DoD's $24.26M environmental remediation contract for Hastings, NE, awarded to Shaw Environmental, Inc
Contract Overview
Contract Amount: $24,259,362 ($24.3M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-02-08
End Date: 2013-06-26
Contract Duration: 1,965 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CPFF - KANSAS CITY TERC. ENVIRONMENTAL REMEDIATION AT HASTINGS NEBRASKA
Place of Performance
Location: HASTINGS, ADAMS County, NEBRASKA, 68901, UNITED STATES OF AMERICA
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to SHAW ENVIRONMENTAL, INC. for work described as: CPFF - KANSAS CITY TERC. ENVIRONMENTAL REMEDIATION AT HASTINGS NEBRASKA Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was fully and openly competed, suggesting a competitive pricing environment. 3. Duration of 1965 days (over 5 years) suggests a significant, long-term environmental project. 4. The contract was awarded by the Department of the Army, a major DoD component. 5. The North American Industry Classification System (NAICS) code 562910 points to remediation services. 6. No small business set-aside was utilized, with the contract awarded to a large business.
Value Assessment
Rating: fair
Benchmarking the value of this environmental remediation contract is challenging without specific scope details and comparable project data. However, the $24.26 million award over approximately five years suggests a substantial investment in environmental cleanup. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if managed effectively. Further analysis would require comparing the per-unit costs of specific remediation activities (e.g., per cubic yard of soil treated) against industry standards or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bids indicates a reasonable level of competition for this environmental remediation project. A competitive bidding process generally helps ensure that the government receives fair market prices and that taxpayer dollars are used efficiently. The number of bidders suggests that the market for these services is sufficiently robust to support multiple interested parties.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.
Public Impact
The primary beneficiaries are the residents and environment of Hastings, Nebraska, through the cleanup of contaminated sites. Services delivered include environmental remediation, addressing hazardous waste and pollution. The geographic impact is localized to Hastings, Nebraska. The contract likely supported a workforce skilled in environmental engineering, hazardous material handling, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of environmental contamination was underestimated.
- Long contract duration could lead to contractor complacency or reduced urgency if not actively managed.
- Environmental remediation projects can face unforeseen technical challenges impacting timelines and costs.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Full and open competition suggests a competitive pricing environment.
- Award to an established firm like Shaw Environmental, Inc. may indicate a track record of successful project completion.
Sector Analysis
Environmental remediation services fall under the broader environmental consulting and services sector. This sector is critical for addressing legacy pollution, complying with environmental regulations, and supporting sustainable development. The market includes a range of firms from small specialized consultants to large engineering and construction companies. Government contracts, particularly from agencies like the Department of Defense, represent a significant portion of the demand due to the extensive environmental cleanup requirements at military installations and formerly used defense sites.
Small Business Impact
This contract was not awarded as a small business set-aside, and the data indicates the contractor is not a small business. Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, large prime contractors are often encouraged or required to seek small business participation in their subcontracting plans for other contracts, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Defense Environmental Cleanup Program
- Superfund Remediation
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Complexity of environmental regulations and compliance requirements.
- Long-term nature of remediation projects requires sustained oversight.
Tags
environmental-remediation, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, nebraska, remediation-services, large-business, environmental-cleanup, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to SHAW ENVIRONMENTAL, INC.. CPFF - KANSAS CITY TERC. ENVIRONMENTAL REMEDIATION AT HASTINGS NEBRASKA
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 $24.3 million.
What is the period of performance?
Start: 2008-02-08. End: 2013-06-26.
What was the specific nature and extent of the environmental contamination addressed under this contract?
The provided data identifies the contract's purpose as 'ENVIRONMENTAL REMEDIATION AT HASTINGS NEBRASKA' but does not detail the specific contaminants or the extent of the contamination. Typically, such contracts address issues like soil and groundwater contamination from historical industrial activities, fuel spills, or military operations. A thorough understanding would require reviewing the contract's statement of work (SOW), which would outline the specific pollutants (e.g., volatile organic compounds, heavy metals, petroleum hydrocarbons), the affected media (soil, groundwater, surface water), and the required cleanup standards.
How does the awarded amount of $24.26 million compare to similar environmental remediation projects undertaken by the DoD or EPA?
Comparing the $24.26 million award requires context regarding the project's scope, duration, and complexity. Environmental remediation projects can vary significantly in cost. For instance, large-scale Superfund site cleanups managed by the EPA can cost tens to hundreds of millions of dollars over many years. DoD contracts for cleaning up former military bases can also be substantial. Without specific details on the volume of material remediated, the type of contaminants, and the remediation technologies employed, a direct comparison is difficult. However, a five-year contract of this magnitude suggests a significant undertaking, likely involving extensive site characterization and cleanup activities.
What were the key performance indicators (KPIs) or metrics used to evaluate Shaw Environmental, Inc.'s performance on this contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. However, typical KPIs for environmental remediation contracts often include adherence to project schedules, meeting cleanup standards and regulatory requirements, cost control (especially relevant for cost-reimbursable elements, though this was FFP), safety performance (e.g., incident rates), quality of deliverables (reports, data), and effective stakeholder communication. The contracting officer's representative (COR) would likely monitor these aspects throughout the contract's duration.
What is Shaw Environmental, Inc.'s track record with the Department of Defense and other federal agencies for similar remediation projects?
Shaw Environmental, Inc. (and its subsequent entities through mergers and acquisitions, such as the acquisition by Chicago Bridge & Iron Company, later McDermott International) has a significant history of performing large-scale environmental services, including remediation projects, for the Department of Defense and other federal agencies. They have been involved in numerous complex cleanup efforts at military installations and industrial sites across the United States. Accessing specific past performance evaluations or contract histories within federal procurement databases (like SAM.gov or FPDS) would provide detailed insights into their success rates, any past issues, and their overall reliability for such projects.
Were there any significant challenges or disputes encountered during the performance of this contract?
The available summary data does not indicate any significant challenges, disputes, or contract modifications for this specific award. However, large, multi-year environmental remediation projects inherently carry risks of encountering unforeseen site conditions, regulatory changes, or technical difficulties that could lead to disputes or change orders. A comprehensive review of the contract's official file, including any modifications, claims, or contract disputes resolutions, would be necessary to determine if any such issues arose during its performance.
What was the total amount spent by the government on this contract over its duration, and how does it compare to the initial award value?
The provided data shows an 'amount obligated' (a) of $24,259,362.48. Assuming this represents the total value or a significant portion of the total value awarded and spent, it aligns closely with the contract's purpose. For a Firm Fixed Price (FFP) contract, the final amount paid is typically the awarded price, unless modifications occur. Without explicit data on final delivery value versus initial award, we infer that the obligated amount is representative of the total expenditure. Further investigation into contract modifications or final payment reports would confirm if the final cost deviated from the initial obligation.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
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: $24,259,362
Exercised Options: $24,259,362
Current Obligation: $24,259,362
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACW4198D9006
IDV Type: IDC
Timeline
Start Date: 2008-02-08
Current End Date: 2013-06-26
Potential End Date: 2013-06-26 00:00:00
Last Modified: 2015-09-11
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