Army awards $193.8M contract for hazardous substance removal services in Iraq, with a significant portion for Parsons Government Services Inc

Contract Overview

Contract Amount: $193,870,567 ($193.9M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-09

End Date: 2010-05-31

Contract Duration: 2,182 days

Daily Burn Rate: $88.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200409!001036!2100!W912DY!* !W912DY04D0005 !A!N! !Y!0001 ! !20040609!20041231!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!00000! !IZ!* !* !IRAQ !+000053000000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !000 !* !541330!E! !5!B!M! !D!D!20041231!B! ! !A! !A!U!J!2!015!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $193.9 million to PARSONS GOVERNMENT SERVICES INC. for work described as: 200409!001036!2100!W912DY!* !W912DY04D0005 !A!N! !Y!0001 ! !20040609!20041231!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!00000! !IZ!* !* !IRAQ !+000053000000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/D… Key points: 1. Contract awarded for hazardous substance removal, cleanup, and disposal services, indicating a need for environmental remediation in a complex operational environment. 2. The contract was awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing. 3. The duration of the contract (2182 days) points to a long-term commitment to environmental cleanup efforts. 4. The primary contractor, Parsons Government Services Inc., has a substantial track record, as evidenced by the contract value. 5. The contract's focus on hazardous substance removal highlights critical environmental and safety considerations in post-conflict zones. 6. The award value of over $193 million underscores the scale and importance of the services required.

Value Assessment

Rating: good

The contract value of $193.8 million for hazardous substance removal services over approximately six years appears substantial, reflecting the complexity and scale of operations in Iraq. Benchmarking this against similar large-scale environmental remediation contracts in contingency operations is challenging due to unique geopolitical factors. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. The specific per-unit costs for services rendered would be necessary for a more precise value assessment.

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 15 bids suggests a healthy level of competition for this significant contract. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely drove down prices through competitive bidding, ensuring that government funds were used efficiently for essential environmental services.

Public Impact

The primary beneficiaries are the U.S. Army and potentially the local Iraqi population, through the mitigation of environmental hazards. Services delivered include the removal, cleanup, and disposal of hazardous substances, crucial for environmental safety and public health. The geographic impact is focused on Iraq, addressing specific environmental challenges within that operational theater. Workforce implications include employment opportunities for personnel involved in environmental remediation, logistics, and support services, likely a mix of U.S. and local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed meticulously, despite the firm-fixed-price structure.
Geopolitical instability in Iraq could impact operational efficiency and safety.
Logistical challenges in a remote and potentially hazardous environment.
Ensuring compliance with both U.S. environmental regulations and local Iraqi laws.
Managing a large-scale, long-duration project requires robust oversight and risk management.

Positive Signals

Awarded under full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract shifts cost risk to the contractor.
Long contract duration suggests a stable, ongoing need and commitment to environmental remediation.
The contractor, Parsons Government Services Inc., is a large, established entity with experience in complex projects.
The contract addresses critical environmental and safety needs, contributing to mission success and stability.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of infrastructure and support services, particularly in post-conflict or industrial areas. The market for such services is often driven by government contracts, especially in defense and reconstruction efforts. The North American Industry Classification System (NAICS) code 562910 (Remediation Services) encompasses a range of activities from hazardous waste treatment to site cleanup. The scale of this contract, exceeding $193 million, places it among significant government procurements in this sector, reflecting the high costs associated with large-scale environmental cleanup operations.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Given the large value and specialized nature of hazardous substance removal in a complex environment, it is likely that large businesses with extensive experience and resources were the primary bidders. There is no explicit information on subcontracting plans for small businesses, but large prime contractors often utilize small businesses for various support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, with potential involvement from the Defense Contract Management Agency (DCMA) and possibly the Special Inspector General for Iraq Reconstruction (SIGIR) given the location and nature of the work. Transparency would be facilitated through contract award databases and reporting requirements. Accountability measures would be tied to performance metrics, delivery schedules, and adherence to environmental and safety standards outlined in the contract.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Contingency Operations Support
Iraq Reconstruction Projects
Department of Defense Environmental Contracts

Risk Flags

Potential for cost overruns if not managed effectively.
Geopolitical instability impacting operations.
Logistical challenges in a remote environment.
Regulatory compliance complexities.
Environmental and safety risks during hazardous material handling.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.9 million to PARSONS GOVERNMENT SERVICES INC.. 200409!001036!2100!W912DY!* !W912DY04D0005 !A!N! !Y!0001 ! !20040609!20041231!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!00000! !IZ!* !* !IRAQ !+000053000000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !000 !* !541330!E! !5!B!M! !D!D!20041231!B! ! !A! !A!U!J!2!015!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT 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 $193.9 million.

