DoD awards $46.3M for environmental cleanup, raising questions on cost-effectiveness and competition

Contract Overview

Contract Amount: $46,301,825 ($46.3M)

Contractor: Foster Wheeler Environmental C

Awarding Agency: Department of Defense

Start Date: 2000-07-06

End Date: 2005-12-30

Contract Duration: 2,003 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 200010!96CE!000194!CW33 !USA ENGINEER DIST NEW ENGLAND !DACW3394D0002 !A!*!0024 !20000706!20001031!833262041!130487143!001339456!N!08NL7!FOSTER WHEELER ENVIRONMENTAL C!1000 THE AMERICAN ROAD !MORRIS PLAINS !NJ!07950!45000!005!25!NEW BEDFORD !BRISTOL !MASS !0001!+000000120785!N!N!000000000000!Z300!MAINT/RESTORATION ACTIVITIES !C2 !CONSTRUCTION !5ZSE!ENVIR PROTECT AGENCY SUPERFUND!8744!5!B!S!*!B!A!*!A !N!U!2!024!B!* !D!N!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: NEW BEDFORD, BRISTOL County, MASSACHUSETTS, 02740

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to FOSTER WHEELER ENVIRONMENTAL C for work described as: 200010!96CE!000194!CW33 !USA ENGINEER DIST NEW ENGLAND !DACW3394D0002 !A!*!0024 !20000706!20001031!833262041!130487143!001339456!N!08NL7!FOSTER WHEELER ENVIRONMENTAL C!1000 THE AMERICAN ROAD !MORRIS PLAINS !NJ!07950!45000!005!25!NEW BEDFORD !BRISTOL !MASS !0001!+000000120785!N!N!… Key points: 1. The contract awarded to Foster Wheeler Environmental Corporation for $46.3 million focuses on maintenance and restoration activities. 2. The project falls under the Environmental Protection Agency Superfund program, indicating a need for specialized environmental services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. 4. The sector is Construction, specifically environmental remediation, a critical but often complex area of government spending.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Without detailed cost breakdowns and performance metrics, it's difficult to assess if the $46.3 million represents excellent value compared to similar environmental cleanup contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and selection process are not provided, making it hard to definitively assess the impact on price.

Taxpayer Impact: The significant award amount necessitates careful oversight to ensure taxpayer funds are used efficiently for essential environmental protection.

Public Impact

Environmental cleanup efforts are crucial for public health and ecological preservation, directly impacting communities near Superfund sites. The long-term effectiveness of the maintenance and restoration activities will determine the lasting benefit to the environment and public. Transparency in the contract's performance and cost management is vital for public trust and accountability in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited insight into specific performance metrics

Positive Signals

Full and open competition
Focus on environmental protection

Sector Analysis

This contract falls within the Construction sector, specifically environmental remediation. Spending benchmarks in this area can vary widely based on the complexity of the site and the scope of work. Federal agencies often award large contracts for Superfund site cleanups.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract will be critical, particularly given the Cost Plus Fixed Fee structure. Regular performance reviews and audits by the Department of Defense and the EPA are essential to ensure accountability and prevent wasteful spending.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Limited visibility into specific performance metrics and deliverables.
Potential for scope creep without stringent oversight.
Environmental remediation projects can be complex and prone to unforeseen challenges.
Need for ongoing monitoring to ensure long-term effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to FOSTER WHEELER ENVIRONMENTAL C. 200010!96CE!000194!CW33 !USA ENGINEER DIST NEW ENGLAND !DACW3394D0002 !A!*!0024 !20000706!20001031!833262041!130487143!001339456!N!08NL7!FOSTER WHEELER ENVIRONMENTAL C!1000 THE AMERICAN ROAD !MORRIS PLAINS !NJ!07950!45000!005!25!NEW BEDFORD !BRISTOL !MASS !0001!+000000120785!N!N!000000000000!Z300!MAINT/RESTORATION ACTIVITIES !C2 !CONSTRUCTION !5ZSE!ENVIR PROTECT AGENCY SUPERFUND!8744!5!B!S!*!B!A!*!A !N!U!2!024!B!* !D!N!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Who is the contractor on this award?

The obligated recipient is FOSTER WHEELER ENVIRONMENTAL C.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $46.3 million.

What is the period of performance?

Start: 2000-07-06. End: 2005-12-30.

What specific environmental restoration activities are covered under this contract, and how do they align with the goals of the Superfund program?

The data indicates 'MAINT/RESTORATION ACTIVITIES' under the 'ENVIR PROTECT AGENCY SUPERFUND' program. This suggests the contract likely involves ongoing maintenance of existing cleanup sites or restoration efforts to mitigate environmental damage. A detailed statement of work would clarify the precise activities, such as soil remediation, water treatment, or habitat restoration, and their direct contribution to the Superfund program's objectives.

How does the awarded amount of $46.3 million compare to the estimated costs for similar environmental cleanup projects of comparable scope and complexity?

Benchmarking this $46.3 million award requires detailed comparison with similar contracts for Superfund site maintenance and restoration. Factors like site contamination levels, geographical location, and the specific remediation technologies employed significantly influence costs. Without access to a database of comparable contract data, a precise cost-effectiveness assessment is challenging, but the amount suggests a substantial undertaking.

What mechanisms are in place to ensure the long-term effectiveness and sustainability of the environmental restoration activities performed under this contract?

The contract's duration and the Cost Plus Fixed Fee structure imply a focus on completing defined tasks. Long-term effectiveness relies on robust monitoring and evaluation protocols established by the EPA and the Army Corps of Engineers. Ensuring sustainability involves verifying that the remediation methods are durable, require minimal future intervention, and achieve lasting environmental improvements beyond the contract period.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 133 FEDERAL ST, BOSTON, MA, 02110

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACW3394D0002

IDV Type: IDC

Timeline