Army awards $102.5M for environmental remediation services to Shaw Environmental, Inc
Contract Overview
Contract Amount: $10,254,859 ($10.3M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-01-05
End Date: 2015-04-06
Contract Duration: 3,378 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200605!600644!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0002 ! !20060105!20160104!082838066!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !200 HORIZON CTR !TRENTON !NJ!08691!20560!045!49!DUGWAY PROVING GRD !TOOELE !UTAH !+000000980313!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!011!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to SHAW ENVIRONMENTAL, INC. for work described as: 200605!600644!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0002 ! !20060105!20160104!082838066!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !200 HORIZON CTR !TRENTON !NJ!08691!20560!045!49!DUGWAY PROVING GRD !TOOE… Key points: 1. Contract awarded for comprehensive environmental remediation services. 2. Significant duration of nearly 9 years suggests complex and long-term environmental challenges. 3. Firm Fixed Price contract type indicates defined scope and potential for cost savings if managed efficiently. 4. Full and open competition suggests a robust bidding process. 5. The contract's value places it within a substantial spending category for environmental services. 6. Geographic focus on Utah indicates specific site remediation needs.
Value Assessment
Rating: good
The contract value of $102.5 million over its nearly 9-year duration averages approximately $11.7 million annually. This figure appears reasonable for large-scale environmental remediation projects, which often involve extensive site assessment, cleanup, and monitoring. Benchmarking against similar large federal environmental contracts would provide a more precise value-for-money assessment, but the scale of the award suggests a significant undertaking.
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. The presence of 11 bids suggests a healthy level of interest and competition for this significant environmental services contract. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among contractors, driving down costs through multiple bids.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other federal agencies requiring environmental remediation at federal sites. Services delivered include remediation of contaminated sites, environmental studies, and analytical support. The geographic impact is concentrated in Utah, specifically at Dugway Proving Ground. Workforce implications include employment for environmental scientists, engineers, technicians, and support staff involved in remediation activities.
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.
- Reliance on a single contractor for a decade-long project may limit flexibility in adopting new technologies or approaches.
- The firm fixed-price nature requires careful initial scope definition to avoid disputes or change orders.
Positive Signals
- Full and open competition suggests a strong initial vetting of capabilities and pricing.
- The substantial value indicates a critical need for these environmental services.
- The long duration allows for sustained focus and completion of complex remediation tasks.
Sector Analysis
This contract falls within the broader environmental services sector, which includes a wide range of activities from consulting and engineering to hazardous waste management and site cleanup. The federal government is a major consumer of these services, particularly for managing legacy contamination at military installations and other federal properties. The market for environmental remediation is competitive, with numerous firms specializing in various aspects of cleanup and compliance. This contract's value places it among significant federal environmental projects.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Shaw Environmental, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside suggests that the primary focus was on securing the best overall offer from the competitive field, which may or may not have included significant small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance, and compliance with contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Environmental Remediation Services
- Defense Environmental Programs
- Military Base Cleanup
- Hazardous Waste Management
- Federal Site Remediation
Risk Flags
- Long contract duration
- Potential for unforeseen site conditions
- Reliance on fixed-price for complex, long-term work
Tags
department-of-defense, department-of-the-army, environmental-remediation, firm-fixed-price, full-and-open-competition, large-contract, utah, dugway-proving-ground, remediation-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to SHAW ENVIRONMENTAL, INC.. 200605!600644!2100!W91ZLK!ACA, ABERDEEN PROVING GROUND !W91ZLK05D0017 !A!N! !Y!0002 ! !20060105!20160104!082838066!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !200 HORIZON CTR !TRENTON !NJ!08691!20560!045!49!DUGWAY PROVING GRD !TOOELE !UTAH !+000000980313!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !000 !* !562910!E! !5!B!M! !A! !999
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2006-01-05. End: 2015-04-06.
What is the historical spending trend for environmental remediation services by the Department of the Army?
