DoD Awards $19.8M Environmental Services Contract to CH2M Hill Constructors, Inc. at Hill AFB

Contract Overview

Contract Amount: $19,795,533 ($19.8M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-02-20

End Date: 2017-03-31

Contract Duration: 1,135 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF HILL AFB ENVIRONMENTAL SERVICES (BIEST)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::CT::IGF HILL AFB ENVIRONMENTAL SERVICES (BIEST) Key points: 1. Contract awarded to CH2M HILL CONSTRUCTORS, INC. for environmental remediation services. 2. Full and open competition was utilized for this contract. 3. The contract duration is 1135 days, ending March 31, 2017. 4. The total award amount is $19,795,533.47. 5. This contract falls under the Remediation Services NAICS code (562910).

Value Assessment

Rating: good

The contract's value of $19.8M for environmental remediation services appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, potentially driving down costs and ensuring fair market value.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price, minimizing potential overspending and maximizing the value of taxpayer funds for environmental cleanup.

Public Impact

Ensures environmental cleanup at Hill AFB, protecting public health and natural resources. Supports military readiness by addressing environmental liabilities. Provides employment opportunities within the environmental services sector. Contributes to regulatory compliance for hazardous waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Environmental remediation services are crucial for government facilities to address hazardous waste and contamination. Spending in this sector can vary significantly based on the scale of cleanup required and regulatory mandates.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, suggesting established oversight mechanisms. However, the effectiveness of oversight in managing performance and costs would require further review of contract performance reports.

Related Government Programs

Risk Flags

Tags

remediation-services, department-of-defense, ga, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to CH2M HILL CONSTRUCTORS, INC.. IGF::CT::IGF HILL AFB ENVIRONMENTAL SERVICES (BIEST)

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 Army).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2014-02-20. End: 2017-03-31.

What specific environmental remediation activities are covered under this contract?

This contract, identified under NAICS code 562910 (Remediation Services), likely covers a range of activities such as hazardous waste site cleanup, soil and groundwater remediation, demolition of contaminated structures, and long-term monitoring. The specific scope would be detailed in the contract's statement of work, outlining the precise environmental challenges at Hill AFB that require addressing.

What are the potential risks associated with the long duration of this environmental services contract?

Long-duration environmental contracts carry risks such as evolving regulatory requirements, unforeseen site conditions leading to scope creep and cost increases, and potential degradation of contractor performance over time. Effective contract management, including regular performance reviews and change order controls, is crucial to mitigate these risks and ensure project success within budget.

How does the firm-fixed-price contract type impact cost control for this environmental remediation project?

A firm-fixed-price (FFP) contract shifts most of the risk to the contractor, providing cost certainty for the government. For environmental remediation, FFP can incentivize efficiency, but it may also lead contractors to be conservative in their bids or seek change orders if unforeseen complexities arise, potentially increasing overall costs if not managed carefully.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 1000 ABERNATHY RD, STE-1600, ATLANTA, GA, 30328

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,912,013

Exercised Options: $19,795,533

Current Obligation: $19,795,533

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY09D0060

IDV Type: IDC

Timeline

Start Date: 2014-02-20

Current End Date: 2017-03-31

Potential End Date: 2017-03-31 00:00:00

Last Modified: 2021-02-26

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