DoD's $24M remediation contract for McClellan AFB awarded to URS Group, Inc. shows long duration and firm fixed price

Contract Overview

Contract Amount: $24,007,988 ($24.0M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-10

End Date: 2023-07-31

Contract Duration: 4,129 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASEWIDE SYSTEM CLOSURES FOR GROUNDWATER AND SOIL PERFORMANCE BASED REMEDIATION AT FORMER MCCLELLAN AFB CA, PROJECT #PRJY20126501 AND PRJY20127251A

Place of Performance

Location: MCCLELLAN, SACRAMENTO County, CALIFORNIA, 95652

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to URS GROUP, INC. for work described as: BASEWIDE SYSTEM CLOSURES FOR GROUNDWATER AND SOIL PERFORMANCE BASED REMEDIATION AT FORMER MCCLELLAN AFB CA, PROJECT #PRJY20126501 AND PRJY20127251A Key points: 1. The contract's duration of over 11 years suggests a complex and long-term environmental challenge. 2. A firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The award was made under full and open competition, implying a robust bidding process. 4. The scale of the project suggests significant environmental cleanup efforts are underway. 5. Performance-based remediation implies a focus on achieving specific environmental outcomes rather than just activities. 6. The contract's value of approximately $24 million over its lifespan warrants scrutiny for cost-effectiveness.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of remediation required. However, a firm fixed-price contract for over 11 years at $24 million suggests a significant undertaking. The price per year averages around $2.1 million, which could be reasonable for extensive environmental remediation, but a detailed cost breakdown and comparison to similar projects at other Air Force bases would be necessary for a definitive value assessment. The lack of specific performance metrics in the provided data makes it difficult to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and ensure fair market value. The fact that a single delivery order was issued under this contract suggests that URS Group, Inc. was selected as the primary contractor through this competitive process, and subsequent work was awarded to them.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, potentially leading to lower costs and better service quality compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, ensuring environmental compliance and site restoration at a former military installation. The services delivered involve groundwater and soil remediation, addressing potential environmental hazards. The geographic impact is focused on McClellan Air Force Base in California, contributing to local environmental health and potentially enabling future land use. While not directly specified, such large-scale remediation projects can indirectly support local economies through employment opportunities for environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of over 11 years raises concerns about potential scope creep or unforeseen complexities that could impact the final cost, despite the firm fixed-price structure.
Without detailed performance metrics, it's difficult to ascertain if the remediation is progressing efficiently and effectively towards its environmental goals.
The lack of specific details on the remediation technologies used makes it hard to assess if the most cost-effective and advanced methods are being employed.

Positive Signals

The firm fixed-price contract structure shifts cost overrun risk to the contractor, URS Group, Inc., which can be advantageous for the government.
Awarding under full and open competition suggests a thorough vetting process and potential for competitive pricing.
The contract's focus on performance-based remediation implies a results-oriented approach, aiming for specific environmental cleanup outcomes.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the Defense industry's environmental management. The market for environmental remediation services is substantial, driven by regulatory requirements and the need to address historical contamination at industrial and military sites. Comparable spending benchmarks for large-scale base closures and environmental cleanup projects can vary widely based on the site's contamination levels, size, and regulatory framework. This contract represents a significant investment in addressing environmental liabilities at a former Air Force installation.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding process. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and project management offices. Accountability measures are inherent in the firm fixed-price and performance-based aspects of the contract, requiring the contractor to meet defined objectives within the agreed price. Transparency is generally facilitated through contract award databases and reporting requirements, though specific oversight reports or Inspector General involvement details are not provided here.

Related Government Programs

Environmental Remediation Services
Base Realignment and Closure (BRAC) Program
Department of Defense Environmental Compliance
Superfund Remediation Projects

Risk Flags

Long contract duration
Potential for unforeseen site conditions
Limited transparency on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to URS GROUP, INC.. BASEWIDE SYSTEM CLOSURES FOR GROUNDWATER AND SOIL PERFORMANCE BASED REMEDIATION AT FORMER MCCLELLAN AFB CA, PROJECT #PRJY20126501 AND PRJY20127251A

Who is the contractor on this award?

