Army Awards $51.35M Remedial Action Contract for New Bedford Harbor to Jacobs Project Management Co

Contract Overview

Contract Amount: $51,352,154 ($51.4M)

Contractor: Jacobs Project Management CO.

Awarding Agency: Department of Defense

Start Date: 2017-03-31

End Date: 2026-01-31

Contract Duration: 3,228 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: IGF::OT::IGF REMEDIAL ACTION CONTRACT, NEW BEDFORD HARBOR, MA.

Place of Performance

Location: NEW BEDFORD, BRISTOL County, MASSACHUSETTS, 02740

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $51.4 million to JACOBS PROJECT MANAGEMENT CO. for work described as: IGF::OT::IGF REMEDIAL ACTION CONTRACT, NEW BEDFORD HARBOR, MA. Key points: 1. The contract is for environmental remediation services at New Bedford Harbor. 2. Jacobs Project Management Co. is the sole awardee. 3. The contract duration extends to January 2026. 4. This falls under Other Heavy and Civil Engineering Construction. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in similar environmental remediation projects is difficult without more detailed cost breakdowns.

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 specific award mechanism (Delivery Order) implies it might be against a pre-existing contract vehicle, which could limit the scope of competition for this specific task order.

Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, which is a necessary public service. The effectiveness of the competition in driving down costs for this specific delivery order will impact the overall taxpayer value.

Public Impact

Environmental cleanup of a Superfund site is crucial for public health and ecosystem restoration. Long-term remediation efforts can have significant impacts on local communities and economies. The project's success will be measured by the reduction of hazardous substances in the harbor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration (3228 days) increases exposure to potential scope creep and cost escalation.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Addresses critical environmental remediation needs.
Long-term commitment to site cleanup.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on environmental remediation. Spending in this sector is often driven by regulatory requirements and infrastructure needs. Benchmarks for similar large-scale environmental cleanup contracts vary widely based on site complexity and remediation technology.

Small Business Impact

The data indicates no small business participation in this contract. For large-scale environmental remediation projects, it is common for prime contractors to be large businesses, but opportunities for subcontracting to small businesses should be explored to promote broader economic participation.

Oversight & Accountability

Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the remediation efforts meet all environmental standards and objectives. The Department of Defense's contracting officers and the EPA will likely play key oversight roles.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No small business participation.
Potential for cost overruns.
Environmental remediation complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.4 million to JACOBS PROJECT MANAGEMENT CO.. IGF::OT::IGF REMEDIAL ACTION CONTRACT, NEW BEDFORD HARBOR, MA.

Who is the contractor on this award?

The obligated recipient is JACOBS PROJECT MANAGEMENT CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.4 million.

What is the period of performance?

Start: 2017-03-31. End: 2026-01-31.

What is the estimated cost breakdown for labor, materials, and profit under the CPFF structure, and how does it compare to industry standards for similar remediation projects?

A detailed breakdown of the Cost Plus Fixed Fee (CPFF) components is not publicly available. However, CPFF contracts typically include direct costs (labor, materials, equipment) plus a fixed fee representing profit. Industry standards vary, but agencies aim for competitive fixed fees. Without specific cost data, a precise benchmark is challenging, but the agency should ensure the fixed fee is reasonable and not excessively high relative to the project's complexity and risk.

What specific environmental risks are being addressed, and what are the key performance indicators (KPIs) to measure the effectiveness of the remediation efforts?

The contract addresses the remediation of New Bedford Harbor, a designated Superfund site contaminated with hazardous substances. Key performance indicators likely include the reduction of contaminant levels in sediment and water, restoration of ecological habitats, and compliance with EPA cleanup standards. The effectiveness will be measured against pre-defined environmental quality targets and long-term monitoring results.

Given the long duration and CPFF structure, what mechanisms are in place to mitigate potential cost overruns and ensure efficient project execution?

Mitigation strategies for long-duration CPFF contracts typically involve robust government oversight, detailed cost tracking, regular performance reviews, and clear contract clauses addressing scope changes and cost controls. The contracting agency should implement stringent monitoring of expenditures, require detailed progress reports, and conduct independent cost analyses to ensure efficiency and prevent unnecessary cost escalation throughout the project lifecycle.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912WJ14R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 1999 BRYAN ST, DALLAS, TX, 75201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,352,154

Exercised Options: $51,352,154

Current Obligation: $51,352,154

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $9,753,390

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912WJ15D0001

IDV Type: IDC

Timeline