Department of Defense awards $407M contract for environmental consulting services to ARCADIS U.S., INC

Contract Overview

Contract Amount: $14,870,062 ($14.9M)

Contractor: Arcadis U.S., Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-11

End Date: 2013-09-10

Contract Duration: 3,652 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200312!005383!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0959 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!26800!079!45!FORT JACKSON !RICHLAND !S CAROLINA!+000003735665!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !924120!E! !6! ! ! ! ! !99990909!B!B!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to ARCADIS U.S., INC. for work described as: 200312!005383!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0959 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!26800!079!45!FORT JACKSON !RICHL… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 10 years indicates a long-term need for these services. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The services provided fall under environmental consulting, a critical area for defense operations. 5. The contractor, ARCADIS U.S., INC., has a significant presence and likely extensive experience in this field. 6. The contract was awarded to a single entity, highlighting the specialized nature of the services required.

Value Assessment

Rating: good

The contract value of $407,268,003 over approximately 10 years suggests a substantial investment in environmental consulting. Benchmarking this against similar large-scale environmental services contracts for the Department of Defense would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract, if managed effectively, can provide predictable costs. The specific services, such as conservation and development facilities, are essential for military base operations and compliance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of qualified contractors, ensuring a broad selection pool.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage innovation among bidders.

Public Impact

The Department of Defense benefits from specialized environmental consulting services essential for maintaining and developing facilities. Military bases, such as Fort Jackson, likely receive direct support for environmental compliance and infrastructure projects. The contract supports the operational readiness and environmental stewardship of defense installations. The geographic impact is primarily within South Carolina, where Fort Jackson is located, but may extend to other defense sites requiring similar services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates under a fixed-price contract.
Reliance on a single contractor for a decade could lead to vendor lock-in and reduced leverage for future negotiations.
Ensuring consistent quality and performance over a long contract duration requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured a fair price.
The fixed-price contract type provides budget certainty for the government.
The long duration indicates a stable, long-term need for these critical environmental services.
The contractor, ARCADIS U.S., INC., is a well-established firm with expertise in environmental consulting.

Sector Analysis

Environmental consulting services are a significant part of the professional services sector, supporting government and private entities in navigating complex environmental regulations, managing natural resources, and undertaking sustainable development projects. The market is characterized by specialized firms offering expertise in areas like environmental impact assessments, remediation, compliance, and engineering. This contract fits within the broader category of professional, scientific, and technical services, with a specific focus on environmental management within the defense sector.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions or subcontracting goals. Given the large value and specialized nature of the services, it is possible that the prime contractor may engage small businesses for specific tasks or support roles, but this is not explicitly detailed in the provided information. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Architectural and Engineering Services
Base Operations Support
Conservation Services

Risk Flags

Long-term contract duration may limit flexibility.
Fixed-price contract could lead to cost increases if scope changes.
Reliance on a single contractor for a decade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to ARCADIS U.S., INC.. 200312!005383!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0959 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!26800!079!45!FORT JACKSON !RICHLAND !S CAROLINA!+000003735665!N!N!000000000000!Z219!MAINT/OTHER CONSERVATION & DEVELOPMENT FACILITIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !924120!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ARCADIS U.S., 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 $14.9 million.

What is the period of performance?

Start: 2003-09-11. End: 2013-09-10.

What is the historical spending pattern for environmental consulting services by the Department of Defense?

The Department of Defense (DoD) historically spends billions of dollars annually on a wide array of services, including environmental consulting. This spending is driven by the need to manage vast real estate holdings, comply with stringent environmental regulations (such as CERCLA and RCRA), address legacy contamination issues from past activities, and support ongoing operations and new construction. Spending can fluctuate based on legislative priorities, environmental challenges, and the lifecycle of infrastructure projects. Analyzing historical DoD spending on environmental services reveals a consistent and significant investment, often concentrated in areas like site assessment, remediation, compliance monitoring, and natural resource management across its numerous installations worldwide. This particular contract represents a substantial portion of that annual environmental services budget for a specific, long-term need.

How does the per-unit cost of ARCADIS G&M, INC.'s services compare to market rates for similar environmental consulting contracts?

Determining a precise per-unit cost for this contract is challenging without detailed breakdowns of the services rendered and their associated labor hours or deliverables. The contract is a firm fixed-price award valued at approximately $407 million over 10 years. To benchmark per-unit costs, one would need to compare specific service categories (e.g., environmental site assessments, engineering design, regulatory support) against industry benchmarks or similar contracts awarded by other federal agencies or the private sector. Factors such as geographic location, complexity of the environmental issues, regulatory environment, and the specific expertise required significantly influence pricing. ARCADIS G&M, INC. is a large, established firm, and its pricing may reflect its overhead, expertise, and market position. A detailed cost analysis would involve comparing their proposed rates for specific tasks against competitive bids received for similar work.

What is ARCADIS G&M, INC.'s track record with federal environmental consulting contracts?

ARCADIS G&M, INC. (and its parent/affiliated entities like ARCADIS U.S., INC.) has a substantial track record of performing environmental consulting services for various U.S. federal agencies, including the Department of Defense, Department of Energy, and Environmental Protection Agency. Their portfolio often includes large-scale projects involving site investigation, remediation, environmental planning, engineering design, and construction management for complex industrial and military sites. Past performance evaluations, available through federal databases like the Contractor Performance Assessment Reporting System (CPARS), would provide specific insights into their project execution, quality of work, timeliness, and cost control on previous contracts. Their ability to secure a contract of this magnitude suggests a history of successful performance and demonstrated capability in meeting the stringent requirements of federal clients.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential cost overruns if the scope of work expands beyond initial estimates, especially under a fixed-price arrangement where change orders could increase the total cost. There's also a risk of vendor lock-in due to the long duration, potentially limiting flexibility and negotiation leverage in the future. Ensuring consistent quality and performance over a decade requires robust government oversight and contractor accountability. Furthermore, reliance on a single contractor for critical environmental services could pose a risk if the contractor experiences financial instability or significant operational disruptions. Finally, ensuring that the services provided continue to align with evolving environmental regulations and technological advancements is crucial.

How effective are environmental consulting services in supporting the Department of Defense's mission?

Environmental consulting services are highly effective and critical to the Department of Defense's mission. They ensure compliance with a complex web of federal, state, and local environmental laws and regulations, thereby preventing costly fines, legal challenges, and operational shutdowns. These services support the sustainable management and development of military installations, which are essential for training, readiness, and housing personnel. By addressing environmental contamination, consulting services contribute to the long-term health of surrounding communities and ecosystems. Furthermore, they play a vital role in planning and executing infrastructure projects, ensuring that environmental impacts are minimized and mitigation strategies are effectively implemented, thus supporting the DoD's broader goals of environmental stewardship and operational resilience.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

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: Arcadis N.V. (UEI: 403896368)

Address: 630 PLAZA DR STE 200, LITTLETON, CO, 80129

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0266K

IDV Type: FSS

Timeline