DoD's $23.5M Iraq Remediation Contract with Weston Solutions Faces Scrutiny Over Cost and Competition

Contract Overview

Contract Amount: $23,556,528 ($23.6M)

Contractor: Weston Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2004-01-28

End Date: 2007-02-28

Contract Duration: 1,127 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200405!000256!5700!GW05 !HSW/PKV !FA890304D8681 !A!N! !N!0008 ! !20040128!20050115!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* !IRAQ !+000010279724!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!008!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: WEST CHESTER, CHESTER County, PENNSYLVANIA, 19380

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to WESTON SOLUTIONS INC for work described as: 200405!000256!5700!GW05 !HSW/PKV !FA890304D8681 !A!N! !N!0008 ! !20040128!20050115!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* … Key points: 1. The contract awarded to Weston Solutions Inc. for remediation services in Iraq totaled $23,556,528.17. 2. Competition was listed as 'Full and Open Competition After Exclusion of Sources', raising questions about the process. 3. The contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns and reduced incentive for efficiency. 4. The sector is Construction, specifically 'Other Architect & Engineering Services', with a significant price tag for the period.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, coupled with a duration of over three years, suggests potential for cost escalation. Benchmarking against similar remediation contracts in conflict zones is difficult due to unique circumstances, but the total value warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition After Exclusion of Sources' designation is unusual and requires further investigation to understand why specific sources were excluded. This could limit the pool of qualified bidders and potentially impact price discovery.

Taxpayer Impact: The significant contract value raises concerns about taxpayer impact, especially if the cost-plus structure led to inefficiencies or inflated prices.

Public Impact

Taxpayers funded a large contract for environmental remediation in a high-risk zone. The contract's duration and cost structure may not represent the most efficient use of public funds. Questions surrounding the competition process could indicate a lack of robust oversight in awarding contracts in conflict areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Ambiguous competition designation
Long contract duration in a high-risk environment

Positive Signals

Contract awarded for essential remediation services
Contractor has a physical presence in Pennsylvania

Sector Analysis

This contract falls within the Construction sector, specifically 'Other Architect & Engineering Services'. Spending in this area, particularly for remediation in conflict zones, can be highly variable and subject to unforeseen challenges, making direct benchmarking difficult.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The 'Exclusion of Sources' in the competition method warrants closer oversight to ensure fairness and prevent potential impropriety. The contract's cost-plus nature also necessitates robust monitoring to control expenditures.

Related Government Programs

Remediation Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type
Ambiguous competition designation ('Exclusion of Sources')
Long contract duration (over 3 years)
Contract performed in a high-risk environment (Iraq)
Lack of small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to WESTON SOLUTIONS INC. 200405!000256!5700!GW05 !HSW/PKV !FA890304D8681 !A!N! !N!0008 ! !20040128!20050115!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* !IRAQ !+000010279724!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS 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 $23.6 million.

What is the period of performance?

Start: 2004-01-28. End: 2007-02-28.

What specific remediation services were performed under this contract, and how were they justified given the cost-plus structure?

The contract was for 'Remediation Services' in Iraq, categorized under 'Other Architect & Engineering Services'. The cost-plus fixed fee structure means the government reimburses the contractor for allowable costs plus a fixed fee representing profit. Justification would typically involve detailed statements of work, progress reports, and cost audits to ensure the services were necessary and costs were reasonable.

What were the specific reasons for excluding certain sources during the 'Full and Open Competition' process?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be open, specific potential bidders were deliberately excluded. The reasons for exclusion are not provided in the data but could range from security concerns, lack of specific qualifications, or prior performance issues. Understanding these exclusions is critical for assessing the fairness of the procurement.

How effectively did Weston Solutions manage costs and deliver services within the parameters of a Cost Plus Fixed Fee contract in a challenging environment like Iraq?

Assessing effectiveness requires detailed performance reviews, cost audits, and comparison against project milestones. The Cost Plus Fixed Fee structure inherently shifts cost risk to the government, making contractor efficiency and diligent oversight crucial. Without specific performance data or audit reports, it's difficult to definitively gauge the effectiveness of service delivery and cost management.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

Address: 1400 WESTON WAY, WEST CHESTER, PA, 06

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8681

IDV Type: IDC

Timeline