DoD's $11M environmental remediation contract awarded to Amentum Environment & Energy Inc. for services in 2004-2005

Contract Overview

Contract Amount: $11,013,407 ($11.0M)

Contractor: Amentum Environment & Energy Inc.

Awarding Agency: Department of Defense

Start Date: 2004-08-25

End Date: 2005-07-31

Contract Duration: 340 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Plain-Language Summary

Department of Defense obligated $11.0 million to AMENTUM ENVIRONMENT & ENERGY INC. for work described as: Key points: 1. Contract value appears reasonable for specialized environmental remediation services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 340 days is typical for such projects. 4. Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful oversight. 5. The North American Industry Classification System (NAICS) code 562910 indicates a focus on remediation and waste management. 6. This contract represents a small portion of the Department of Defense's overall environmental spending.

Value Assessment

Rating: good

The contract value of approximately $11 million for environmental remediation services over a 340-day period appears to be within a reasonable range for the scope of work. Benchmarking against similar remediation contracts is challenging without more specific details on the environmental hazards and the extent of the remediation required. However, the CPFF structure, while common for complex projects, necessitates robust oversight to ensure cost control and prevent overruns. The award to Amentum Environment & Energy Inc. suggests they possess the necessary expertise for this type of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to drive down costs and ensure the government receives the best value. The presence of multiple bidders suggests a robust market for environmental remediation services, allowing the Department of the Air Force to select a contractor based on technical merit and price. The specific number of bidders was not provided, but the "full and open" designation is a positive indicator of competitive dynamics.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in more cost-effective solutions for environmental cleanup, ensuring funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment, through the remediation of hazardous sites. Services delivered include specialized environmental cleanup and waste management. The geographic impact is localized to the specific Air Force installation where the remediation took place. Workforce implications include the employment of skilled environmental technicians, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize contractors to incur higher costs to increase their fixed fee, requiring diligent cost monitoring.
Lack of specific details on the remediation scope makes it difficult to fully assess value for money.
The contract was awarded in 2004, and current market rates for similar services may have changed significantly.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potential for good value.
The contractor, Amentum Environment & Energy Inc., likely has a track record in environmental services.
The contract addresses critical environmental compliance and safety needs for the Air Force.

Sector Analysis

Environmental remediation services fall under the broader environmental consulting and remediation industry, a significant sector driven by regulatory compliance and historical contamination. The market includes specialized firms capable of handling hazardous waste, site cleanup, and compliance monitoring. Government contracts, particularly from defense agencies, represent a substantial portion of this market due to the extensive land holdings and historical industrial activities on military bases. Comparable spending benchmarks would depend on the specific type and scale of environmental hazards addressed.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Amentum Environment & Energy Inc., a large firm, suggests that subcontracting opportunities for small businesses may exist, particularly for specialized support services. However, the primary contract was not specifically targeted towards small business participation. The impact on the small business ecosystem would depend on the extent to which Amentum utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor to ensure they align with the project scope and that the fixed fee remains appropriate. Transparency would be enhanced through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Restoration, Superfund
Hazardous Waste Management
Military Base Realignment and Closure (BRAC) Environmental Cleanup

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Specific remediation scope and site conditions are not detailed, limiting full value assessment.
Contract awarded over 18 years ago; current market rates and contractor performance may differ.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to AMENTUM ENVIRONMENT & ENERGY INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AMENTUM ENVIRONMENT & ENERGY INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2004-08-25. End: 2005-07-31.

What was the specific nature of the environmental remediation required under this contract?

The provided data indicates the contract was for 'Remediation Services' under NAICS code 562910, which covers establishments primarily engaged in cleaning up sites, processing, and disposing of hazardous and non-hazardous waste. However, the specific environmental hazards (e.g., soil contamination, groundwater pollution, asbestos abatement) and the exact scope of work at the Air Force installation are not detailed in the provided information. Further investigation into the contract's statement of work would be necessary to understand the precise remediation activities undertaken.

How does the $11 million contract value compare to similar environmental remediation projects of that era?

Direct comparison of the $11 million contract value is difficult without knowing the specific remediation scope, location, and complexity. Environmental remediation projects can vary drastically in cost based on factors like the type and concentration of contaminants, the size of the affected area, and the required cleanup methods. However, for a project spanning approximately one year and involving specialized services, $11 million is a plausible figure. To benchmark effectively, one would need to identify contracts with similar NAICS codes, agencies, and project durations from the 2004-2005 timeframe, focusing on projects with comparable environmental challenges.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the actual costs incurred (within the 'cost' portion). This can lead to potential cost overruns if not managed diligently. For environmental remediation, unforeseen site conditions or complexities can significantly increase costs, and the CPFF structure allows these increases to be passed on to the government, up to the contract's ceiling. Robust government oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for money.

What was Amentum Environment & Energy Inc.'s track record prior to or around 2004 for similar government contracts?

Information on Amentum Environment & Energy Inc.'s specific track record around 2004 is not provided in the data. Amentum, as a company, has a history in providing environmental and energy services. To assess their track record for this specific contract, one would need to research their past performance on similar Department of Defense or other federal agency contracts, looking at factors like on-time delivery, cost performance, quality of work, and any past performance issues or awards. This would typically involve reviewing contract databases and past performance evaluations.

How has the Department of Defense's spending on environmental remediation evolved since this contract was awarded in 2004?

The Department of Defense's spending on environmental remediation has likely evolved significantly since 2004. Factors such as increased environmental regulations, technological advancements in cleanup methods, and ongoing base closures and realignments (BRAC) have influenced spending patterns. While this $11 million contract represents a specific instance, overall DoD environmental spending is substantial and subject to budget appropriations, policy changes, and the identification of new environmental liabilities. Analyzing historical spending trends across DoD environmental programs would reveal shifts in priorities and investment levels over the past two decades.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 106 NEWBERRY ST SW, AIKEN, SC, 29801

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: FA890304D8680

IDV Type: IDC

Timeline