Kaiser Engineers Inc. awarded $144M contract for environmental services by US Army Corps of Engineers
Contract Overview
Contract Amount: $56,652,756 ($56.7M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-02-29
End Date: 2011-12-31
Contract Duration: 4,323 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200009!96CE!000197!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!001104 !20000229!20011230!144148236!091989913!186382701!N!2A166!KAISER ENGINEERS INC. !9300 LEE HIGHWAY !FAIRFAX !CA!22031!45778!053!06!MARINA !MONTEREY !CALIFORNIA!0001!+000001621001!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !8744!5!B!S!C!B!A!*!A !N!U!2!002!B!* !C!Y!Z!* !* !N!C!*!C!Z!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: MONTEREY, MONTEREY County, CALIFORNIA, 93940
Plain-Language Summary
Department of Defense obligated $56.7 million to SHAW ENVIRONMENTAL, INC. for work described as: 200009!96CE!000197!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!001104 !20000229!20011230!144148236!091989913!186382701!N!2A166!KAISER ENGINEERS INC. !9300 LEE HIGHWAY !FAIRFAX !CA!22031!45778!053!06!MARINA !MON… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 11 years indicates a long-term need for these services. 3. The significant contract value suggests a substantial scope of work in environmental services. 4. The award to Kaiser Engineers Inc. positions them as a key provider in this sector. 5. The contract falls under 'Other Environmental Programs,' a broad category requiring further detail. 6. The 'COST PLUS FIXED FEE' pricing structure may present cost control challenges.
Value Assessment
Rating: fair
The contract value of $144,148,236 over approximately 11 years suggests an average annual value of around $13 million. Benchmarking this against similar large-scale environmental services contracts would be necessary for a precise value-for-money assessment. The 'COST PLUS FIXED FEE' (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as it allows for cost reimbursement plus a fixed fee. Without specific performance metrics or comparisons to industry standards for similar services, it's difficult to definitively assess if this represents excellent value.
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 a bid. The presence of 5 bidders suggests a reasonably competitive environment for this significant contract. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for taxpayer value.
Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. The competition ensures that multiple companies vied for the work, driving down costs.
Public Impact
The primary beneficiaries are likely the US Army Corps of Engineers, receiving essential environmental services for their projects. The services delivered encompass 'OTHER ENVIRONMENTAL PROGRAMS,' which could include studies, analysis, and support for various environmental initiatives. The geographic impact is primarily within California, as indicated by the contract's location details. The contract supports a workforce skilled in environmental science, engineering, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'COST PLUS FIXED FEE' contract type carries inherent risks of cost overruns if not meticulously managed and monitored.
- The long duration of the contract (over 11 years) could lead to scope creep or evolving requirements that may not be optimally priced from the outset.
- The broad categorization of 'OTHER ENVIRONMENTAL PROGRAMS' might obscure the specific nature and potential risks associated with the services rendered.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair bidding process.
- The contract value of over $144 million suggests a significant level of trust and capability attributed to Kaiser Engineers Inc.
- The contract is managed by the US Army Engineer District, Sacramento, implying established oversight procedures.
Sector Analysis
This contract falls within the broad 'Environmental Services' sector, which includes a wide range of activities from consulting and engineering to remediation and waste management. The market for these services is substantial, driven by regulatory requirements and the need for sustainable practices across government and private industries. This specific contract, focusing on 'OTHER ENVIRONMENTAL PROGRAMS,' likely supports broader ecological initiatives or studies. Comparable spending benchmarks would depend on the precise nature of the environmental services provided, but large-scale federal contracts in this area often run into tens or hundreds of millions of dollars.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (SB is 'N'). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Kaiser Engineers Inc. voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
The contract is managed by the US Army Engineer District, Sacramento, which implies a level of oversight. The 'COST PLUS FIXED FEE' structure necessitates careful monitoring of costs and performance to ensure value. Transparency would be enhanced by public reporting of performance reviews and cost audits. Inspector General jurisdiction would typically apply to ensure the integrity of federal spending.
Related Government Programs
- Environmental Consulting Services
- Engineering and Technical Services
- Environmental Remediation Services
- Federal Environmental Programs
- US Army Corps of Engineers Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to higher costs if not managed properly.
- Long contract duration (over 11 years) increases risk of scope creep and evolving requirements.
- Broad service category ('OTHER ENVIRONMENTAL PROGRAMS') may lack specificity for detailed risk assessment.
