Army awards $140.6M hazardous waste cleanup contract to Bechtel National, Inc. over 7 years
Contract Overview
Contract Amount: $140,683,121 ($140.7M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-04-03
End Date: 2010-09-30
Contract Duration: 2,737 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: 200307!000766!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0002 !20030403!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000000950000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!V!2!002!A! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105
Plain-Language Summary
Department of Defense obligated $140.7 million to BECHTEL NATIONAL, INC. for work described as: 200307!000766!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0002 !20030403!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN F… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 7 years indicates a long-term need for hazardous waste services. 3. The Cost Plus Incentive Fee (CPIF) pricing structure aims to incentivize contractor performance and cost control. 4. The contract falls under the Hazardous Waste Treatment and Disposal NAICS code, a critical environmental service. 5. The significant dollar value suggests a large-scale or complex hazardous waste management requirement.
Value Assessment
Rating: good
The total award amount of $140.6 million over approximately 7.5 years averages to about $18.7 million annually. While specific benchmarks for hazardous waste cleanup are difficult to ascertain without more granular data on the scope of work, the CPIF contract type suggests an effort to manage costs effectively. Comparing this to similar large-scale environmental remediation contracts would provide a clearer picture of value for money.
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 bids. The data shows two bids were received. While two bidders is a relatively low number for a contract of this magnitude, the 'full and open' designation suggests a deliberate effort to solicit broad market interest.
Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.
Public Impact
The U.S. Army benefits from the contracted services, ensuring compliance with environmental regulations and safe disposal of hazardous materials. Services delivered include hazardous substance removal, cleanup, and disposal, crucial for maintaining safe military installations. The contract's geographic impact is primarily within California, where Bechtel National, Inc. is headquartered and likely where services are performed. The contract supports jobs within the environmental services sector, particularly in hazardous waste management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (2) for a large-value contract could indicate potential market concentration or barriers to entry.
- The Cost Plus Incentive Fee (CPIF) structure, while incentivizing, can sometimes lead to higher costs if not carefully managed and monitored.
- The long contract duration (over 7 years) necessitates ongoing oversight to ensure continued performance and value.
Positive Signals
- Awarded through full and open competition, promoting a fair and accessible bidding environment.
- The CPIF contract type demonstrates a structured approach to performance and cost management.
- The contract addresses a critical environmental need for the U.S. Army, ensuring regulatory compliance and safety.
Sector Analysis
This contract falls within the environmental services sector, specifically focusing on hazardous waste management. The NAICS code 562211 (Hazardous Waste Treatment and Disposal) represents a significant market driven by regulatory compliance and industrial activity. The U.S. Army is a major consumer of such services due to its extensive infrastructure and historical operations. Comparable spending benchmarks would involve analyzing other large federal contracts for environmental remediation and waste disposal.
Small Business Impact
The data indicates 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. However, the prime contractor, Bechtel National, Inc., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, but this information is not provided in the given data.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and program managers responsible for environmental services. The Cost Plus Incentive Fee structure implies performance metrics that would be monitored. Transparency would be enhanced through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Department of Defense Environmental Contracts
- Army Base Operations Support
- Federal Environmental Cleanup Programs
Risk Flags
- Limited number of bidders
- Potential for cost overruns in CPIF contracts
- Long contract duration requires sustained oversight
Tags
department-of-defense, department-of-the-army, hazardous-waste-cleanup, environmental-services, cost-plus-incentive-fee, full-and-open-competition, california, large-contract, long-term-contract, bechtel-national-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $140.7 million to BECHTEL NATIONAL, INC.. 200307!000766!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0002 !20030403!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000000950000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $140.7 million.
What is the period of performance?
Start: 2003-04-03. End: 2010-09-30.
What is the track record of Bechtel National, Inc. in performing similar hazardous waste cleanup contracts for the federal government?
Bechtel National, Inc. has a significant history of performing large-scale engineering, construction, and environmental services for government agencies, including the Department of Defense. While specific details on past hazardous waste cleanup contracts are not provided in this data snippet, Bechtel's broader portfolio includes complex projects involving environmental remediation, infrastructure development, and facility management. Their extensive experience suggests a capacity to handle substantial environmental contracts. A deeper analysis would involve reviewing their past performance evaluations (e.g., CPARS) on similar federal contracts to assess their reliability, quality of work, and adherence to schedule and budget on prior hazardous waste projects.
