DoD's $43.8M environmental remediation contract awarded to AMEC Earth & Environmental Inc. for Iraq operations

Contract Overview

Contract Amount: $43,814,851 ($43.8M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2004-10-29

End Date: 2006-09-18

Contract Duration: 689 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200505!000166!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0027 ! !20041029!20050501!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000043985787!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A! !20200930!B! ! !B! !A!U!U!2!004!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: PLYMOUTH MEETING, MONTGOMERY County, PENNSYLVANIA, 19462, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $43.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: 200505!000166!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0027 ! !20041029!20050501!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* … Key points: 1. Contract value represents a significant investment in environmental services for deployed forces. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period of 689 days indicates a substantial, medium-term project. 4. The North American Industry Classification System (NAICS) code 562910 points to remediation and waste management services. 5. The contract's geographic focus on Iraq highlights the unique operational environment and associated risks. 6. The Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns if not carefully managed.

Value Assessment

Rating: fair

The contract value of $43.8 million for environmental remediation services in Iraq appears substantial. Benchmarking this against similar contracts is challenging due to the unique operational context and geographic location. The Cost Plus Fixed Fee (CPFF) structure, while common for uncertain scope projects, carries inherent risks of cost escalation. Without detailed breakdowns of labor rates, material costs, and fee percentages, a precise value-for-money assessment is difficult.

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 4 bids suggests a reasonable level of competition for this specialized service. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not fully detailed here. A competitive process is generally expected to yield better pricing for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the most advantageous offer through a wide range of potential providers, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the U.S. military forces operating in Iraq, who receive support for environmental remediation critical to base operations and safety. Services delivered include remediation of contaminated sites, waste management, and potentially hazardous material handling. The geographic impact is concentrated in Iraq, addressing environmental challenges in a deployed operational theater. Workforce implications include the potential employment of specialized environmental technicians, engineers, and support staff, both locally and potentially from the U.S.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to increase fee.
Operating in a contingency environment like Iraq presents significant logistical and security risks that could impact cost and schedule.
The duration of the contract (689 days) suggests a complex and potentially long-term environmental challenge.
Limited public information on the specific remediation activities and their effectiveness makes oversight difficult.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, AMEC Earth & Environmental Inc., likely possesses specialized expertise in environmental remediation.
The contract addresses a critical operational need for environmental services in a deployed location.

Sector Analysis

The environmental remediation services sector is a critical component of government contracting, particularly for defense and infrastructure projects. This contract falls under the broader construction and environmental services industry. The market for such services is substantial, driven by regulatory requirements, operational needs, and legacy contamination issues. Comparable spending benchmarks are difficult to establish precisely due to the unique operational context of Iraq, but large-scale environmental remediation contracts can range from tens to hundreds of millions of dollars.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The prime contractor is AMEC Earth & Environmental Inc., a large business. Subcontracting opportunities for small businesses may exist, but are not detailed in this summary. The absence of a set-aside suggests the primary focus was on securing specialized capabilities from the most capable large contractors.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is often limited in contingency contracting, but contract awards and basic details are usually published. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Base Operations Support
Contingency Contracting
Hazardous Waste Management
Department of Defense Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns.
Operating in a contingency environment (Iraq) introduces significant security and logistical risks.
Limited detail on specific remediation activities and performance metrics hinders full assessment.
Potential for unforeseen site conditions in environmental remediation projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. 200505!000166!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0027 ! !20041029!20050501!038086125!200653459!229533856!N!AMEC EARTH & ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000043985787!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A! !202

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $43.8 million.

What is the period of performance?

Start: 2004-10-29. End: 2006-09-18.

What is the track record of AMEC Earth & Environmental Inc. with similar large-scale environmental remediation contracts, particularly in overseas or contingency environments?

AMEC Earth & Environmental Inc. (now part of WSP Global) has a history of performing large-scale environmental remediation projects. While specific details on their performance in overseas contingency environments like Iraq for this particular contract are not readily available in this data snippet, the company has experience with complex environmental challenges globally. Their track record would typically be assessed by the contracting agency through past performance evaluations during the bidding process. This would include reviewing their ability to manage scope, schedule, budget, and safety in challenging conditions. Further investigation into their project portfolio and client feedback would be necessary for a comprehensive assessment.

How does the $43.8 million contract value compare to other environmental remediation contracts awarded by the DoD for similar services in the past decade?

The $43.8 million value for this contract is significant, particularly given its focus on Iraq. Comparing it directly to other DoD environmental remediation contracts requires careful consideration of scope, duration, location, and specific services. Contracts for large-scale remediation at domestic military bases can often reach similar or higher values. However, contracts in active contingency zones like Iraq often carry higher risk premiums and logistical costs, making direct comparisons complex. Without a detailed breakdown of services and the specific environmental conditions addressed, it's difficult to definitively state if this represents high or low value relative to benchmarks. However, it falls within the range of substantial environmental service contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation in Iraq, and how are they mitigated?

The primary risks of a CPFF contract in this context include potential cost overruns if the scope of work expands or unforeseen conditions arise, as the contractor is reimbursed for allowable costs plus a fixed fee. In Iraq, risks are amplified by security concerns, logistical challenges, and the potential for encountering unexpected hazardous materials or site conditions. Mitigation strategies typically involve robust government oversight, detailed work breakdown structures, clear definition of allowable costs, regular progress reviews, and strong contract administration to ensure the contractor remains within the defined scope and budget. The fixed fee provides some incentive for efficiency, but the government bears the primary risk of cost increases.

What specific environmental challenges were addressed by this contract, and what was the expected outcome or impact on military operations?

While the data specifies 'MAINT/OFFICE BUILDINGS' and 'Remediation Services,' the precise environmental challenges addressed by this contract are not detailed. Typically, such contracts in operational theaters involve remediation of soil and groundwater contamination from spills, historical waste disposal, or operational activities. This could include hazardous material removal, asbestos abatement, or addressing unexploded ordnance (UXO) related contamination. The expected outcome would be the restoration of affected areas to a safe and compliant state, ensuring the health and safety of personnel, minimizing environmental liability, and enabling continued military operations without environmental hindrance. The impact is crucial for maintaining base functionality and reducing long-term environmental risks.

How has spending on environmental remediation services by the Department of Defense evolved over the past five years, and does this contract represent a typical allocation?

Spending on environmental remediation services by the DoD is a consistent and significant part of its budget, driven by ongoing cleanup requirements at active bases, formerly used defense sites, and operational needs in deployed locations. While this specific contract's $43.8 million value is substantial for a single award, the DoD's overall annual spending on environmental services can range in the billions of dollars across numerous contracts. This contract represents a specific allocation for a critical need in a challenging environment. Without broader spending trend data for contingency operations, it's difficult to classify it as 'typical,' but it aligns with the DoD's commitment to managing environmental liabilities and supporting operations globally.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: ONE PLYMOUTH MEETING, PLYMOUTH MEETI, PA, 19462

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: FA890304D8669

IDV Type: IDC

Timeline