Department of Defense awards $62.7M contract for hazardous substance removal services to Parsons Government Services Inc

Contract Overview

Contract Amount: $62,739,592 ($62.7M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2000-11-22

End Date: 2006-12-31

Contract Duration: 2,230 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200106!000041!2100!CA05 !USA ENGINEER DISTRICT, SACRAMNTO!DACA0500D0003 !A!N!*!N!0004 !20001122!20050713!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!25198!053!06!FORT ORD !MONTEREY !CALIFORNIA!+000000450000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!562998!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!J!2!005!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $62.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: 200106!000041!2100!CA05 !USA ENGINEER DISTRICT, SACRAMNTO!DACA0500D0003 !A!N!*!N!0004 !20001122!20050713!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!25198!053!06!FORT ORD !MONTE… Key points: 1. Contract awarded for hazardous substance removal, cleanup, and disposal services. 2. Significant value suggests a large-scale or long-term environmental remediation effort. 3. Full and open competition indicates a broad search for qualified contractors. 4. Contract duration of approximately 6 years implies ongoing environmental management needs. 5. The contract is associated with the Base Realignment and Closure (BRAC) environmental program. 6. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $62.7 million over approximately six years represents a substantial investment in environmental remediation. While specific benchmarks for hazardous substance removal are difficult to ascertain without more granular data on the scope of work, the firm fixed-price nature of the contract suggests an effort to manage costs predictably. Comparing this to other large-scale environmental cleanup contracts would provide further context on its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This competitive process is designed to ensure the government receives the best value by allowing a wide range of qualified contractors to submit proposals. The presence of multiple bidders typically drives down prices and encourages innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to more cost-effective solutions for hazardous substance removal and cleanup.

Public Impact

The primary beneficiaries are likely federal agencies responsible for environmental compliance and cleanup, particularly those involved in BRAC initiatives. Services delivered include the removal, cleanup, and disposal of hazardous substances, crucial for environmental protection and public health. The contract's geographic impact is tied to the specific locations requiring hazardous substance remediation, potentially including former military bases. Workforce implications include the need for specialized personnel in environmental engineering, hazardous materials handling, and waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, despite the fixed-price structure.
Ensuring contractor compliance with stringent environmental regulations and safety protocols is critical.
Long-term monitoring and potential for future remediation needs may extend beyond the current contract period.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process for qualified contractors.
The contract addresses critical environmental cleanup needs, contributing to public health and safety.
Association with the BRAC program indicates a focus on addressing legacy environmental issues from base closures.

Sector Analysis

This contract falls within the environmental services sector, specifically focusing on hazardous substance management. The market for environmental remediation is significant, driven by regulatory requirements, industrial activity, and legacy contamination from past practices. This contract, linked to the Department of Defense's Base Realignment and Closure (BRAC) program, addresses a specific but critical area of environmental cleanup. Comparable spending benchmarks would involve looking at other large-scale hazardous waste cleanup contracts awarded by federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, given the scale and specialized nature of hazardous substance removal, large prime contractors often utilize a network of subcontractors, which may include small businesses with specific expertise. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, the Department of the Army, through its relevant district offices (e.g., Sacramento Engineer District). Accountability measures would include performance reviews, adherence to contract terms, and compliance with environmental regulations. Transparency is generally facilitated through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Base Realignment and Closure (BRAC) Program
Department of Defense Environmental Contracts
Federal Environmental Cleanup Programs

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring strict adherence to environmental regulations and safety protocols.
Long-term environmental liability management beyond contract scope.
Contractor's financial stability and capacity for large-scale remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.7 million to PARSONS GOVERNMENT SERVICES INC.. 200106!000041!2100!CA05 !USA ENGINEER DISTRICT, SACRAMNTO!DACA0500D0003 !A!N!*!N!0004 !20001122!20050713!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 WEST WALNUT STREET !PASADENA !CA!91124!25198!053!06!FORT ORD !MONTEREY !CALIFORNIA!+000000450000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!562998!*!*!5!B!S! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES 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 $62.7 million.

What is the period of performance?

Start: 2000-11-22. End: 2006-12-31.

What is the historical spending pattern for hazardous substance removal and cleanup services by the Department of the Army?

The Department of the Army, like other branches of the Department of Defense, has a consistent history of awarding significant contracts for environmental services, including hazardous substance removal and cleanup. This spending is often driven by regulatory compliance mandates (e.g., RCRA, CERCLA) and the ongoing management of legacy contamination at current and former military installations. The Base Realignment and Closure (BRAC) program, in particular, has necessitated substantial environmental cleanup efforts over several decades. While specific historical spending figures for this exact service category require detailed database queries, annual outlays for environmental remediation by the Army typically run into hundreds of millions, if not billions, of dollars, reflecting the scale and complexity of managing environmental liabilities across its vast real estate portfolio. This particular contract, valued at over $62 million, aligns with the substantial, long-term investments required for such critical environmental work.