How does the average annual cost of this contract compare to similar hazardous waste cleanup contracts awarded by the Department of Defense?
The average annual cost for this contract is approximately $18.7 million ($140.6M / 7.5 years). Benchmarking this against similar contracts requires access to a broader dataset of federal procurements for hazardous waste treatment and disposal. Factors such as the specific types of waste, the complexity of the cleanup required, geographic location, and regulatory environment significantly influence pricing. Without comparative data on contracts with similar scope and complexity, it is challenging to definitively state whether this represents a high, low, or average cost. However, given the scale implied by the total award, an annual expenditure in the high millions is not unexpected for major environmental remediation efforts.
What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for hazardous waste cleanup?
CPIF contracts aim to incentivize contractor efficiency by sharing cost savings or overruns with the government based on performance targets. Key risks include the potential for the contractor to inflate initial cost estimates to ensure a larger share of potential savings, or conversely, to cut corners on quality or safety to meet cost targets if incentives are not well-aligned with desired outcomes. For hazardous waste cleanup, risks related to unforeseen site conditions, evolving regulatory requirements, and the inherent dangers of handling hazardous materials are significant. Effective oversight is crucial to ensure that the incentive structure drives desired performance without compromising safety, environmental protection, or the thoroughness of the cleanup.
What is the potential impact of the limited competition (2 bidders) on the overall value and taxpayer cost for this contract?
While the contract was awarded under 'full and open competition,' the receipt of only two bids suggests a potentially limited pool of qualified contractors for this specific requirement. Limited competition can sometimes lead to higher prices than would be achieved in a more robustly contested procurement, as bidders may face less pressure to offer the most competitive pricing. However, the 'full and open' designation implies that the government did solicit widely. The actual impact on taxpayer cost depends on the government's negotiation strategy and the specific terms of the incentive fee structure. Without knowing the details of the bids received or the baseline cost estimates, it's difficult to quantify the precise impact, but fewer bidders generally increase the risk of suboptimal pricing.
How has federal spending on hazardous waste management services evolved over the period of this contract (2003-2010)?
Federal spending on hazardous waste management services generally remained substantial throughout the 2003-2010 period, driven by ongoing environmental cleanup mandates under laws like RCRA and CERCLA, as well as the operational needs of agencies like the Department of Defense. This period saw continued focus on compliance, remediation of legacy contamination sites, and management of current hazardous waste streams. While specific year-over-year trends can fluctuate based on budget allocations, major environmental initiatives, and the initiation of large-scale projects, the overall demand for these services remained consistently high. This contract, awarded in 2003 and ending in 2010, aligns with this sustained federal commitment to environmental management.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 50 BEALE ST, SAN FRANCISCO, CA, 94105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0902D0025
IDV Type: IDC
Timeline
Start Date: 2003-04-03
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 12:09:00
Last Modified: 2024-09-09
More Contracts from Bechtel National, Inc.
- Federal Contract — $17.0B (Department of Energy)
- Restructured Contract to Facilitate a Contractual Vehicle for the Life of the Daaa09-02-D-0025 Contract From Systemization Through Closure. This IS Seen AS an Administrative Change to Daaa09-02-D-0025 — $4.5B (Department of Defense)
- Design and Construction of the Nasa Space Launch System (SLS) Mobile Launcher 2 (ML2) — $1.6B (National Aeronautics and Space Administration)
- 200412!001576!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0025 !A!N! !N!0005 ! !20040913!20101231!089176176!094878998!094878980!n!bechtel National, Inc !50 Beale Street !SAN Francisco !ca!94105!67000!075!06!san Francisco !SAN Francisco !california!+000002005000!n!n!000000000000!f108!hazardous Substance Removal/Cleanup/Disposal Svcs !c9e!all Other Supplies and Equipment !000 !* !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !a!n!v!2!002!a! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $915.7M (Department of Defense)
- Environmental Restoration Management Contract Award Phase in — $746.5M (Department of Energy)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)