DoD's $18.8M environmental remediation contract awarded to Shaw Environmental & Infrastructure, Inc. for California services

Contract Overview

Contract Amount: $18,831,693 ($18.8M)

Contractor: Shaw Environmental & Infrastructure, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-09

End Date: 2013-06-30

Contract Duration: 1,056 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD - FFP

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC. for work described as: BASE PERIOD - FFP Key points: 1. The contract's fixed-price structure aims to control costs for environmental remediation. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of over 3 years indicates a significant, long-term environmental need. 4. The North American Industry Classification System (NAICS) code 562910 points to specialized hazardous waste management services. 5. The contract's base period value of approximately $17.8 million provides a benchmark for initial service costs. 6. The 'AW' award type suggests a standard contract award process.

Value Assessment

Rating: good

The base period value of $18.8 million for environmental remediation services appears reasonable given the contract's scope and duration. Benchmarking against similar large-scale environmental cleanup contracts would provide further insight into its value for money. The firm-fixed-price (FFP) nature of the contract helps in cost predictability, but the final cost could vary based on the actual work performed within the remediation scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specialized environmental remediation service. A higher number of bidders typically leads to more competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation in service delivery.

Public Impact

The Department of the Navy benefits from specialized environmental remediation services to address hazardous waste and contaminated sites. The contract supports the cleanup and restoration of environmental conditions at military facilities in California. This work contributes to public health and safety by mitigating environmental hazards. The contract likely involves a workforce skilled in environmental engineering, hazardous material handling, and site remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions require extensive remediation beyond the initial scope.
Dependence on contractor's expertise and performance for successful environmental cleanup.
Risk of delays if permitting or regulatory approvals are not obtained in a timely manner.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base period.
Award to a specialized environmental firm suggests access to necessary expertise.
Full and open competition indicates a structured procurement process.

Sector Analysis

The environmental remediation sector is a critical component of the broader environmental services industry, focusing on the cleanup of contaminated sites. This contract falls under hazardous waste management and remediation services, a specialized niche within the industry. The market for environmental remediation is driven by regulatory compliance, industrial activity, and government mandates for site cleanup. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies for similar types of contamination or geographic regions.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (SB: false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or reporting on subcontracting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and compliance with contract terms are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Services Contracts
Hazardous Waste Management
Defense Environmental Cleanup Programs
Superfund Site Remediation
Military Base Realignment and Closure (BRAC) Environmental Actions

Risk Flags

Contract Duration
Contract Value
Contractor Performance History (if available)
Environmental Site Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC.. BASE PERIOD - FFP

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2010-08-09. End: 2013-06-30.

What is the historical spending pattern for environmental remediation services by the Department of the Navy in California?

Analyzing historical spending for environmental remediation by the Department of the Navy in California would require accessing and aggregating data from various contract awards over multiple fiscal years. This would involve identifying contracts with similar NAICS codes (e.g., 562910) and geographic locations. Trends in spending could reveal increasing or decreasing investment in environmental cleanup, potential shifts in contracting strategies, or the emergence of specific environmental challenges requiring significant remediation efforts. Without access to a comprehensive historical database, it is difficult to provide specific figures, but such an analysis would be crucial for understanding the long-term commitment and resource allocation to environmental stewardship within the Navy's California operations.

How does the per-unit cost of this remediation contract compare to similar services provided by other federal agencies?

A direct per-unit cost comparison is challenging without detailed breakdowns of the services rendered and the specific environmental conditions addressed. However, the total contract value of $18.8 million over its base period (approximately 34 months) suggests an average annual expenditure of roughly $5.5 million. To benchmark this, one would need to identify comparable contracts for environmental remediation services awarded by agencies like the EPA, Army Corps of Engineers, or other branches of the DoD in similar geographic regions or for similar types of contamination. Factors such as the complexity of the contamination, regulatory requirements, and site accessibility significantly influence per-unit costs, making direct comparisons difficult but essential for assessing value for money.

What is Shaw Environmental & Infrastructure, Inc.'s track record with federal environmental remediation contracts?

Shaw Environmental & Infrastructure, Inc. (now part of AECOM) has a significant track record in performing large-scale environmental remediation projects for various federal agencies, including the Department of Defense and the Department of Energy. Their experience often includes complex site cleanup, hazardous waste management, and compliance with stringent environmental regulations. Reviewing their past performance evaluations, contract history, and any reported issues or successes on similar federal contracts would provide insight into their capabilities, reliability, and adherence to contract requirements. A positive performance history on comparable projects would indicate a lower risk associated with this specific award.

What are the primary environmental risks being addressed by this contract?

The primary environmental risks addressed by this contract, under NAICS code 562910 (Remediation Services), typically involve the cleanup of sites contaminated with hazardous substances, pollutants, or contaminants. This could include soil and groundwater contamination from historical industrial activities, fuel spills, chemical releases, or unexploded ordnance. The specific risks would depend on the nature of the sites managed by the Department of the Navy in California. Effective remediation aims to reduce risks to human health and the environment, prevent further migration of contaminants, and bring sites into compliance with federal and state environmental regulations.

What is the potential impact of this contract on the local California environment and communities?

This contract's execution is intended to have a positive impact on the local California environment by cleaning up contaminated sites, thereby reducing potential exposure risks to residents and ecosystems. Successful remediation can improve water quality, soil health, and overall environmental conditions around Navy facilities. Communities benefit from the mitigation of environmental hazards and the restoration of land for potential future use. The contract also has economic implications, potentially creating jobs for local workers in specialized environmental fields and supporting local businesses through the supply chain, although the extent of this impact depends on the contractor's hiring and procurement practices.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247309R0201

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 1230 COLUMBIA ST STE 1200, SAN DIEGO, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,831,693

Exercised Options: $18,831,693

Current Obligation: $18,831,693

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247310D4009

IDV Type: IDC

Timeline