Defense Logistics Agency awards $20.7M contract for remediation services, with Shaw Environmental Inc. as the primary contractor
Contract Overview
Contract Amount: $20,757,364 ($20.8M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-06-03
End Date: 2010-07-31
Contract Duration: 2,615 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200612!006302!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060003D5315 !A!N! !Y!B001 !21 !20060706!20080630!082830543!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3347 MICHAELSON DR STE 200!IRVINE !CA!92612!57918!073!06!POINT LOMA !SAN DIEGO !CALIFORNIA!+000000904223!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !NOT DISCERNABLE !562910!E! !3!A!S!C! !A!20060706!B! ! !A! !A!U!J!2!010!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132
Plain-Language Summary
Department of Defense obligated $20.8 million to SHAW ENVIRONMENTAL, INC. for work described as: 200612!006302!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060003D5315 !A!N! !Y!B001 !21 !20060706!20080630!082830543!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3347 MICHAELSON DR STE 200!IRVINE !CA!92612!57918!073!06!POINT LOMA !SAN … Key points: 1. Contract awarded for remediation services, indicating a need for environmental cleanup or management. 2. The contract duration spans over 7 years, suggesting a long-term commitment to the services. 3. The award was made under full and open competition, implying a robust bidding process. 4. The primary contractor, Shaw Environmental, Inc., has a significant role in delivering these services. 5. The contract value of over $20 million signifies a substantial investment in environmental services by the DoD. 6. The services are categorized under Remediation Services, highlighting a specific environmental focus.
Value Assessment
Rating: good
The contract value of $20.7 million for remediation services over a 7-year period appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise value-for-money assessment. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests a healthy market for these types of remediation services.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential remediation services, preventing potential overspending.
Public Impact
The Department of Defense benefits from the remediation services, ensuring environmental compliance and potentially improving site conditions. Environmental cleanup and management services are delivered, addressing specific environmental concerns. The geographic impact is likely focused on specific DoD sites requiring remediation, primarily within California. The contract supports jobs within the environmental services sector, particularly for the prime contractor and any subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency or reduced urgency if not actively managed.
- Reliance on a single prime contractor for a large sum may present risks if performance issues arise.
- Potential for cost overruns if the scope of remediation is underestimated, despite the firm fixed-price structure.
Positive Signals
- Full and open competition suggests a competitive market and potentially good pricing.
- Firm fixed-price contract shifts cost risk to the contractor, which is generally favorable for the government.
- The contract addresses critical environmental remediation needs for a major federal agency.
Sector Analysis
The remediation services sector is a critical component of the environmental industry, focusing on cleaning up contaminated sites. This contract falls within the broader professional, scientific, and technical services market, which is substantial. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies, particularly for hazardous waste management and site restoration.
Small Business Impact
There is no explicit indication of small business set-asides for this contract. The prime contractor, Shaw Environmental, Inc., is a significant entity. Future analysis could explore subcontracting opportunities for small businesses within the environmental services domain to ensure broader economic participation.
Oversight & Accountability
Oversight would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract terms. Transparency is facilitated by public contract award data, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud or mismanagement.
Related Government Programs
- Environmental Remediation Services
- Defense Logistics Agency Contracts
- Department of Defense Environmental Programs
- Hazardous Waste Management Contracts
- Site Remediation Contracts
Risk Flags
- Long contract duration
- Potential for unforeseen environmental conditions
- Contractor performance risk
Tags
remediation-services, defense-logistics-agency, department-of-defense, firm-fixed-price, full-and-open-competition, environmental-services, california, large-contract, shaw-environmental-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to SHAW ENVIRONMENTAL, INC.. 200612!006302!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060003D5315 !A!N! !Y!B001 !21 !20060706!20080630!082830543!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3347 MICHAELSON DR STE 200!IRVINE !CA!92612!57918!073!06!POINT LOMA !SAN DIEGO !CALIFORNIA!+000000904223!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !NOT DISCERNABLE !562910!E! !3!A!S!C! !A!200
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $20.8 million.
What is the period of performance?
Start: 2003-06-03. End: 2010-07-31.
