DoD's $104M environmental remediation contract awarded to Amentum Environment & Energy Inc. shows fair value
Contract Overview
Contract Amount: $104,338,921 ($104.3M)
Contractor: Amentum Environment & Energy Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-09
End Date: 2009-01-30
Contract Duration: 1,239 days
Daily Burn Rate: $84.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $104.3 million to AMENTUM ENVIRONMENT & ENERGY INC. for work described as: Key points: 1. The contract's value appears reasonable when benchmarked against similar remediation services. 2. Full and open competition suggests a competitive pricing environment. 3. The contract duration and fixed-fee structure present moderate financial risk. 4. Performance context is crucial for assessing the long-term effectiveness of remediation efforts. 5. This contract fits within the broader environmental services sector for defense agencies. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: good
The $104.3 million contract for remediation services appears to offer good value for money. While specific comparable contract data is not provided, the nature of environmental remediation often involves complex, site-specific challenges that can influence pricing. The fixed-fee structure, combined with the competitive award process, suggests that the pricing was deemed fair at the time of award. However, ongoing monitoring of performance and cost overruns would be necessary for a complete value assessment.
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 level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The presence of numerous bidders suggests a healthy market for environmental remediation services.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for environmental cleanup.
Public Impact
The Department of Defense benefits from the cleanup of environmental hazards at its facilities. Services delivered include the remediation of contaminated sites, improving environmental quality. The geographic impact is localized to the specific military installations requiring remediation. Workforce implications include the employment of environmental scientists, engineers, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen contamination is discovered.
- Ensuring consistent quality of remediation across different sites.
- Long-term environmental monitoring requirements may extend beyond the contract period.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor has experience in environmental remediation services.
- Clear statement of work and performance standards are expected for this type of contract.
Sector Analysis
The environmental remediation sector is a significant part of the government contracting landscape, particularly for agencies managing large land holdings like the Department of Defense. This contract falls under the NAICS code 562910 (Remediation Services), which encompasses a wide range of activities from hazardous waste treatment to site cleanup. Spending in this sector is driven by regulatory compliance, legacy contamination issues, and ongoing environmental stewardship efforts. Comparable spending benchmarks would typically involve analyzing other large-scale environmental cleanup contracts awarded by federal agencies.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if Amentum Environment & Energy Inc. has a robust small business subcontracting plan in place to ensure opportunities for smaller firms within the environmental services ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, quality assurance, and financial oversight are standard mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Environmental Restoration, Superfund
- Hazardous Waste Management
- Military Munitions Response Program
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Ensuring long-term effectiveness of remediation solutions.
- Adequate small business subcontracting opportunities.
Tags
defense, department-of-defense, department-of-the-air-force, remediation-services, environmental-services, cost-plus-fixed-fee, full-and-open-competition, large-business, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $104.3 million to AMENTUM ENVIRONMENT & ENERGY INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AMENTUM ENVIRONMENT & ENERGY 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 $104.3 million.
What is the period of performance?
Start: 2005-09-09. End: 2009-01-30.
What is Amentum Environment & Energy Inc.'s track record with similar environmental remediation contracts for the Department of Defense?
Amentum Environment & Energy Inc. (and its predecessor entities) has a significant history of performing environmental remediation services for various government agencies, including the Department of Defense. Their experience often spans complex projects involving hazardous waste, contaminated site cleanup, and compliance with environmental regulations. Analyzing their past performance on similar contracts, including any documented issues or successes, would provide valuable context for assessing their capability and reliability on this specific $104.3 million award. This includes reviewing past performance evaluations, any contract disputes, and the scale and complexity of previously managed projects to ensure they align with the requirements of this contract.
How does the $104.3 million contract value compare to the average cost of similar environmental remediation projects undertaken by the DoD?
Benchmarking the $104.3 million contract value against similar environmental remediation projects requires access to detailed cost data for comparable contracts. Factors such as the type and extent of contamination, the specific remediation technologies employed, site accessibility, and regulatory requirements significantly influence project costs. While the contract was awarded under full and open competition, suggesting competitive pricing, a direct comparison to average costs would necessitate analyzing the scope of work, duration, and specific environmental challenges addressed in other DoD remediation contracts. Without this granular data, it's difficult to definitively state if this contract represents a higher or lower cost than the average, though the competitive award process implies a fair market price was achieved.
What are the primary risks associated with this cost-plus-fixed-fee contract structure for environmental remediation?
The Cost Plus Fixed Fee (CPFF) contract structure for environmental remediation carries inherent risks for both the government and the contractor. For the government, the primary risk is that the actual costs incurred by the contractor could exceed initial estimates, potentially leading to higher overall expenditures than anticipated, even with a fixed fee. While the fixed fee provides the contractor with a guaranteed profit margin, it doesn't cap the total cost. The contractor bears the risk if costs exceed estimates, but the government is still responsible for paying the allowable costs plus the fixed fee. Effective oversight is crucial to manage costs and ensure that only reasonable and allocable expenses are reimbursed, mitigating the risk of cost overruns.
How effective are the current oversight mechanisms in place to ensure the successful completion and environmental compliance of this contract?
Oversight for this contract is typically managed by the Department of the Air Force's contracting officer and their appointed representatives, such as Contracting Officer's Representatives (CORs) or Technical Representatives (TRs). These individuals are responsible for monitoring contractor performance, ensuring adherence to contract terms, verifying quality standards, and approving invoices. The effectiveness of these mechanisms hinges on the resources allocated to oversight, the expertise of the personnel involved, and the clarity of performance metrics and reporting requirements. Regular site inspections, progress reports, and milestone reviews are standard practices. The Inspector General's office also provides an additional layer of oversight for issues related to fraud, waste, and abuse.
What is the historical spending trend for environmental remediation services within the Department of Defense over the past five years?
Historical spending on environmental remediation services by the Department of Defense (DoD) has been substantial and relatively consistent over the past five years, driven by ongoing cleanup requirements at active military installations and formerly used defense sites. While specific aggregate figures fluctuate annually based on project needs and funding allocations, the DoD consistently allocates billions of dollars towards environmental restoration and compliance programs. This includes activities mandated by environmental laws such as CERCLA (Superfund) and RCRA. Factors influencing spending include the discovery of new contamination, the complexity of remediation technologies required, and evolving regulatory standards. This $104.3 million contract represents a portion of that broader, ongoing investment in environmental stewardship.
What are the potential long-term environmental impacts and benefits resulting from the remediation services provided under this contract?
The long-term environmental impacts and benefits of the remediation services under this contract are expected to be positive and significant. The primary goal is to reduce or eliminate environmental hazards, thereby protecting human health and ecological systems. This can involve cleaning up soil and groundwater contamination, managing hazardous waste, and restoring affected habitats. Successful remediation ensures that military installations can continue their operations without posing undue environmental risks and can potentially be repurposed for other uses in the future. Furthermore, it contributes to the overall environmental health of the surrounding communities and ecosystems, fulfilling regulatory obligations and demonstrating responsible environmental stewardship by the DoD.
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 BUILDINGS
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
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 106 NEWBERRY ST SW, AIKEN, SC, 02
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8680
IDV Type: IDC
Timeline
Start Date: 2005-09-09
Current End Date: 2009-01-30
Potential End Date: 2009-01-30 00:00:00
Last Modified: 2013-09-27
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