DoD's $38.2M Remediation Contract with CH2M HILL for Beale AFB Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $38,204,547 ($38.2M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-29

End Date: 2020-09-24

Contract Duration: 3,009 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BEALE AIR FORCE BASE, CALIF

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BEALE AIR FORCE BASE, CALIF Key points: 1. The contract awarded to CH2M HILL CONSTRUCTORS, INC. for remediation services at Beale Air Force Base totals $38.2 million. 2. Awarded under full and open competition, the contract's effectiveness and value are subject to analysis. 3. The duration of the contract (2012-2020) spans a significant period, raising questions about ongoing needs and cost management. 4. The absence of small business participation is noted, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract's firm fixed price structure suggests an attempt to control costs. However, without detailed performance metrics and comparison to similar remediation projects, assessing the true value for money is challenging. The benchmark for remediation services can vary significantly based on site complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a broad solicitation process. This method is generally expected to foster competitive pricing. However, the specific pricing outcomes and whether the lowest price technically acceptable or best value was achieved require further investigation.

Taxpayer Impact: Taxpayer funds were used for environmental remediation. While necessary, the efficiency and cost-effectiveness of this specific contract's execution directly impact the optimal use of these funds.

Public Impact

Environmental cleanup at a major military installation ensures compliance and reduces long-term environmental liabilities. The contract supports critical infrastructure maintenance for national defense readiness. Job creation in the environmental services sector, though potentially concentrated with a large firm. Potential for improved local environmental quality and public health near Beale Air Force Base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration may indicate scope creep or inefficiencies
Limited transparency on specific performance outcomes vs. cost

Positive Signals

Awarded through full and open competition
Firm fixed price contract type
Addresses critical environmental remediation needs

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically environmental remediation. Spending benchmarks in this area are highly variable, depending on the scale and complexity of the environmental challenge, regulatory requirements, and geographic location.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as indicated by 'sb': false. This suggests that opportunities for small business participation in this significant remediation project were missed, potentially limiting economic benefits for smaller enterprises.

Oversight & Accountability

Oversight would typically involve monitoring contract performance, adherence to environmental regulations, and financial accountability. The long duration suggests ongoing oversight was necessary to ensure the remediation met its objectives and stayed within budget.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost inefficiencies due to long contract duration
Lack of documented small business participation
Need for detailed performance metrics to validate value for money
Complexity of environmental remediation can lead to unforeseen costs
Limited public information on specific outcomes and oversight actions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF PERFORMANCE BASED REMEDIATION AT BEALE AIR FORCE BASE, CALIF

Who is the contractor on this award?

The obligated recipient is CH2M HILL CONSTRUCTORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2012-06-29. End: 2020-09-24.

What specific remediation activities were performed, and how did their cost compare to industry standards for similar environmental challenges at military bases?

The contract covered remediation services at Beale Air Force Base. Without detailed task orders and performance reports, a precise cost comparison is difficult. Industry standards for remediation vary widely based on contaminants, site size, and regulatory requirements. A deeper dive into the specific scope of work and independent cost analysis would be needed to benchmark effectively against similar projects.

Were there any performance issues or cost overruns during the contract's extended period, and how were they managed?

The contract's duration of over 8 years (from award in 2012 to completion in 2020) raises questions about potential scope changes or unforeseen challenges. While the firm fixed price aims to cap costs, extended periods can sometimes indicate complexities requiring modifications or additional funding. An analysis of contract modifications and performance reviews would reveal if issues arose and how they were addressed.

How effectively did the full and open competition process ensure the best value was achieved for the taxpayer, considering the contract's scale and duration?

Full and open competition is designed to maximize competition and achieve best value. However, the ultimate effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the responsiveness of potential bidders. For a long-term, complex project like environmental remediation, ensuring the initial competition captured the best long-term value requires careful review of the award decision and any subsequent contract adjustments.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $38,204,547

Exercised Options: $38,204,547

Current Obligation: $38,204,547

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8557

IDV Type: IDC

Timeline