DoD's $51.7M contract for environmental remediation services awarded to Versar, Inc. under full and open competition

Contract Overview

Contract Amount: $51,715,715 ($51.7M)

Contractor: Versar, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-05-01

End Date: 2008-11-14

Contract Duration: 563 days

Daily Burn Rate: $91.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 81

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPAND TITLE II SERVICES PROVIDED IN TO55 UNDER A NEW TO67

Plain-Language Summary

Department of Defense obligated $51.7 million to VERSAR, INC. for work described as: EXPAND TITLE II SERVICES PROVIDED IN TO55 UNDER A NEW TO67 Key points: 1. Contract awarded for remediation services, indicating a need for environmental cleanup. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. Awarded to Versar, Inc., a contractor with a history of government service. 4. The contract duration was 563 days, suggesting a medium-term project. 5. The contract type was Time and Materials, which can carry cost risks if not managed closely. 6. The North American Industry Classification System (NAICS) code 562910 points to environmental remediation activities.

Value Assessment

Rating: fair

The total value of $51.7 million for environmental remediation services over approximately 1.5 years appears within a reasonable range for such projects. However, without specific details on the scope of work and the complexity of the remediation required, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not carefully monitored for efficiency and necessity of labor hours. Benchmarking against similar, geographically diverse remediation contracts would provide a clearer picture of cost-effectiveness.

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 81 bids suggests a robust level of interest and a competitive marketplace for these environmental remediation services. A high number of bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for the required remediation work.

Public Impact

The Department of Defense benefits from the cleanup of environmental hazards at its facilities. Services delivered include remediation of contaminated sites, improving environmental quality. The geographic impact is likely localized to the specific DoD facilities requiring remediation. The contract supports a workforce skilled in environmental engineering and hazardous material handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of specific details on the remediation scope makes it difficult to fully assess value.
The contractor's track record on similar complex remediation projects needs further review.

Positive Signals

Awarded under full and open competition with a significant number of bidders.
Contract addresses critical environmental remediation needs for the Department of Defense.
The contractor, Versar, Inc., is an established entity in government contracting.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry, which is driven by regulatory compliance and the need to address historical contamination. Federal spending in this area is substantial, covering cleanup at military bases, Superfund sites, and other government-managed properties. This contract fits within the government's ongoing efforts to manage and mitigate environmental liabilities across its installations. Comparable spending benchmarks would typically be found in contracts awarded by the EPA, Army Corps of Engineers, and other agencies managing environmental cleanup.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Versar, Inc. engages small businesses as subcontractors for specialized services or supplies. Without specific subcontracting plans, the direct benefit to small businesses from this particular award is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Time and Materials nature of the contract necessitates close monitoring of labor hours, material costs, and adherence to the scope of work to ensure accountability and prevent cost creep. Transparency would be enhanced through regular reporting requirements and potentially through public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Department of Defense Contracts
Air Force Contracts
Hazardous Waste Management
Site Remediation

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope definition and management critical for value realization.
Contractor's past performance on complex remediation projects requires detailed review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.7 million to VERSAR, INC.. EXPAND TITLE II SERVICES PROVIDED IN TO55 UNDER A NEW TO67

Who is the contractor on this award?

The obligated recipient is VERSAR, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2007-05-01. End: 2008-11-14.

What is Versar, Inc.'s track record with similar environmental remediation contracts for the Department of Defense?

Versar, Inc. has a history of performing environmental services for various government agencies, including the Department of Defense. Their experience often includes site assessment, remediation design, and construction management for environmental projects. Analyzing past performance reviews, contract modifications, and any disputes or claims related to their previous DoD remediation contracts would provide a more comprehensive understanding of their capabilities and reliability. Specific details on the scale and complexity of their prior remediation work, particularly for the Air Force, would be crucial for a thorough assessment of their suitability for this $51.7 million contract.

How does the $51.7 million contract value compare to other federal environmental remediation contracts of similar scope?

Benchmarking the $51.7 million contract value requires detailed knowledge of the specific remediation tasks, the geographic location, the environmental conditions, and the duration. Environmental remediation can range from minor soil cleanup to extensive hazardous waste removal and long-term monitoring. Contracts for large-scale, complex cleanups at active military installations or contaminated industrial sites can easily reach tens or hundreds of millions of dollars. Without knowing the precise scope (e.g., acres remediated, types of contaminants, regulatory requirements), it's difficult to definitively state if $51.7 million is high or low. However, for a multi-year project involving significant environmental challenges, this value appears plausible within the federal contracting landscape for remediation services.

What are the primary risks associated with a Time and Materials (T&M) contract for environmental remediation?

The primary risk with a Time and Materials (T&M) contract for environmental remediation is the potential for cost overruns due to the open-ended nature of labor hours and material costs. Unlike fixed-price contracts, the government pays for the actual time and materials used, which can escalate if projects are not managed efficiently, if scope creep occurs without proper controls, or if unforeseen complexities significantly increase labor needs. For remediation, unexpected subsurface conditions or the discovery of more extensive contamination than initially assessed can drive up T&M costs. Effective oversight, detailed work breakdown structures, and strict controls on labor rates and material markups are essential to mitigate these risks and ensure the government receives good value.

What does the high number of bidders (81) suggest about the market for environmental remediation services?

The high number of 81 bidders for this environmental remediation contract strongly suggests a robust and competitive market for these services within the federal contracting space. It indicates that there are numerous qualified companies capable of performing the required work and that the barriers to entry for bidding are not prohibitively high for a significant portion of the industry. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing, innovative solutions, and a wider selection of capable contractors. It also implies that the specific requirements of the contract were well-defined and accessible to a broad range of potential offerors.

How has federal spending on environmental remediation services evolved over the past decade?

Federal spending on environmental remediation services has remained a consistent and significant expenditure area for the government over the past decade, driven by ongoing cleanup requirements at military installations, Superfund sites managed by the EPA, and other federal facilities. While specific annual figures fluctuate based on budget allocations, major cleanup initiatives, and the identification of new contamination, the overall trend reflects a sustained commitment to addressing environmental liabilities. Spending is influenced by regulatory changes, infrastructure investments, and national priorities related to environmental protection and conservation. The Department of Defense and the Environmental Protection Agency are typically the largest federal spenders in this category.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 81

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 45 N E LOOP 410 SUITE 89, SAN ANTONIO, TX, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $51,715,715

Exercised Options: $51,715,715

Current Obligation: $51,715,715

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F4162403D8620

IDV Type: IDC

Timeline