DoD's $42.7M Afghanistan environmental services contract awarded to WSP USA, highlighting remediation needs

Contract Overview

Contract Amount: $42,687,472 ($42.7M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-27

End Date: 2013-09-30

Contract Duration: 368 days

Daily Burn Rate: $116.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TITLE I SERVICES AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $42.7 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: TITLE I SERVICES AFGHANISTAN Key points: 1. Contract focused on critical environmental remediation services in a complex operational theater. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 368 days indicates a focused, short-term need for specific remediation tasks. 4. Fixed-price contract type likely aimed to control costs and provide predictability for the government. 5. The North American Industry Classification System (NAICS) code 562910 points to a specialized environmental consulting and remediation sector. 6. This contract represents a small fraction of the overall Department of Defense spending on environmental services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The $42.7 million award over approximately one year suggests a significant but potentially justified expenditure given the operational context in Afghanistan. Comparing it to similar large-scale environmental remediation contracts in active or post-conflict zones would be necessary for a more precise value assessment. The firm-fixed-price structure implies an expectation of cost control, but the ultimate value depends on the effectiveness and completeness of the remediation performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and allowed to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of 28 bids suggests a healthy level of interest and capability within the market for environmental remediation services in challenging environments.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces to secure necessary services.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. military personnel operating in Afghanistan, by ensuring environmental compliance and mitigating risks. Services delivered include environmental remediation, likely addressing hazardous materials, contaminated sites, or waste management issues. The geographic impact is specific to Afghanistan, addressing environmental concerns within U.S. military operational areas. Workforce implications include the employment of environmental scientists, engineers, technicians, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact contract execution, leading to delays or increased costs.
The effectiveness of remediation in a complex and potentially remote environment requires careful monitoring.
Ensuring compliance with both U.S. environmental regulations and local Afghan requirements can be challenging.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
Firm-fixed-price contract type helps manage cost certainty for the government.
The contractor, WSP USA, is a large, established firm with significant experience in infrastructure and environmental services.

Sector Analysis

The environmental consulting and remediation services sector is a significant part of the broader professional services industry. This contract falls within the environmental remediation sub-sector, which deals with cleaning up contaminated sites and managing hazardous waste. The market for these services is driven by regulatory requirements, industrial activity, and government needs, particularly in areas with historical industrial use or military operations. Spending benchmarks for similar large-scale environmental projects can vary widely based on scope, location, and complexity.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The large dollar value and specialized nature of environmental remediation services in a complex operational theater often lend themselves to larger, established firms. Subcontracting opportunities for small businesses may exist, but they would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Performance monitoring, site inspections, and financial reviews are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Environmental Remediation Services
Base Realignment and Closure (BRAC) Environmental Programs
Defense Environmental Programs
Hazardous Waste Management
Contaminated Site Cleanup

Risk Flags

Geopolitical Risk
Logistical Complexity
Security Concerns
Environmental Hazard Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. TITLE I SERVICES AFGHANISTAN

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2012-09-27. End: 2013-09-30.

What specific environmental remediation activities were undertaken under this contract?

While the data indicates 'Remediation Services' under NAICS 562910, the precise activities are not detailed. Typically, such services in a military context could include the assessment and cleanup of soil and groundwater contamination from fuel spills, chemical releases, or ordnance. This might involve excavation, in-situ treatment, containment, or long-term monitoring. The contract's focus on Afghanistan suggests potential needs related to legacy contamination from past military activities or waste disposal sites, requiring specialized expertise in hazardous material handling and environmental restoration within a challenging operational environment.

How does the $42.7 million cost compare to similar environmental remediation contracts awarded by the DoD?

Comparing this $42.7 million contract requires context regarding its scope, duration, and location. Large-scale environmental remediation projects for the Department of Defense can range from tens of millions to hundreds of millions of dollars. Contracts for cleaning up major bases or addressing extensive contamination often exceed this amount. However, for a single, defined project within a specific timeframe (368 days) and a particular geographic area like Afghanistan, $42.7 million represents a substantial investment. Benchmarking would necessitate identifying contracts with similar complexity, risk, and service requirements, ideally in comparable geopolitical or environmental settings.

What are the key risks associated with executing environmental remediation contracts in Afghanistan?

Executing environmental remediation contracts in Afghanistan presents significant risks. These include geopolitical instability, security threats to personnel and equipment, logistical challenges in accessing remote sites, and potential corruption. Environmental risks involve encountering unexpected hazardous materials, the difficulty of implementing long-term monitoring solutions in a volatile region, and ensuring compliance with evolving local regulations or customary practices. Furthermore, the effectiveness of remediation can be hampered by the lack of stable infrastructure and the potential for future site disturbance. The firm-fixed-price nature of the contract could exacerbate financial risks for the contractor if unforeseen issues arise.

What was the track record of WSP USA Environment & Infrastructure Inc. prior to this award?

WSP USA Environment & Infrastructure Inc. is a subsidiary of WSP Global, a large, multinational engineering and professional services consulting firm. Prior to this specific award, WSP has a well-established track record in providing environmental consulting, engineering, and remediation services to government agencies, including the DoD, as well as private sector clients. Their experience typically spans a wide range of projects, from site assessments and compliance support to large-scale cleanup operations and infrastructure development. Their history generally indicates a capacity to manage complex projects and a significant presence in the environmental services market.

How does the number of bids (28) influence the perceived value for taxpayers?

A high number of bids, such as the 28 received for this contract, is generally a positive signal for taxpayers. It indicates robust competition within the market for the required environmental remediation services. Increased competition typically drives down prices as contractors vie for the award, leading to potentially better value for the government. It also suggests that the government had a wider pool of qualified vendors to choose from, increasing the likelihood of selecting a contractor capable of delivering high-quality services at a competitive price. This competitive dynamic helps ensure that taxpayer funds are utilized efficiently.

What is the significance of the NAICS code 562910 for this contract?

The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is highly significant as it precisely categorizes the primary business activity for this contract. This code encompasses establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. This includes activities such as site remediation, hazardous waste site cleanup, and soil or groundwater remediation. For this DoD contract, it confirms the focus on environmental restoration and the specialized nature of the services required, distinguishing it from general construction or other types of environmental consulting.

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: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: 751 ARBOR WAY, STE 180, BLUE BELL, PA, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $42,687,472

Exercised Options: $42,687,472

Current Obligation: $42,687,472

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890308D8766

IDV Type: IDC

Timeline