DoD Awards $182M Remediation Contract for Maywood Superfund Site

Contract Overview

Contract Amount: $182,097,295 ($182.1M)

Contractor: Shaw Environmental, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-12-16

End Date: 2013-12-15

Contract Duration: 1,825 days

Daily Burn Rate: $99.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE CONTRACTOR SHALL PERFORM ALL THE NECESSARY WORK AND SERVICES REQUIRED FOR CONTINUED CONSTRUCTION ACTIVITIES OF REMEDIAL ACTION FOR THE REMOVAL OF RADIOACTIVE CONTAMINATED WASTE LOCATED AT THE MAYWOOD SUPERFUND SITE, MAYWOOD, NEW JERSEY. THIS TASK ORDER AWARD IS FOR THE NEGOTIATED WORK AND SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK IN THE REQUEST FOR PROPOSAL DATED 12 JUNE 2008, GENERAL DECISION NUMBER NJ080003 DATED 5 DECEMBER 2008, SERVICE CONTRACT ACT WAGE DETERMINATION NUMBER 2005-2347 REVISION 6 DATED 11 SEPTEMBER 2008 AND WITH THE ATTACHED AUTHORITY TO PROCEED #255 DATED 10 DECEMBER 2008.

Place of Performance

Location: MAYWOOD, BERGEN County, NEW JERSEY, 07607

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $182.1 million to SHAW ENVIRONMENTAL, INC. for work described as: THE CONTRACTOR SHALL PERFORM ALL THE NECESSARY WORK AND SERVICES REQUIRED FOR CONTINUED CONSTRUCTION ACTIVITIES OF REMEDIAL ACTION FOR THE REMOVAL OF RADIOACTIVE CONTAMINATED WASTE LOCATED AT THE MAYWOOD SUPERFUND SITE, MAYWOOD, NEW JERSEY. THIS TASK ORDER AWARD IS FOR THE NEGOTI… Key points: 1. Significant investment in environmental cleanup at a Superfund site. 2. Contract awarded via full and open competition, suggesting market availability. 3. Potential for long-term environmental benefits and public health protection. 4. Remediation services sector is critical for addressing legacy contamination.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed tightly. The awarded amount is substantial, and without a clear fixed price or detailed cost breakdown, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing, but the CPFF structure requires careful oversight to ensure cost efficiency.

Taxpayer Impact: Taxpayer funds are allocated for environmental cleanup, aiming to mitigate long-term health and ecological risks, which can be a sound investment if managed effectively.

Public Impact

Protects public health by removing hazardous radioactive waste. Restores environmental quality at a contaminated Superfund site. Addresses legacy industrial pollution impacting the local community. Ensures compliance with federal environmental regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical area for addressing legacy contamination from industrial and military activities. Spending in this sector is driven by regulatory requirements and the need for long-term environmental stewardship.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Army to ensure costs are reasonable and the fixed fee is earned appropriately. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-defense, nj, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.1 million to SHAW ENVIRONMENTAL, INC.. THE CONTRACTOR SHALL PERFORM ALL THE NECESSARY WORK AND SERVICES REQUIRED FOR CONTINUED CONSTRUCTION ACTIVITIES OF REMEDIAL ACTION FOR THE REMOVAL OF RADIOACTIVE CONTAMINATED WASTE LOCATED AT THE MAYWOOD SUPERFUND SITE, MAYWOOD, NEW JERSEY. THIS TASK ORDER AWARD IS FOR THE NEGOTIATED WORK AND SERVICES IN ACCORDANCE WITH THE STATEMENT OF WORK IN THE REQUEST FOR PROPOSAL DATED 12 JUNE 2008, GENERAL DECISION NUMBER NJ080003 DATED 5 DECEMBER 2008, SERVICE CONTRACT ACT WAGE DETERMINATION NUMBER 2005-

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL, 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 $182.1 million.

What is the period of performance?

Start: 2008-12-16. End: 2013-12-15.

What is the estimated total cost of the remediation project, considering the CPFF structure and potential for cost growth?

The awarded amount is $182,009,729.46. However, as a Cost Plus Fixed Fee (CPFF) contract, the final cost is subject to actual allowable costs incurred by the contractor, plus a fixed fee. Without detailed cost reports and oversight, it's difficult to pinpoint the exact final cost. The CPFF structure means the government pays for all approved costs plus the negotiated fee, making robust cost monitoring essential to prevent overruns beyond the initial estimate.

What are the specific risks associated with the long-term management and effectiveness of radioactive waste removal at this site?

Risks include potential for incomplete removal, long-term containment failures, unforeseen geological or environmental conditions impacting the remediation process, and contractor performance issues over the five-year duration. Ensuring the long-term stability of the remediated site and preventing future contamination spread are critical. Continuous monitoring and adherence to strict safety protocols are paramount to mitigate these risks effectively.

How effectively does this contract address the long-term environmental and public health impacts of the radioactive contamination?

The contract aims to directly address the immediate threat by removing radioactive waste, which is a crucial step for public health and environmental recovery. However, the long-term effectiveness depends on the thoroughness of the remediation, the stability of the site post-cleanup, and ongoing environmental monitoring. The success hinges on the contractor's execution and the agency's oversight to ensure all contaminants are managed according to stringent standards.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC

Address: 1 PENN PLZ, NEW YORK, NY, 10119

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

Financial Breakdown

Contract Ceiling: $182,097,295

Exercised Options: $182,097,295

Current Obligation: $182,097,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DACW4199D9001

IDV Type: IDC

Timeline

Start Date: 2008-12-16

Current End Date: 2013-12-15

Potential End Date: 2013-12-15 00:00:00

Last Modified: 2024-12-20

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