Army awards $96.1M for hazardous substance removal, with Bechtel National Inc. as prime contractor
Contract Overview
Contract Amount: $96,101,251 ($96.1M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-07
End Date: 2018-09-29
Contract Duration: 4,770 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!001968!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0006 ! !20050907!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000054000000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !562211!E! !5!B!S! ! ! !20200930!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 $96.1 million to BECHTEL NATIONAL, INC. for work described as: 200512!001968!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0006 ! !20050907!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN … Key points: 1. Contract awarded for hazardous substance removal and cleanup services. 2. Bechtel National, Inc. secured the prime contract. 3. The contract has a duration of approximately 13 years. 4. Services are to be performed in Colorado. 5. The contract type is Firm Fixed Price. 6. This contract was awarded under full and open competition.
Value Assessment
Rating: good
The total award amount of $96.1 million over nearly 13 years suggests a substantial investment in hazardous substance remediation. Without specific performance metrics or comparable contract data for similar large-scale cleanup operations, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure generally incentivizes cost control by the contractor. The duration indicates a long-term commitment to addressing environmental concerns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This competitive process is expected to yield a fair market price and encourage efficient service delivery. The specific number of bidders is not provided, but the designation implies a robust competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and encourages innovation, leading to better value for public funds spent on essential services like hazardous substance cleanup.
Public Impact
The U.S. Army benefits from the cleanup of hazardous substances, ensuring environmental compliance and safety. Services include hazardous substance removal, cleanup, and disposal. The primary geographic impact is in Colorado, where the remediation activities will take place. The contract supports specialized environmental services, potentially involving a skilled workforce in remediation and disposal.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or cost overruns if not managed tightly.
- Firm Fixed Price contracts can sometimes limit flexibility if unforeseen issues arise during cleanup.
- Reliance on a single prime contractor for such a long period requires robust oversight.
Positive Signals
- Full and open competition suggests a competitive bidding process, likely resulting in favorable pricing.
- Firm Fixed Price contract structure incentivizes contractor efficiency and cost management.
- The contract addresses critical environmental remediation needs for the Army.
Sector Analysis
This contract falls within the Environmental Services sector, specifically focusing on hazardous waste treatment and disposal. The market for environmental remediation services is significant, driven by regulatory requirements and historical industrial activities. This contract represents a substantial investment in managing environmental liabilities, aligning with broader government efforts to address pollution and ensure public health. Comparable spending benchmarks would typically be found in large-scale environmental cleanup contracts awarded by agencies like the EPA or other military branches.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss=false, sb=false). Therefore, the primary contractor, Bechtel National, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large federal contracts often include subcontracting goals to ensure small business participation in the overall project.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Army's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control, but ongoing monitoring of performance, adherence to environmental regulations, and timely completion of milestones would be crucial. Transparency would be enhanced through contract reporting mechanisms and potentially through public environmental impact statements related to the cleanup sites.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Department of Defense Environmental Programs
- Army Corps of Engineers Environmental Contracts
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Potential for unforeseen environmental conditions impacting scope and cost.
- Need for consistent oversight over a multi-year period.
Tags
department-of-defense, department-of-the-army, hazardous-waste-cleanup, environmental-services, firm-fixed-price, full-and-open-competition, bechtel-national-inc, colorado, long-term-contract, remediation-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.1 million to BECHTEL NATIONAL, INC.. 200512!001968!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902D0025 !A!N! !N!0006 ! !20050907!20101231!089176176!094878998!094878980!N!BECHTEL NATIONAL, INC !50 BEALE ST STE 1 !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000054000000!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !562211!E! !5!B!S! ! ! !202
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 $96.1 million.
What is the period of performance?
Start: 2005-09-07. End: 2018-09-29.
What is the historical spending pattern for hazardous substance removal and cleanup services by the Department of the Army?
The Department of the Army, like other branches of the military and federal agencies, has a long history of spending on environmental remediation due to the legacy of industrial activities and training ranges. Annual spending can fluctuate significantly based on identified contamination sites, regulatory mandates, and budget allocations. Historically, these contracts often involve large sums due to the complexity, duration, and specialized nature of the work. Analyzing historical data would reveal trends in contract types (e.g., cost-plus vs. fixed-price), typical contract durations, and the prevalence of specific service providers in the environmental cleanup market. This specific $96.1 million award to Bechtel National, Inc. for services in Colorado, spanning from 2005 to 2018, represents a significant, long-term investment within this broader category of federal environmental spending.
How does Bechtel National, Inc.'s performance on similar contracts compare to industry benchmarks?
Assessing Bechtel National, Inc.'s performance on similar contracts requires access to detailed performance evaluations and historical data that are not publicly available in this dataset. Generally, Bechtel is a large, established engineering and construction company with extensive experience in government contracting, including environmental services. Performance benchmarks for such contracts typically involve metrics like on-time completion, adherence to budget, quality of work, safety records, and compliance with environmental regulations. Without specific past performance reviews or comparative data from other contractors performing similar hazardous substance removal services for the Army or other federal agencies, it is difficult to provide a definitive comparison. However, their continued selection for significant contracts suggests a generally satisfactory performance history.
What are the primary risks associated with a long-term (13-year) contract for hazardous substance removal?
Long-term contracts for hazardous substance removal present several risks. Firstly, the duration increases the potential for unforeseen site conditions or the discovery of additional contamination, which could lead to scope creep and cost overruns, even under a firm-fixed-price contract if change orders are necessary. Secondly, regulatory landscapes can evolve over 13 years, potentially requiring updated cleanup standards or disposal methods, impacting project requirements and costs. Thirdly, contractor performance can degrade over extended periods if oversight is not consistently rigorous. Finally, economic fluctuations or changes in government priorities could affect funding continuity. Effective risk mitigation requires robust contract management, clear change order processes, and proactive engagement with regulatory bodies.
What is the typical cost structure for hazardous waste treatment and disposal services?
The cost structure for hazardous waste treatment and disposal services is complex and influenced by several factors. Key cost drivers include the type and volume of hazardous material, the required treatment methods (e.g., stabilization, incineration, landfilling), transportation logistics, regulatory compliance costs, and disposal facility fees. Labor costs for specialized personnel, equipment operation and maintenance, and site-specific remediation activities also contribute significantly. For large-scale projects like this Army contract, costs are often broken down into categories such as site investigation, remedial design, construction/remediation, waste characterization, transportation, treatment/disposal, and long-term monitoring. The firm-fixed-price nature of this contract implies that Bechtel National, Inc. has estimated these costs and built in a profit margin, bearing the primary risk of cost overruns.
How does the 'full and open competition' designation impact the price paid by the government for these services?
The designation of 'full and open competition' is intended to ensure that the government receives the best possible value by allowing all responsible sources to submit bids. This competitive process typically drives prices down as contractors vie for the contract by offering their most competitive rates and efficient solutions. It fosters price discovery, where the market determines a fair price based on supply and demand for the services. While the specific number of bidders isn't detailed here, the principle is that a wider pool of potential bidders generally leads to more aggressive pricing and potentially innovative approaches compared to sole-source or limited competition scenarios. Therefore, taxpayers generally benefit from lower prices and better quality services when contracts are awarded through full and open competition.
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: $2,732
Exercised Options: $2,732
Current Obligation: $96,101,251
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAA0902D0025
IDV Type: IDC
Timeline
Start Date: 2005-09-07
Current End Date: 2018-09-29
Potential End Date: 2018-09-29 12:09:00
Last Modified: 2024-09-09
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