How does the awarded price of $62.7 million compare to similar hazardous substance removal contracts?

Comparing the $62.7 million contract value requires context regarding the scope, duration, and specific services rendered. Hazardous substance removal and cleanup can vary dramatically in cost based on the type and volume of contaminants, the complexity of the site, and the required remediation technologies. Contracts for large-scale Superfund site cleanups or extensive military base remediation can easily reach hundreds of millions or even billions of dollars over many years. This $62.7 million contract, awarded over approximately six years, suggests a significant but potentially localized or specific phase of cleanup. To provide a precise comparison, one would need to identify contracts with similar service descriptions (e.g., hazardous waste disposal, site remediation, environmental consulting) and similar contract durations awarded by federal agencies like the EPA or other DoD components. Without such direct comparisons, it's reasonable to infer that this represents a substantial project within the environmental services domain.

What are the key performance indicators (KPIs) typically used to evaluate contractors for hazardous substance removal services?

For hazardous substance removal and cleanup contracts, Key Performance Indicators (KPIs) are critical for ensuring safety, environmental compliance, and project success. Common KPIs include adherence to safety protocols (e.g., incident rates, lost time injuries), environmental compliance (e.g., meeting discharge limits, proper waste manifesting and disposal), project schedule adherence (e.g., milestone completion, on-time delivery), cost control (e.g., staying within budget, efficient resource utilization), and quality of work (e.g., effectiveness of remediation techniques, accuracy of reporting). For this specific contract, KPIs would likely focus on the successful and safe removal and disposal of identified hazardous substances, compliance with all relevant federal, state, and local environmental regulations, and timely completion of defined project phases. The government would monitor these KPIs through regular progress reports, site inspections, and performance evaluations.

What is the track record of Parsons Government Services Inc. in performing similar environmental remediation contracts?

Parsons Corporation, including its government services arm, has a long-standing and extensive track record in providing a wide range of engineering, construction, and technical services, including significant environmental remediation projects. They have been involved in complex cleanup efforts for various government agencies, including the Department of Defense and the Environmental Protection Agency (EPA), often dealing with hazardous waste, contaminated sites, and infrastructure support. Their experience spans decades and includes work on large-scale projects such as Superfund sites, military base cleanups (often related to BRAC), and industrial facility decommissioning. While specific performance details for every contract are not publicly available, Parsons is generally recognized as a major player in the federal environmental services market, possessing the technical expertise and capacity to handle challenging remediation tasks. Their history suggests a capability to manage contracts of this magnitude and complexity.

What are the potential risks associated with a firm fixed-price contract for hazardous substance removal?

While a firm fixed-price (FFP) contract is designed to provide cost certainty for the government, it carries inherent risks, particularly in complex fields like hazardous substance removal. The primary risk is that unforeseen conditions at the site—such as the discovery of more extensive contamination than initially identified, unexpected geological challenges, or the need for specialized handling of newly identified hazardous materials—could significantly increase the contractor's costs. If these costs exceed the fixed price, the contractor may incur substantial losses, potentially impacting their financial stability or leading to disputes. Conversely, if the contractor significantly underestimates the work, they might cut corners on safety or thoroughness to protect their profit margin, which is a critical concern in hazardous material handling. Effective risk management by the government involves thorough site characterization before contract award and robust oversight during performance to ensure safety and quality are not compromised.

How does the Base Realignment and Closure (BRAC) program influence the demand for hazardous substance removal services?

The Base Realignment and Closure (BRAC) program significantly drives the demand for hazardous substance removal and cleanup services. BRAC initiatives involve the closure or consolidation of military installations, which often requires extensive environmental assessments and remediation of contamination resulting from decades of military operations. This contamination can include hazardous substances, pollutants, and munitions. Consequently, BRAC has been a major source of federal contracts for environmental consulting, site investigation, remediation, and waste disposal. The need to return contaminated land to a safe and usable state for public or commercial purposes necessitates thorough cleanup efforts. Contracts like the one awarded to Parsons Government Services Inc. are directly linked to fulfilling these BRAC environmental obligations, ensuring that former military sites are remediated according to stringent environmental standards before being transferred.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 100 W WALNUT ST, PASADENA, CA, 28

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

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA0500D0003

IDV Type: IDC

Timeline