DoD's $64M remediation contract awarded to Earth Tech, Inc. for Iraq services

Contract Overview

Contract Amount: $64,083,622 ($64.1M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-01-28

End Date: 2005-08-31

Contract Duration: 581 days

Daily Burn Rate: $110.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 40

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200407!000803!5700!GW05 !HSW/PKV !FA890304D8671 !A!N! !N!0001 ! !20040128!20050115!003184462!001023472!875632788!N!EARTH TECH, INC !300 OCEANGATE !LONG BEACH !CA!90802!00000! !IZ!* !* !IRAQ !+000065449155!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!006!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $64.1 million to AECOM TECHNICAL SERVICES, INC. for work described as: 200407!000803!5700!GW05 !HSW/PKV !FA890304D8671 !A!N! !N!0001 ! !20040128!20050115!003184462!001023472!875632788!N!EARTH TECH, INC !300 OCEANGATE !LONG BEACH !CA!90802!00000! !IZ!* !* … Key points: 1. Contract value of $64M for remediation services in Iraq. 2. Awarded to Earth Tech, Inc. under full and open competition. 3. Contract duration of 581 days, from January 2004 to August 2005. 4. The contract falls under the 'Other Architect & Engineering Services' category. 5. This contract represents a significant investment in environmental remediation efforts. 6. The Department of Defense is the primary agency involved.

Value Assessment

Rating: fair

The contract value of $64,083,621.79 for remediation services in Iraq over 581 days appears substantial. Benchmarking this against similar large-scale environmental remediation contracts in active conflict zones is challenging due to unique operational complexities and risks. However, the cost-plus-fixed-fee (CPFF) contract type suggests that while a fixed fee was established, the government bears the risk of cost overruns, which warrants careful monitoring of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The use of full and open competition is a positive indicator for price discovery.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel operating in Iraq, by ensuring environmental safety and compliance. Services delivered include remediation of hazardous materials and environmental restoration. The geographic impact is focused on Iraq, addressing specific environmental challenges in that region. Workforce implications may include the employment of specialized environmental engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure can lead to cost overruns if not closely managed.
Operating in a conflict zone like Iraq introduces significant logistical and security risks that can impact cost and schedule.
The specific nature of 'Other Architect & Engineering Services' for remediation needs detailed oversight to ensure quality and effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract addresses critical environmental remediation needs, contributing to operational safety and compliance.
The fixed fee component provides some level of cost predictability for the contractor's profit.

Sector Analysis

This contract falls within the broader construction and engineering services sector, specifically focusing on environmental remediation. The market for such services, particularly in post-conflict or developing regions, is often driven by government contracts and can involve specialized firms capable of handling complex environmental challenges under difficult conditions. The North American Industry Classification System (NAICS) code 562910 (Remediation Services) indicates a specialized niche within environmental consulting and remediation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, Earth Tech, Inc., would determine any subcontracting opportunities based on their operational needs and procurement policies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, likely through contracting officers and program managers. Given the nature of the services and the location, specific oversight mechanisms would need to address quality control, cost management, and adherence to environmental standards. Transparency would depend on the DoD's reporting practices for contracts of this type and location. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Architectural and Engineering Services
Defense Contracts in Iraq
Cost-Plus Contracts
Post-Conflict Reconstruction

Risk Flags

Potential for cost overruns due to CPFF structure.
Security risks in Iraq impacting operations and costs.
Logistical challenges in a complex operational environment.
Need for robust quality assurance and oversight of remediation work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.1 million to AECOM TECHNICAL SERVICES, INC.. 200407!000803!5700!GW05 !HSW/PKV !FA890304D8671 !A!N! !N!0001 ! !20040128!20050115!003184462!001023472!875632788!N!EARTH TECH, INC !300 OCEANGATE !LONG BEACH !CA!90802!00000! !IZ!* !* !IRAQ !+000065449155!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $64.1 million.

