Army's $963.7M Fort Devens environmental cleanup contract awarded to Weston Solutions Inc. shows potential value concerns

Contract Overview

Contract Amount: $14,175,460 ($14.2M)

Contractor: Weston Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2001-06-21

End Date: 2008-12-31

Contract Duration: 2,750 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE

Sector: Construction

Official Description: 200109!000102!2100!CA33 !USA ENGINEER DISTRICT, NEW ENGLA!DACW3300D0007 !A!N!*!N!0005 !20010621!20011022!963750435!963750435!044519429!N!ROY F WESTON, INC !1 WALL STREET !MANCHESTER !NH!03101!24540!017!25!FORT DEVENS !MIDDLESEX !MASS !+000000200863!N!N!000000000000!Z300!MAINT/RESTORATION ACTIVITIES !C2 !CONSTRUCTION !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!562910!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!V!2!006!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: AYER, MIDDLESEX County, MASSACHUSETTS, 01432

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to WESTON SOLUTIONS INC for work described as: 200109!000102!2100!CA33 !USA ENGINEER DISTRICT, NEW ENGLA!DACW3300D0007 !A!N!*!N!0005 !20010621!20011022!963750435!963750435!044519429!N!ROY F WESTON, INC !1 WALL STREET !MANCHESTER !NH!03101!24540!017!25!FORT DEVENS !MIDDL… Key points: 1. The contract's cost-plus-incentive structure may lead to cost overruns if not closely managed. 2. With only 6 bidders, the competition level might not have driven the most competitive pricing. 3. The long duration of the contract (over 7 years) increases the risk of scope creep and cost escalation. 4. This contract falls under Base Realignment & Closure (BRAC) environmental activities, a common but complex area for remediation. 5. The contractor, Weston Solutions Inc., has a significant track record in environmental services, suggesting technical capability. 6. The contract's value is substantial, indicating a significant environmental challenge at Fort Devens.

Value Assessment

Rating: fair

The total award amount of $963.7 million for environmental remediation services over nearly 8 years presents a significant investment. Benchmarking this against similar large-scale environmental cleanup contracts is challenging without more granular data on the specific remediation activities and site conditions. However, the cost-plus-incentive fee structure, while allowing for flexibility, inherently carries a risk of cost escalation if performance incentives are not tightly aligned with cost control. The initial obligated amount was significantly less than the total award, suggesting phased funding and potential for future adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bids received. While six bidders indicate a degree of competition, it is on the lower end for a contract of this magnitude and complexity. A higher number of bidders could potentially have led to more aggressive pricing and a wider range of technical solutions. The specific details of the evaluation process and the relative strengths of the bids are not publicly available, making it difficult to definitively assess if the competition achieved optimal price discovery.

Taxpayer Impact: For taxpayers, six bidders suggest a reasonable, though not exhaustive, level of competition. This likely prevented a sole-source situation but may have left potential savings on the table compared to a more robustly competed contract.

Public Impact

The primary beneficiaries are the Department of the Army and the Fort Devens installation, receiving environmental remediation services. Services delivered include the cleanup and restoration of environmentally impacted areas at the former military base. The geographic impact is concentrated at Fort Devens, Massachusetts, addressing long-term environmental liabilities. Workforce implications include employment for environmental scientists, engineers, technicians, and construction labor involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-incentive fee structure can incentivize cost overruns if not managed meticulously.
Long contract duration increases the risk of scope creep and potential for unforeseen cost increases.
Limited number of bidders (6) may indicate less competitive pricing than a more robust competition.
The sheer scale of the cleanup effort implies significant complexity and potential for unexpected challenges.
The contract was awarded in 2001, and the final delivery date was extended to 2008, indicating potential delays or scope adjustments.

Positive Signals

Awarded under full and open competition, ensuring a broad initial search for qualified contractors.
The contractor, Weston Solutions Inc. (formerly Roy F. Weston, Inc.), has extensive experience in environmental remediation.
The contract addresses critical environmental restoration needs at a former military installation.
The cost-plus-incentive fee structure, if managed well, can align contractor and government interests towards efficient completion.
The contract was part of the Base Realignment and Closure (BRAC) initiative, indicating a structured approach to environmental closure.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader Construction and Engineering services market. The federal government is a major client for such services, particularly for managing legacy environmental issues at military bases and other federal facilities. The market for large-scale environmental remediation is specialized, often dominated by a few large firms with the expertise and capacity to handle complex projects. Comparable spending benchmarks are difficult to establish without detailed project scope, but contracts of this nature often run into hundreds of millions of dollars due to the scale and technical demands of hazardous waste cleanup and site restoration.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The nature and scale of the work suggest it would likely be beyond the capacity of most small businesses to perform independently. However, the prime contractor, Weston Solutions Inc., may engage small businesses as subcontractors for specialized services or labor, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Army Corps of Engineers, specifically the New England District, which awarded the contract. Accountability measures are embedded within the cost-plus-incentive fee structure, which ties a portion of the contractor's profit to performance against cost, schedule, and technical targets. Transparency is generally limited for specific contract performance details, but contract awards and modifications are publicly reported. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Realignment and Closure (BRAC) Program Environmental Activities
Department of Defense Environmental Restoration Account
Superfund Remedial Action Contracts
Environmental Services Contracts
Hazardous Waste Remediation

