DoD's $34.9M firm-fixed-price contract for Afghanistan environmental services awarded to WSP USA
Contract Overview
Contract Amount: $34,879,545 ($34.9M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2013-10-01
End Date: 2014-09-30
Contract Duration: 364 days
Daily Burn Rate: $95.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF FIRM FIXED PRICE: TITLE 1 SERVICES FOR AFGHANISTAN - OT
Place of Performance
Location: BLUE BELL, MONTGOMERY County, PENNSYLVANIA, 19422
Plain-Language Summary
Department of Defense obligated $34.9 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: IGF::OT::IGF FIRM FIXED PRICE: TITLE 1 SERVICES FOR AFGHANISTAN - OT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's firm-fixed-price structure shifts cost risk to the contractor. 3. Performance period of 364 days indicates a focused, short-term service delivery. 4. The contract falls under Remediation Services, a critical area for environmental management. 5. Awarded by the Defense Contract Management Agency, highlighting defense sector involvement. 6. The North American Industry Classification System (NAICS) code 562910 points to specialized environmental consulting.
Value Assessment
Rating: fair
The contract value of approximately $34.9 million for a one-year period for environmental remediation services in Afghanistan appears substantial. Benchmarking this against similar international environmental remediation contracts is challenging due to the unique geopolitical context and specific service requirements. Without more granular data on the scope of work and the specific remediation activities undertaken, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator if the work was completed successfully within budget.
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 bids. The presence of 28 bids suggests a robust level of interest and competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the most capable contractor at a reasonable cost. This broad competition is a positive sign for price discovery and taxpayer value.
Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for the government compared to a sole-source or limited competition scenario. Taxpayers benefit from the reduced risk of overpayment due to the competitive bidding process.
Public Impact
The primary beneficiaries are the Department of Defense and potentially U.S. military operations in Afghanistan, through the provision of essential environmental remediation services. Services delivered likely include assessment, cleanup, and management of environmental hazards at military installations or related sites. Geographic impact is concentrated in Afghanistan, addressing specific environmental challenges within that operational theater. Workforce implications may involve specialized environmental engineers, technicians, and support staff, potentially including local hires in Afghanistan or U.S.-based personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan could pose risks to contractor personnel and operational continuity.
- Logistical challenges in a remote and potentially hostile environment can increase costs and complexity.
- The specific nature of environmental hazards in Afghanistan may require specialized expertise and equipment, increasing risk if not adequately addressed.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Full and open competition with 28 bidders suggests a competitive market and potentially good pricing.
- The contract is for a defined period, allowing for focused management and evaluation of performance.
Sector Analysis
The contract falls within the Environmental Consulting and Remediation Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is vital for managing industrial byproducts, hazardous waste, and site cleanup. The global market for environmental services is substantial, driven by regulatory compliance, corporate social responsibility, and infrastructure development. This specific contract addresses a niche but important application within a challenging operational environment, distinct from typical domestic environmental projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and specialized nature of environmental remediation in a complex international setting, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available, unless specific niche services were required. The primary focus appears to be on large, capable firms able to manage extensive operations.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded in the firm-fixed-price structure, incentivizing the contractor to meet performance standards to avoid financial penalties. Transparency is generally maintained through contract award databases and reporting requirements, although specific operational details might be sensitive.
Related Government Programs
- Environmental Remediation Services
- Defense Contract Management
- Services for Afghanistan Operations
- Firm Fixed Price Contracts
- Full and Open Competition Contracts
Risk Flags
- Geopolitical Risk
- Operational Complexity
- Security Concerns
- Logistical Challenges
Tags
department-of-defense, environmental-remediation, afghanistan, firm-fixed-price, full-and-open-competition, defense-contract-management-agency, remediation-services, naics-562910, delivery-order, usa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.9 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. IGF::OT::IGF FIRM FIXED PRICE: TITLE 1 SERVICES FOR AFGHANISTAN - OT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2013-10-01. End: 2014-09-30.
What was the specific scope of environmental remediation services required under this contract in Afghanistan?
The provided data does not detail the specific scope of environmental remediation services. However, based on the NAICS code 562910 (Remediation Services) and the context of military operations, the services likely encompassed the assessment, containment, cleanup, and disposal of hazardous materials, pollutants, or contaminants at Department of Defense sites or related areas in Afghanistan. This could include soil and groundwater remediation, asbestos abatement, lead paint removal, or management of chemical spills. The firm-fixed-price nature suggests a defined set of deliverables or outcomes were expected.
How did the 28 bids received compare in terms of proposed pricing and technical solutions?
The provided data indicates that 28 bids were received, signifying strong competition. However, it does not offer details on the comparison of proposed pricing or technical solutions among these bidders. In a typical full and open competition, the contracting agency would evaluate bids based on a combination of factors, which could include price, technical approach, past performance, and management capability. The selection of WSP USA ENVIRONMENT & INFRASTRUCTURE INC. implies their proposal was deemed the most advantageous to the government, considering all evaluation criteria.
What are the potential risks associated with performing environmental remediation services in Afghanistan for a contractor?
Performing environmental remediation in Afghanistan presents significant risks. These include geopolitical instability, security threats to personnel and equipment, logistical complexities due to remote locations and underdeveloped infrastructure, potential for unforeseen environmental conditions or hazardous materials, and challenges in navigating local regulations and customs. Furthermore, the long-term political and economic uncertainty in the region could impact project continuity and the ability to achieve final remediation goals. The firm-fixed-price contract structure places the burden of managing these risks and associated costs primarily on the contractor.
What is the historical spending pattern for similar environmental remediation services by the Department of Defense, particularly in overseas locations?
Historical spending data for similar environmental remediation services by the Department of Defense, especially in overseas locations like Afghanistan, would likely show significant investment over time, particularly during periods of active military engagement. Contracts in such environments are often substantial due to the scale of operations, the need for specialized services, and the inherent logistical and security costs. While this specific $34.9 million contract is a single data point, the DoD's overall budget for environmental compliance and remediation globally runs into billions of dollars annually, reflecting a consistent need for these services across various theaters of operation.
How does the firm-fixed-price (FFP) contract type influence contractor performance and government oversight in this context?
The Firm-Fixed-Price (FFP) contract type places the primary responsibility for cost control and performance risk on the contractor. This means the contractor is obligated to complete the specified scope of work for the agreed-upon price, regardless of their actual costs. For the government, this offers budget certainty and reduces the risk of cost overruns. However, it necessitates robust government oversight to ensure the contractor is meeting quality standards and contract requirements. Oversight focuses on verifying deliverables, monitoring progress, and ensuring compliance, rather than scrutinizing the contractor's detailed costs, as would be the case in cost-reimbursement contracts.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
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 E&I Inc (UEI: 026521332)
Address: 751 ARBOR WAY, STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,288,450
Exercised Options: $36,288,450
Current Obligation: $34,879,545
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA890308D8766
IDV Type: IDC
Timeline
Start Date: 2013-10-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2016-04-29
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