What is the period of performance?

Start: 2004-01-28. End: 2005-08-31.

What was the track record of Earth Tech, Inc. with Department of Defense contracts prior to or around the time of this award?

Information on Earth Tech, Inc.'s specific track record with the Department of Defense prior to or around the 2004-2005 period of this contract is not directly available in the provided data snippet. However, the award of a significant $64 million contract for remediation services in Iraq suggests that the company possessed the necessary qualifications, experience, and capacity to undertake complex projects for the DoD. Companies awarded such contracts typically undergo a vetting process that includes reviewing past performance, financial stability, and technical capabilities. Further investigation into DoD contract databases or company profiles would be needed to ascertain a more detailed history of their performance on similar government contracts.

How does the value of this contract compare to other remediation contracts awarded by the DoD in similar operational environments?

Comparing the $64 million value of this contract to other DoD remediation contracts in similar operational environments (like Iraq or Afghanistan during the mid-2000s) is difficult without access to a broader dataset of comparable contracts. However, large-scale environmental remediation in active or recently active conflict zones is inherently expensive due to logistical challenges, security requirements, specialized personnel, and the potential for unforeseen site conditions. Contracts of this magnitude were not uncommon for major reconstruction and support efforts in Iraq during that period. The cost-plus-fixed-fee structure also implies that actual final costs could have varied from the initial estimate, making direct comparisons complex.

What were the primary risks associated with executing this remediation contract in Iraq during 2004-2005?

Executing this remediation contract in Iraq between 2004 and 2005 presented numerous significant risks. Foremost among these were security risks to personnel and equipment due to ongoing hostilities and instability in the region. Logistical challenges, including transportation of materials, equipment, and personnel, were also substantial given the infrastructure conditions and security constraints. Political and regulatory uncertainties within Iraq could have impacted project scope and execution. Furthermore, the environmental conditions themselves, including the potential for encountering unexploded ordnance or unknown hazardous substances, posed direct risks. The cost-plus-fixed-fee contract type also introduced financial risk if costs escalated beyond projections due to these operational challenges.

What does the NAICS code '562910' signify in terms of the services expected under this contract?

The North American Industry Classification System (NAICS) code '562910' specifically designates 'Remediation Services.' This classification indicates that the primary focus of the contract was on cleaning up contaminated or polluted sites. Services under this code typically include the removal, treatment, and disposal of hazardous and non-hazardous materials; site assessment and characterization; soil and groundwater remediation; asbestos abatement; lead paint removal; and other activities aimed at restoring environmental quality. For this particular contract in Iraq, it likely involved addressing contamination resulting from military operations, industrial activities, or waste disposal.

What is the significance of the 'Cost Plus Fixed Fee' (CPFF) contract type for this project?

The 'Cost Plus Fixed Fee' (CPFF) contract type means that the contractor (Earth Tech, Inc.) is reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee representing profit. For the government, this structure offers some cost certainty regarding the contractor's profit margin. However, it places the financial risk of cost overruns on the government, as the contractor is incentivized to control costs only up to the point of reimbursement, not necessarily to minimize the total project cost beyond their fixed fee. This type of contract is often used when the scope of work is not precisely defined or when unforeseen circumstances are likely, as was probable in Iraq during this period.

How might the 'Other Architect & Engineering Services' designation influence the scope compared to a more specific remediation code?

The designation 'Other Architect & Engineering Services' (C219) alongside the NAICS code for Remediation Services (562910) suggests a potentially broader scope than just the physical cleanup. It implies that architectural and engineering expertise was required for the planning, design, and potentially oversight of the remediation activities. This could include site assessments, feasibility studies, design of remediation systems, project management, and ensuring compliance with engineering standards, in addition to the actual remediation work. This broader designation might indicate a need for integrated services that combine technical design with hands-on environmental restoration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 40

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 300 OCEANGATE, LONG BEACH, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8671

IDV Type: IDC

Timeline