Army Awards $915.7M for Hazardous Waste Services to Bechtel National, Inc
Contract Overview
Contract Amount: $915,714,326 ($915.7M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-13
End Date: 2022-09-30
Contract Duration: 6,591 days
Daily Burn Rate: $138.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200412!001576!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0005 ! !20040913!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000002005000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!V!2!002!A! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: PUEBLO, PUEBLO County, COLORADO, 81006
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $915.7 million to BECHTEL NATIONAL, INC. for work described as: 200412!001576!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0005 ! !20040913!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN … Key points: 1. Significant contract value for hazardous waste management services. 2. Bechtel National, Inc. is the primary contractor. 3. Contract duration spans over 18 years, indicating long-term need. 4. Full and open competition was utilized, suggesting a competitive bidding process.
Value Assessment
Rating: good
The total award amount of $915.7 million over an extended period suggests a substantial investment. Benchmarking against similar large-scale hazardous waste contracts would be necessary for a precise value assessment, but the scale implies significant resource allocation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure fair market value.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment among qualified contractors.
Public Impact
Ensures continued environmental cleanup and hazardous waste management for the U.S. Army. Supports critical infrastructure and operational readiness by addressing environmental liabilities. Potential for job creation in the environmental services sector. Long-term commitment may indicate stable demand for specialized environmental services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration could lead to scope creep or price escalation if not managed carefully.
- Reliance on a single contractor for such a long period might reduce future competitive pressure.
- Potential for unforeseen environmental challenges impacting costs.
Positive Signals
- Full and open competition suggests a robust procurement process.
- Significant contract value indicates a critical and ongoing need for these services.
- Long-term award provides stability for contractor and ensures service continuity.
Sector Analysis
This contract falls within the environmental services sector, specifically hazardous waste treatment and disposal. Spending in this area is often driven by regulatory compliance and legacy site remediation, with significant government contracts awarded for large-scale projects.
Small Business Impact
The data indicates this is a large prime contract awarded to Bechtel National, Inc. There is no specific information provided regarding subcontracting opportunities for small businesses within this award, but large federal contracts often include provisions for small business participation.
Oversight & Accountability
The contract's long duration and substantial value necessitate robust oversight to ensure performance, cost control, and adherence to environmental regulations. The Department of the Army's contracting activity suggests established oversight mechanisms are in place.
Related Government Programs
- Hazardous Waste Treatment and Disposal
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of price escalation.
- Potential for contractor lock-in over an extended period.
- Environmental remediation projects can face unforeseen complexities and cost overruns.
- Lack of specific details on small business subcontracting.
- Need for robust oversight due to high value and long term.
Tags
hazardous-waste-treatment-and-disposal, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $915.7 million to BECHTEL NATIONAL, INC.. 200412!001576!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0005 ! !20040913!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE STREET !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000002005000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !562211!E! !5!B!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $915.7 million.
What is the period of performance?
Start: 2004-09-13. End: 2022-09-30.
What specific hazardous substances are covered under this contract, and have the costs been benchmarked against similar remediation projects?
The contract specifies 'Hazardous Waste Treatment and Disposal Services' (NAICS 562211). While the exact substances are not detailed, the broad category implies a range of hazardous materials. Benchmarking against similar large-scale government remediation projects would be crucial to validate the $915.7 million award. Without specific cost breakdowns per substance or service type, a definitive value assessment is challenging.
Given the 18-year duration, what mechanisms are in place to mitigate the risk of price inflation and ensure continued cost-effectiveness?
The contract's extended duration necessitates proactive risk management. Mechanisms like fixed-price components, regular price reviews, and performance-based incentives could help mitigate inflation. The government should ensure clear contract clauses address potential cost escalations due to unforeseen circumstances or changes in regulatory requirements, and monitor contractor performance closely.
How effectively has Bechtel National, Inc. performed on previous hazardous waste contracts, and what is the track record for environmental compliance?
Assessing Bechtel National, Inc.'s past performance and environmental compliance record is vital for understanding the effectiveness of this award. A review of their history with similar government contracts, including any past issues with performance, safety, or regulatory violations, would provide insight into the likelihood of successful execution and adherence to environmental standards throughout the contract's lifespan.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 50 BEALE ST, SAN FRANCISCO, CA, 94105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,266
Exercised Options: $43,266
Current Obligation: $915,714,326
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAA0902D0025
IDV Type: IDC
Timeline
Start Date: 2004-09-13
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 12:09:00
Last Modified: 2024-09-16
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