APTIM FEDERAL SERVICES awarded $60.5M for remediation services at Kirtland AFB, New Mexico

Contract Overview

Contract Amount: $60,508,693 ($60.5M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2016-07-31

Contract Duration: 2,132 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BFF SWMUS KIRTLAND AFB

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $60.5 million to APTIM FEDERAL SERVICES, LLC for work described as: BFF SWMUS KIRTLAND AFB Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts some risk to the contractor. 4. Contract duration of over 5 years indicates a long-term environmental need. 5. Geographic focus on New Mexico highlights regional environmental priorities.

Value Assessment

Rating: good

The contract value of $60.5 million for remediation services over approximately 5.7 years appears reasonable given the scope of environmental cleanup at a large military installation. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the primary financial risk for cost overruns, which can be a positive indicator for the government if the contractor's bid was competitive and well-researched.

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 bids. The presence of two bidders suggests a moderate level of competition for this significant remediation project. While more bidders would typically lead to greater price discovery and potentially lower costs, two bidders can still result in a competitive outcome, especially for specialized services like environmental remediation.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, aiming to secure the contract.

Public Impact

The primary beneficiaries are the Department of Defense and the environment surrounding Kirtland Air Force Base. Services delivered include remediation of contaminated sites, ensuring environmental compliance and safety. Geographic impact is concentrated in New Mexico, specifically around the Kirtland AFB installation. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and construction labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination is discovered, despite fixed-price structure.
Contractor performance risks related to meeting stringent environmental cleanup standards and timelines.
Dependence on a single contractor for a critical, long-term environmental service.

Positive Signals

Firm-fixed-price contract aligns contractor incentives with cost control.
Full and open competition suggests a potentially competitive initial bid.
Long-term contract allows for sustained focus on environmental remediation goals.

Sector Analysis

Environmental remediation services represent a critical sector within government contracting, particularly for agencies managing large facilities with historical contamination. The market includes specialized firms capable of handling complex cleanup operations, often requiring significant technical expertise and regulatory compliance. This contract fits within the broader category of environmental services, which is a substantial segment of the federal procurement landscape, driven by regulatory requirements and the need to manage legacy environmental liabilities.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, APTIM FEDERAL SERVICES, LLC, is a large business. There is no explicit information provided regarding small business subcontracting goals or performance. The absence of a small business set-aside suggests that the primary competition focused on larger, specialized firms capable of undertaking the full scope of the remediation project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army or Air Force at Kirtland AFB. Performance monitoring, quality assurance, and compliance with environmental regulations would be key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight activities are not publicly detailed.

Related Government Programs

Environmental Remediation Services
Base Realignment and Closure (BRAC) Environmental Cleanup
Department of Defense Environmental Programs
Hazardous Waste Management

Risk Flags

Potential for cost growth if unforeseen contamination is encountered.
Contractor performance risk related to meeting stringent environmental standards.
Long-term reliance on a single vendor for critical environmental services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.5 million to APTIM FEDERAL SERVICES, LLC. BFF SWMUS KIRTLAND AFB

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $60.5 million.

What is the period of performance?

Start: 2010-09-29. End: 2016-07-31.

What is the historical spending trend for environmental remediation services at Kirtland AFB?

Analyzing historical spending data for environmental remediation at Kirtland AFB prior to this $60.5 million award would provide crucial context. This would involve examining previous contracts awarded for similar services, their values, durations, and the contractors involved. A trend of consistent, significant spending would indicate an ongoing, long-term environmental challenge requiring substantial resources. Conversely, a sudden increase in spending might suggest the discovery of new contamination or a shift in regulatory priorities. Understanding this historical pattern helps assess whether the current award is an anomaly or part of a sustained effort, and whether spending has been escalating or remaining stable over time.

How does the per-unit cost of this remediation contract compare to industry benchmarks?

Determining the per-unit cost for this remediation contract requires breaking down the total award value by the specific services rendered (e.g., per cubic yard of soil remediated, per gallon of water treated, per acre cleaned). Once these specific metrics are identified, they can be compared against established industry benchmarks for similar environmental remediation projects. Factors such as the type of contaminants, the complexity of the site, and the geographic location significantly influence per-unit costs. If this contract's per-unit costs are substantially higher than benchmarks, it could indicate inefficiencies, unforeseen complexities, or a less competitive bidding environment. Conversely, costs below benchmarks might suggest exceptional value or aggressive contractor pricing.

What is APTIM FEDERAL SERVICES, LLC's track record with similar environmental remediation contracts for the Department of Defense?

APTIM FEDERAL SERVICES, LLC's performance history on comparable environmental remediation contracts, particularly those awarded by the Department of Defense (DoD), is a key indicator of their capability and reliability. Reviewing past contract awards, their values, performance evaluations (if publicly available), and any instances of disputes or contract terminations would provide insight. A strong track record with the DoD suggests familiarity with military environmental regulations, site conditions, and reporting requirements. Conversely, a history of performance issues or significant cost overruns on similar projects would raise concerns about their ability to successfully execute this Kirtland AFB contract within budget and schedule.

What are the primary environmental risks being addressed by this contract, and how effective are the chosen remediation methods?

The specific environmental risks addressed by this contract are likely related to historical industrial activities, fuel storage, or waste disposal at Kirtland AFB, potentially involving soil and groundwater contamination (e.g., petroleum hydrocarbons, solvents, heavy metals). The effectiveness of the chosen remediation methods depends on the nature of the contaminants, site geology, and regulatory standards. Common methods include excavation and disposal, in-situ treatment, soil vapor extraction, or groundwater pump-and-treat systems. Assessing effectiveness requires ongoing monitoring data, comparison to cleanup goals, and potentially independent technical reviews. Without detailed project plans and monitoring reports, it's difficult to definitively gauge the efficacy of the chosen methods, but the contract's success hinges on achieving the specified cleanup levels.

How has the total federal spending on environmental remediation services changed over the last five fiscal years?

Examining the total federal spending on environmental remediation services over the past five fiscal years reveals broader trends in government investment in this area. This analysis would involve aggregating spending data across all federal agencies that procure such services. An increasing trend might indicate heightened regulatory focus, aging infrastructure requiring more maintenance, or a greater emphasis on addressing legacy environmental liabilities. A decreasing trend could suggest budget constraints, successful completion of major cleanup initiatives, or a shift in agency priorities. Understanding this macro trend provides context for the significance and potential future trajectory of individual contracts like the one awarded to APTIM FEDERAL SERVICES.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY08R0017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chicago Bridge & Iron Company N.V.

Address: 2370 TOWNE CENTER BLVD, BATON ROUGE, LA, 70806

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,521,116

Exercised Options: $60,508,693

Current Obligation: $60,508,693

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY10D0014

IDV Type: IDC

Timeline