The Department of the Army consistently allocates significant funding towards environmental remediation, driven by the need to address legacy contamination at numerous installations and comply with environmental regulations. Historical spending data reveals a sustained commitment to these services, often in the hundreds of millions of dollars annually, fluctuating based on specific cleanup initiatives, base realignment actions, and evolving regulatory requirements. Major programs often involve long-term cleanup projects for sites contaminated with hazardous substances, pollutants, or contaminants. The Army's environmental program aims to restore, protect, and enhance the environment at its facilities, ensuring compliance and minimizing ecological impact. Analyzing past budgets and contract awards provides insight into the scale and duration of typical remediation efforts, highlighting the ongoing need for specialized contractors.
How does the per-unit cost of this contract compare to similar environmental remediation contracts?
Direct per-unit cost comparison for this contract is challenging without specific task breakdowns and deliverables. The total award of $102.5 million over approximately 111 months (3378 days) averages roughly $923,860 per month or $2,550 per day. However, environmental remediation costs are highly variable, depending on the type and extent of contamination, the specific remediation technologies employed, site accessibility, and regulatory requirements. Contracts for similar large-scale, long-term remediation projects at federal sites can range widely in cost. Factors like the complexity of the contaminants (e.g., chemical, radiological, munitions), the volume of soil or water to be treated, and the required monitoring duration significantly influence pricing. A detailed benchmark would require comparing specific remediation activities (e.g., per cubic yard of contaminated soil removed, per gallon of groundwater treated) against industry standards and other federal contracts for comparable work.
What are the key performance indicators (KPIs) typically used for environmental remediation contracts?
Key performance indicators for environmental remediation contracts often focus on safety, environmental compliance, schedule adherence, cost control, and technical performance. Safety KPIs might include incident rates (e.g., lost time injury frequency rate) and adherence to safety protocols. Environmental compliance KPIs would track adherence to cleanup standards, permit requirements, and regulatory reporting deadlines. Schedule adherence measures the contractor's ability to meet project milestones and completion dates. Cost control KPIs assess whether the project is progressing within budget, particularly important for firm-fixed-price contracts where cost overruns are the contractor's responsibility. Technical performance KPIs evaluate the effectiveness of the remediation technologies used, the quality of data collected, and the overall success in reducing contaminant levels to meet cleanup objectives. Regular progress reports and site inspections are crucial for monitoring these KPIs.
What is Shaw Environmental, Inc.'s track record with federal environmental contracts?
Shaw Environmental, Inc. (and its successor entities) has a significant history of performing large-scale environmental services for various U.S. federal agencies, including the Department of Defense, Department of Energy, and Environmental Protection Agency. Their portfolio includes complex remediation projects, hazardous waste management, munitions response, and environmental consulting. They have been awarded numerous contracts, often valued in the tens or hundreds of millions of dollars, for work at military bases, Superfund sites, and other federal facilities across the country. While specific performance details for every contract are not publicly detailed, their consistent award of substantial federal contracts suggests a demonstrated capability and a generally acceptable performance record in meeting the demanding requirements of federal environmental cleanup and management.
What are the potential risks associated with a long-duration environmental remediation contract?
Long-duration environmental remediation contracts, like this nearly 9-year award, carry several potential risks. Firstly, the risk of unforeseen site conditions or newly discovered contamination increases over time, potentially leading to scope creep and change orders, even under a firm-fixed-price contract, if not meticulously managed. Secondly, regulatory landscapes can change, requiring adjustments to cleanup standards or methodologies, which may impact costs and timelines. Thirdly, contractor performance can degrade over extended periods due to personnel turnover or shifts in company priorities. Fourthly, technological advancements in remediation might emerge, making the initially selected methods less efficient or cost-effective, but switching could be difficult and costly. Finally, long-term contracts can tie up significant government resources, potentially limiting flexibility to respond to other emerging environmental needs or to leverage more innovative solutions that become available later.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 2113 EMMORTON PARK RD, EDGEWOOD, MD, 21040
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W91ZLK05D0017
IDV Type: IDC
Timeline
Start Date: 2006-01-05
Current End Date: 2015-04-06
Potential End Date: 2015-04-06 00:00:00
Last Modified: 2018-10-17
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