Army awards $16.2M for environmental restoration in Alaska, highlighting long-term cleanup needs

Contract Overview

Contract Amount: $16,238,315 ($16.2M)

Contractor: Jacobs Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 2000-09-25

End Date: 2003-07-02

Contract Duration: 1,010 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200012!2100!000342!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!000527 !20000925!19980625!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!16530!013!02!COLD BAY !ALEUTIANS EAST !ALASKA !0001!+000000626988!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !1ZDE!DEF ENVIR & RESTORA PRG (DERP)!8744!5!B!S!B!B!A!*!A !Y!U!2!008!B!* !D!Y!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: COLD BAY, ALEUTIANS EAST County, ALASKA, 99571

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to JACOBS ENGINEERING GROUP INC for work described as: 200012!2100!000342!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!000527 !20000925!19980625!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!16530!013!02!COLD BAY !ALE… Key points: 1. Contract awarded for environmental restoration, indicating a focus on long-term site remediation. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract (over 2.5 years) points to the complexity and scale of the restoration work. 4. The awardee, Jacobs Engineering Group Inc., has a significant presence in government contracting. 5. The work is categorized under Remediation Services, a critical area for environmental compliance and safety. 6. The contract's value of over $16 million reflects substantial investment in environmental cleanup.

Value Assessment

Rating: good

The contract value of $16.2 million for environmental restoration services appears reasonable given the scope and duration. While direct comparisons are difficult without more specific service details, the cost-plus-fixed-fee structure allows for flexibility in addressing unforeseen environmental challenges. The contract's duration of over 1000 days suggests a complex, multi-year effort, which is typical for large-scale environmental remediation projects. Benchmarking against similar large-scale environmental cleanup contracts would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 8 bids suggests a healthy level of interest and competition for this type of environmental restoration work. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment surrounding the affected sites in Alaska. Services delivered include environmental restoration activities, likely involving site assessment, cleanup, and remediation. The geographic impact is focused on Cold Bay, Alaska, within the Aleutians East Borough. Workforce implications include the potential for skilled labor in environmental engineering, remediation, and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not managed diligently.
Environmental remediation projects can face unforeseen complexities and delays, impacting timelines and budgets.
Ensuring long-term environmental protection and compliance requires robust oversight throughout the project lifecycle.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Jacobs Engineering Group Inc., is a large, established firm with experience in complex projects.
The contract addresses critical environmental restoration needs for the Department of Defense.

Sector Analysis

This contract falls within the environmental consulting and remediation services sector, a significant market driven by regulatory compliance and historical site contamination. The Department of Defense is a major client in this sector, undertaking numerous projects to address environmental liabilities at military installations. The market size for environmental remediation services is substantial, with government contracts forming a key segment. This specific award contributes to the broader effort of managing and mitigating environmental impacts from past military activities.

Small Business Impact

The contract was awarded to Jacobs Engineering Group Inc., a large business. There is no explicit indication of small business set-asides for this specific award. However, large prime contractors are often required to subcontract a portion of their work to small businesses. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem in Alaska.

Oversight & Accountability

The contract is managed by the Department of the Army, likely through the U.S. Army Corps of Engineers, which has established oversight mechanisms for environmental projects. The cost-plus-fixed-fee contract type necessitates close monitoring of costs and performance. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Environmental Restoration, Army (ER,A)
Defense Environmental Restoration Program (DERP)
Hazardous Waste Management
Site Remediation Services
Federal Environmental Cleanup Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract requires diligent oversight to manage costs.
Environmental remediation projects can be subject to unforeseen delays and cost increases.
Remote location in Alaska may present logistical and operational challenges.
Long-term monitoring and maintenance may be required post-remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to JACOBS ENGINEERING GROUP INC. 200012!2100!000342!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!000527 !20000925!19980625!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!16530!013!02!COLD BAY !ALEUTIANS EAST !ALASKA !0001!+000000626988!N!N!000000000000!Y300!RESTORATION ACTIVITIES !C2 !CONSTRUCTION !1ZDE!DEF ENVIR & RESTORA PRG (DERP)!8744!5!B!S!B!B!A!*!A !Y!U!

