Shaw Environmental awarded $30.1M for North County FUSRAP remediation services under full and open competition
Contract Overview
Contract Amount: $30,108,129 ($30.1M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-22
End Date: 2011-09-30
Contract Duration: 1,834 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: REMEDIAL DESIGN/REMEDIAL ACTION, NORTH COUNTY FUSRAP PROJECT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63132
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to SHAW ENVIRONMENTAL, INC. for work described as: REMEDIAL DESIGN/REMEDIAL ACTION, NORTH COUNTY FUSRAP PROJECT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Performance period spans over 1800 days, indicating a long-term, complex project. 4. The contract was awarded to Shaw Environmental, Inc., a significant player in the environmental services sector. 5. The project falls under the Formerly Used Defense Sites (FUDS) program, addressing environmental cleanup. 6. The North American Industry Classification System (NAICS) code 562910 points to Remediation Services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Cost Plus Fixed Fee structure means actual costs could vary. However, the fixed fee component provides some predictability. Comparing it to similar large-scale environmental remediation projects would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bids suggests a reasonably competitive environment, which should theoretically lead to better pricing for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors compete on price and performance, potentially leading to cost savings and higher quality services.
Public Impact
The primary beneficiaries are the communities impacted by Formerly Used Defense Sites (FUSRAP), receiving environmental cleanup services. Services delivered include remedial design and remedial action, crucial for environmental restoration. The geographic impact is focused on the North County area, addressing specific environmental contamination. The contract supports a workforce involved in environmental engineering, remediation, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Long project durations increase the risk of scope creep and changing regulatory requirements.
- Environmental remediation projects inherently carry risks related to unforeseen site conditions and hazardous materials.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The project addresses critical environmental cleanup needs under the FUSRAP program.
- The contractor, Shaw Environmental, Inc., is likely experienced in handling complex remediation projects.
Sector Analysis
This contract falls within the environmental remediation services sector, a critical component of the broader environmental services industry. This sector is driven by regulatory compliance, cleanup mandates for contaminated sites, and increasing awareness of environmental stewardship. The market size for environmental remediation is substantial, fueled by government initiatives like FUSRAP and private sector cleanup obligations. This specific contract represents a significant investment in addressing legacy environmental issues from past defense activities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Shaw Environmental, Inc., may engage small businesses as subcontractors for specialized services, depending on their subcontracting plan and project needs.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army, under the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency would be facilitated through reporting requirements and potentially public-facing project updates related to the FUSRAP program. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Formerly Used Defense Sites (FUSRAP) Program
- Environmental Remediation Services
- Department of Defense Contracts
- Cost-Plus Contracts
- Remedial Action Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long project duration increases susceptibility to scope creep and changing conditions.
- Environmental remediation projects often involve unforeseen site complexities and hazardous materials.
Tags
remediation-services, department-of-defense, department-of-the-army, cost-plus-fixed-fee, full-and-open-competition, formerly-used-defense-sites, environmental-cleanup, missouri, large-contract, remedial-design, remedial-action
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to SHAW ENVIRONMENTAL, INC.. REMEDIAL DESIGN/REMEDIAL ACTION, NORTH COUNTY FUSRAP PROJECT
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 $30.1 million.
What is the period of performance?
Start: 2006-09-22. End: 2011-09-30.
What is the historical spending trend for Shaw Environmental, Inc. with the Department of Defense?
Analyzing the historical spending trend for Shaw Environmental, Inc. with the Department of Defense requires access to comprehensive contract databases. Generally, large environmental service providers like Shaw often secure multiple contracts over time, especially for long-term programs like FUSRAP. Their award history would likely show a pattern of significant contract values, particularly in areas of hazardous waste management, site remediation, and environmental consulting. The frequency and value of these awards would indicate their established relationship and performance record with the DoD. Without specific historical data for this contractor, it's difficult to provide precise figures, but their presence in this large contract suggests a sustained engagement with the agency.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for environmental remediation?
The Cost Plus Fixed Fee (CPFF) contract type is often used for complex projects where the scope of work is not precisely defined at the outset, such as environmental remediation. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, offering greater cost certainty to the government but potentially higher risk for the contractor if costs escalate. Cost-Reimbursement contracts (without a fixed fee) offer maximum flexibility but less cost control. CPFF aims to balance flexibility with cost control by incentivizing the contractor to manage costs efficiently to protect their fixed fee, while still allowing for adjustments due to unforeseen circumstances inherent in remediation projects.
What are the primary risks associated with long-duration environmental remediation contracts?
Long-duration environmental remediation contracts, like this 1834-day project, carry several inherent risks. Firstly, the potential for scope creep is significant; as work progresses, unforeseen environmental conditions or regulatory changes may necessitate modifications to the original plan, leading to increased costs and extended timelines. Secondly, contractor performance can degrade over extended periods if oversight is not consistently rigorous. Thirdly, economic factors such as inflation can impact the cost of labor and materials over time, potentially affecting the contractor's ability to maintain profitability within the original cost estimates, especially under fixed-fee arrangements. Finally, maintaining consistent stakeholder engagement and managing public perception over many years can also be challenging.
What is the typical performance benchmark for Remediation Services contracts under NAICS code 562910?
Performance benchmarks for Remediation Services contracts (NAICS 562910) are highly project-specific and depend on factors like the type and extent of contamination, site complexity, and regulatory requirements. Key performance indicators often include adherence to schedule, budget performance (cost efficiency), environmental compliance (meeting cleanup standards), safety record (incident rates), and quality of deliverables (reports, remediation effectiveness). For large-scale projects like FUSRAP, successful completion within established environmental standards and regulatory timelines are paramount. Benchmarking often involves comparing project outcomes against similar past projects, industry best practices, and the specific goals outlined in the contract statement of work. Without detailed project-specific metrics, a general benchmark is difficult to establish.
How does the FUDS program impact environmental cleanup spending within the Department of Defense?
The Formerly Used Defense Sites (FUDS) program significantly impacts environmental cleanup spending within the Department of Defense by addressing contamination from past military activities on land no longer owned by the government. This program requires substantial and ongoing investment to identify, assess, and remediate hazardous substances, pollutants, or contaminants. FUDS projects are often complex and costly due to the historical nature of the contamination and the challenges of working on non-federal property. Consequently, the FUDS program represents a major category of environmental restoration spending for the DoD, diverting resources towards long-term cleanup efforts that can span decades and involve numerous individual site projects across the country.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
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: 11206 THOMPSON AVE, LENEXA, KS, 66219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,108,129
Exercised Options: $30,108,129
Current Obligation: $30,108,129
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACW4198D9006
IDV Type: IDC
Timeline
Start Date: 2006-09-22
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2020-09-27
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