DoD awards $34.6M for Iraq environmental remediation, raising cost concerns
Contract Overview
Contract Amount: $34,643,155 ($34.6M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2004-06-15
End Date: 2006-04-30
Contract Duration: 684 days
Daily Burn Rate: $50.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TAS::21 2020::TAS 200407!000802!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0006 ! !20040415!20050115!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000023863560!N!N!000000000000!C219!OTHER ARCHITECT&ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A!A!20081120!B! ! !B! !A!N!U!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: HAVERTOWN, DELAWARE County, PENNSYLVANIA, 19083
Plain-Language Summary
Department of Defense obligated $34.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: TAS::21 2020::TAS 200407!000802!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0006 ! !20040415!20050115!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!00000! !IZ!* … Key points: 1. Contract awarded to AMEC Earth & Environmental for $34.6M. 2. Services include remediation in Iraq. 3. Competition was full and open, but pricing details are limited. 4. Sector is Other Architect & Engineering Services, with a focus on Construction.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with limited transparency on detailed pricing, makes a definitive value assessment difficult. The reported value of $34.6M for 684 days of service warrants scrutiny, especially given the operational environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed tightly, potentially impacting the final price paid by taxpayers.
Taxpayer Impact: The CPFF structure carries inherent risk for taxpayers due to potential cost escalations. Effective oversight is crucial to ensure the final cost remains reasonable for the services rendered.
Public Impact
Environmental cleanup in a conflict zone impacts public health and safety. Taxpayer funds are allocated to support military operations and reconstruction efforts. Contractor performance directly affects the success of remediation and long-term stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Services in a high-risk environment (Iraq)
- Limited detailed pricing transparency
Positive Signals
- Full and open competition
- Contract awarded to established entity
Sector Analysis
This contract falls under Other Architect & Engineering Services, specifically related to construction and remediation. Spending in this sector can vary significantly based on infrastructure needs, environmental regulations, and geopolitical factors. The benchmark for similar contracts in conflict zones is difficult to establish due to unique risk and logistical factors.
Small Business Impact
The data does not indicate any specific subcontracting or set-aside for small businesses. The primary awardee is a large entity, suggesting limited direct participation for small businesses in this specific contract.
Oversight & Accountability
Given the operational environment and the CPFF structure, robust oversight by the Defense Contract Management Agency is critical. Monitoring costs, performance, and adherence to contract terms is essential to mitigate risks and ensure accountability.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing structure
- Services performed in a high-risk operational environment (Iraq)
- Limited transparency on detailed cost breakdowns
- Potential for cost overruns
- Geopolitical instability impacting project execution
Tags
remediation-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. TAS::21 2020::TAS 200407!000802!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0006 ! !20040415!20050115!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000023863560!N!N!000000000000!C219!OTHER ARCHITECT&ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.6 million.
What is the period of performance?
Start: 2004-06-15. End: 2006-04-30.
What specific remediation activities were performed, and how do they align with the $34.6M cost?
Detailed breakdowns of remediation activities, including the scope of work, materials used, labor hours, and any unforeseen challenges encountered, are necessary to justify the $34.6M expenditure. Without this granular data, it's difficult to assess the value for money and ensure that costs are directly attributable to necessary environmental cleanup efforts in Iraq.
What are the key risks associated with performing environmental remediation in Iraq, and how were they mitigated?
Risks in Iraq include security threats, logistical complexities, political instability, and potential for unforeseen environmental conditions. Mitigation strategies should detail security protocols, supply chain management plans, coordination with local authorities, and contingency plans for unexpected issues. Understanding these measures is crucial for evaluating the contract's risk profile and the contractor's preparedness.
How effectively did the full and open competition process ensure a competitive price for these specialized services?
While full and open competition is a positive indicator, the effectiveness in achieving a competitive price depends on the number and quality of bids received, the clarity of the solicitation, and the negotiation process. Further analysis would require reviewing bid data and the justification for the final award price to confirm that the competition truly drove down costs for these specialized, high-risk services.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Amec PLC (UEI: 229533856)
Address: ONE PLYMOUTH MEETING, PLYMOUTH MEETI, PA, 19462
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,675,303
Exercised Options: $34,675,303
Current Obligation: $34,643,155
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8669
IDV Type: IDC
Timeline
Start Date: 2004-06-15
Current End Date: 2006-04-30
Potential End Date: 2006-04-30 00:00:00
Last Modified: 2019-12-19
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