What is the period of performance?

Start: 2004-06-09. End: 2010-05-31.

What is the track record of Parsons Government Services Inc. in handling large-scale hazardous substance removal contracts, particularly in overseas or contingency environments?

Parsons Government Services Inc. has a long history of undertaking complex engineering, construction, and technical services, including significant environmental remediation projects. Their experience spans various sectors, including defense, infrastructure, and energy. While specific details on overseas hazardous substance removal contracts are not provided in this data snippet, Parsons has been involved in major projects globally, often in challenging environments. Their extensive portfolio suggests a capacity to manage large-scale, high-risk projects. Further investigation into their past performance on similar contracts, especially those involving hazardous materials in deployed or contingency settings, would be necessary to fully assess their track record in this specific domain. Publicly available information and past performance reviews would offer deeper insights into their capabilities and reliability.

How does the awarded amount of $193.8 million compare to the typical cost of similar hazardous substance removal contracts executed by the Department of Defense?

The $193.8 million award for hazardous substance removal services in Iraq is a substantial figure, reflecting the scale, duration (over 6 years), and challenging operational environment. Comparing this directly to 'typical' DoD contracts is difficult without more context, as costs vary significantly based on location, type of contaminants, volume, regulatory requirements, and security needs. Contracts for hazardous waste disposal and site remediation can range from millions to hundreds of millions of dollars. Given the complexities of operating in Iraq, including logistics, security, and specialized disposal requirements, this award appears commensurate with large-scale, long-term environmental remediation efforts in contingency zones. Benchmarking would ideally involve comparing it to other DoD contracts for similar services in comparable overseas locations or complex domestic sites.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include geopolitical instability in Iraq, which could disrupt operations, increase security costs, and affect personnel safety. Logistical challenges in a remote and potentially hazardous environment pose another significant risk, impacting the timely delivery of materials and equipment, as well as waste removal. Environmental risks, such as unforeseen contamination or accidents during removal and disposal, are inherent. Furthermore, regulatory compliance with both U.S. and Iraqi environmental laws presents a complex challenge. Mitigation strategies likely involve robust security protocols, detailed logistical planning, contingency plans for operational disruptions, comprehensive environmental monitoring, and close coordination with local authorities and the U.S. military command. The firm-fixed-price nature of the contract also places the financial risk of cost overruns on the contractor, incentivizing efficient management.

What is the expected program effectiveness and impact of these hazardous substance removal services on the operational environment in Iraq?

The expected program effectiveness hinges on the thorough and safe removal, cleanup, and disposal of hazardous substances. Successful execution will lead to improved environmental conditions, mitigating risks to human health and ecosystems. This contributes to the overall stability and safety of the operational environment in Iraq by addressing legacy contamination from industrial activities or conflict. By removing hazardous materials, the contract supports the broader mission objectives of reconstruction and security by creating safer areas for personnel and potentially for the local population. The long-term impact includes preventing further environmental degradation and reducing long-term health liabilities associated with exposure to hazardous materials.

How has federal spending on hazardous substance removal and remediation services evolved over the years, and where does this contract fit within that trend?

Federal spending on hazardous substance removal and remediation services has historically been significant, particularly driven by environmental regulations (like Superfund) and military operations. Spending often fluctuates based on legislative priorities, global events, and the identification of new environmental challenges. Contracts in this domain can be large and long-term, especially those supporting military deployments or major infrastructure projects. This $193.8 million contract, awarded in 2004, falls within a period of substantial U.S. military and reconstruction activity in Iraq. It represents a significant investment in environmental management within a contingency operation, aligning with the trend of the government addressing environmental liabilities and ensuring safer operating conditions in complex theaters of operation. Such large awards are not uncommon for extensive, multi-year remediation efforts.

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

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 100 WEST WALNUT STREET, PASADENA, CA, 91124

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY04D0005

IDV Type: IDC

Timeline