Army awards $24.8M for environmental services, with a 10-year contract duration
Contract Overview
Contract Amount: $24,876,422 ($24.9M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-28
End Date: 2015-01-31
Contract Duration: 3,412 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!504401!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0001 ! !20050928!20150924!111846767!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !2113 EMMORTON PARK RD !EDGEWOOD !MD!21040!63912!089!01!REDSTONE ARSENAL !MADISON !ALABAMA !+000001388526!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !20200930!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: HUNTSVILLE, MADISON County, ALABAMA, 35809, UNITED STATES OF AMERICA
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to SHAW ENVIRONMENTAL, INC. for work described as: 200512!504401!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0001 ! !20050928!20150924!111846767!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !2113 EMMORTON PARK RD !EDGEWOOD !MD!21040!63912!089!01!REDSTONE ARSENAL !MADI… Key points: 1. Contract awarded for environmental services, indicating a need for specialized remediation and analytical support. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract (over 10 years) suggests a long-term requirement for these services. 4. The awardee, Shaw Environmental, Inc., has secured a significant portion of the contract value. 5. The contract falls under the 'Other Environmental Services, Studies, & Analytical Support' category. 6. The contract was awarded by the Department of the Army, a major federal agency with extensive environmental management needs.
Value Assessment
Rating: good
The contract value of $24.8 million over approximately 10 years suggests a substantial investment in environmental services. Without specific benchmarks for comparable remediation contracts of this scope and duration, it's challenging to definitively assess value for money. However, the full and open competition indicates that pricing was likely scrutinized by multiple bidders. The contract type (Firm Fixed Price) generally provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates 18 bids were received, suggesting a robust competitive environment. A high number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.
Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is receiving services at a price driven by market forces.
Public Impact
The primary beneficiaries are likely military installations and federal facilities requiring environmental remediation and management services. Services delivered include environmental studies, analytical support, and potentially remediation activities. The geographic impact is primarily within Alabama, where the contractor is located, but services could extend to various Army installations. The contract supports jobs within the environmental services sector, particularly for the awarded contractor, Shaw Environmental, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency or reduced innovation if not managed effectively.
- Reliance on a single contractor for over a decade may limit flexibility in adapting to new environmental technologies or regulations.
- Potential for cost overruns if the scope of work expands beyond initial projections, despite the fixed-price nature.
Positive Signals
- Full and open competition suggests a strong initial price negotiation and selection of a qualified vendor.
- The fixed-price contract type provides budget certainty for the government.
- The long duration allows for continuity of service and potential for building specialized expertise within the contractor.
Sector Analysis
The environmental services sector is a significant part of the federal contracting landscape, encompassing a wide range of activities from consulting and studies to hazardous waste management and site remediation. Federal agencies, particularly the Department of Defense, are major clients due to the extensive footprint of their operations and historical land use. Spending in this sector is often driven by regulatory compliance (e.g., EPA mandates) and the need to manage legacy environmental issues. Comparable contracts would involve large-scale remediation projects or long-term environmental support services for federal facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors to Shaw Environmental, Inc., depending on the specific service requirements and the prime contractor's subcontracting plan. The overall impact on the small business ecosystem would be minimal unless significant subcontracting goals are established and met.
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 Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Environmental Remediation Services
- Environmental Consulting Services
- Department of Defense Environmental Programs
- Army Corps of Engineers Environmental Services
- Hazardous Waste Management Contracts
Risk Flags
- Long contract duration may exceed evolving environmental needs.
- Potential for contractor performance degradation over extended period.
- Lack of specific performance metrics in summary data.
Tags
department-of-defense, department-of-the-army, environmental-services, remediation-services, firm-fixed-price, full-and-open-competition, alabama, large-contract, long-term-contract, naics-562910
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to SHAW ENVIRONMENTAL, INC.. 200512!504401!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0001 ! !20050928!20150924!111846767!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !2113 EMMORTON PARK RD !EDGEWOOD !MD!21040!63912!089!01!REDSTONE ARSENAL !MADISON !ALABAMA !+000001388526!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !202
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $24.9 million.