Risk Flags

Potential for cost overruns due to CPIF structure.
Risk of scope creep given the long duration and complex nature of environmental remediation.
Limited competition may have impacted optimal price discovery.
Extended performance period suggests potential challenges in initial planning or execution.
Complexity of environmental remediation can lead to unforeseen technical difficulties.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to WESTON SOLUTIONS INC. 200109!000102!2100!CA33 !USA ENGINEER DISTRICT, NEW ENGLA!DACW3300D0007 !A!N!*!N!0005 !20010621!20011022!963750435!963750435!044519429!N!ROY F WESTON, INC !1 WALL STREET !MANCHESTER !NH!03101!24540!017!25!FORT DEVENS !MIDDLESEX !MASS !+000000200863!N!N!000000000000!Z300!MAINT/RESTORATION ACTIVITIES !C2 !CONSTRUCTION !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!562910!*!*!5!B!S! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS 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 $14.2 million.

What is the period of performance?

Start: 2001-06-21. End: 2008-12-31.

What was the specific nature of the environmental contamination at Fort Devens that necessitated this large contract?

Fort Devens, a former U.S. Army base in Massachusetts, underwent extensive environmental investigations and remediation due to historical activities including munitions storage, fuel handling, industrial operations, and waste disposal. Contaminants of concern likely included volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs), petroleum hydrocarbons, heavy metals, and potentially per- and polyfluoroalkyl substances (PFAS). The remediation efforts would have involved characterizing the extent of contamination in soil, groundwater, and surface water, followed by the implementation of various cleanup technologies such as soil excavation and disposal, in-situ treatment, groundwater pump-and-treat systems, and long-term monitoring to meet stringent environmental standards before property transfer or reuse.

How did the cost-plus-incentive fee (CPIF) structure perform in practice for this contract?

The Cost-Plus-Incentive Fee (CPIF) structure for this contract aimed to incentivize Weston Solutions Inc. to control costs while meeting performance targets. Under a CPIF contract, the final cost is shared between the government and the contractor based on a pre-negotiated formula, with incentives tied to achieving specific cost, schedule, or performance goals. While CPIF can promote efficiency, its effectiveness hinges on the clarity and attainability of the incentive targets and the rigor of government oversight. Without detailed performance reports and final cost data, it's difficult to definitively assess how well the CPIF structure worked in practice. However, the significant total award suggests the project scope was substantial, and managing costs effectively within such a framework is always a challenge.

What were the key performance indicators (KPIs) used to evaluate Weston Solutions Inc.'s performance?

Key performance indicators (KPIs) for environmental remediation contracts typically focus on several critical areas. These often include meeting established cleanup standards within specified timeframes, adherence to environmental regulations and permit requirements, effective management of hazardous materials, successful implementation of chosen remediation technologies, and maintaining a strong safety record. For this specific contract, KPIs would likely have been detailed in the contract's Performance Work Statement (PWS) and could have included metrics related to contaminant reduction levels in soil and groundwater, project milestones achieved, waste disposal volumes, and compliance with reporting requirements. The incentive fee component would have been directly linked to the contractor's performance against these defined KPIs.

Were there any significant contract modifications or change orders issued during the contract's lifecycle?

Large, long-duration contracts like this one, especially those involving complex environmental remediation, frequently undergo modifications. These can arise from several factors: evolving understanding of site contamination, changes in regulatory requirements, unforeseen site conditions, adjustments to project scope, or contractor-proposed efficiencies. While the provided data indicates an initial award date and a final delivery date, it doesn't detail the number or value of modifications. However, it is highly probable that several modifications were issued over the contract's extended period to accommodate the dynamic nature of environmental cleanup projects at a large former military installation like Fort Devens.

What is the historical spending trend for environmental remediation at Fort Devens or similar BRAC sites?

Federal spending on environmental remediation at military installations, particularly those undergoing Base Realignment and Closure (BRAC), has been substantial over several decades. Fort Devens, like many BRAC sites, required significant investment to address legacy contamination. Historical spending trends show a consistent allocation of funds towards environmental cleanup, often spanning many years and involving multiple contracts for different phases or areas of a site. The total amount awarded for this single contract ($963.7 million) reflects the significant scale of environmental liabilities associated with large military bases. Spending patterns are influenced by congressional appropriations, regulatory mandates, and the pace of site investigations and remediation technologies.

How does the $963.7 million award compare to other large environmental remediation contracts awarded by the DoD?

The $963.7 million award for environmental remediation at Fort Devens is a substantial sum, placing it among the larger contracts for such services awarded by the Department of Defense. While specific comparisons require detailed analysis of contract scope, duration, and remediation complexity, contracts in the hundreds of millions of dollars are not uncommon for large-scale environmental cleanup efforts at major military installations or complex industrial sites. The DoD manages numerous environmental restoration programs across the country, and contracts of this magnitude are typically associated with extensive contamination issues requiring long-term, multi-faceted cleanup strategies. This contract's value is indicative of the significant environmental challenges addressed.

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 RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

Address: 45 CONSTITUTION AVE STE 100, CONCORD, NH, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Agricultural Cooperative, Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACW3300D0007

IDV Type: IDC

Timeline