DoD's $19.5M environmental remediation contract awarded to Amentum Environment & Energy Inc. shows fair value
Contract Overview
Contract Amount: $19,494,965 ($19.5M)
Contractor: Amentum Environment & Energy Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-31
End Date: 2008-03-31
Contract Duration: 731 days
Daily Burn Rate: $26.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $19.5 million to AMENTUM ENVIRONMENT & ENERGY INC. for work described as: Key points: 1. Contract value appears reasonable given the scope of environmental remediation services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 2 years indicates a focused, short-term effort. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. This contract falls within the broader category of environmental services for the defense sector. 6. No small business set-aside was utilized, suggesting larger firms were primary bidders.
Value Assessment
Rating: good
The contract's total value of approximately $19.5 million over two years suggests a moderate annual spend. Benchmarking against similar environmental remediation contracts is challenging without more specific service details. However, the fixed fee component within the Cost Plus Fixed Fee structure provides some cost control. The overall value seems aligned with typical remediation projects of this nature, especially considering the potential complexities of environmental cleanup.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the opportunity. The presence of 13 bids (as indicated by 'no': 13) further supports a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs and ensuring the government receives the best possible value for its investment in environmental remediation services.
Public Impact
The Department of Defense benefits from the cleanup of environmental hazards, ensuring compliance and operational readiness. Services delivered include remediation of contaminated sites, likely involving soil and groundwater cleanup. The geographic impact is specific to the Air Force installation(s) where the remediation is required. Workforce implications include employment for environmental scientists, engineers, and technicians involved in the cleanup operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur more costs if not properly managed, potentially exceeding initial estimates.
- The lack of specific details on the remediation scope makes it difficult to fully assess value for money.
- Long-term environmental impacts and monitoring requirements may extend beyond the contract period, requiring future funding.
Positive Signals
- Awarded under full and open competition, indicating a competitive marketplace.
- The contractor, Amentum Environment & Energy Inc., likely possesses specialized expertise in environmental remediation.
- The contract duration of two years suggests a defined scope and manageable project timeline.
Sector Analysis
This contract falls within the Environmental Services sector, a critical component of government operations, particularly for agencies managing large physical footprints like the Department of Defense. The market for environmental remediation is substantial, driven by regulatory requirements and the need to address historical contamination. This specific contract addresses the Air Force's need for remediation services, fitting into the broader landscape of defense infrastructure support and environmental stewardship.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the competitive landscape likely favored larger firms with the capacity and expertise for extensive environmental remediation projects. The impact on the small business ecosystem is minimal for this specific award, as it did not prioritize small business participation.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve rigorous monitoring of costs, progress, and performance by the contracting officer and technical representatives. Accountability measures would be tied to the achievement of specific remediation milestones and adherence to environmental regulations. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational data may be less accessible to the public.
Related Government Programs
- Environmental Remediation Services
- Defense Environmental Cleanup Program
- Base Realignment and Closure (BRAC) Environmental Services
- Hazardous Waste Management
- Site Remediation
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Complexity of environmental remediation can lead to unforeseen challenges.
- Ensuring long-term effectiveness of cleanup requires ongoing monitoring.
Tags
department-of-defense, air-force, environmental-remediation, cost-plus-fixed-fee, full-and-open-competition, large-contract, remediation-services, environmental-services, us-federal-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 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 $19.5 million.
What is the period of performance?
Start: 2006-03-31. End: 2008-03-31.
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 and related services for various government agencies, including the Department of Defense. Their experience often spans large-scale projects involving hazardous waste management, site cleanup, and compliance support across numerous military installations. Analyzing their past performance on similar contracts would involve reviewing contract histories for on-time delivery, budget adherence, and quality of work. Specific data on past performance metrics, such as award fees or past performance ratings, would provide a clearer picture of their reliability and effectiveness in executing complex environmental projects for the DoD.
How does the $19.5 million contract value compare to other environmental remediation contracts of similar scope and duration?
The $19.5 million contract value over two years, averaging approximately $9.75 million annually, places this contract in the mid-to-large range for environmental remediation services. Without specific details on the nature and complexity of the contamination (e.g., soil, groundwater, hazardous materials) and the remediation technologies employed, a precise comparison is difficult. However, large-scale environmental cleanup projects at military installations can easily run into tens or hundreds of millions of dollars. This contract's value appears reasonable for a significant remediation effort, assuming it addresses a substantial scope of work. Comparable contracts might involve similar site cleanup activities at other DoD facilities or large industrial sites.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for environmental remediation?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for environmental remediation, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a set profit, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the scope of work expands unexpectedly due to unforeseen site conditions or regulatory changes, costs can escalate significantly. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. Another risk is the contractor's incentive to manage costs efficiently, as their profit is fixed, not a percentage of the total cost. Effective risk mitigation involves detailed contract clauses, strong project management, and continuous monitoring of expenditures and progress.
What is the expected effectiveness of the remediation services under this contract?
The expected effectiveness of the remediation services hinges on several factors, including the specific contaminants, the chosen remediation technologies, the contractor's expertise, and the thoroughness of the government's oversight. Environmental remediation aims to reduce or eliminate contaminants to levels that meet regulatory standards and protect human health and the environment. Success is typically measured against pre-defined cleanup goals and performance metrics outlined in the contract and remediation plans. Amentum's track record and the specific technical approach proposed would be key indicators of potential effectiveness. Regular progress reports, site inspections, and environmental monitoring data are crucial for assessing ongoing effectiveness.
How has federal spending on environmental remediation services evolved over the past decade, and where does this contract fit?
Federal spending on environmental remediation services has remained a significant and consistent expenditure category, driven by regulatory mandates (like CERCLA and RCRA) and the ongoing need to address contamination at federal facilities, including military bases. Spending levels can fluctuate based on new site discoveries, cleanup priorities, and budget allocations. This $19.5 million contract for the Air Force represents a typical, albeit substantial, investment within this ongoing federal commitment. It fits into the broader pattern of agencies like the DoD allocating funds to manage environmental liabilities and ensure compliance. Analyzing historical spending trends for similar remediation projects can provide context for the reasonableness of this contract's value and duration.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 13
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: YES
Parent Contract
Parent Award PIID: FA890304D8680
IDV Type: IDC
Timeline
Start Date: 2006-03-31
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2013-09-23
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