Tags
environmental-services, department-of-defense, department-of-the-army, us-army-corps-of-engineers, cost-plus-fixed-fee, full-and-open-competition, california, large-contract, long-term-contract, environmental-studies, analytical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.7 million to SHAW ENVIRONMENTAL, INC.. 200009!96CE!000197!CW05 !USA ENGINEER DIST SACRAMENTO !DACW0596D0011 !A!*!001104 !20000229!20011230!144148236!091989913!186382701!N!2A166!KAISER ENGINEERS INC. !9300 LEE HIGHWAY !FAIRFAX !CA!22031!45778!053!06!MARINA !MONTEREY !CALIFORNIA!0001!+000001621001!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !8744!5!B!S!C!B!A!*!A !N!U!
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $56.7 million.
What is the period of performance?
Start: 2000-02-29. End: 2011-12-31.
What is the specific nature of the 'OTHER ENVIRONMENTAL PROGRAMS' services provided under this contract?
The provided data categorizes the contract under 'OTHER ENVIRONMENTAL PROGRAMS' (PSC 5ZOP) and describes the service as 'OTHER ENVIRON'L SVCS, STUDIES, & ANALYTICAL SUPPORT'. This broad description suggests the contract may encompass a variety of tasks, potentially including environmental impact assessments, feasibility studies, regulatory compliance support, data analysis, and strategic planning related to environmental initiatives. Without more granular detail from the contract itself or associated documentation, it is difficult to pinpoint the exact services. However, the significant value and long duration imply a substantial and ongoing requirement for expert environmental analysis and support, likely for projects managed by the US Army Corps of Engineers in California.
How does the 'COST PLUS FIXED FEE' (CPFF) pricing structure compare to other contract types for similar environmental services?
The CPFF contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs. It allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost overruns for the government if not managed effectively. For well-defined environmental services, fixed-price contracts might offer better cost certainty. However, for complex studies or services where innovation or unforeseen challenges are likely, CPFF can be appropriate. The effectiveness of CPFF heavily relies on robust government oversight to control costs and ensure the fee remains commensurate with the work performed.
What is Kaiser Engineers Inc.'s track record with similar large-scale federal environmental contracts?
Kaiser Engineers Inc. has a history of securing significant federal contracts, including this $144 million award from the US Army Corps of Engineers. While this specific data point highlights a major contract, a comprehensive assessment of their track record would involve reviewing their performance on other similar projects, including their ability to meet deadlines, stay within budget (especially relevant for CPFF contracts), and deliver quality services. Information on past performance evaluations, any contract disputes, or awards for exceptional performance would provide further insight into their reliability and expertise in managing large-scale environmental service contracts for federal agencies.
What historical spending trends exist for 'OTHER ENVIRONMENTAL PROGRAMS' by the Department of the Army?
Historical spending data for 'OTHER ENVIRONMENTAL PROGRAMS' by the Department of the Army would reveal patterns in investment in this specific service category. Analyzing trends over several fiscal years could indicate whether spending in this area is increasing, decreasing, or remaining stable. This context is crucial for understanding the significance of the $144 million awarded to Kaiser Engineers Inc. If spending in this category has historically been high and consistent, it suggests a sustained need. Conversely, a sudden spike might warrant further investigation into the drivers behind the increased expenditure. Such analysis helps in assessing the long-term strategic importance and budget allocation for these environmental services within the Army.
What are the potential risks associated with a contract duration of over 11 years for environmental services?
A contract duration exceeding 11 years, as seen with this award, presents several potential risks. Firstly, the 'COST PLUS FIXED FEE' structure combined with a long term increases the possibility of cost escalation due to inflation, unforeseen project complexities, or changes in regulatory requirements that were not anticipated at the outset. Secondly, the government's needs or priorities might evolve significantly over such a long period, potentially making the contracted services less relevant or requiring substantial modifications. Thirdly, maintaining consistent oversight and performance management over an extended duration can be challenging for the contracting agency. Finally, there's a risk that the contractor's capabilities or the market landscape for environmental services could change, potentially leading to suboptimal service delivery or pricing towards the end of the contract term.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Shaw Group Inc., the (UEI: 180038382)
Address: 4005 PORT CHICAGO HWY, CONCORD, CA, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DACW0596D0011
IDV Type: IDC
Timeline
Start Date: 2000-02-29
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2014-08-22
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