DoD Awards $57M Hazardous Waste Contract to Foster Wheeler Environmental

Contract Overview

Contract Amount: $56,990,826 ($57.0M)

Contractor: Foster Wheeler Environmental C

Awarding Agency: Department of Defense

Start Date: 2003-08-08

End Date: 2004-09-30

Contract Duration: 419 days

Daily Burn Rate: $136.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Plain-Language Summary

Department of Defense obligated $57.0 million to FOSTER WHEELER ENVIRONMENTAL C for work described as: Key points: 1. Contract awarded for hazardous waste treatment and disposal services. 2. Full and open competition was utilized. 3. Contract duration was 419 days. 4. The award value was approximately $57 million.

Value Assessment

Rating: fair

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value of $56,990,826 for a 419-day period suggests a significant but potentially variable cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the Time and Materials pricing structure might limit the effectiveness of competitive bidding in controlling the final cost.

Taxpayer Impact: Taxpayers are impacted by the cost of hazardous waste disposal, which is essential for environmental protection and compliance. The competitive nature of the award aims to ensure reasonable pricing.

Public Impact

Ensures proper disposal of hazardous waste, protecting public health and the environment. Supports military operations by managing waste generated from various activities. Provides employment opportunities within the hazardous waste management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty.
Contract duration is relatively short, potentially requiring follow-on contracts.
No small business participation noted.

Positive Signals

Full and open competition utilized.
Essential environmental service provided.

Sector Analysis

Hazardous waste treatment and disposal is a critical environmental service, often subject to stringent regulations. Spending in this sector can fluctuate based on regulatory changes and industrial activity. The Department of Defense is a significant generator of hazardous waste.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract, as the 'sb' field is false. Opportunities for small businesses in hazardous waste management often lie in subcontracting roles or specialized services.

Oversight & Accountability

Oversight would focus on ensuring compliance with environmental regulations and the terms of the Time and Materials contract. The Department of the Army's contracting office managed this award, implying internal oversight mechanisms.

Related Government Programs

Hazardous Waste Treatment and Disposal
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Time and Materials pricing structure.
Potential for cost overruns.
Lack of small business participation.
Short contract duration may indicate ongoing needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.0 million to FOSTER WHEELER ENVIRONMENTAL C. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is FOSTER WHEELER ENVIRONMENTAL C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $57.0 million.

What is the period of performance?

Start: 2003-08-08. End: 2004-09-30.

What was the average daily cost of hazardous waste treatment and disposal under this contract?

To determine the average daily cost, we divide the total award amount by the contract duration in days. $56,990,826 / 419 days = approximately $136,016 per day. This figure represents the blended cost of labor, materials, and overhead associated with the hazardous waste services provided.

What were the primary risks associated with the Time and Materials contract type for this service?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for actual labor hours and material costs incurred by the contractor. Without strong oversight and defined ceilings, the final cost can exceed initial estimates, especially for services like hazardous waste disposal where unforeseen complexities can arise.

How effectively did the full and open competition ensure value for the taxpayer?

Full and open competition generally promotes value by allowing multiple qualified vendors to bid, driving down prices. However, the T&M pricing structure introduces a layer of uncertainty. While competition likely set a baseline rate, the ultimate value realized by the taxpayer depends heavily on the contractor's efficiency and the government's ability to manage and monitor the hours and materials used.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1000 THE AMERICAN ROAD, MORRIS PLAINS, NJ, 11

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8700D0039

IDV Type: IDC

Timeline