DoD's $403M hazardous material spill cleanup contract awarded to ARCADIS U.S., Inc. shows fair value with 3 bidders
Contract Overview
Contract Amount: $57,269,388 ($57.3M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2003-09-11
End Date: 2013-09-14
Contract Duration: 3,656 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200312!005399!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0973 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!39472!049!06!LAKE CITY !MODOC !CALIFORNIA!+000005248006!N!N!000000000000!4235!HAZARDOUS MAT SPILL CONT & CLEAN-UP EQ & MAT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64050, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $57.3 million to ARCADIS U.S., INC. for work described as: 200312!005399!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0973 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!39472!049!06!LAKE CITY !MODOC… Key points: 1. Contract awarded to ARCADIS U.S., Inc. for hazardous material spill control and cleanup equipment and materials. 2. The contract was competed on a full and open basis, indicating a competitive bidding process. 3. Three bids were received, suggesting a moderate level of competition for this service. 4. The contract duration of over 10 years (3656 days) indicates a long-term need for these services. 5. The primary service category is Environmental Consulting Services, with a specific focus on hazardous materials. 6. The contract was awarded by the Department of Defense, specifically the Department of the Army. 7. The contract was awarded as a Firm Fixed Price type, providing cost certainty. 8. The contract was not set aside for small businesses.
Value Assessment
Rating: fair
The total award amount of $403,896,368 over approximately 10 years suggests a significant investment by the Department of Defense. Benchmarking this against similar long-term hazardous material cleanup contracts is challenging without more specific data on the scope and complexity of services. However, the presence of three bidders implies that the pricing was likely competitive within the market for such specialized environmental services. The firm fixed-price structure provides a degree of cost predictability for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received for this requirement. While three bidders indicate some level of competition, it is not exceptionally high for a contract of this magnitude and duration. This suggests that the market for highly specialized hazardous material cleanup services may be concentrated among a few key providers.
Taxpayer Impact: A competitive process, even with three bidders, generally leads to better price discovery and potentially more favorable pricing for taxpayers compared to sole-source awards. It ensures that multiple companies had the opportunity to offer their best pricing and technical solutions.
Public Impact
The Department of Defense benefits from specialized services to manage and mitigate hazardous material spills, ensuring operational readiness and environmental compliance. Services include the provision of equipment and materials for hazardous material spill control and cleanup, critical for maintaining safe military installations. The geographic impact is likely broad, covering various Department of the Army installations where hazardous materials may be present or spills could occur. The contract supports a specialized workforce in environmental consulting and hazardous material management, contributing to the skilled labor market in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) may lead to potential for cost overruns if market conditions or service needs change significantly.
- Limited competition (3 bidders) could indicate potential for reduced price pressure over the life of the contract.
- The specific nature of hazardous material cleanup can involve unforeseen complexities and risks that may not be fully captured in the initial fixed-price agreement.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contractor, ARCADIS U.S., Inc., is a known entity in environmental consulting, suggesting a level of established expertise.
Sector Analysis
The environmental consulting services sector is a significant market, driven by regulatory compliance, infrastructure development, and industrial needs. This contract falls within the specialized niche of hazardous material management and cleanup. The market size for such services is substantial, particularly for government contracts requiring specialized expertise and adherence to strict safety and environmental protocols. Comparable spending benchmarks would typically involve analyzing other large-scale environmental remediation contracts awarded by federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. This means the primary contract value is likely to be captured by the large business prime contractor. Further analysis would be needed to determine if ARCADIS U.S., Inc. has a history of subcontracting with small businesses on similar contracts.
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. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though specific performance details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Hazardous Waste Management
- Emergency Response Contracts
- Defense Environmental Services
- Chemical Spill Response
Risk Flags
- Long-term contract duration
- Moderate competition level
- Specialized service requirement
Tags
department-of-defense, department-of-the-army, environmental-consulting-services, hazardous-material-cleanup, firm-fixed-price, full-and-open-competition, large-contract, long-term-contract, arizona, environmental-services, defense-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.3 million to ARCADIS U.S., INC.. 200312!005399!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS10F0266K !C!N! !N!DABJ0103F0973 !20030911!20080930!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!39472!049!06!LAKE CITY !MODOC !CALIFORNIA!+000005248006!N!N!000000000000!4235!HAZARDOUS MAT SPILL CONT & CLEAN-UP EQ & MAT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562211!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 $57.3 million.
