Army's $50.99M environmental restoration contract awarded to ICF Kaiser Engineers, Inc. in 1997
Contract Overview
Contract Amount: $50,991,792 ($51.0M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 1997-06-26
End Date: 2011-12-30
Contract Duration: 5,300 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 199709!96CE!0722!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!0002000202 !19970626!19981230!009239559!091989913!186382701!N!2A166!ICF KAISER ENGINEERS, INC !9300 LEE HWY !FAIRFAX !VA!22031!20560!045!49!DUGWAY PROVING GRD !TOOELE !UTAH !0001!+000003664650!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !8744!5!B!S!*!B!A!*!A !N!R!2!005!B!* !D!N!Z!* !* !N!C!*!C!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $51.0 million to SHAW ENVIRONMENTAL, INC. for work described as: 199709!96CE!0722!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!0002000202 !19970626!19981230!009239559!091989913!186382701!N!2A166!ICF KAISER ENGINEERS, INC !9300 LEE HWY !FAIRFAX !VA!22031!20560!045!49!DUGWAY PROVING GRD !TOOELE… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 14 years indicates a long-term need for environmental services. 3. The significant value of the contract points to a large-scale environmental restoration effort. 4. The award to a single contractor, ICF Kaiser Engineers, Inc., warrants scrutiny for potential performance issues over time. 5. The contract type (Cost Plus Award Fee) can incentivize performance but may also lead to cost overruns if not managed carefully. 6. The geographic location of the work (Dugway Proving Ground, Utah) suggests a specific environmental challenge at that site.
Value Assessment
Rating: fair
The total award amount of $50,991,792.08 for environmental restoration activities over a period of more than 14 years appears substantial. Benchmarking this against similar large-scale environmental remediation contracts would be necessary for a definitive value assessment. The Cost Plus Award Fee (CPAF) contract type, while allowing for flexibility and performance incentives, also carries a risk of increased costs if performance targets are not met or if the fee structure is not tightly managed. Without specific details on the scope of work and comparable project costs, it is difficult to definitively assess value for money.
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 a bid. The presence of 5 bids suggests a reasonable level of competition for this environmental restoration project. A competitive process is generally expected to drive down prices and ensure that the government receives fair market value for the services rendered. The number of bidders can influence price discovery, with more bidders typically leading to more robust price competition.
Taxpayer Impact: Taxpayers benefit from a competitive process as it is designed to secure the best possible price and quality for the services required, reducing the risk of overpayment for environmental restoration work.
Public Impact
The primary beneficiaries are likely the Department of the Army and potentially the environment at Dugway Proving Ground, Utah, through the restoration activities performed. The services delivered involve environmental restoration, which could include remediation of contaminated sites, hazardous waste management, or other environmental cleanup efforts. The geographic impact is centered on Tooele County, Utah, specifically at Dugway Proving Ground. Workforce implications would include employment opportunities for environmental scientists, engineers, technicians, and construction labor involved in the restoration activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) structure requires careful monitoring to ensure that costs remain controlled and that award fees are justified by exceptional performance, not just baseline service delivery.
- The extended contract duration (over 14 years) necessitates ongoing performance evaluation to ensure continued effectiveness and adapt to any changes in environmental regulations or site conditions.
- The specific nature of 'RESTORATION ACTIVITIES' can be broad; clarity on the exact scope and deliverables is crucial for assessing performance and value.
- The contractor, ICF Kaiser Engineers, Inc., has a track record that should be reviewed for past performance on similar large-scale environmental contracts, especially those with CPAF structures.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process that likely resulted in a competitive price.
- The contract's significant value suggests a commitment to addressing substantial environmental restoration needs.
- The specific designation of 'RESTORATION ACTIVITIES' implies a focused effort on improving environmental conditions at a specific site.
- The contract was awarded to a known entity, ICF Kaiser Engineers, Inc., which may have specialized expertise in environmental services.
Sector Analysis
This contract falls within the Environmental Services sector, a significant market driven by regulatory compliance, cleanup mandates, and infrastructure development. The federal government is a major client in this sector, particularly for defense installations requiring remediation of historical contamination. The market size for environmental consulting and remediation services is substantial, with numerous firms competing for government contracts. This specific contract, for restoration activities at a military proving ground, is representative of the type of large-scale, long-term projects common in this sector.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, ICF Kaiser Engineers, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside suggests that the competition was open to businesses of all sizes, and the prime contract was awarded based on factors other than size. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.
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 restoration. The contract type (CPAF) implies performance metrics and fee structures that require regular review and auditing. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency would be enhanced through contract award databases and potentially public reports on environmental remediation progress, though specific details might be limited due to security or proprietary concerns.
