Army awards $403.9M contract for environmental services, with a 10-year duration
Contract Overview
Contract Amount: $27,282,148 ($27.3M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-19
End Date: 2014-12-31
Contract Duration: 3,178 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200607!602239!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0015 !A!N! !Y!0001 ! !20060419!20160418!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DR STE 200 !LITTLETON !CO!80129!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000000952436!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES,&ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!018!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: RANDOLPH, MORRIS County, NEW JERSEY, 07869, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $27.3 million to ARCADIS U.S., INC. for work described as: 200607!602239!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0015 !A!N! !Y!0001 ! !20060419!20160418!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DR STE 200 !LITTLETON !CO!80129!58410!027!34!PICATINNY ARSENAL !MORR… Key points: 1. Contract awarded for comprehensive environmental services, including studies and analytical support. 2. The contract spans nearly 10 years, indicating a long-term need for these services. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The contractor, ARCADIS G&M, INC., has a significant contract value, implying substantial experience. 5. The services are categorized under Remediation Services, highlighting a focus on environmental cleanup and management. 6. The contract's value of over $400 million positions it as a major federal procurement in its sector.
Value Assessment
Rating: good
The contract value of $403.9 million over approximately 10 years suggests a substantial investment in environmental services. Benchmarking this against similar large-scale environmental remediation contracts would provide further context on its value for money. The firm fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 18 bids indicates a robust level of competition for this significant environmental services contract. A high number of bidders generally suggests that the market is healthy and that the government is likely to receive competitive pricing. This process helps ensure that the most capable and cost-effective solution is selected.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government secured a fair market rate for essential environmental services.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other federal agencies requiring environmental remediation and support services. Services delivered include environmental studies, analytical support, and remediation activities, crucial for maintaining compliance and environmental stewardship. The contract is geographically focused on Picatinny Arsenal in New Jersey, indicating a specific site requiring these services. The contract supports a significant number of jobs within the environmental services sector, contributing to the specialized workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 10 years) could lead to potential cost inefficiencies if market conditions or service needs change significantly.
- The large contract value may concentrate significant resources with one contractor, potentially limiting opportunities for smaller, specialized firms.
- Dependence on a single contractor for critical environmental services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential providers and competitive pricing.
- The firm fixed-price contract structure shifts cost overrun risk to the contractor.
- The contract's substantial value suggests the contractor possesses significant expertise and capacity to handle complex environmental tasks.
Sector Analysis
The environmental services sector is a critical component of government operations, particularly for agencies managing large facilities and landholdings. This contract falls within the broader professional, scientific, and technical services category. The market for environmental remediation and consulting services is substantial, with numerous firms competing for federal contracts. This specific award represents a significant portion of federal spending within the environmental services niche, likely focused on compliance, cleanup, and long-term environmental management at military installations.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the contractor, ARCADIS U.S., INC., is a large entity. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless ARCADIS actively engages small businesses as subcontractors, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature implies performance monitoring to ensure deliverables meet contractual requirements. Transparency is generally facilitated through contract databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.
Related Government Programs
- Environmental Remediation Services
- Professional, Scientific, and Technical Services
- Military Base Operations Support
- Environmental Consulting
- Defense Environmental Programs
Risk Flags
- Long-term contract duration
- Large contract value
- Potential for cost overruns (mitigated by FFP)
Tags
department-of-defense, department-of-the-army, environmental-services, remediation-services, firm-fixed-price, full-and-open-competition, new-jersey, picatinny-arsenal, large-contract, professional-scientific-and-technical-services, studies-and-analytical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.3 million to ARCADIS U.S., INC.. 200607!602239!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0015 !A!N! !Y!0001 ! !20060419!20160418!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DR STE 200 !LITTLETON !CO!80129!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000000952436!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES,&ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !99990
Who is the contractor on this award?
The obligated recipient is ARCADIS U.S., 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 $27.3 million.
What is the period of performance?
Start: 2006-04-19. End: 2014-12-31.
What is the historical spending pattern for environmental services at Picatinny Arsenal?
Historical spending data for environmental services at Picatinny Arsenal prior to this $403.9 million award would provide crucial context. Analyzing previous contracts, their values, durations, and awarded contractors can reveal trends in service needs and cost fluctuations. For instance, were there previous large-scale remediation efforts, or is this contract addressing a new or ongoing requirement? Understanding the historical investment helps assess whether the current award represents a significant increase, a continuation of existing efforts, or a shift in strategy. Without specific historical data for this installation, it's difficult to determine if this contract's value is typical or an outlier.
How does the per-unit cost of services under this contract compare to industry benchmarks?
Determining the per-unit cost requires breaking down the total contract value ($403.9 million) by specific services rendered (e.g., per study, per hour of analytical support, per acre remediated). Once these unit costs are identified, they can be benchmarked against industry standards for similar environmental services. Factors like geographic location (New Jersey), complexity of the environmental issues, and regulatory requirements heavily influence these costs. A comparison would reveal if the government is receiving competitive pricing. For example, if the cost per acre remediated is significantly higher than the average for comparable sites in the region, it might indicate potential value concerns.
What is ARCADIS G&M, INC.'s track record with similar large federal environmental contracts?
ARCADIS G&M, INC. (and its parent ARCADIS U.S., INC.) has a substantial history of performing large federal contracts, particularly within the environmental services domain. Their track record with the Department of Defense and other agencies would be a key indicator of their capability and reliability. Reviewing past performance evaluations, any past performance issues, and the successful completion of similar-sized contracts would inform this assessment. A history of successful project delivery, adherence to schedules, and effective cost management on comparable contracts suggests a lower risk profile for this current award.
What are the specific environmental risks being addressed by this contract?
The contract specifies 'OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT' and falls under 'Remediation Services.' This suggests the contract is likely addressing risks associated with historical contamination, hazardous material management, regulatory compliance (e.g., EPA mandates), and potentially long-term environmental monitoring and restoration at Picatinny Arsenal. Specific risks could include soil and groundwater contamination from past industrial activities, management of legacy waste, or ensuring the site meets current environmental standards for safety and ecological impact. The 'studies & analytical support' component implies ongoing assessment and planning to manage these risks effectively.
How has the scope of environmental services spending evolved within the Army over the last decade?
Over the last decade, the Army's spending on environmental services has likely evolved in response to shifting regulatory landscapes, increased focus on sustainability, and the need for remediation at aging infrastructure and formerly used defense sites. Spending may have increased due to stricter environmental laws, a greater emphasis on proactive environmental management, and the long-term cleanup obligations stemming from past military activities. Conversely, budget constraints could lead to prioritization and potentially shifts towards more cost-effective solutions. This $403.9 million contract, awarded in 2006 and ending in 2014, reflects a significant investment during that period, indicative of the ongoing commitment to environmental stewardship and compliance.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arcadis N.V. (UEI: 403896368)
Address: 630 PLAZA DR STE 200, LITTLETON, CO, 80129
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91ZLK05D0015
IDV Type: IDC
Timeline
Start Date: 2006-04-19
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-01-26
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