DoD's $36.4M environmental remediation contract awarded to WSP USA for Guam services
Contract Overview
Contract Amount: $36,381,269 ($36.4M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-30
End Date: 2006-09-30
Contract Duration: 730 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 27
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TAS::57 3400::TAS 200412!002432!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0013 ! !20040930!20060930!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM !* !+000029756238!N!N!000000000000!C129!OTHER NON-BUILDING STRUCTURES !C2 !CONSTRUCTION !ZOP !* !237310!E! !5!B!M! !A! !99990909!B! ! !B! !A!N!U!2!027!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: AGANA HEIGHTS, GUAM County, GUAM, 96910
Plain-Language Summary
Department of Defense obligated $36.4 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: TAS::57 3400::TAS 200412!002432!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0013 ! !20040930!20060930!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM !* !+000029756238!N!N!000000000000!C129… Key points: 1. Contract value of $36.4M over two years for environmental remediation services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period of 730 days indicates a medium-term project. 4. The contract falls under Remediation Services (NAICS 562910), a critical environmental sector. 5. Geographic focus on Guam highlights specific regional environmental needs. 6. The contractor, WSP USA, is a significant player in engineering and infrastructure.
Value Assessment
Rating: good
The contract value of $36.4 million for two years of environmental remediation services appears reasonable given the scope and location. Benchmarking against similar large-scale environmental cleanup contracts is challenging without more specific service details, but the price per day is approximately $49,837. This figure needs to be assessed against the complexity and volume of remediation tasks performed. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight to manage costs effectively.
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 presence of 27 bids suggests a robust competitive environment for this remediation services contract. A high number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for essential environmental remediation services.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the local population and environment of Guam, through the cleanup of hazardous substances. Services delivered include remediation of contaminated sites, likely involving soil and groundwater cleanup. The geographic impact is concentrated on Andersen Air Force Base in Guam, addressing specific environmental challenges in that region. Workforce implications include the potential for local employment opportunities in Guam for skilled labor in environmental remediation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The specific nature of remediation services can involve unforeseen complexities and environmental hazards.
- Long-term environmental monitoring and maintenance costs are not explicitly detailed in the award data.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- The contractor, WSP USA, is a well-established firm with expertise in environmental services.
- The contract addresses critical environmental compliance and safety needs for a military installation.
Sector Analysis
This contract falls within the Environmental Remediation Services sector, a subset of the broader Engineering and Construction industry. The market for environmental remediation is driven by regulatory compliance, industrial cleanup needs, and military base operations. Spending in this sector can fluctuate based on new discoveries of contamination, regulatory changes, and the lifecycle of industrial facilities. Comparable spending benchmarks would typically be found within large-scale environmental projects for government agencies or major industrial clients.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the prime contractor is a large corporation. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless WSP USA actively engages small businesses for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and technical representatives within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over any allegations of fraud or mismanagement.
Related Government Programs
- Environmental Cleanup Services
- Base Realignment and Closure (BRAC) Environmental Programs
- Defense Environmental Restoration Program (DERP)
- Hazardous Waste Management
- Site Remediation
Risk Flags
- Cost Overrun Risk (CPFF Contract)
- Unforeseen Site Conditions
- Environmental Hazard Escalation
Tags
department-of-defense, department-of-the-air-force, environmental-remediation, remediation-services, cost-plus-fixed-fee, full-and-open-competition, guam, andersen-afb, large-contract, infrastructure, environmental-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. TAS::57 3400::TAS 200412!002432!5700!GW05 !HSW/PKV !FA890304D8669 !A!N! !N!0013 ! !20040930!20060930!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL, IN!ONE PLYMOUTH MEETING !PLYMOUTH MEETI !PA!19462!07900!010!66!ANDERSEN AFB !GUAM !* !+000029756238!N!N!000000000000!C129!OTHER NON-BUILDING STRUCTURES !C2 !CONSTRUCTION !ZOP !* !237310!E! !5!B!M! !A! !99990909!B! ! !B! !A!N!U!2!027!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE 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 $36.4 million.
What is the period of performance?
Start: 2004-09-30. End: 2006-09-30.
What specific types of environmental remediation were performed under this contract?
The provided data indicates the contract falls under NAICS code 562910 (Remediation Services) and the Product Service Code (PSC) is C129 (Other Non-Building Structures). While specific details are not itemized, this generally encompasses services such as soil and groundwater cleanup, hazardous waste removal, site assessment, and long-term monitoring to address contamination. Given the location at Andersen AFB, Guam, the remediation likely addressed historical fuel spills, chemical storage leaks, or other operational contaminants common on military installations. Further details would require reviewing the contract's Statement of Work (SOW).
How does the $36.4 million contract value compare to other large-scale environmental remediation contracts awarded by the DoD?
The $36.4 million value over two years positions this as a significant, but not exceptionally large, environmental remediation contract for the Department of Defense. Larger contracts, often associated with major cleanup initiatives like Base Realignment and Closure (BRAC) or extensive Superfund site management, can reach hundreds of millions or even billions of dollars over longer periods. However, for a specific base or a defined set of remediation tasks, $36.4 million represents a substantial investment. Its competitiveness, indicated by 27 bids, suggests it was priced appropriately within the market for similar scopes of work.
What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the 'cost plus' portion means the government reimburses allowable costs. If the remediation project encounters unforeseen complexities, such as deeper contamination, harder-to-treat substances, or unexpected site conditions, the total cost to the government can escalate beyond initial projections. Effective oversight, detailed cost tracking, and clear definition of allowable costs in the contract are crucial to mitigate this risk. The contractor also has less incentive to control costs compared to a fixed-price contract, as their fee is fixed regardless of the final cost.
What is the track record of WSP USA in performing similar environmental remediation services for the federal government?
WSP USA (formerly WSP | Parsons Brinckerhoff) is a large, multinational engineering and professional services consulting firm with extensive experience in environmental services, including remediation. They have a significant history of contracting with various U.S. federal agencies, including the Department of Defense, Department of Energy, and EPA, on complex environmental projects. While this specific contract award data doesn't detail their past performance on this particular task, WSP's overall profile suggests they possess the technical expertise and capacity to handle large-scale environmental remediation. Performance reviews and past performance questionnaires from previous government contracts would provide a more granular assessment.
How has federal spending on environmental remediation services evolved over the past decade?
Federal spending on environmental remediation services has remained a significant component of agency budgets, particularly for the Department of Defense (DoD) and the Environmental Protection Agency (EPA). While specific figures fluctuate annually based on legislative appropriations, emerging environmental challenges, and the lifecycle of cleanup projects (e.g., BRAC), the overall trend reflects a sustained commitment to addressing environmental contamination. Spending is often driven by regulatory mandates (like RCRA and CERCLA) and the ongoing need to manage legacy contamination at federal facilities. Recent years have seen increased focus on emerging contaminants like PFAS, potentially shifting spending priorities and requiring new remediation technologies.
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 - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 27
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Amec PLC (UEI: 229533856)
Address: 751 ARBOR WAY, STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,834,570
Exercised Options: $36,834,570
Current Obligation: $36,381,269
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8669
IDV Type: IDC
Timeline
Start Date: 2004-09-30
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2017-06-28
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