DoD's $25M Environmental Remediation Contract Awarded to CH2M HILL CONSTRUCTORS, INC
Contract Overview
Contract Amount: $25,134,497 ($25.1M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-07
End Date: 2011-11-12
Contract Duration: 1,892 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: COST PLUS INCENTIVE
Sector: Other
Place of Performance
Location: BEALE AFB, YUBA County, CALIFORNIA, 95903
Plain-Language Summary
Department of Defense obligated $25.1 million to CH2M HILL CONSTRUCTORS, INC. for work described as: Key points: 1. The Department of Defense awarded a significant contract for environmental remediation services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The contract value is substantial at over $25 million, indicating a large-scale project. 4. The duration of the contract is over 1800 days, implying a long-term commitment to remediation efforts.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed carefully. The award amount of $25.1 million is a baseline, and the final cost could be higher depending on performance and incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Cost Plus Incentive fee structure means the final price is not fixed upfront, and the government pays actual costs plus a fee, with incentives for meeting targets.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the cost-plus structure introduces potential for increased spending beyond initial estimates.
Public Impact
Environmental cleanup efforts at a Department of Defense facility. Potential for long-term environmental improvements and reduced ecological impact. Job creation in the environmental services sector. Ensuring compliance with environmental regulations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive fee structure can lead to higher than expected costs.
- Long contract duration increases risk of scope creep or changing requirements.
- Lack of specific performance metrics in provided data makes value assessment difficult.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Focus on environmental remediation addresses critical ecological and regulatory needs.
- Significant investment suggests a commitment to addressing environmental liabilities.
Sector Analysis
This contract falls within the environmental services sector, specifically focusing on remediation. Spending in this sector is driven by regulatory requirements, legacy contamination, and ongoing environmental stewardship efforts by government agencies.
Small Business Impact
The provided data does not indicate if small businesses were involved as subcontractors. The prime contractor, CH2M HILL CONSTRUCTORS, INC., is a large entity, suggesting that small business participation would likely be through subcontracting opportunities.
Oversight & Accountability
Oversight would typically involve regular progress reports, site inspections, and audits by the Department of the Air Force to ensure contract compliance and cost control, especially given the cost-plus incentive structure.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Long contract duration increases risk of scope changes and inefficiencies.
- Lack of specific performance metrics makes it hard to gauge success.
- Environmental remediation can be complex and unpredictable, leading to unforeseen costs.
Tags
remediation-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to CH2M HILL CONSTRUCTORS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, 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 $25.1 million.
What is the period of performance?
Start: 2006-09-07. End: 2011-11-12.
What specific environmental hazards are being addressed by this contract, and what are the expected outcomes in terms of risk reduction?
The provided data does not specify the exact environmental hazards. However, remediation services typically address issues like soil and groundwater contamination from hazardous substances, pollutants, or contaminants. Expected outcomes would include the reduction of these contaminants to safe levels, mitigating risks to human health and the environment, and ensuring compliance with federal and state environmental regulations.
How effectively did the cost-plus incentive fee structure control costs compared to other contract types for similar remediation projects?
The effectiveness of the cost-plus incentive fee (CPIF) structure is difficult to assess without comparative data on similar projects and the contractor's performance against targets. CPIF aims to incentivize cost savings by sharing any cost underruns between the government and contractor, while also sharing cost overruns. Its success hinges on well-defined targets and effective monitoring to prevent excessive spending.
What is the long-term environmental and financial impact of this $25 million investment in remediation services for the Department of Defense?
The long-term impact involves mitigating environmental risks, potentially preventing future liabilities, and improving the ecological health of the affected site. Financially, while $25 million is a significant upfront cost, successful remediation can prevent much larger future costs associated with environmental damage, regulatory fines, or long-term health impacts. The true financial benefit is realized through avoided future expenses and improved land usability.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 30
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)
Address: 9191 SOUTH JAMAICA STREET, ENGLEWOOD, CO, 06
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA890304D8670
IDV Type: IDC
Timeline
Start Date: 2006-09-07
Current End Date: 2011-11-12
Potential End Date: 2011-11-12 00:00:00
Last Modified: 2012-05-17
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