Navy awards $110M+ environmental cleanup contract to Shaw Environmental, Inc. for Alameda NAS

Contract Overview

Contract Amount: $11,031,951 ($11.0M)

Contractor: Shaw Environmental, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-02-01

End Date: 2004-05-31

Contract Duration: 1,215 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: Construction

Official Description: 200105!051125!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6247498D2076 !A!N!*!N!0060 !20010201!20020130!089680250!028655181!106521081!N!IT CORPORATION !4585 PACHECO BOULEVRD !MARTINEZ !CA!94553!00576!001!06!ALAMEDA NAS !ALAMEDA !CALIFORNIA!+000005692692!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !233320!*!*!5!B!M! !*!*!*!B!*!*!A! !A !U!R!2!008!B! !Z!Y!Z! ! !N!C!N! ! ! !D!D!A!A!000!A!C!Y! !N! ! ! ! !0001!

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to SHAW ENVIRONMENTAL, INC. for work described as: 200105!051125!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6247498D2076 !A!N!*!N!0060 !20010201!20020130!089680250!028655181!106521081!N!IT CORPORATION !4585 PACHECO BOULEVRD !MARTINEZ !CA!94553!00576!001!06!ALAMEDA NAS !ALAME… Key points: 1. Contract awarded for environmental remediation services, indicating a focus on addressing legacy contamination. 2. The contract's cost-plus-award-fee structure suggests potential for performance-based incentives. 3. A significant duration of over 3 years points to a complex and extensive scope of work. 4. The award to a single entity, Shaw Environmental, Inc., warrants scrutiny of competition and pricing. 5. Geographic focus on California highlights regional environmental concerns and remediation efforts. 6. The contract falls under construction and environmental services, a critical sector for military base operations.

Value Assessment

Rating: fair

The contract value of over $110 million for a period exceeding three years suggests a substantial environmental cleanup effort. Benchmarking this against similar large-scale environmental remediation contracts awarded by the Department of Defense would be necessary for a definitive value assessment. The cost-plus-award-fee (CPAF) pricing structure allows for flexibility but also requires careful monitoring to ensure costs remain reasonable and that award fees are tied to demonstrable performance improvements. Without specific performance metrics or comparable contract data, it is difficult to definitively assess the value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 8 bids suggests a reasonably competitive environment for this type of environmental remediation service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. However, the specific details of the bidding process and the evaluation criteria would be needed to fully understand the extent of competition's impact on the final award price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive marketplace, driving down prices and encouraging innovation among contractors. The fact that 8 bids were received suggests that taxpayer dollars were likely used efficiently in this instance.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially the surrounding communities, through the remediation of environmental hazards at Alameda Naval Air Station. Services delivered include environmental cleanup and restoration, addressing potential soil and groundwater contamination. The geographic impact is localized to Alameda, California, specifically at the Naval Air Station. Workforce implications include the creation of jobs for environmental scientists, engineers, technicians, and construction labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-award-fee structure requires diligent oversight to ensure cost control and that award fees are justified by performance.
The long duration of the contract necessitates ongoing performance monitoring to ensure objectives are met within budget and schedule.
Environmental remediation projects can be complex and subject to unforeseen challenges, potentially leading to cost overruns or schedule delays.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract aims to address critical environmental issues, contributing to base safety and environmental stewardship.
The specific award fee structure incentivizes contractor performance, potentially leading to higher quality outcomes.

Sector Analysis

This contract falls within the broader construction and environmental services sector, specifically focusing on hazardous waste remediation. The market for environmental services supporting federal agencies, particularly the Department of Defense, is substantial, driven by regulatory requirements and the need to manage legacy contamination at military installations. Comparable spending benchmarks would involve analyzing other large-scale environmental cleanup contracts awarded to federal facilities, which often run into tens or hundreds of millions of dollars depending on the scope and complexity of the contamination.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, Shaw Environmental, Inc., is a large business. However, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent to which this contract will benefit the small business ecosystem depends on the specific subcontracting plan and opportunities created within the environmental remediation and construction trades.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. The cost-plus-award-fee structure necessitates close monitoring of expenditures and performance against defined award criteria. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by the Department of Defense Inspector General, particularly concerning cost and performance claims.

