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
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (4572 days) requires sustained oversight.
- Potential for environmental risks if cleanup is not thorough.
Positive Signals
- Awarded through full and open competition.
- Services address critical environmental cleanup needs.
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
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific details on hazardous substances and cleanup scope.
- Potential for cost overruns without strong oversight.
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 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: 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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