's involvement suggests established procedures for managing such contracts.
The fixed fee component in the CPFF contract provides some level of cost certainty for the government.

Sector Analysis

Environmental remediation services represent a significant sector within government contracting, driven by regulatory requirements and the need to address historical contamination. The market includes specialized firms capable of handling complex cleanup operations, hazardous waste management, and site restoration. Spending in this sector is often influenced by Superfund sites, military base cleanups, and industrial pollution. Comparable spending benchmarks would involve analyzing the cost per acre or per ton of material remediated for similar projects across federal agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the contract was likely awarded to a large business prime contractor. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to engage the small business ecosystem effectively.

Oversight & Accountability

Oversight will be provided by the Department of the Army, which typically employs contracting officers' representatives (CORs) and contract specialists to monitor performance, costs, and compliance. The CPFF structure requires diligent tracking of costs incurred and the fixed fee earned. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Environmental Remediation Programs
Superfund Program (EPA)
Military Munitions Response Program (DoD)
Hazardous Waste Management Contracts
Environmental Services Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Need for detailed justification for exclusion of sources.
Complexity of environmental remediation can lead to unforeseen challenges.
Long contract duration may increase risk of scope creep or performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to HYDROGEOLOGIC, INC.. FY25 HGL REMEDIAL ACTION, VPS (FY25 FAD)

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 $32.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-09-30.

What is the specific nature of the contamination being addressed at the Missouri site, and what remediation technologies are planned?

The provided data does not specify the exact nature of the contamination or the remediation technologies to be employed. This information is crucial for understanding the complexity of the project and for benchmarking the contract's value against similar environmental cleanup efforts. Remedial actions can range from soil excavation and disposal to in-situ treatment, groundwater remediation, and long-term monitoring, each with vastly different cost implications. A detailed scope of work would typically outline these specifics, allowing for a more precise assessment of the $32.8 million award.

How does the Cost Plus Fixed Fee (CPFF) structure for this contract influence contractor incentives and potential cost overruns?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the government regarding profit, the contractor's incentive is to incur costs to perform the work, as their reimbursement is tied to those costs. This can sometimes lead to less pressure on the contractor to find the most cost-efficient methods compared to fixed-price contracts. Robust government oversight is essential to scrutinize allowable costs, prevent inefficiencies, and ensure the contractor is not incentivized to inflate expenses to maximize reimbursement.

What were the specific justifications for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be broad, specific potential bidders were deliberately excluded. The government must have documented justifications for these exclusions, which could include factors like specialized capabilities, prior performance on related tasks, or specific security requirements. Understanding these justifications is critical to assessing whether the exclusion process was fair, transparent, and ultimately served the government's best interest in obtaining the required services at a competitive price. Without this information, it's difficult to fully evaluate the competitive dynamics.

What is Hydrogeologic, Inc.'s track record with similar large-scale environmental remediation contracts for the Department of Defense?

Assessing Hydrogeologic, Inc.'s track record with similar large-scale environmental remediation contracts for the Department of Defense is vital for evaluating performance risk. Information regarding their past performance, including project size, complexity, adherence to schedule and budget, and client satisfaction, would provide insight into their capabilities. A review of their contract history, including any past performance evaluations or disputes, would help determine their suitability and reliability for this $32.8 million award. This context is essential for understanding the potential value and risks associated with their selection.

How does the $32.8 million contract value compare to historical spending on remedial actions at similar DoD sites in Missouri or the Midwest region?

Benchmarking the $32.8 million contract value against historical spending for similar remedial actions at DoD sites in Missouri or the Midwest region is crucial for assessing value for money. This comparison would involve analyzing the scope of work, duration, and complexity of past projects. Factors such as the type and extent of contamination, the remediation technologies used, and regulatory requirements can significantly influence costs. Without such comparative data, it is challenging to definitively state whether this award represents a competitive price or if it is potentially higher than average for comparable environmental cleanup efforts.

What are the potential risks associated with the 547-day duration of this remedial action contract?

A contract duration of 547 days (approximately 1.5 years) for a remedial action project introduces several potential risks. These include the possibility of unforeseen site conditions that could extend the timeline and increase costs, potential changes in environmental regulations during the contract period, and the risk of contractor performance degradation over a longer engagement. Furthermore, extended project durations can tie up significant funding and may delay the full restoration of the site. Effective project management, contingency planning, and clear communication channels are essential to mitigate these risks.

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: W912P923R0057

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11107 SUNSET HILLS RD, 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: $32,796,970

Exercised Options: $32,796,970

Current Obligation: $32,796,970

Actual Outlays: $2,891,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P925D0001

IDV Type: IDC

Timeline