Related Government Programs

Environmental Remediation Services
Military Base Realignment and Closure (BRAC) Environmental Programs
Hazardous Waste Management
Defense Environmental Infrastructure Program
Superfund Remediation

Risk Flags

Potential for cost overruns due to the complexity of environmental remediation.
Schedule delays are possible given the long-term nature and potential unforeseen site conditions.
Effectiveness of award fee structure in driving desired performance needs monitoring.
Ensuring compliance with all environmental regulations throughout the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to SHAW ENVIRONMENTAL, INC.. 200105!051125!1700!C8711 !NAVAL FACILITIES ENGINEERING COM!N6247498D2076 !A!N!*!N!0060 !20010201!20020130!089680250!028655181!106521081!N!IT CORPORATION !4585 PACHECO BOULEVRD !MARTINEZ !CA!94553!00576!001!06!ALAMEDA NAS !ALAMEDA !CALIFORNIA!+000005692692!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !233320!*!*!5!B!M! !*!*!*!B!*!*!A!

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 Navy).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2001-02-01. End: 2004-05-31.

What is the historical performance record of Shaw Environmental, Inc. on similar federal contracts, particularly those involving environmental remediation?

Shaw Environmental, Inc. has a history of performing large-scale environmental remediation and construction contracts for federal agencies, including the Department of Defense. Analyzing their past performance on similar contracts, such as those involving hazardous waste cleanup, site restoration, and compliance with environmental regulations, would provide insight into their capabilities and reliability. Specific contract data, including past performance evaluations, any disputes, or contract modifications, would be crucial. A review of their track record would help assess the likelihood of successful project completion within budget and schedule for this specific Alameda NAS contract. Without access to detailed past performance information, a definitive assessment is challenging, but their established presence suggests experience in this domain.

How does the awarded amount of over $110 million compare to the estimated costs for similar environmental cleanup projects at other naval facilities?

Comparing the $110+ million award to similar environmental cleanup projects at other naval facilities requires access to a database of comparable contracts. Factors influencing cost include the type and extent of contamination (e.g., soil, groundwater, hazardous materials), the size of the facility, regulatory requirements, and the specific remediation technologies employed. Projects involving extensive groundwater remediation or the cleanup of legacy industrial contaminants can be significantly more expensive. A benchmark analysis would involve identifying contracts with similar scopes of work, geographic locations, and contract types (e.g., cost-plus). If this contract's value is significantly higher or lower than comparable projects, it warrants further investigation into the underlying reasons, such as unique site conditions or competitive market dynamics.

What are the specific environmental risks and challenges associated with the Alameda Naval Air Station that justify this level of investment?

Alameda Naval Air Station, like many long-standing military installations, likely faces environmental risks stemming from historical operations, including aircraft maintenance, fuel storage, and industrial activities. Potential contaminants could include petroleum hydrocarbons, solvents, heavy metals, and other hazardous substances in soil and groundwater. The specific risks and challenges would be detailed in environmental assessments and remedial investigation reports for the site. These reports identify the nature and extent of contamination, potential pathways for exposure, and ecological risks. The $110+ million investment suggests that the identified contamination is widespread, complex, and requires significant remediation efforts to meet environmental standards and ensure the safety of personnel and the surrounding environment.

What are the key performance indicators (KPIs) tied to the 'award fee' component of this contract, and how are they measured?

The key performance indicators (KPIs) for the award fee component of this Cost Plus Award Fee (CPAF) contract are critical for understanding how contractor performance is evaluated and incentivized. While the specific KPIs are not detailed in the provided data, they typically relate to critical aspects of the project such as schedule adherence, cost control, quality of work, safety performance, environmental compliance, and responsiveness to government direction. The government would establish objective criteria and subjective assessments to determine the level of award fee earned. For instance, meeting or exceeding cleanup targets ahead of schedule, maintaining an excellent safety record, or demonstrating innovative cost-saving measures could trigger higher award fees. The measurement process would involve regular progress reviews and formal evaluations by the Contracting Officer's Representative (COR).

How has federal spending on environmental remediation at naval facilities evolved over the past decade, and does this contract align with those trends?

Federal spending on environmental remediation at naval facilities has historically been substantial, driven by regulatory mandates like CERCLA (Superfund) and ongoing operational needs. Spending trends can fluctuate based on budget allocations, the identification of new contamination sites, and the progression of remediation projects through different phases (investigation, design, remediation, monitoring). Over the past decade, there has been a continued emphasis on addressing legacy contamination and ensuring compliance with stringent environmental standards. This $110+ million contract for Alameda NAS appears to align with the ongoing need for significant investments in environmental cleanup at military installations. Analyzing historical spending data for the Navy's environmental programs would reveal whether this award represents a typical investment level or a significant deviation, potentially indicating a particularly challenging or high-priority cleanup effort.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 4005 PORT CHICAGO HWY, CONCORD, CA, 10

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247498D2076

IDV Type: IDC

Timeline