DoD's $42.3M Environmental Remediation Contract with APTIM Faces Scrutiny Over Long Duration and Firm Fixed Price

Contract Overview

Contract Amount: $42,284,336 ($42.3M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-30

End Date: 2016-09-30

Contract Duration: 3,288 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL REMEDIATION SVCS BASE YR

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to APTIM FEDERAL SERVICES, LLC for work described as: ENVIRONMENTAL REMEDIATION SVCS BASE YR Key points: 1. Significant long-term spending on environmental remediation services. 2. APTIM FEDERAL SERVICES, LLC holds the contract, awarded via full and open competition. 3. The contract spans nearly 9 years, raising questions about sustained need and cost-effectiveness. 4. Firm Fixed Price contract type may limit flexibility but provides cost certainty. 5. The NAICS code 562910 indicates a focus on hazardous waste management and site remediation.

Value Assessment

Rating: fair

The contract's total value of $42.3 million over nearly 9 years suggests a substantial investment. Benchmarking against similar long-term environmental remediation contracts is difficult without more specific service details, but the duration itself warrants scrutiny for potential cost efficiencies over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method generally promotes competitive pricing. However, the long duration (nearly 9 years) might have influenced initial pricing strategies, potentially factoring in long-term market stability rather than immediate cost optimization.

Taxpayer Impact: Taxpayer funds are committed to long-term environmental cleanup. While competition is positive, the extended period necessitates ongoing oversight to ensure value for money and prevent cost overruns or inefficiencies.

Public Impact

Ensures environmental cleanup at military sites, contributing to public health and safety. Long-term commitment of federal funds for a critical but potentially costly service. Potential for environmental improvements and compliance with regulations. Contract duration raises questions about adaptability to changing environmental needs or technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration (9 years)
Firm Fixed Price for long-term service
Lack of specific performance metrics in provided data

Positive Signals

Awarded via full and open competition
Addresses critical environmental remediation needs
Established contractor with a long-term award

Sector Analysis

Environmental remediation services fall under the broader professional, scientific, and technical services sector. Spending in this area is often driven by regulatory requirements and historical contamination, with significant government contracts awarded for large-scale cleanup operations.

Small Business Impact

The contract was awarded to APTIM FEDERAL SERVICES, LLC, a large business. There is no indication from the provided data that small businesses were significantly involved as subcontractors, which could be an area for future analysis regarding small business participation goals.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the Department of the Army to ensure performance standards are met and costs remain justified. Regular reviews and performance evaluations are crucial for accountability over the nearly 9-year period.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Extended contract duration may indicate lack of flexibility or potential for cost inefficiencies.
Firm Fixed Price for a long-term service contract could be disadvantageous if conditions change significantly.
Lack of small business participation noted in the data.
Potential for contractor lock-in due to the long-term nature of the award.
Need for robust oversight to ensure value over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to APTIM FEDERAL SERVICES, LLC. ENVIRONMENTAL REMEDIATION SVCS BASE YR

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2007-09-30. End: 2016-09-30.

What specific environmental remediation tasks are covered under this contract, and how do they align with current environmental standards and best practices?

The contract falls under NAICS code 562910 (Remediation Services), suggesting activities like hazardous waste treatment, disposal, and site cleanup. Detailed task orders would specify the exact nature of the work, such as soil and groundwater remediation, demolition, or asbestos abatement. Ensuring these align with evolving EPA regulations and industry best practices is crucial for effective environmental stewardship and long-term site closure.

Given the firm fixed price and long duration, what mechanisms are in place to manage scope creep and ensure cost control if unforeseen environmental challenges arise?

A firm fixed price contract generally places the risk of unforeseen costs on the contractor. However, for long-term contracts, mechanisms like clear change order procedures, robust contract management, and potentially contingency planning within the initial bid are vital. The Department of the Army must actively monitor the contractor's performance and the evolving site conditions to manage scope and ensure the fixed price remains equitable.

How does the performance of APTIM FEDERAL SERVICES, LLC on this contract compare to industry benchmarks for environmental remediation projects of similar scale and complexity?

Assessing performance requires access to specific metrics like project completion times, cost performance indices, quality control reports, and client satisfaction surveys. Without these, a direct comparison is difficult. However, the sustained award over nearly nine years suggests a level of satisfactory performance, though continuous evaluation against industry best practices and competitor capabilities is essential for ensuring optimal value.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)

Address: 2370 TOWNE CENTER BLVD, BATON ROUGE, LA, 70806

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,284,337

Exercised Options: $42,284,336

Current Obligation: $42,284,336

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123806D0017

IDV Type: IDC

Timeline