What is the historical spending pattern for remediation services by the Defense Logistics Agency?
The Defense Logistics Agency (DLA) has consistently allocated significant funds towards environmental remediation services to ensure compliance with environmental regulations and to manage contaminated sites across its facilities. While specific historical spending figures for DLA's remediation contracts are not detailed in this single award, the agency's overall budget reflects a commitment to environmental stewardship. Analyzing DLA's historical contract awards for remediation services over the past decade would reveal trends in spending, the types of services procured (e.g., hazardous waste disposal, site cleanup, monitoring), and the average contract values. This contract, valued at $20.7 million over approximately seven years, represents a substantial but not necessarily anomalous investment within the broader context of DLA's environmental program expenditures. Understanding these patterns is crucial for assessing the long-term financial commitment and strategic priorities of the DLA in environmental management.
How does the awarded price compare to market rates for similar remediation services?
The awarded price of $20.7 million for remediation services by Shaw Environmental, Inc. needs to be benchmarked against market rates for similar contracts to assess value for money. Without specific details on the scope of work, location, and complexity of the remediation required, a precise comparison is challenging. However, the firm fixed-price nature of the contract suggests that the government secured a price with the contractor assuming cost risks. Generally, full and open competition, as indicated in this award, tends to drive prices closer to market rates. To conduct a thorough comparison, one would analyze data from similar-sized remediation contracts awarded by other federal agencies or state governments, considering factors like the type of contaminants, the extent of the affected area, and the duration of the remediation effort. Industry reports and cost estimation guides for environmental services can also provide benchmarks.
What is Shaw Environmental, Inc.'s track record with federal remediation contracts?
Shaw Environmental, Inc. has a significant track record with federal remediation contracts, particularly with agencies like the Department of Defense and the Environmental Protection Agency (EPA). Their experience often involves large-scale projects, including the cleanup of hazardous waste sites, management of contaminated soil and groundwater, and demolition of contaminated facilities. Prior to its acquisition by Chicago Bridge & Iron Company (CB&I) and subsequent divestiture of environmental services, Shaw was a major player in the environmental sector. Analyzing their past performance on similar contracts, including contract awards, completion history, and any past performance issues or disputes, would provide insight into their capability and reliability for this specific $20.7 million award. Federal procurement databases and past performance reviews are key resources for evaluating their history.
What are the potential risks associated with this contract, and how are they mitigated?
Potential risks associated with this $20.7 million remediation services contract include scope creep, unforeseen site conditions, contractor performance issues, and cost overruns (though mitigated by the firm fixed-price structure). Unforeseen environmental conditions, such as the discovery of more extensive contamination than initially assessed, could pose significant challenges. Contractor performance risks are mitigated through the selection process during full and open competition, where past performance is evaluated. Contractual clauses, performance bonds, and regular oversight by the Defense Logistics Agency (DLA) are standard mitigation measures. The firm fixed-price nature itself is a primary risk mitigation tool, placing the financial burden of unexpected cost increases on Shaw Environmental, Inc. rather than the government, provided the scope remains as defined.
How does this contract align with the Department of Defense's broader environmental management goals?
This $20.7 million contract for remediation services directly aligns with the Department of Defense's (DoD) broader environmental management goals, which include complying with federal environmental laws, reducing environmental risks, and restoring or protecting natural resources at its installations. The DoD manages a vast inventory of real property, many of which have historical contamination issues stemming from past military activities. Contracts like this enable the DoD to address these legacy environmental liabilities, ensuring that military operations do not pose undue risks to human health or the environment. By engaging contractors like Shaw Environmental, Inc., the DoD can efficiently manage complex cleanup projects, contributing to the sustainability of its operations and fulfilling its environmental stewardship responsibilities.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060002R0058
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Shaw Group Inc., the (UEI: 180038382)
Address: 3347 MICHELSON DR STE 200, IRVINE, CA, 47
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,757,364
Exercised Options: $20,757,364
Current Obligation: $20,757,364
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060003D5315
IDV Type: IDC
Timeline
Start Date: 2003-06-03
Current End Date: 2010-07-31
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2014-01-31
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