DoD's $29.2M Alameda Point Remediation Contract: A Decade of Environmental Cleanup in California
Contract Overview
Contract Amount: $29,211,300 ($29.2M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2008-07-09
End Date: 2017-06-26
Contract Duration: 3,274 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RD AND RA IR SITE 1, ALAMEDA POINT
Place of Performance
Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501
Plain-Language Summary
Department of Defense obligated $29.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: RD AND RA IR SITE 1, ALAMEDA POINT Key points: 1. The contract demonstrates a significant, long-term commitment to environmental remediation at a major federal site. 2. The firm-fixed-price structure suggests a defined scope and budget, potentially offering cost certainty. 3. The duration of the contract (over 9 years) indicates a complex and extensive remediation effort. 4. The single award suggests a focused approach to a specialized environmental service. 5. The contract's value places it within a substantial range for large-scale environmental cleanup projects. 6. Performance context is crucial given the extended timeline and the nature of hazardous material remediation.
Value Assessment
Rating: good
The contract's total value of approximately $29.2 million over nearly a decade for environmental remediation services at Alameda Point appears reasonable for a project of this scale and duration. Without specific benchmarks for similar large-scale, multi-year site cleanups, a direct per-unit cost comparison is difficult. However, the firm-fixed-price contract type suggests that the initial pricing was determined based on a defined scope, which can be advantageous for cost control. The value reflects the complexity and long-term nature of environmental remediation, including potential unforeseen challenges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The fact that it resulted in a single award suggests that WSP USA Environment & Infrastructure Inc. was selected as the most advantageous offer based on the evaluation criteria. Full and open competition is generally expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of qualified contractors, ensuring that the selected contractor offers the best overall value for the remediation services.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the local community and environment, through the cleanup of hazardous materials at Alameda Point. The services delivered involve the remediation and disposal of hazardous waste and contaminated materials. The geographic impact is concentrated in Alameda Point, California, a significant former naval base. Workforce implications include employment for environmental scientists, engineers, technicians, and hazardous material handlers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
- Complexity of environmental remediation can present risks of unexpected site conditions impacting timelines and costs.
- Reliance on a single contractor for an extended period requires robust oversight to ensure continued performance and value.
Positive Signals
- Firm-fixed-price contract provides budget certainty for the government.
- Full and open competition suggests a competitive bidding process that likely secured a fair price.
- The contract's successful completion over its duration would indicate contractor capability in managing complex environmental projects.
Sector Analysis
The environmental remediation sector is a critical component of government contracting, particularly for agencies managing large former industrial or military sites. This contract falls within the broader environmental services industry, which includes hazardous waste management, site cleanup, and compliance consulting. The market is characterized by specialized firms with expertise in geology, engineering, and regulatory affairs. The value of this contract is substantial, reflecting the scale and complexity typical of large federal site cleanups, often involving legacy contamination from past industrial or military activities.
Small Business Impact
The contract details indicate that small business participation was not a primary focus, as the award was made to a single entity without explicit mention of small business set-asides or subcontracting goals. While the prime contractor may engage small businesses for specific tasks, the overall structure does not appear to prioritize small business involvement. This could limit opportunities for smaller firms in the environmental remediation space on this particular project.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy, with contract officers and technical representatives monitoring performance, adherence to scope, and compliance with environmental regulations. The firm-fixed-price nature necessitates close monitoring of deliverables and milestones. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be less public.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Site Cleanup Contracts
- Department of Defense Environmental Programs
- Naval Facilities Engineering Command Contracts
Risk Flags
- Long-term contract duration
- Complexity of environmental remediation
- Potential for unforeseen site conditions
- Reliance on a single contractor
Tags
defense, department-of-defense, department-of-the-navy, environmental-remediation, hazardous-waste, full-and-open-competition, firm-fixed-price, large-contract, california, alameda-point, remediation-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. RD AND RA IR SITE 1, ALAMEDA POINT
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 Navy).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2008-07-09. End: 2017-06-26.
What specific environmental challenges were addressed at Alameda Point under this contract?
