DoD Awards $13.7M for Remediation Services, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $13,754,808 ($13.8M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-22

End Date: 2008-11-24

Contract Duration: 978 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::57 3400::TAS 200606!000517!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0053 ! !20060322!20060918!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000013214155!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !562910!E! !5!B!M! !A!D!20081120!B! ! !A! !A!N!U!2!012!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: PLYMOUTH MEETING, MONTGOMERY County, PENNSYLVANIA, 19462

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: TAS::57 3400::TAS 200606!000517!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0053 ! !20060322!20060918!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* … Key points: 1. Contract awarded for remediation services, a critical but often complex sector. 2. Competition was full and open, but the final awardee is a subsidiary of a larger entity. 3. Potential risk identified in cost-plus fixed fee structure and lack of detailed cost breakdown. 4. Sector context suggests high demand for environmental remediation, but benchmarks are unclear.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, with a total award of $13.7M over 978 days, lacks detailed cost breakdowns, making it difficult to assess value for money. The fixed fee component is not explicitly stated, hindering a clear understanding of profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad outreach for potential bidders. However, the specific details of the bidding process and how the final price was determined are not fully discernible from the provided data.

Taxpayer Impact: The use of a Cost Plus Fixed Fee contract, without clear cost justification, may lead to higher taxpayer costs if not managed effectively.

Public Impact

Taxpayers may be overpaying due to the Cost Plus Fixed Fee structure and lack of detailed cost transparency. The long duration of the contract (978 days) suggests a significant, ongoing need for these remediation services. The award to a subsidiary of a larger entity warrants scrutiny to ensure no undue influence or preferential treatment occurred during the bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown
Cost Plus Fixed Fee structure
Potential for cost overruns

Positive Signals

Full and open competition
Awarded for essential remediation services

Sector Analysis

Environmental remediation services are crucial for addressing contamination and ensuring public safety. Spending in this sector can vary significantly based on project scope and complexity. Benchmarks are difficult to establish without more specific project details.

Small Business Impact

The data indicates the awardee is AMEC Earth & Environmental Inc., a subsidiary. There is no explicit information on whether small businesses were subcontracted or involved in the competition, which is a missed opportunity for small business participation.

Oversight & Accountability

The contract's Cost Plus Fixed Fee nature necessitates robust oversight to ensure costs are reasonable and the fixed fee is justified. The lack of detailed cost information raises concerns about the effectiveness of current oversight mechanisms.

Related Government Programs

Remediation Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of detailed cost breakdown
Cost Plus Fixed Fee structure may incentivize higher costs
Potential for cost overruns due to contract type and scope
Limited transparency on profit margins
Unclear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. TAS::57 3400::TAS 200606!000517!5700!FA8903!HSW/PKV !FA890304D8669 !A!N! !N!0053 ! !20060322!20060918!038086125!200653459!229533856!N!AMEC EARTH&ENVIRONMENTAL INC!ONE PLYMOUTH MEETING STE 8!PLYMOUTH MEETI !PA!19462!00000! !IZ!* !* !IRAQ !+000013214155!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !562910!E!

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 $13.8 million.

What is the period of performance?

Start: 2006-03-22. End: 2008-11-24.

What specific remediation activities are covered under this contract, and how were the estimated costs justified to ensure fair pricing?

The contract specifies 'MAINT/OFFICE BUILDINGS' and 'Remediation Services' under the PSC code 562910. However, the provided data lacks the detailed breakdown of activities and cost justification. The Cost Plus Fixed Fee structure means the government pays actual costs plus a negotiated fixed fee, making it crucial to have strong oversight on the 'actual costs' component to ensure fairness and prevent overpayment.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives the best value?

The primary risk mitigation in a Cost Plus Fixed Fee contract lies in rigorous oversight of incurred costs and the negotiation of a reasonable fixed fee. Without detailed cost data, it's difficult to assess the effectiveness of these mechanisms. The long contract duration and the nature of remediation work suggest potential for unforeseen challenges, increasing the importance of proactive cost management and performance monitoring.

How does the $13.7M award compare to similar remediation contracts, and what does this suggest about the government's effectiveness in securing competitive pricing?

Benchmarking this $13.7M award is challenging without more specific details on the scope of work, location, and duration of similar contracts. The 'full and open competition' is a positive indicator for competitive pricing. However, the Cost Plus Fixed Fee structure, coupled with a lack of detailed cost transparency, raises questions about whether the government achieved optimal pricing or if there's potential for cost efficiencies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA890304D8669

IDV Type: IDC

Timeline