DoD's $39.9M environmental remediation contract for Williams AFB shows long-term commitment to site cleanup
Contract Overview
Contract Amount: $39,869,676 ($39.9M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2011-08-26
End Date: 2021-12-31
Contract Duration: 3,780 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PERFORMANCE-BASED REMEDIATION AT FORMER WILLIAMS AIR FORCE, ARIZONA
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85001
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: PERFORMANCE-BASED REMEDIATION AT FORMER WILLIAMS AIR FORCE, ARIZONA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration (over 10 years) indicates a significant, ongoing environmental challenge. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Performance-based elements likely tied to successful remediation milestones. 5. Focus on environmental remediation aligns with long-term stewardship responsibilities. 6. Contractor has a substantial contract value, indicating significant operational capacity.
Value Assessment
Rating: good
The contract value of approximately $39.9 million over its lifespan suggests a significant investment in environmental cleanup. Benchmarking this against similar large-scale environmental remediation projects at former military installations would provide a clearer picture of value for money. The firm fixed-price structure offers predictability, but the long duration means actual costs could fluctuate if not managed effectively. Without specific performance metrics and outcomes, a definitive value assessment is challenging, but the scale implies a substantial effort.
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 contractors had the opportunity to bid. With 7 bidders, this suggests a healthy level of competition for this significant environmental remediation project. A competitive process generally leads to better pricing and service offerings for the government, as contractors vie to win the award by presenting their most advantageous proposals.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery for the environmental cleanup at Williams Air Force Base.
Public Impact
The primary beneficiaries are the environment and public health in Arizona, through the cleanup of a former military site. Services delivered include comprehensive environmental remediation activities. Geographic impact is localized to the former Williams Air Force Base in Arizona. Potential workforce implications include employment for environmental scientists, engineers, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not meticulously managed.
- Environmental remediation projects are inherently complex and can encounter unexpected challenges.
- Reliance on a single contractor for an extended period might reduce future competitive opportunities.
Positive Signals
- Firm Fixed Price contract provides budget certainty.
- Full and open competition suggests a robust selection process.
- The significant investment indicates a commitment to resolving environmental issues.
Sector Analysis
This contract falls within the Environmental Services sector, specifically focusing on remediation of contaminated sites. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and the need to address historical contamination from industrial and military activities. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies, particularly the Department of Defense, for similar types of sites.
Small Business Impact
The data indicates this contract was awarded through full and open competition and does not specify small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on small businesses. However, large prime contracts often involve subcontracting opportunities, which could potentially benefit small businesses if WSP USA ENVIRONMENT & INFRASTRUCTURE INC. actively seeks them out for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Performance monitoring, milestone tracking, and financial oversight are standard accountability measures. Transparency is usually maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Military Base Realignment and Closure (BRAC) Cleanup
- Hazardous Waste Management
- Site Remediation Contracts
Risk Flags
- Long contract duration increases risk of unforeseen cost escalation.
- Environmental remediation projects are inherently complex and prone to unexpected challenges.
- Potential for scope creep if not tightly managed.
Tags
environmental-remediation, department-of-defense, air-force, firm-fixed-price, full-and-open-competition, arizona, long-term-contract, remediation-services, hazardous-waste, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. PERFORMANCE-BASED REMEDIATION AT FORMER WILLIAMS AIR FORCE, ARIZONA
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 2011-08-26. End: 2021-12-31.
What specific environmental contaminants were addressed under this contract, and what were the remediation goals?
The contract focuses on 'PERFORMANCE-BASED REMEDIATION AT FORMER WILLIAMS AIR FORCE, ARIZONA.' While the specific contaminants are not detailed in the provided data, typical environmental remediation at former Air Force bases often involves addressing petroleum hydrocarbons, volatile organic compounds (VOCs), heavy metals, and potentially per- and polyfluoroalkyl substances (PFAS). Performance-based remediation implies that the contractor is responsible for achieving specific cleanup standards or risk reduction targets, rather than simply performing a set list of tasks. The ultimate goal is to reduce environmental risks to human health and the ecosystem to acceptable levels, often defined by state and federal regulations, allowing for future land use.
How does the $39.9 million contract value compare to other large-scale environmental remediation projects at former military bases?
A contract value of approximately $39.9 million over a decade is substantial but falls within the typical range for large-scale environmental remediation projects at former military installations. Major cleanup efforts at bases undergoing closure or significant environmental impact can easily reach tens or even hundreds of millions of dollars, depending on the size of the installation, the types and extent of contamination, and the chosen remediation technologies. For instance, extensive groundwater contamination or the cleanup of large fuel spills can significantly drive up costs. This contract's value suggests a comprehensive approach to addressing the environmental legacy of Williams AFB.
What are the key performance indicators (KPIs) associated with this performance-based contract?
Performance-based contracts, especially in environmental remediation, tie payment and contractor success to achieving specific, measurable outcomes. While the exact KPIs are not provided, they commonly include metrics related to contaminant reduction levels in soil and groundwater, meeting established cleanup standards within defined timeframes, successful operation and maintenance of treatment systems, compliance with regulatory reporting, and minimizing environmental impact during remediation activities. For example, a KPI might be reducing the concentration of a specific contaminant in groundwater by 90% within five years or successfully closing out specific remediation areas according to EPA or state guidelines.
What is the track record of WSP USA ENVIRONMENT & INFRASTRUCTURE INC. in handling similar large-scale environmental remediation contracts for the Department of Defense?
WSP USA ENVIRONMENT & INFRASTRUCTURE INC. (and its predecessor entities) has a significant track record in providing environmental consulting and remediation services to government agencies, including the Department of Defense. They are known to handle complex projects involving site investigation, risk assessment, remediation design, and construction. Their experience often spans various types of contamination and regulatory environments across numerous federal facilities. A deeper dive into their contract history with DoD would reveal specific projects of similar scale and complexity, providing insight into their capabilities and past performance on defense-related environmental initiatives.
What are the potential risks associated with a 10-year firm-fixed-price contract for environmental remediation?
The primary risk with a long-term, firm-fixed-price contract in environmental remediation is the potential for unforeseen conditions or scope changes that could significantly impact costs beyond the contractor's control. While the fixed price offers budget certainty, it places the risk of cost overruns due to unexpected contamination, complex geological formations, or evolving regulatory requirements largely on the contractor. Conversely, if remediation proves less complex than anticipated, the contractor might achieve higher profit margins. Effective contract management, including clear change order processes and contingency planning, is crucial to mitigate these risks for both parties.
How has spending on environmental remediation at Department of Defense facilities evolved over the past two decades?
Spending on environmental remediation at DoD facilities has been a consistent and significant expenditure over the past two decades, driven by legislation like CERCLA (Superfund) and RCRA, and the ongoing process of base realignment and closure (BRAC). Initial spending focused heavily on investigation and cleanup of legacy contamination. More recently, focus has expanded to include emerging contaminants like PFAS, evolving remediation technologies, and long-term stewardship responsibilities. While overall spending fluctuates based on budget appropriations and the number of active cleanup sites, there remains a sustained commitment to addressing environmental liabilities across military installations nationwide.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: John Wood Group P.L.C. (UEI: 214007270)
Address: 751 ARBOR WAY STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,869,676
Exercised Options: $39,869,676
Current Obligation: $39,869,676
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA890309D8572
IDV Type: IDC
Timeline
Start Date: 2011-08-26
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2021-09-17
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