DoD's $60.7M Groundwater Treatment Plant Contract for Pleasantville Landfill Remediation Awarded to Stantec

Contract Overview

Contract Amount: $60,683,442 ($60.7M)

Contractor: Stantec Consulting Services Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-15

End Date: 2015-02-05

Contract Duration: 1,757 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Construction

Official Description: TAS::68 8195::TAS GROUNDWATER TREATMENT PLANT CONSTRUCTION AND REMEDIATION FOR PRICE'S PIT LANDFILL REMEDIATION, PLEASANTVILLE, NJ

Place of Performance

Location: PLEASANTVILLE, ATLANTIC County, NEW JERSEY, 08232

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $60.7 million to STANTEC CONSULTING SERVICES INC. for work described as: TAS::68 8195::TAS GROUNDWATER TREATMENT PLANT CONSTRUCTION AND REMEDIATION FOR PRICE'S PIT LANDFILL REMEDIATION, PLEASANTVILLE, NJ Key points: 1. Significant investment in environmental remediation services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Incentive Fee) may lead to cost overruns. 4. Focus on a specific remediation project in New Jersey. 5. Long duration of 1757 days indicates a complex, long-term effort.

Value Assessment

Rating: fair

The contract was awarded using a Cost Plus Incentive Fee structure, which can incentivize cost savings but also carries the risk of exceeding initial estimates. Benchmarking against similar large-scale remediation projects is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Incentive Fee structure introduces complexity in price discovery and final cost determination.

Taxpayer Impact: Taxpayer funds are being used for a critical environmental cleanup, addressing potential long-term health and ecological risks. The effectiveness of the remediation will determine the ultimate value for taxpayers.

Public Impact

Addresses environmental contamination at a Superfund site, protecting public health and local ecosystems. Supports job creation in the environmental services sector within New Jersey. Demonstrates federal commitment to cleaning up legacy pollution sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure can lead to cost overruns.
Long contract duration increases risk of scope creep and unforeseen issues.
Limited information on specific performance metrics and success criteria.

Positive Signals

Full and open competition likely drove a competitive initial bid.
Addresses a critical environmental hazard.
Contract awarded to a known entity in the field.

Sector Analysis

This contract falls within the environmental remediation and construction services sector. Spending in this area is driven by regulatory requirements and the need to address legacy pollution. Benchmarks are highly project-specific due to varying site conditions and remediation technologies.

Small Business Impact

The data indicates the prime contractor is Stantec Consulting Services Inc., a large firm. There is no explicit information on small business subcontracting participation within this award notice.

Oversight & Accountability

The contract was awarded by the Department of the Army, suggesting established procurement processes. Oversight would focus on project milestones, cost controls, and environmental compliance throughout the remediation period.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Incentive Fee contract type.
Long contract duration.
Potential for unforeseen site conditions in remediation.
Lack of explicit small business participation data.
Limited detail on performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to STANTEC CONSULTING SERVICES INC.. TAS::68 8195::TAS GROUNDWATER TREATMENT PLANT CONSTRUCTION AND REMEDIATION FOR PRICE'S PIT LANDFILL REMEDIATION, PLEASANTVILLE, NJ

Who is the contractor on this award?

The obligated recipient is STANTEC CONSULTING SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $60.7 million.

What is the period of performance?

Start: 2010-04-15. End: 2015-02-05.

What were the key performance indicators (KPIs) established for this remediation project, and how was success measured against them?

Specific KPIs for this project are not detailed in the provided data. Typically, for remediation projects, KPIs would include contaminant reduction levels, adherence to environmental standards (e.g., EPA regulations), project completion timelines, and budget management. Success is measured by achieving the agreed-upon cleanup goals within the specified timeframe and cost parameters, ensuring the site is safe for future use or reduced environmental impact.

What specific risks were identified during the procurement process for this complex remediation project, and what mitigation strategies were implemented?

Given the nature of remediation, risks likely included unforeseen site conditions (e.g., unexpected contaminant types or levels), potential for environmental incidents during cleanup, contractor performance issues, and cost escalation. Mitigation strategies might involve thorough site assessments prior to bidding, robust contract clauses for unforeseen conditions, performance bonds, and stringent oversight by the contracting agency to monitor progress and compliance.

How effectively did the Cost Plus Incentive Fee structure incentivize Stantec to achieve cost efficiencies while ensuring the quality of the remediation work?

The effectiveness of the CPIF structure depends on the specific incentive targets and fee adjustments negotiated. It aims to align contractor and government interests by rewarding cost savings or performance improvements. However, without detailed contract terms, it's difficult to assess if it truly drove efficiency or if the potential for increased costs under a cost-reimbursable model outweighed the incentives.

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

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: MWH Global, Inc. (UEI: 801927492)

Address: 370 INTERLOCKEN BLVD, BROOMFIELD, CO, 80021

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,132,864

Exercised Options: $61,132,864

Current Obligation: $60,683,442

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA3102D0017

IDV Type: IDC

Timeline