What is the period of performance?
Start: 2003-09-11. End: 2013-09-14.
What is the track record of ARCADIS U.S., Inc. with federal contracts, particularly in hazardous material cleanup?
ARCADIS U.S., Inc. has a significant history of performing federal contracts, including those related to environmental services and hazardous material management. While this specific contract is substantial, the company's broader portfolio likely includes numerous other engagements with various government agencies. A detailed review of their contract history would reveal their performance ratings, any past disputes or contract terminations, and their experience with similar scopes of work. Their established presence suggests a capacity to handle complex environmental challenges, but a thorough review of past performance data is crucial for a complete assessment.
How does the per-unit cost or scope of services compare to similar hazardous material cleanup contracts?
Directly comparing the per-unit cost or scope of services for this $403 million contract is difficult without granular data on the specific types of hazardous materials, the geographic distribution of potential spill sites, and the exact nature of the cleanup equipment and materials required. Federal contracts for hazardous material cleanup can vary immensely in complexity and scale. To benchmark effectively, one would need to identify contracts with similar durations, agency oversight, and service requirements. Analyzing the pricing structure against industry standards for emergency response and environmental remediation, adjusted for scale and specific risks, would provide a more accurate value assessment.
What are the primary risks associated with a long-term contract for hazardous material spill control and cleanup?
The primary risks associated with a long-term contract for hazardous material spill control and cleanup include potential changes in regulatory requirements, the emergence of new or more dangerous hazardous substances, and unforeseen environmental conditions at potential spill sites. For the contractor, risks involve fluctuating material costs, the possibility of underestimating the complexity of future spills, and maintaining a skilled workforce over an extended period. For the government, risks include potential cost increases if the fixed-price contract does not adequately account for inflation or evolving needs, and ensuring the contractor maintains peak readiness and responsiveness throughout the contract's duration.
How effective has the Department of the Army been in managing environmental compliance and cleanup contracts historically?
The Department of the Army, like other large federal agencies, has a long history of managing environmental compliance and cleanup contracts, often dealing with complex legacy contamination issues and ongoing operational needs. Effectiveness can be measured through various metrics, including compliance rates, the successful remediation of sites, and the efficient use of taxpayer funds. While many contracts are executed successfully, challenges can arise from the sheer scale and complexity of environmental liabilities, budget constraints, and the inherent difficulties in predicting and managing environmental incidents. Oversight bodies like the Inspector General often report on specific contract management practices and identify areas for improvement.
What is the historical spending trend for hazardous material spill control and cleanup services by the Department of Defense?
Historical spending trends for hazardous material spill control and cleanup services by the Department of Defense are likely substantial, given the extensive footprint of military installations and the inherent risks associated with military operations. This spending would fluctuate based on factors such as increased operational tempo, new environmental regulations, base realignment and closure actions, and the discovery of previously unknown contamination. Analyzing historical data would reveal patterns in contract awards, average contract values, and the prevalence of different types of environmental services procured. This specific $403 million award represents a significant, long-term commitment within this spending category.
What are the implications of awarding a large, long-term contract for specialized services like hazardous material cleanup?
Awarding a large, long-term contract for specialized services like hazardous material cleanup has several implications. For the government, it ensures a consistent and reliable capability is available when needed, potentially at a more stable price over time compared to ad-hoc procurements. It also allows for the development of a strong working relationship with a capable contractor. However, it can also reduce flexibility if needs change significantly and may limit opportunities for other contractors to compete for that work over the contract's life. For the contractor, it provides revenue stability and the opportunity to invest in specialized equipment and personnel.
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: 3
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
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0266K
IDV Type: FSS
Timeline
Start Date: 2003-09-11
Current End Date: 2013-09-14
Potential End Date: 2013-09-14 00:00:00
Last Modified: 2015-08-10
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