Army awards $39.5M for hazardous substance removal, with Bechtel National Inc. securing the contract
Contract Overview
Contract Amount: $39,540,941 ($39.5M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-04-04
End Date: 2022-09-30
Contract Duration: 7,119 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200307!000824!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0003 !20030404!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000000807125!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: PUEBLO, PUEBLO County, COLORADO, 81006
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $39.5 million to BECHTEL NATIONAL, INC. for work described as: 200307!000824!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0003 !20030404!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN F… Key points: 1. Contract awarded to a single, established entity with a significant presence in the sector. 2. The contract type suggests a focus on managing complex projects with potential for cost overruns. 3. Performance period spans over 19 years, indicating long-term environmental remediation needs. 4. The North American Industry Classification System (NAICS) code points to specialized hazardous waste services. 5. Geographic location of the contractor is in a major West Coast hub, potentially impacting logistics. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: fair
The total award amount of $39.5 million over nearly two decades suggests a moderate annual expenditure. Benchmarking this against similar hazardous substance removal contracts is challenging without more specific service details and performance metrics. However, the extended duration implies a need for consistent, long-term service delivery. The cost-plus-fixed-fee structure indicates that while the contractor's fee is fixed, the overall cost of the project can fluctuate based on the expenses incurred, which warrants careful monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This approach is generally expected to foster competitive pricing and encourage the selection of the most capable contractor. The presence of two delivery orders suggests that the initial award may have been followed by subsequent taskings or modifications within the broader contract framework.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for hazardous substance removal services, potentially leading to more cost-effective solutions and reduced environmental liabilities.
Public Impact
The primary beneficiaries are likely military installations or federal sites requiring hazardous substance cleanup. Services delivered include hazardous substance removal, cleanup, and disposal, crucial for environmental protection. The contract's geographic impact is tied to the location of the sites requiring remediation, with the contractor based in California. Workforce implications could include specialized environmental technicians, engineers, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not closely managed.
- The long duration of the contract may present challenges in adapting to evolving environmental regulations.
- Reliance on a single contractor for an extended period could limit flexibility and innovation.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent process.
- The contractor, Bechtel National, Inc., is a large and experienced entity in infrastructure and environmental services.
- The contract addresses critical environmental remediation needs, contributing to public health and safety.
Sector Analysis
This contract falls within the environmental services sector, specifically focusing on hazardous waste management. The market for such services is driven by regulatory compliance, industrial activity, and government cleanup initiatives. Bechtel National, Inc. is a major player in this space, often undertaking large-scale government contracts. Comparable spending benchmarks would depend on the specific type and volume of hazardous materials handled and the complexity of the cleanup operations.
Small Business Impact
There is no indication of a small business set-aside for this contract. Given the scale and specialized nature of hazardous substance removal, it is likely that larger, experienced firms like Bechtel National, Inc. are best positioned to compete. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.
Oversight & Accountability
Oversight mechanisms would typically involve the U.S. Army's contracting officers and program managers to ensure compliance with contract terms, performance standards, and environmental regulations. Accountability is managed through the cost-plus-fixed-fee structure and performance reviews. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Department of Defense Environmental Contracts
- Federal Cleanup Programs
Risk Flags
- Cost-plus-fixed-fee contract type may lead to cost overruns.
- Long contract duration could present challenges in adapting to regulatory changes.
- Specialized nature of services requires careful oversight to ensure quality and compliance.
Tags
defense, department-of-the-army, hazardous-waste-disposal, environmental-remediation, cost-plus-fixed-fee, full-and-open-competition, large-business, california, long-term-contract, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to BECHTEL NATIONAL, INC.. 200307!000824!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0003 !20030404!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000000807125!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $39.5 million.
What is the period of performance?
Start: 2003-04-04. End: 2022-09-30.
What is the track record of Bechtel National, Inc. in handling similar hazardous substance removal contracts for the U.S. Army?
Bechtel National, Inc. has a long history of undertaking large-scale engineering, construction, and environmental projects for government agencies, including the Department of Defense. Their experience often encompasses complex environmental remediation, waste management, and infrastructure development. While specific details on past Army contracts for hazardous substance removal would require further investigation into historical procurement data, Bechtel's general profile suggests they possess the requisite expertise and capacity for such work. Their involvement in major projects globally indicates a capacity to manage significant budgets and challenging technical requirements, which are often characteristic of hazardous substance removal operations.
How does the total contract value of $39.5 million compare to other hazardous substance removal contracts awarded by the DoD?
The total contract value of $39.5 million spread over nearly two decades (from 2003 to 2022) represents an average annual expenditure of approximately $2 million. This figure is moderate when compared to some of the larger, multi-billion dollar environmental cleanup contracts undertaken by the Department of Defense, particularly those involving extensive site remediation or the management of highly toxic materials over shorter, more intensive periods. However, the value is significant enough to indicate a substantial and ongoing requirement for hazardous substance removal services. A precise comparison would necessitate analyzing contracts with similar scope, duration, and complexity of services rendered.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for hazardous substance removal?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for hazardous substance removal is the potential for cost escalation beyond initial estimates, even though the contractor's fee is fixed. The 'cost-plus' component means the government reimburses the contractor for allowable costs incurred. If the scope of work expands, unforeseen site conditions arise (common in environmental remediation), or inefficiencies occur, the total cost to the government can increase significantly. This necessitates robust oversight from the contracting agency to scrutinize all claimed costs, ensure efficiency, and manage scope creep effectively. The fixed fee provides an incentive for the contractor to control costs to some extent, but the ultimate financial risk for cost overruns lies with the government.
How effective are full and open competition processes in ensuring value for money in specialized environmental services like hazardous substance removal?
Full and open competition is generally considered the most effective method for ensuring value for money in specialized environmental services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For hazardous substance removal, this process allows agencies to compare technical approaches, past performance, and pricing from multiple qualified contractors. This competition helps establish a market-based price for the services and reduces the likelihood of awarding a contract at an inflated cost. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the agency's ability to accurately assess the technical capabilities and proposed costs of the bidders.
What are the implications of the contract's long performance period (nearly 20 years) on environmental compliance and contractor performance?
A long performance period, such as the nearly 20 years for this contract, has several implications. Environmentally, it allows for long-term management and remediation strategies, which can be crucial for complex contamination issues. It also means the contractor must remain compliant with evolving environmental regulations over the contract's life, potentially requiring adaptation and investment. For contractor performance, a long duration can foster stability and deep expertise in the specific sites or materials being managed. However, it also poses risks: potential complacency, difficulty in adapting to new technologies or regulatory shifts, and challenges in maintaining consistent performance over such an extended timeframe. Regular performance reviews and contract modifications are essential to mitigate these risks.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 50 BEALE ST, SAN FRANCISCO, CA, 94105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,148
Exercised Options: $10,148
Current Obligation: $39,540,941
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0902D0025
IDV Type: IDC
Timeline
Start Date: 2003-04-04
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 12:09:00
Last Modified: 2024-09-16
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