DoD Awards $18.7M for Environmental Services, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $18,715,473 ($18.7M)

Contractor: Shaw Environmental & Infrastructure, Inc.

Awarding Agency: Department of Defense

Start Date: 1998-03-16

End Date: 2011-05-20

Contract Duration: 4,813 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: 199810!2100!8446!CA01 !USA ENGINEER DISTRICT, MOBILE !DACA2196D0018 !A!*!CK05 !19980316!19990409!048985691!028655181!106521081!N!8X202!I T CORPORATION !312 DIRECTORS DR !KNOXVILLE !TN!37923!27544!015!01!FORT MCCLELLAN !CALHOUN !ALABAMA !0001!+000003998185!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !C2 !CONSTRUCTION !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!8744!5!B!S!*!B!A!*!A !N!U!2!002!B!* !C!Y!Z!* !* !N!C!*!Z!Z!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC. for work described as: 199810!2100!8446!CA01 !USA ENGINEER DISTRICT, MOBILE !DACA2196D0018 !A!*!CK05 !19980316!19990409!048985691!028655181!106521081!N!8X202!I T CORPORATION !312 DIRECTORS DR !KNOXVILLE !TN!37923!27544!015!01!FORT MCCLELLAN !CALHOU… Key points: 1. The contract, awarded to Shaw Environmental & Infrastructure, Inc., is for environmental services related to Base Realignment and Closure (BRAC). 2. Awarded under full and open competition, the contract's initial value was $18.7M, with a significant duration of 4813 days. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost uncertainty compared to fixed-price contracts. 4. The sector is primarily Construction and Other Environmental Services, with a focus on BRAC initiatives.

Value Assessment

Rating: questionable

The contract's initial award value was $18.7M. However, the reported 'br' (budgeted amount) of 3889 suggests a significant discrepancy or potential for cost growth beyond the initial award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. However, the Cost Plus Fixed Fee structure may limit price discovery and incentivize cost escalation.

Taxpayer Impact: The significant duration and cost-plus nature of this contract raise concerns about potential taxpayer impact due to cost overruns and the efficiency of the pricing mechanism.

Public Impact

Taxpayers may face increased costs if the project exceeds its initial $18.7M award value due to the Cost Plus Fixed Fee structure. Environmental cleanup and infrastructure projects are critical for military base closures, impacting local communities and the environment. The long duration of the contract suggests a complex and potentially lengthy environmental remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration

Positive Signals

Awarded under full and open competition
Addresses critical BRAC environmental needs

Sector Analysis

This contract falls under the Construction and Environmental Services sectors, specifically addressing environmental remediation and support services for Base Realignment and Closure (BRAC) initiatives. Spending in this area is often driven by legislative mandates and can be complex due to the nature of environmental cleanup.

Small Business Impact

While awarded to Shaw Environmental & Infrastructure, Inc., the data does not explicitly indicate the extent of small business participation as subcontractors. Further analysis would be needed to determine if small businesses were adequately leveraged.

Oversight & Accountability

The contract's long duration and cost-plus nature warrant close oversight to ensure efficient use of funds and adherence to project scope. Accountability for cost management is crucial.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration (4813 days)
Discrepancy between award amount and 'br' value
Limited visibility into subcontractor small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC.. 199810!2100!8446!CA01 !USA ENGINEER DISTRICT, MOBILE !DACA2196D0018 !A!*!CK05 !19980316!19990409!048985691!028655181!106521081!N!8X202!I T CORPORATION !312 DIRECTORS DR !KNOXVILLE !TN!37923!27544!015!01!FORT MCCLELLAN !CALHOUN !ALABAMA !0001!+000003998185!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !C2 !CONSTRUCTION !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!8744!5!B!S!*!B!A!*!A !N!U!2!0

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL & INFRASTRUCTURE, 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 $18.7 million.

What is the period of performance?

Start: 1998-03-16. End: 2011-05-20.

What is the final cost of this contract compared to the initial $18.7M award, and how did the Cost Plus Fixed Fee structure influence the final price?

The final cost of the contract is not provided in the data, but the initial award was $18.7M. The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. This can lead to higher final costs if not managed tightly, as the contractor has less incentive to control costs compared to a fixed-price contract. The 'br' value of 3889 is significantly lower than the award, suggesting potential issues with budget allocation or reporting.

What specific environmental services were performed under this contract, and what was the impact of these services on the BRAC process?

The contract description is 'OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT' related to Base Realignment and Closure (BRAC). These services likely involved site assessments, remediation planning, environmental compliance, and potentially cleanup activities at military installations undergoing closure. The impact on the BRAC process would be facilitating the safe and compliant closure of these facilities, mitigating environmental risks, and preparing sites for reuse.

How effectively did the full and open competition ensure competitive pricing for these environmental services, given the CPFF contract type?

Full and open competition is designed to solicit offers from all responsible sources, theoretically leading to competitive pricing. However, the Cost Plus Fixed Fee (CPFF) contract type inherently limits the direct impact of competition on the final price, as the contractor is reimbursed for costs. While competition may have driven down the initial fixed fee and influenced the selection of the most capable contractor, the primary cost control mechanism would rely on robust government oversight of allowable costs rather than pure price competition.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Shaw Group Inc., the (UEI: 180038382)

Address: 312 DIRECTORS DR, KNOXVILLE, TN, 37923

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DACA2196D0018

IDV Type: IDC

Timeline