What is the period of performance?
Start: 2005-09-28. End: 2015-01-31.
What is the historical spending trend for 'Other Environmental Services, Studies, & Analytical Support' by the Department of the Army?
Analyzing historical spending trends for the 'Other Environmental Services, Studies, & Analytical Support' (NAICS 562910) by the Department of the Army reveals a consistent and significant investment in this category over the years. While specific figures fluctuate based on agency priorities, regulatory changes, and the number of large-scale projects initiated, the Army generally allocates substantial funds to environmental management. This includes compliance with EPA regulations, site cleanup, munitions response, and natural resource management. The $24.8 million awarded to Shaw Environmental, Inc. represents a notable single award within this category, but it should be viewed within the context of the Army's broader environmental budget, which can amount to billions annually across various environmental service contracts. Understanding these trends helps in benchmarking current spending and forecasting future needs.
How does the per-unit cost of Shaw Environmental, Inc.'s services compare to similar environmental remediation contracts?
Benchmarking the per-unit cost for Shaw Environmental, Inc.'s services is challenging without detailed breakdowns of the specific tasks performed and their associated costs. The contract is for 'Other Environmental Services, Studies, & Analytical Support,' which is a broad category. Typical per-unit metrics in environmental services might include cost per acre remediated, cost per cubic yard of soil treated, or hourly rates for specific technical personnel. The provided data does not offer this level of granularity. However, given the full and open competition with 18 bidders, it can be inferred that the pricing was competitive at the time of award. To perform a true comparison, one would need access to detailed proposals from this contract and similar contracts awarded around the same period for comparable scope and geographic regions.
What are the key performance indicators (KPIs) used to evaluate Shaw Environmental, Inc.'s performance under this contract?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, typical KPIs for environmental services contracts often include adherence to project timelines, compliance with environmental regulations and quality standards, effectiveness of remediation efforts (e.g., reduction in contaminant levels), accuracy and timeliness of reporting, safety performance (e.g., incident rates), and overall cost control. The contracting officer's representative (COR) would likely monitor these KPIs throughout the contract's duration. Performance evaluations would inform future decisions regarding contract modifications, renewals, or award of subsequent contracts. Failure to meet critical KPIs could lead to penalties or termination.
What is the track record of Shaw Environmental, Inc. with federal environmental contracts?
Shaw Environmental, Inc. has a history of performing federal environmental contracts. While this specific data point focuses on one significant award, a comprehensive assessment of their track record would involve reviewing their past performance evaluations on other government contracts, including any awards or penalties received. Companies in this sector often handle a variety of projects, from hazardous waste disposal and site cleanup to environmental assessments and compliance support for agencies like the Department of Defense, EPA, and Department of Energy. Examining their portfolio of past work, client feedback, and any documented performance issues or successes provides crucial insight into their capabilities and reliability as a federal contractor.
What is the potential risk associated with the long duration (over 10 years) of this contract?
The long duration of this contract, spanning from 2005 to 2015 (approximately 10 years), presents several potential risks. Firstly, there's the risk of scope creep or evolving requirements. Environmental regulations and best practices change over time, and a decade-long contract might not perfectly align with future needs without modifications. Secondly, long-term reliance on a single contractor can sometimes lead to reduced competitive pressure and potentially less incentive for innovation or cost efficiency compared to shorter, re-competed contracts. Thirdly, contractor performance can degrade over extended periods if not actively managed and monitored. Finally, there's the risk of contractor viability; a company's financial health or strategic direction could change significantly over a decade, impacting its ability to fulfill long-term obligations.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 2113 EMMORTON PARK RD, EDGEWOOD, MD, 21040
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: W91ZLK05D0017
IDV Type: IDC
Timeline
Start Date: 2005-09-28
Current End Date: 2015-01-31
Potential End Date: 2015-01-31 00:00:00
Last Modified: 2014-12-31
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