Army awards $53.9M for environmental restoration in Alaska, with Jacobs Engineering Group Inc. as prime contractor

Contract Overview

Contract Amount: $53,932,251 ($53.9M)

Contractor: Jacobs Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 1996-11-12

End Date: 2013-09-30

Contract Duration: 6,166 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 199703!2100!0014!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!00060006P3 !19961112!19970421!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!40950!150!02!KODIAK !KODIAK ISLAND !ALASKA !0001!+000000678000!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !1ZDE!DEF ENVIR & RESTORA PRG (DERP)!8744!5!B!S!C!B!A!*!A !U!U!2!008!B!* !D!Y!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to JACOBS ENGINEERING GROUP INC for work described as: 199703!2100!0014!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!00060006P3 !19961112!19970421!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!40950!150!02!KODIAK !KODIAK… Key points: 1. Contract awarded for environmental restoration services, indicating a need for specialized remediation capabilities. 2. The contract duration of over 16 years suggests a long-term commitment to environmental management in the region. 3. The significant award amount points to the scale and complexity of environmental challenges faced by the Army in Alaska. 4. Jacobs Engineering Group Inc. has secured a substantial portion of the contract value, highlighting their role in large-scale environmental projects. 5. The contract falls under the 'Construction' category, suggesting physical remediation or development activities. 6. The 'Defense Environmental & Restoration Program' context implies a focus on cleaning up historical contamination from military activities.

Value Assessment

Rating: good

The total award of $53.9 million over a period spanning from 1996 to 2013 represents a significant investment in environmental restoration. While direct comparisons are difficult without knowing the specific scope of work and market conditions at the time of award, the duration and value suggest a comprehensive approach. The contract type, Cost Plus Fixed Fee, allows for flexibility in scope but requires careful oversight to manage costs effectively. Benchmarking this against similar large-scale environmental remediation contracts would provide a clearer picture of value for money.

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 competitive process is generally expected to yield better pricing and service options for the government. The number of bids received (8) suggests a healthy level of interest from qualified contractors in this specialized field.

Taxpayer Impact: A full and open competition process for a contract of this magnitude is beneficial for taxpayers as it promotes a competitive environment, potentially leading to cost savings and ensuring the government receives the best value for its investment in environmental restoration.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, who are responsible for environmental compliance and remediation at military installations. Services delivered include environmental restoration, likely involving the cleanup of hazardous substances and contaminants. The geographic impact is focused on Kodiak, Alaska, addressing environmental concerns specific to that region. The contract supports a specialized workforce in environmental engineering and construction, contributing to the local and national economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving requirements that may impact final costs.
Cost Plus Fixed Fee contracts can sometimes incentivize higher spending if not managed rigorously.
Environmental remediation projects are inherently complex and can encounter unforeseen challenges, potentially increasing costs and timelines.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that should ensure fair pricing.
The contract is for environmental restoration, addressing critical needs for ecological health and compliance.
The prime contractor, Jacobs Engineering Group Inc., is a well-established firm with significant experience in engineering and construction.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on environmental remediation and restoration. The market for environmental services is substantial, driven by regulatory requirements and the need to address historical contamination. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies, particularly those involving complex sites or remote locations like Alaska. The Defense Environmental & Restoration Program (DERP) is a significant area of federal spending aimed at addressing environmental liabilities on military property.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, Jacobs Engineering Group Inc., may engage small businesses as subcontractors for specialized services, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally achieved through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Environmental and Restoration Program (DERP)
Environmental Remediation Services
Construction Contracts
Federal Environmental Cleanup Programs
Army Corps of Engineers Projects

Risk Flags

Long-term contract duration may increase risk of cost escalation.
CPFF contract type requires robust oversight to control costs.
Environmental remediation projects carry inherent risks of unforeseen conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to JACOBS ENGINEERING GROUP INC. 199703!2100!0014!CA85 !USA ENGINEER DISTRICT, ALASKA !DACA8595D0018 !A!*!00060006P3 !19961112!19970421!074103508!074103508!074103508!N!3T810!JACOBS ENGINEERING GROUP INC !1111 S ARROYO PKWY !PASADENA !CA!91105!40950!150!02!KODIAK !KODIAK ISLAND !ALASKA !0001!+000000678000!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !C2 !CONSTRUCTION !1ZDE!DEF ENVIR & RESTORA PRG (DERP)!8744!5!B!S!C!B!A!*!A !U!U!2!0

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 $53.9 million.

What is the period of performance?

Start: 1996-11-12. End: 2013-09-30.

What was the specific nature of the environmental restoration work performed under this contract in Kodiak, Alaska?

The provided data indicates the contract was for 'MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES' and falls under the 'DEF ENVIR & RESTORA PRG (DERP)' within the 'CONSTRUCTION' category. While specific details are not itemized, this strongly suggests the work involved remediation of contaminated sites, potentially including soil and groundwater cleanup, hazardous waste management, or restoration of natural resources impacted by past military activities at or near the Kodiak facility. The long duration and significant award value imply a comprehensive and potentially multi-faceted environmental cleanup effort.

How does the $53.9 million award compare to other environmental restoration contracts awarded by the Department of the Army in Alaska during the same period?

Comparing the $53.9 million award to other contracts requires access to historical contract databases and filtering by agency, region, and service type. However, given the duration of over 16 years (from award in 1996 to estimated completion in 2013), this represents a substantial, long-term commitment. Environmental restoration projects in remote and challenging environments like Alaska are often high-cost due to logistical complexities and the nature of the remediation required. This award likely falls within the upper range for single environmental restoration contracts in the region during that era, reflecting the scale of the undertaking.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental restoration in a remote location like Alaska?

The primary risks with a CPFF contract for environmental restoration in Alaska include cost overruns due to unforeseen site conditions, logistical challenges inherent in remote operations (transportation, labor, materials), and potential scope creep as the full extent of contamination may not be initially understood. The 'Fixed Fee' component provides the contractor with a guaranteed profit, but the 'Cost Plus' element means the government bears the risk of actual costs incurred. Effective oversight is crucial to manage these risks, ensuring that costs are reasonable and allocable to the contract, and that the contractor is incentivized to perform efficiently.

What was Jacobs Engineering Group Inc.'s track record with similar large-scale environmental contracts prior to this award?

Jacobs Engineering Group Inc. is a major global engineering and construction firm with extensive experience in environmental services, including remediation, infrastructure, and program management. Prior to this 1996 award, Jacobs had a well-established history of undertaking large, complex projects for government and commercial clients. Their portfolio likely included significant environmental cleanup projects, demonstrating their capability to manage large budgets, complex technical challenges, and extensive project timelines, making them a suitable candidate for this substantial Army contract.

How has federal spending on environmental restoration programs like DERP evolved since this contract was awarded?

Federal spending on environmental restoration programs, including DERP, has seen fluctuations since the mid-1990s, influenced by budget priorities, legislative changes, and the identification of new environmental liabilities. While DERP remains a critical program, overall federal environmental spending is subject to appropriations cycles. Post-2000, there has been an increasing emphasis on sustainable practices and addressing emerging contaminants. The total amount spent on DERP annually can vary, but it consistently represents a significant portion of the Department of Defense's environmental budget, reflecting ongoing commitments to cleanup and compliance.

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, 28

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

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DACA8595D0018

IDV Type: IDC

Timeline