Fort Wainwright cleanup contract awarded to Jacobs Engineering Group Inc. for over $19.1 million

Contract Overview

Contract Amount: $19,140,153 ($19.1M)

Contractor: Jacobs Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 2007-07-09

End Date: 2016-11-30

Contract Duration: 3,432 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: PERFORM DRUM, DEBRIS AND CONTAMINATED SOIL REMOVAL AT FORT WAINWRIGHT, TAKU GARDENS

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to JACOBS ENGINEERING GROUP INC for work described as: PERFORM DRUM, DEBRIS AND CONTAMINATED SOIL REMOVAL AT FORT WAINWRIGHT, TAKU GARDENS Key points: 1. Contract value of $19.14 million for environmental remediation services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of over 9 years indicates a long-term environmental management need. 4. Services include debris and contaminated soil removal, crucial for environmental safety. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The North American Industry Classification System (NAICS) code 562910 points to specialized remediation services.

Value Assessment

Rating: good

The contract value of $19.14 million for over 9 years of remediation services appears reasonable given the scope of work, which includes debris and contaminated soil removal. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise value-for-money assessment. However, the duration suggests a significant and complex undertaking, making the total cost a potentially good investment for environmental restoration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters price discovery and encourages competitive pricing among potential contractors. The open competition suggests the government sought the best value through a broad market solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for environmental cleanup, potentially leading to lower overall costs compared to non-competitive awards.

Public Impact

The primary beneficiaries are the residents and environment around Fort Wainwright, Alaska, through the removal of hazardous materials. Services delivered include the critical task of removing debris and contaminated soil, mitigating environmental risks. The geographic impact is localized to Fort Wainwright, Alaska, ensuring a safer operational and living environment. The contract supports specialized environmental remediation jobs within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on complex remediation projects.
Long contract duration could lead to scope creep or unforeseen challenges.
Dependence on a single contractor for an extended period.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract indicates a sustained commitment to environmental cleanup.
Focus on critical environmental remediation services.

Sector Analysis

The environmental remediation services sector is a significant part of the broader industrial and defense support industries. This contract falls under the remediation services category (NAICS 562910), which includes establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. The market for such services is driven by regulatory compliance, industrial activity, and military base maintenance. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies, particularly for military installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award. However, Jacobs Engineering Group Inc., as a large prime contractor, may engage small businesses as subcontractors for specialized services or support roles, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant agency (Department of the Army). Performance would be monitored against the contract's terms and conditions, including delivery schedules and quality standards. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Military Base Maintenance
Hazardous Waste Management
Defense Infrastructure Support

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for unforeseen environmental conditions requiring scope changes.
Performance evaluation for award fee requires strong government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to JACOBS ENGINEERING GROUP INC. PERFORM DRUM, DEBRIS AND CONTAMINATED SOIL REMOVAL AT FORT WAINWRIGHT, TAKU GARDENS

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 $19.1 million.

What is the period of performance?

Start: 2007-07-09. End: 2016-11-30.

What is the track record of Jacobs Engineering Group Inc. in performing similar environmental remediation contracts for the Department of Defense?

Jacobs Engineering Group Inc. has a substantial track record in providing engineering, procurement, and construction services, including extensive experience in environmental remediation for government and commercial clients. They have been involved in numerous projects involving hazardous waste management, site cleanup, and infrastructure support for military installations. Their past performance on similar contracts would be a key factor in the government's decision-making process for awarding this delivery order. A review of their contract history with the DoD would reveal the scale, complexity, and success rates of their previous environmental projects, providing insight into their capability to execute the Fort Wainwright cleanup effectively.

How does the awarded amount of $19.14 million compare to the estimated cost or budget for this specific cleanup project?

The provided data shows the awarded amount of $19,140,153.24. Without access to the government's initial cost estimates or the specific budget allocated for this cleanup project at Fort Wainwright, it is difficult to definitively assess if the awarded amount represents a significant deviation. However, the fact that it was awarded under 'full and open competition' suggests that the bids received were evaluated against government estimates and overall value. If the awarded amount was substantially lower than estimates, it could indicate strong competition or efficient bidding. Conversely, if it was higher, it might suggest unforeseen complexities or a less competitive field than anticipated, warranting further investigation into the pricing structure and justification.

What are the primary risks associated with the long duration (over 9 years) of this remediation contract?

The primary risks associated with a remediation contract spanning over 9 years include potential cost escalation due to inflation or changes in material and labor costs over time. There's also the risk of scope creep, where the extent of contamination or the required remediation techniques might evolve as the project progresses, leading to contract modifications and increased costs. Furthermore, long-term contracts can face risks related to regulatory changes in environmental standards, requiring adaptive measures. Contractor performance consistency over such an extended period can also be a concern, as key personnel may change, or institutional knowledge might diminish. Finally, unforeseen site conditions or discoveries during the cleanup process could introduce new risks and complexities not initially accounted for.

What specific environmental contaminants or issues are being addressed under this contract at Fort Wainwright?

The contract description specifies 'PERFORM DRUM, DEBRIS AND CONTAMINATED SOIL REMOVAL AT FORT WAINWRIGHT, TAKU GARDENS.' This indicates that the primary focus is on the physical removal of solid waste (debris) and soil that has been compromised by hazardous substances. While the exact nature of the contaminants is not detailed in the provided data, typical issues at military installations include petroleum hydrocarbons, heavy metals, solvents, pesticides, and potentially unexploded ordnance (UXO) or related materials. The 'Taku Gardens' location might refer to a specific area within Fort Wainwright with a history of particular types of contamination, possibly from past industrial activities, storage areas, or waste disposal sites.

How does the contract type 'COST PLUS AWARD FEE' (PT: COST PLUS AWARD FEE) influence contractor performance and cost control?

The 'Cost Plus Award Fee' (CPAF) contract type is designed to incentivize contractor performance. Under CPAF, the contractor is reimbursed for all allowable costs incurred, plus a fee that consists of a base amount and an award amount. The award amount is determined based on the government's evaluation of the contractor's performance against pre-defined criteria. This structure encourages the contractor to not only control costs but also to exceed performance expectations to maximize their fee. The government must establish clear, objective performance metrics and conduct regular evaluations to determine the award fee. This can lead to higher quality work and greater efficiency, but it also requires robust government oversight to ensure fair and accurate fee determination.

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 RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911KB05R0001

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1111 S ARROYO PKWY, PASADENA, CA, 91105

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,140,154

Exercised Options: $19,140,154

Current Obligation: $19,140,153

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911KB06D0006

IDV Type: IDC

Timeline