The obligated recipient is URS GROUP, 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 $24.0 million.

What is the period of performance?

Start: 2012-04-10. End: 2023-07-31.

What is the track record of URS Group, Inc. in handling similar large-scale environmental remediation projects for the Department of Defense?

URS Group, Inc., now part of AECOM, has a substantial history of performing large-scale environmental remediation and engineering services for government agencies, including the Department of Defense. They have been involved in numerous projects related to base closures, hazardous waste management, and site cleanup across various military installations. Their experience often includes complex soil and groundwater contamination issues, similar to those addressed at McClellan AFB. While specific performance details for every contract are not publicly available, their long-standing presence and numerous awards in this sector suggest a considerable capacity and expertise in managing such complex environmental challenges. Evaluating their performance on this specific contract would require reviewing project milestones, completion reports, and any documented issues or successes.

How does the $24 million cost compare to similar environmental remediation projects at other former Air Force bases?

Comparing the $24 million cost requires understanding the specific scope of work, the nature and extent of contamination, and the remediation technologies employed. Large-scale environmental remediation projects at former military bases can range from tens of millions to hundreds of millions of dollars. For instance, extensive groundwater contamination plumes or complex hazardous waste sites often incur higher costs. The duration of over 11 years for this contract suggests a comprehensive, long-term effort. Without detailed project specifications and comparable data from other bases with similar contamination profiles and remediation goals, a precise benchmark is difficult. However, for a multi-year, comprehensive remediation effort at a major former base, $24 million might be within a reasonable range, contingent on the complexity of the environmental issues.

What are the primary risks associated with a firm fixed-price contract for a project spanning over 11 years?

The primary risks with a firm fixed-price contract over an extended period like 11 years revolve around unforeseen site conditions and potential scope changes. While the contractor assumes the risk of cost overruns, significant discoveries of previously unknown contamination or unexpected geological challenges could lead to contractor requests for contract modifications or claims, potentially increasing the overall cost to the government. Conversely, if the scope of work is underestimated, the contractor might face financial losses, potentially impacting their ability to complete the project to the required standards. Effective project management, clear initial scope definition, and robust change order processes are crucial to mitigate these risks.

How effective is performance-based remediation in achieving environmental cleanup goals compared to traditional input-based contracts?

Performance-based remediation (PBR) is generally considered more effective than traditional input-based contracts because it focuses on achieving specific, measurable environmental outcomes rather than dictating the methods or resources used. This approach incentivizes the contractor to innovate and find the most efficient and effective solutions to meet cleanup targets. For taxpayers, PBR can lead to better value by ensuring that the government pays for results, not just effort. It allows contractors flexibility in how they achieve the goals, potentially leading to faster cleanup times and lower overall costs if they can optimize their processes. However, defining clear, measurable performance metrics and establishing robust monitoring and verification systems are critical for PBR's success.

What is the historical spending pattern for environmental remediation at McClellan AFB prior to this contract?

McClellan Air Force Base has a long history of environmental cleanup efforts due to its extensive industrial operations. Prior to this specific contract (awarded in 2012), significant spending would have occurred under various environmental restoration programs managed by the Air Force. These efforts likely involved site investigations, feasibility studies, and initial remediation actions under different contracts and programs, potentially dating back to the 1980s and 1990s as environmental regulations became more stringent and the base underwent realignment and closure processes. The total historical spending on environmental remediation at McClellan AFB would likely be substantial, encompassing decades of cleanup activities across numerous contaminated sites, with this $24 million contract representing a significant, but not necessarily the entirety, of the long-term investment.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 112 EAST PECAN ST., SUITE 400, SAN ANTONIO, TX, 78205

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

Financial Breakdown

Contract Ceiling: $24,007,988

Exercised Options: $24,007,988

Current Obligation: $24,007,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8587

IDV Type: IDC

Timeline