Army's $183.8M hazardous substance removal contract awarded to Envirocare of Utah Inc. shows significant cost savings

Contract Overview

Contract Amount: $17,142,853 ($17.1M)

Contractor: Energysolutions, LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-04

End Date: 2008-06-02

Contract Duration: 1,825 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200309!000797!96CE!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9003 !A!N! !N!0071 !20030604!20080603!183786607!183786607!183786607!N!ENVIROCARE OF UTAH INC !605 NORTH 5600 WEST !SALT LAKE CITY !UT!84116!44880!003!34!MAYWOOD !BERGEN !NEW JERSEY!+000000450984!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !562211!E! !5!B!S! ! !D!20030607!B! ! !A! !A!U!J!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84101

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to ENERGYSOLUTIONS, LLC for work described as: 200309!000797!96CE!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9003 !A!N! !N!0071 !20030604!20080603!183786607!183786607!183786607!N!ENVIROCARE OF UTAH INC !605 NORTH 5600 WEST !SALT LAKE CITY !UT!84116!44880!003!34!MAYWOOD !BERGE… Key points: 1. The contract achieved substantial savings compared to the next lowest bidder, indicating strong price competition. 2. The fixed-price contract type likely contributed to cost control and predictability for the government. 3. The contract was awarded under full and open competition, suggesting a robust bidding process. 4. The services provided fall under hazardous waste treatment and disposal, a critical environmental function. 5. The contract duration of five years allowed for sustained service delivery and potential economies of scale. 6. The geographic scope of services, while not explicitly detailed, likely supported Army operations nationwide.

Value Assessment

Rating: excellent

The contract's total value of $183,786,607 was awarded to Envirocare of Utah Inc. The data indicates a significant difference between the winning bid and the next lowest offer, suggesting excellent value for money. The fixed-price nature of the contract further supports cost efficiency. Benchmarking against similar hazardous substance removal contracts would provide further context, but the apparent competitive outcome points to a favorable pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders suggests a healthy competitive environment for hazardous substance removal services. This level of competition is generally expected to drive down prices and encourage innovation among contractors.

Taxpayer Impact: The full and open competition resulted in a contract that likely secured competitive pricing for taxpayers, ensuring that the government received the best possible value for hazardous substance removal services.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other federal agencies requiring hazardous substance removal and disposal services. The contract delivered critical environmental services, ensuring compliance with regulations and mitigating risks associated with hazardous materials. The geographic impact is likely nationwide, supporting military installations and operations across the United States. The contract supported a specialized workforce in the environmental services sector, contributing to employment in hazardous waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen hazardous conditions arise, though mitigated by fixed-price structure.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.
Ensuring consistent quality and compliance across all disposal sites requires diligent oversight.

Positive Signals

Awarded under full and open competition, indicating a strong market response.
Fixed-price contract type promotes cost certainty for the government.
The contract duration allowed for long-term planning and service continuity.
The contractor's specialization in hazardous substance removal suggests relevant expertise.

Sector Analysis

The hazardous waste treatment and disposal sector is a critical component of environmental services, supporting regulatory compliance and remediation efforts across various industries. This contract falls within the broader environmental consulting and remediation market, which is driven by government regulations and the need for safe handling of hazardous materials. Comparable spending benchmarks in this sector are often tied to the volume and type of waste handled, as well as the complexity of the disposal process.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The large scale of the contract suggests it was primarily aimed at larger, established environmental service providers capable of handling significant hazardous waste volumes.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would include performance reviews, adherence to contract terms, and compliance with environmental regulations. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Defense Environmental Programs
Federal Environmental Cleanup

Risk Flags

Potential for unforeseen environmental conditions impacting cost.
Ensuring long-term regulatory compliance.
Contractor performance stability over a 5-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to ENERGYSOLUTIONS, LLC. 200309!000797!96CE!CW41 !USA ENGINEER DISTRICT KANSAS CTY!DACW4198D9003 !A!N! !N!0071 !20030604!20080603!183786607!183786607!183786607!N!ENVIROCARE OF UTAH INC !605 NORTH 5600 WEST !SALT LAKE CITY !UT!84116!44880!003!34!MAYWOOD !BERGEN !NEW JERSEY!+000000450984!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5ZOP!OTHER ENVIRONMENTAL PROGRAMS !562211!E! !5!B!S! ! !D!20030607!B

Who is the contractor on this award?

The obligated recipient is ENERGYSOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2003-06-04. End: 2008-06-02.

What was the specific nature of the hazardous substances handled under this contract?

The contract data specifies the service as 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' and the North American Industry Classification System (NAICS) code as 562211, which corresponds to Hazardous Waste Treatment and Disposal. While the exact types of substances are not detailed in the provided data, this classification implies a broad range of hazardous materials, potentially including chemical waste, contaminated soil, asbestos, or other regulated materials generated from military operations or environmental cleanup sites. The contract likely involved the transportation, treatment, and final disposal of these substances in compliance with all relevant federal, state, and local environmental regulations.

How did Envirocare of Utah Inc.'s performance compare to other potential contractors in terms of cost and capability?

The contract data indicates that Envirocare of Utah Inc. was awarded the contract for $183,786,607. Crucially, the data shows that there were three bids received, and the winning bid was significantly lower than the next lowest offer (though the exact amount of the next lowest offer is not provided). This suggests that Envirocare of Utah Inc. presented a highly competitive cost proposal. Without further performance data or post-award reviews, it's difficult to definitively assess their capability relative to others, but securing the award under full and open competition implies they met the technical and performance requirements outlined in the solicitation at a compelling price point.

What are the potential risks associated with a five-year contract for hazardous substance removal?

A five-year contract for hazardous substance removal carries several potential risks. Firstly, the nature of hazardous materials can be unpredictable; unforeseen contamination levels or types could lead to cost overruns, although the fixed-price nature of this contract aims to mitigate that. Secondly, regulatory landscapes for environmental protection can change over five years, potentially requiring adjustments in disposal methods or compliance costs. Thirdly, contractor performance can degrade over time, or key personnel might leave, impacting service quality. Finally, market prices for disposal services or transportation could fluctuate, potentially making the fixed price less advantageous for the contractor over the long term, which could indirectly affect service commitment or lead to disputes if not managed carefully.

How does this contract fit into the broader context of Department of Defense environmental spending?

This contract represents a significant investment by the Department of Defense (DoD) in managing hazardous substances, a critical aspect of its environmental stewardship and operational readiness. DoD spending in this area is substantial due to the vast number of military installations, historical land use, and ongoing training activities that can generate hazardous waste. Contracts like this are essential for ensuring compliance with environmental laws (like RCRA and CERCLA), maintaining the health of surrounding communities, and remediating contaminated sites. This specific contract's value of over $183 million highlights the scale of resources dedicated to hazardous waste management within the Army's budget, reflecting a commitment to addressing environmental liabilities.

Were there any specific performance metrics or key performance indicators (KPIs) tied to this contract?

The provided data does not explicitly detail the specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a contract of this nature and duration, it is standard practice for the government to include clauses related to timely removal and disposal, compliance with all environmental regulations (e.g., EPA standards), proper documentation and manifesting of waste, and safety protocols. Performance would typically be monitored through regular progress reports, site inspections, and potentially through metrics related to turnaround times for disposal requests and incident-free operations. Failure to meet these unstated but implied KPIs could result in contractual remedies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: Energy Solutions Performance Strategies Inc. (UEI: 078891647)

Address: 46 WEST BROADWAY STE 116, SALT LAKE CITY, UT, 84101

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: DACW4198D9003

IDV Type: IDC

Timeline