DoD's $52.6M hazardous waste disposal contract for Iraq base support awarded to URS Group, Inc

Contract Overview

Contract Amount: $52,606,553 ($52.6M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-27

End Date: 2010-09-30

Contract Duration: 764 days

Daily Burn Rate: $68.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DISPOSAL OF HAZARDOUS WASTE FOR MNC-I FORWARD OPERATING BASE SUPPORT, IRAQ

Plain-Language Summary

Department of Defense obligated $52.6 million to URS GROUP, INC. for work described as: DISPOSAL OF HAZARDOUS WASTE FOR MNC-I FORWARD OPERATING BASE SUPPORT, IRAQ Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was 764 days, indicating a medium-term engagement. 4. The contract was awarded by the Department of the Air Force, part of the Department of Defense. 5. The North American Industry Classification System (NAICS) code is 562910, indicating Remediation Services. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for hazardous waste disposal in a forward operating base environment in Iraq. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee provides some incentive for efficiency, the primary driver of total cost is the reimbursement of expenses, which can fluctuate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a moderate level of competition for this specific requirement. While two bidders participated, the extent of the competition and the nature of the bids are not detailed, making it difficult to definitively assess if the competition drove optimal pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best pricing and services to win the contract, potentially leading to cost savings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. military forces operating at the Multinational Corps-Iraq (MNC-I) forward operating base, ensuring environmental compliance and safety. The service delivered is the critical disposal of hazardous waste generated from base operations. The geographic impact is specific to the operational area of MNC-I in Iraq. This contract supports the logistical and environmental sustainment of military operations, indirectly impacting the deployed workforce by maintaining a safe operating environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously overseen.
Operating in a forward operating base in Iraq presents unique logistical and security risks that could impact cost and schedule.
Limited competition (2 bidders) may not have fully optimized price discovery.
The nature of hazardous waste disposal requires specialized handling and disposal, which can be costly and subject to regulatory scrutiny.

Positive Signals

Awarded under full and open competition, suggesting an effort to achieve best value.
The contract specifies Remediation Services, indicating a focus on a critical environmental function.
The fixed fee component of the CPFF contract provides a defined profit margin, which can be a positive signal if costs are managed effectively.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of industrial and government operations. The market for hazardous waste disposal is specialized, requiring significant expertise, infrastructure, and adherence to stringent regulations. Spending in this sector is often driven by regulatory compliance, operational needs, and the lifecycle management of industrial activities. Comparable spending benchmarks would typically involve other government contracts for environmental services, particularly those supporting deployed military operations or large-scale industrial cleanup.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The prime contractor, URS Group, Inc., is a large corporation, suggesting that the primary focus was on technical capability and capacity for hazardous waste disposal in a challenging environment rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Given the location and nature of the work, additional oversight from military command and potentially Inspector General offices would be expected to ensure compliance with contract terms, environmental regulations, and ethical conduct. Transparency is often limited in deployed operational environments, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

Base Operations Support Services
Environmental Compliance and Remediation
Logistics and Support Services for Deployed Forces
Hazardous Material Management

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Operation in a forward operating base in Iraq presents elevated security and logistical risks.
Hazardous waste disposal requires strict regulatory compliance and specialized handling.
Limited competition (2 bidders) may not have ensured the most competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.6 million to URS GROUP, INC.. DISPOSAL OF HAZARDOUS WASTE FOR MNC-I FORWARD OPERATING BASE SUPPORT, IRAQ

Who is the contractor on this award?

The obligated recipient is URS GROUP, 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 $52.6 million.

What is the period of performance?

Start: 2008-08-27. End: 2010-09-30.

What was the track record of URS Group, Inc. with Department of Defense contracts prior to this award?

Prior to this award in August 2008, URS Group, Inc. had a significant history of contracting with the Department of Defense and other federal agencies. They were a major provider of engineering, construction, and technical services, often involved in large-scale infrastructure projects, environmental remediation, and base support operations globally. Their experience would have been a key factor in their ability to secure a contract for hazardous waste disposal in a complex operational theater like Iraq. A detailed review of their contract history would reveal performance ratings, past issues, and the types of services they consistently provided to the DoD, offering insight into their capabilities and reliability for this specific contract.

How does the per-unit cost of hazardous waste disposal compare to similar contracts?

Determining a precise per-unit cost for hazardous waste disposal under this contract is not feasible with the provided data. The contract is a Cost Plus Fixed Fee (CPFF) type, meaning the total cost is based on actual allowable expenses plus a predetermined fee, rather than a fixed price per unit of waste. Furthermore, the nature of hazardous waste can vary significantly in type and volume, and disposal costs are influenced by factors such as transportation, treatment methods, regulatory compliance, and the specific location (e.g., a forward operating base in Iraq). Benchmarking would require access to detailed cost breakdowns and comparable contracts for similar services in similar environments, which are not publicly available.

What were the primary risks associated with this contract, and how were they managed?

The primary risks associated with this contract likely included operational risks inherent in managing hazardous waste in a deployed military environment in Iraq, such as security threats, logistical challenges, and potential environmental incidents. Contractual risks involved cost overruns due to the CPFF structure, potential for contractor non-performance, and adherence to complex environmental regulations. Management of these risks would have involved robust security protocols, detailed logistical planning, stringent oversight by contracting officers, regular performance reviews, and potentially specific risk mitigation plans outlined in the contract itself. The remote and potentially unstable location would have amplified many of these risks.

How effective was URS Group, Inc. in managing hazardous waste disposal for MNC-I?

The effectiveness of URS Group, Inc. in managing hazardous waste disposal for MNC-I cannot be definitively assessed solely from the contract award data. Effectiveness would typically be measured by factors such as timely and compliant disposal of waste, prevention of environmental incidents, adherence to budget (within the CPFF structure), and overall satisfaction of the requiring activity (the military unit). Performance evaluations or contract close-out reports would provide this information. Without access to such performance data, it is presumed that the contract was executed to a satisfactory level, as it was awarded and completed, but the degree of success remains unknown.

What was the total historical spending on hazardous waste disposal for MNC-I prior to this contract?

The provided data does not include information on historical spending for hazardous waste disposal for MNC-I prior to this specific contract award in August 2008. This contract represents a specific award for a defined period (August 2008 to September 2010). To understand historical spending patterns, one would need to access broader contract databases and search for previous contracts awarded to any entity for similar services supporting MNC-I or related operations in Iraq during earlier periods. This would involve analyzing multiple contract actions over time to identify trends and total expenditure.

Were there any significant contract modifications or change orders issued during the life of this contract?

The provided data does not detail any contract modifications or change orders for this specific contract. Contract modifications are common, especially for long-term or complex service contracts, and can arise from changes in requirements, unforeseen circumstances, or adjustments to scope. To determine if modifications occurred, one would need to consult the contract's official file or a more detailed contract database that tracks amendments. The absence of this information in the summary data suggests that either no significant modifications occurred, or this level of detail was not included in the dataset used.

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 RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 10101 REUNION PLACE, SUITE, SAN ANTONIO, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,606,553

Exercised Options: $52,606,553

Current Obligation: $52,606,553

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890304D8679

IDV Type: IDC

Timeline