Army's $13.4M Hazardous Substance Cleanup Contract Awarded to Shaw Environmental, Inc

Contract Overview

Contract Amount: $13,411,846 ($13.4M)

Contractor: Shaw Environmental, Inc.

Awarding Agency: Department of Defense

Start Date: 1998-06-25

End Date: 2010-12-31

Contract Duration: 4,572 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 199812!96CE!0360!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9006 !A!*!0003 !19980625!19980930!028655181!028655181!106521081!N!0LP55!I T CORPORATION !2790 MOSSIDE BLVD !MONROEVILLE !PA!15146!39890!095!29!LAKE CITY AAP !JACKSON !MISSOURI !0001!+000000050000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5000!NOT DISCERNABLE OR CLASSIFIED !8744!5!B!S!*!B!A!*!A !U!U!2!005!B!* !C!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to SHAW ENVIRONMENTAL, INC. for work described as: 199812!96CE!0360!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9006 !A!*!0003 !19980625!19980930!028655181!028655181!106521081!N!0LP55!I T CORPORATION !2790 MOSSIDE BLVD !MONROEVILLE !PA!15146!39890!095!29!LAKE CITY AAP !JACKSO… Key points: 1. The contract, valued at $13,411,845.73, was awarded for hazardous substance removal, cleanup, and disposal services. 2. Shaw Environmental, Inc. secured the contract through full and open competition. 3. The contract duration is 4572 days, indicating a long-term project. 4. The awarding agency is the Department of Defense, specifically the Army Corps of Engineers, Kansas City District.

Value Assessment

Rating: fair

The contract was awarded as a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. The final value of $13.4M needs to be assessed against the scope of work and market rates for similar remediation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure might incentivize cost overruns if not closely monitored.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting competitive pricing. The final cost will determine the ultimate taxpayer impact.

Public Impact

Environmental cleanup services are critical for public health and safety. The long duration of the contract suggests a significant environmental challenge requiring sustained effort. The specific location of the cleanup (LAKE CITY AAP, JACKSON, MISSOURI) may have local environmental implications. The contract type (Cost Plus Fixed Fee) warrants scrutiny to ensure cost efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Remediation Services within the broader Environmental Services sector. Spending in this sector is driven by regulatory requirements and historical contamination. Benchmarks for similar large-scale cleanup contracts can vary significantly based on the complexity and scale of the environmental hazard.

Small Business Impact

There is no indication that small businesses were involved as prime contractors or significant subcontractors in this award. Further analysis would be needed to determine if small business participation goals were met.

Oversight & Accountability

The long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Army Corps of Engineers to ensure cost control, adherence to scope, and effective environmental remediation.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-defense, mo, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to SHAW ENVIRONMENTAL, INC.. 199812!96CE!0360!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9006 !A!*!0003 !19980625!19980930!028655181!028655181!106521081!N!0LP55!I T CORPORATION !2790 MOSSIDE BLVD !MONROEVILLE !PA!15146!39890!095!29!LAKE CITY AAP !JACKSON !MISSOURI !0001!+000000050000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5000!NOT DISCERNABLE OR CLASSIFIED !8744!5!B!S!*!B!A!*!A !U!U!2!0

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 $13.4 million.

What is the period of performance?

Start: 1998-06-25. End: 2010-12-31.

What specific hazardous substances were addressed, and what was the estimated volume or area requiring cleanup?

The data indicates 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' but does not specify the exact substances or the scale of the contamination. Understanding the nature and extent of the hazard is crucial for evaluating the contract's value and the appropriateness of the $13.4M award.

How were cost efficiencies ensured under the Cost Plus Fixed Fee structure over the 4572-day duration?

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur costs, as the fee is fixed regardless of the actual costs incurred. Ensuring cost efficiencies would rely heavily on stringent government oversight, detailed cost tracking, and performance metrics to prevent unnecessary expenditures over the contract's long lifespan.

What environmental monitoring and reporting mechanisms are in place to verify the effectiveness of the cleanup?

Effective environmental remediation requires comprehensive monitoring and reporting. The contract should include clear deliverables for environmental sampling, analysis, and progress reports to demonstrate the successful removal or containment of hazardous substances and compliance with regulatory standards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the

Address: 11206 THOMPSON AVE, LENEXA, KS, 66219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACW4198D9006

IDV Type: IDC

Timeline

Start Date: 1998-06-25

Current End Date: 2010-12-31

Potential End Date: 2010-12-31 00:00:00

Last Modified: 2023-09-29

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