The Alameda Point site, a former U.S. Naval Air Station, has a history of industrial activities, including aircraft maintenance and fuel storage, leading to various contamination issues. Under this contract, WSP USA Environment & Infrastructure Inc. was tasked with remediation services, which likely involved addressing soil and groundwater contamination from petroleum hydrocarbons, solvents, heavy metals, and potentially other hazardous substances. The scope would typically include site investigation, risk assessment, development and implementation of cleanup strategies (such as excavation, soil vapor extraction, or groundwater treatment), and final site closure activities in accordance with federal and state environmental regulations.
How does the $29.2 million cost compare to similar large-scale federal environmental remediation projects?
Comparing the $29.2 million cost requires context regarding the specific contaminants, the size of the affected area, the remediation technologies employed, and the duration of the cleanup. Large-scale federal environmental remediation projects, especially those involving former military bases with extensive contamination, can easily run into tens or hundreds of millions of dollars over many years. For instance, Superfund sites or Base Realignment and Closure (BRAC) environmental actions often exceed this amount. While $29.2 million is a significant sum, it appears to be within the expected range for a decade-long, comprehensive remediation effort at a site like Alameda Point, assuming the scope was adequately defined and managed.
What are the key risks associated with a firm-fixed-price contract for a long-duration environmental remediation project?
The primary risk with a firm-fixed-price (FFP) contract for a long-duration environmental remediation project is the potential for unforeseen site conditions or changes in regulatory requirements that could significantly increase costs beyond the contractor's initial estimates. While FFP provides cost certainty for the government, it places the risk of cost overruns on the contractor. If unexpected contamination is discovered, or if remediation methods prove less effective than anticipated, the contractor might incur substantial losses or seek change orders. Conversely, the government risks paying a premium if the contractor overestimates costs to buffer against these risks. Effective contract management and clear scope definition are crucial to mitigate these risks.
What was the track record of WSP USA Environment & Infrastructure Inc. in handling similar federal environmental contracts prior to this award?
WSP USA Environment & Infrastructure Inc. (and its predecessor entities) has a substantial history of performing large-scale environmental consulting and remediation services for federal agencies, including the Department of Defense, EPA, and Department of Energy. They have been involved in numerous complex projects, including site investigations, remediation design, construction management, and hazardous waste management across various federal facilities and Superfund sites. Their extensive experience suggests a strong capability to manage projects of the scale and complexity seen at Alameda Point, although specific performance metrics for individual contracts would require deeper analysis of past performance evaluations.
How has spending on environmental remediation at Alameda Point evolved over time, and does this contract represent a significant portion?
The spending on environmental remediation at Alameda Point has been ongoing for many years, predating this specific contract award in 2008. The site has undergone various cleanup actions funded through different mechanisms and contracts over decades. This $29.2 million contract, spanning from 2008 to 2017, represents a significant, concentrated period of funding for remediation services during that timeframe. However, it is part of a larger, multi-year, and multi-faceted environmental cleanup effort at the base, which has involved substantial investment from the Navy and other agencies over a much longer historical period. Understanding the total historical spending requires examining all contracts and funding allocations related to Alameda Point's environmental restoration.
What are the potential long-term environmental and economic impacts of completing the remediation at Alameda Point?
The successful completion of environmental remediation at Alameda Point is crucial for the long-term environmental health of the region, removing potential sources of pollution to soil and groundwater and mitigating risks to human health and ecosystems. Economically, a fully remediated site can unlock its potential for redevelopment and beneficial reuse, attracting new businesses, housing, and public spaces. This can lead to job creation, increased tax revenue, and revitalization of the surrounding community. The completion of such projects signifies the government's commitment to environmental stewardship and responsible land management.
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
Solicitation ID: N6247305R6404
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Amec PLC
Address: 9210 SKY PARK CT'' STE 200, SAN DIEGO, CA, 92123
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,211,300
Exercised Options: $29,211,300
Current Obligation: $29,211,300
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247308D8816
IDV Type: IDC
Timeline
Start Date: 2008-07-09
Current End Date: 2017-06-26
Potential End Date: 2017-06-26 00:00:00
Last Modified: 2022-09-02
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