Related Government Programs
- Environmental Remediation Services
- Military Base Cleanup Programs
- Hazardous Waste Management Contracts
- Department of Defense Environmental Contracts
- Construction Contracts for Environmental Projects
Risk Flags
- Contract Duration
- Contract Type (CPAF)
- Scope of Work Ambiguity
Tags
department-of-defense, department-of-the-army, environmental-services, restoration-activities, cost-plus-award-fee, full-and-open-competition, large-contract, long-term-contract, utah, dugway-proving-ground, construction, remediation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.0 million to SHAW ENVIRONMENTAL, INC.. 199709!96CE!0722!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!0002000202 !19970626!19981230!009239559!091989913!186382701!N!2A166!ICF KAISER ENGINEERS, INC !9300 LEE HWY !FAIRFAX !VA!22031!20560!045!49!DUGWAY PROVING GRD !TOOELE !UTAH !0001!+000003664650!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !8744!5!B!S!*!B!A!*!A !N!R!2!0
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 $51.0 million.
What is the period of performance?
Start: 1997-06-26. End: 2011-12-30.
What was the specific scope of 'RESTORATION ACTIVITIES' covered under this contract at Dugway Proving Ground?
The provided data identifies the contract's purpose as 'RESTORATION ACTIVITIES' within the 'OTHER ENVIRONMENTAL PROGRAMS' category, awarded to ICF Kaiser Engineers, Inc. by the Department of the Army. However, the specific details of these restoration activities are not elaborated in the snippet. Typically, such activities at a military installation like Dugway Proving Ground could encompass a wide range of environmental services, including the investigation, assessment, and remediation of soil and groundwater contamination, management of hazardous and explosive waste, demolition of contaminated structures, and long-term monitoring. The contract's duration of over 14 years suggests a comprehensive and potentially complex scope of work, possibly involving legacy contamination issues common at such sites. A detailed review of the original contract statement of work (SOW) and any subsequent modifications would be necessary to fully understand the precise nature and extent of the restoration activities performed.
How did ICF Kaiser Engineers, Inc.'s performance compare to expectations under the Cost Plus Award Fee (CPAF) structure?
The provided data indicates the contract type is 'COST PLUS AWARD FEE' (pt: 'C2'). This structure means the contractor is reimbursed for allowable costs plus a fee that is composed of a base fee and an award amount, which is earned if performance meets or exceeds certain criteria. To assess performance, one would need access to the award fee determinations made by the government over the life of the contract. These determinations would detail whether ICF Kaiser Engineers, Inc. met or exceeded the performance standards set forth in the contract for aspects such as technical execution, timeliness, cost control, and safety. Without these specific award fee determinations, it is impossible to definitively state how their performance compared to expectations. The total award amount of $50,991,792.08 represents the total funds obligated, which includes costs and fees, but does not isolate the performance-based award component.
What is the historical spending pattern for environmental restoration at Dugway Proving Ground or similar Army facilities?
The data shows a single contract award of $50,991,792.08 to ICF Kaiser Engineers, Inc. for environmental restoration activities at Dugway Proving Ground, UT, spanning from June 26, 1997, to December 30, 2011. This represents a significant, long-term investment in addressing environmental issues at this specific facility. To understand broader historical spending patterns, one would need to analyze multiple contracts awarded over time for environmental restoration at Dugway Proving Ground and compare this to spending at other Army installations of similar size and operational history. Factors influencing spending include the nature and extent of contamination, regulatory requirements (e.g., EPA mandates under CERCLA), the specific remediation technologies employed, and the overall budget allocations for environmental programs within the Department of Defense. This single contract provides a data point, but a comprehensive analysis would require a broader dataset of related contracts.
Were there any significant cost overruns or underruns associated with this contract?
The provided data indicates the total obligated amount for the contract was $50,991,792.08. The contract type is 'COST PLUS AWARD FEE' (CPAF), which allows for reimbursement of costs plus a performance-based fee. While the obligated amount represents the total funding allocated and potentially spent, it does not inherently indicate overruns or underruns relative to an initial estimate or baseline. CPAF contracts can sometimes lead to higher final costs than fixed-price contracts if costs escalate or if the award fee criteria are met generously. Conversely, effective cost management and performance could lead to the final cost being within expected ranges. To determine cost overruns or underruns, a comparison of the final incurred costs against the initially projected costs or budget baseline would be necessary, along with an analysis of the award fee decisions made throughout the contract's lifecycle. This information is not present in the provided data snippet.
What is the track record of ICF Kaiser Engineers, Inc. on similar large-scale environmental remediation projects for the federal government?
ICF Kaiser Engineers, Inc. (now part of AECOM) has a long history of performing large-scale environmental engineering and remediation services for various government agencies, including the Department of Defense. They have been involved in numerous projects related to hazardous waste management, site investigation, cleanup, and compliance. Their experience often includes complex projects at military bases, Superfund sites, and other industrial facilities. To fully assess their track record specifically for this contract, one would need to examine performance reviews, past performance questionnaires (PPQs), and any contract disputes or awards associated with their previous government contracts, particularly those of similar scope, value, and contract type (CPAF). While their general reputation suggests significant capability, specific project outcomes and client satisfaction levels would provide a more granular view.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 4005 PORT CHICAGO HWY, CONCORD, CA, 94520
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: DACW0596D0011
IDV Type: IDC
Timeline
Start Date: 1997-06-26
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2018-10-17
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