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP 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 $16.2 million.

What is the period of performance?

Start: 2000-09-25. End: 2003-07-02.

What is the historical spending pattern for environmental restoration contracts awarded by the Department of the Army in Alaska?

Analyzing historical spending for environmental restoration by the Department of the Army in Alaska reveals a consistent and significant investment in addressing environmental liabilities. Over the past decade, the Army has awarded numerous contracts for services ranging from site assessment and cleanup to long-term monitoring and restoration. Spending often fluctuates based on the identification of new contamination, the progression of ongoing projects, and specific program funding allocations, such as those under the Defense Environmental Restoration Program (DERP). Contracts in this region are frequently large in value due to the challenging environmental conditions, remote locations, and the scale of historical activities. The $16.2 million awarded to Jacobs Engineering Group Inc. for restoration activities in Cold Bay aligns with the typical magnitude of such projects, reflecting the ongoing commitment to environmental stewardship and compliance within the state.

How does the cost-plus-fixed-fee (CPFF) contract structure impact the value for money in this environmental restoration project?

The Cost-Plus-Fixed-Fee (CPFF) contract structure, used for this $16.2 million environmental restoration award, offers flexibility for projects with uncertain scopes, such as environmental cleanup. The government pays the contractor's actual allowable costs plus a fixed fee representing profit. This structure is beneficial when the exact nature and extent of the work are not fully known at the outset, allowing for adjustments as site conditions are uncovered. However, it can also present a risk of cost overruns if not managed rigorously, as the contractor's incentive is to incur costs to complete the work, while the government bears the primary cost risk. Value for money is achieved through effective government oversight, clear performance metrics, and competitive pricing of the fixed fee. Benchmarking the fixed fee against industry standards for similar projects is crucial for ensuring fair pricing.

What are the specific environmental challenges and restoration activities anticipated in Cold Bay, Alaska, under this contract?

Cold Bay, Alaska, presents unique environmental challenges due to its remote location, harsh climate, and historical use, potentially including military activities. Anticipated restoration activities under this contract likely involve addressing contamination from past operations, which could include petroleum hydrocarbons, heavy metals, or other hazardous substances in soil and groundwater. The contract's focus on 'Restoration Activities' suggests a scope that goes beyond simple assessment, potentially encompassing excavation, treatment, containment, and long-term monitoring. The challenging Arctic environment necessitates specialized equipment, logistical planning, and adherence to strict environmental regulations to ensure effective and sustainable remediation. The $16.2 million award reflects the complexity and cost associated with undertaking such work in this demanding region.

What is the track record of Jacobs Engineering Group Inc. in performing similar environmental restoration contracts for the Department of Defense?

Jacobs Engineering Group Inc. has a substantial track record of performing complex engineering, procurement, and construction (EPC) services, including extensive work in environmental remediation for government agencies, particularly the Department of Defense. They have been involved in numerous large-scale projects addressing hazardous waste, site cleanup, and environmental restoration at military installations worldwide. Their experience often includes navigating challenging regulatory environments and working in remote or difficult conditions, similar to those found in Alaska. The company's history suggests a capacity to manage significant budgets and complex technical requirements associated with environmental restoration. Past performance evaluations and contract awards provide evidence of their capabilities in delivering such services, making them a qualified bidder for this type of work.

How does this contract compare in scope and value to other federal environmental restoration efforts?

This $16.2 million contract for environmental restoration in Cold Bay, Alaska, is a significant award, but it fits within the broader landscape of federal environmental restoration spending. The Department of Defense, through programs like the Defense Environmental Restoration Program (DERP), allocates billions of dollars annually to address contamination at current and former military sites. Contracts can range from tens of millions to hundreds of millions of dollars, depending on the size and complexity of the site, the type of contaminants, and the remediation technologies employed. While this specific contract is substantial for a single project in a particular location, it represents one component of a much larger federal effort to manage environmental liabilities across numerous agencies and sites nationwide. Its value is comparable to many mid-to-large-sized environmental remediation contracts awarded by federal agencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 155 N LAKE AVE, PASADENA, CA, 91101

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: DACA8595D0018

IDV Type: IDC

Timeline