DoD awards $37M for Port Heiden PCB soil removal to Kemron Environmental Services
Contract Overview
Contract Amount: $37,095,785 ($37.1M)
Contractor: Kemron Environmental Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-06-12
End Date: 2017-06-30
Contract Duration: 1,479 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FFP ENVIRONMENTAL REMEDIATION SVCS-PCB CONTAMINATED SOIL REMOVAL PORT HEIDEN ALASKA
Place of Performance
Location: PORT HEIDEN, LAKE AND PENINSULA County, ALASKA, 99549
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $37.1 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: FFP ENVIRONMENTAL REMEDIATION SVCS-PCB CONTAMINATED SOIL REMOVAL PORT HEIDEN ALASKA Key points: 1. Contract awarded to Kemron Environmental Services for $37.1M. 2. Service category is Remediation Services (NAICS 562910). 3. Procurement method was Full and Open Competition after Exclusion of Sources. 4. Contract duration was 1479 days, ending June 30, 2017. 5. This was a Delivery Order under a larger contract.
Value Assessment
Rating: good
The contract was awarded as a Firm Fixed Price (FFP) delivery order, indicating a clear understanding of scope and cost. The total award amount of $37.1M for environmental remediation over nearly four years suggests a significant but potentially reasonable price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This suggests that while competition was sought, specific circumstances or prior exclusions limited the pool of eligible bidders. The pricing impact depends on the justification for excluding other sources.
Taxpayer Impact: Taxpayer funds were used for environmental remediation, a necessary but costly service. The competitive process, even if limited, aimed to secure a fair price for the government.
Public Impact
Environmental cleanup at Port Heiden, Alaska, addressing PCB contamination. Ensures compliance with environmental regulations and public health standards. Supports military readiness by remediating hazardous sites. Potential long-term environmental benefits for the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about best value.
- Potential for cost overruns in complex remediation projects.
- Long contract duration may not reflect current market prices.
Positive Signals
- Addresses critical environmental hazard.
- Awarded by Department of Defense, indicating national security relevance.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
Environmental remediation services are crucial for managing hazardous waste and complying with regulations. Spending in this sector can vary significantly based on the scale and complexity of contamination, with large-scale projects like this requiring substantial investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract was a Delivery Order, suggesting it was part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) or similar contract vehicle. Oversight would focus on the performance of Kemron Environmental Services and the justification for the specific delivery order.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Potential for cost escalation in environmental remediation.
- Long contract duration.
- Lack of small business participation.
Tags
remediation-services, department-of-defense, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.1 million to KEMRON ENVIRONMENTAL SERVICES, INC.. FFP ENVIRONMENTAL REMEDIATION SVCS-PCB CONTAMINATED SOIL REMOVAL PORT HEIDEN ALASKA
Who is the contractor on this award?
The obligated recipient is KEMRON ENVIRONMENTAL SERVICES, 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 $37.1 million.
What is the period of performance?
Start: 2013-06-12. End: 2017-06-30.
What was the specific reason for excluding other sources in the competition process?
The reason for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like prior performance, specialized capabilities, or specific contract requirements that only a limited number of vendors can meet. A thorough review of the contract file and justification documents would be necessary to understand the rationale.
How does the per-unit cost of PCB soil removal compare to industry benchmarks for similar projects?
Without specific unit metrics (e.g., cost per cubic yard of soil removed), a direct per-unit cost benchmark is not possible. The total award of $37.1M over nearly four years for a significant remediation effort suggests a substantial investment. Benchmarking would require detailed cost breakdowns and comparison with similar-sized PCB remediation projects in comparable geographic and environmental conditions.
What is the long-term environmental and financial effectiveness of this remediation effort?
The long-term effectiveness hinges on the thoroughness of the remediation and the stability of the containment measures. Financially, effectiveness is measured by whether the $37.1M investment prevented greater future costs associated with environmental damage, health impacts, or regulatory penalties. Ongoing monitoring and site assessment would be crucial to confirm lasting environmental benefits.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1359A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $37,095,785
Exercised Options: $37,095,785
Current Obligation: $37,095,785
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY10D0027
IDV Type: IDC
Timeline
Start Date: 2013-06-12
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2022-02-17
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