DoD Awards $10.8M for Andersen AFB Remediation, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $10,847,774 ($10.8M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2004-03-25
End Date: 2010-09-23
Contract Duration: 2,373 days
Daily Burn Rate: $4.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200407!000749!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0002 ! !20040325!20060331!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM !* !+000010884043!N!N!000000000000!C130!RESTORATION !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!005!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: PLYMOUTH MEETING, MONTGOMERY County, PENNSYLVANIA, 19462
Plain-Language Summary
Department of Defense obligated $10.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: 200407!000749!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0002 ! !20040325!20060331!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM… Key points: 1. Contract awarded for remediation services at Andersen AFB, Guam. 2. Significant duration of 2373 days suggests a complex and lengthy project. 3. Potential for cost overruns indicated by the high number of modifications. 4. Sector context points to environmental remediation within defense infrastructure.
Value Assessment
Rating: questionable
The contract value is $10.8M with 5 modifications, totaling $4.57M in added value. This indicates a substantial increase from the original award, raising concerns about initial cost estimation and potential scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the high number of modifications and significant increase in value may indicate challenges in defining the full scope upfront.
Taxpayer Impact: While competition was present, the substantial increase in contract value due to modifications suggests taxpayers may be paying more than initially anticipated for the remediation services.
Public Impact
Environmental cleanup at a key military installation. Potential impact on local environment and community health. Long-term infrastructure maintenance and restoration efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High number of contract modifications.
- Significant increase in contract value.
- Long contract duration.
Positive Signals
- Awarded under full and open competition.
- Addresses critical environmental remediation needs.
Sector Analysis
This contract falls within the environmental remediation services sector, often associated with construction and engineering. Defense contracts in this area can be substantial due to the scale of military installations and historical environmental impacts.
Small Business Impact
There is no specific indication of small business participation in this contract data. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.
Oversight & Accountability
The high number of modifications (5) suggests potential issues with initial scope definition or execution oversight. Regular reviews and audits would be crucial to ensure efficient use of funds and adherence to project goals.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overruns
- Scope Creep
- Contract Modifications
- Long Project Duration
- Potential for Unforeseen Conditions
Tags
remediation-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. 200407!000749!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0002 ! !20040325!20060331!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM !* !+000010884043!N!N!000000000000!C130!RESTORATION !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !999
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.8 million.
What is the period of performance?
Start: 2004-03-25. End: 2010-09-23.
What were the primary drivers for the 5 contract modifications and the significant increase in contract value?
The modifications likely stemmed from unforeseen site conditions, changes in regulatory requirements, or adjustments to the remediation strategy. These factors often necessitate scope changes, leading to increased costs and extended timelines. Detailed review of modification justifications is needed.
What is the risk of further cost increases or delays given the contract's history?
The history of significant value increase and numerous modifications presents a moderate to high risk of further cost escalation and delays. The long duration and complexity of environmental remediation projects inherently carry such risks, requiring robust project management and contingency planning.
How effectively did the initial cost estimation process anticipate the project's needs?
The initial cost estimation appears to have been insufficient, given the $4.57M increase in contract value through modifications. This suggests potential challenges in accurately assessing the scope, complexity, or unforeseen factors inherent in environmental remediation projects of this nature.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Amec PLC (UEI: 229533856)
Address: ONE PLYMOUTH MEETING, PLYMOUTH MEETI, PA, 19462
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8669
IDV Type: IDC
Timeline
Start Date: 2004-03-25
Current End Date: 2010-09-23
Potential End Date: 2010-09-23 00:00:00
Last Modified: 2018-10-17
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