DoD's $195M environmental consulting contract awarded to ARCADIS U.S., Inc. shows potential value concerns
Contract Overview
Contract Amount: $19,520,248 ($19.5M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2001-09-27
End Date: 2011-09-26
Contract Duration: 3,651 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: NOT REPORTED
Sector: Other
Official Description: 200112!000980!2100!BT60 !TRADOC CONTRACTING ACTIVITY !GS10F0266K !C!N!*!N!DABT6001F3405 !20010927!20020927!081509838!081509838!403896368!N!ARCADIS GERAGHTY & MILLER !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!29216!650!51!FORT MONROE !HAMPTON (CITY) !VIRGINIA !+000002520000!N!N!000000000000!B510!ENVIRONMENTAL STUDIES & ASSESSMENTS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541690!*!*!6! ! ! !*!*!*!B!*!*! ! !A ! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!
Place of Performance
Location: AUGUSTA, RICHMOND County, GEORGIA, 30905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to ARCADIS U.S., INC. for work described as: 200112!000980!2100!BT60 !TRADOC CONTRACTING ACTIVITY !GS10F0266K !C!N!*!N!DABT6001F3405 !20010927!20020927!081509838!081509838!403896368!N!ARCADIS GERAGHTY & MILLER !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!29216!650!51!FORT MONROE !HAMPT… Key points: 1. The contract's duration of over 10 years and significant value raise questions about cost-effectiveness. 2. Limited information on competition level suggests potential for suboptimal pricing. 3. The contract's performance context is unclear, making it difficult to assess value for money. 4. Environmental consulting services are crucial for military readiness and compliance. 5. The contract's large scale indicates a significant investment in environmental management. 6. The absence of small business participation warrants further investigation.
Value Assessment
Rating: fair
The total award amount of $195,202,480 over a period of 3651 days (approximately 10 years) suggests a substantial investment. Without detailed performance metrics or a clear breakdown of services rendered, it is difficult to benchmark the value for money. Comparing this to similar long-term environmental consulting contracts within the Department of Defense or other federal agencies would be necessary for a more precise assessment. The per-year cost averages around $21.4 million, which, while significant, needs to be evaluated against the scope and complexity of the environmental services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. However, the number of bidders and the specific details of the bidding process are not provided in the data. A high level of competition typically leads to better pricing and innovation. The fact that it was fully competed is a positive sign, but the lack of detail on the number of bids received prevents a full assessment of its effectiveness in driving down costs.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of providers to offer competitive pricing, potentially leading to cost savings for the government.
Public Impact
The Department of the Army benefits from comprehensive environmental consulting services, likely supporting compliance with environmental regulations and improving operational sustainability. Services delivered include environmental studies and assessments, crucial for managing the environmental impact of military installations. The geographic impact is likely focused on Department of the Army installations, potentially across various regions where the contractor operates. Workforce implications may include the need for specialized environmental professionals within the Army to manage and oversee these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The extended duration of the contract (over 10 years) could lead to cost inefficiencies if not actively managed and re-competed.
- Lack of specific performance metrics makes it hard to gauge the true value and effectiveness of the services provided.
- The contract does not appear to have small business set-aside provisions, potentially limiting opportunities for smaller specialized firms.
- The total award amount is substantial, requiring robust oversight to ensure funds are used efficiently and effectively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contractor, ARCADIS U.S., Inc., is a known entity in the environmental consulting space, implying a level of established capability.
- The contract addresses critical environmental studies and assessments, vital for regulatory compliance and operational planning.
Sector Analysis
The environmental consulting services sector is a significant part of the professional services industry, supporting government and private entities in navigating complex environmental regulations. This contract falls within the broader professional, scientific, and technical services category. Comparable spending benchmarks for large-scale, long-term environmental consulting contracts within the federal government can vary widely based on scope, but multi-million dollar awards over extended periods are not uncommon for major federal agencies like the Department of Defense.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This means that opportunities for small businesses to directly participate as prime contractors were not specifically prioritized through this award mechanism. While ARCADIS U.S., Inc. may engage small businesses as subcontractors, the absence of a direct set-aside means the primary contract was not designed to foster small business prime contracting. This could limit the direct economic impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract data reporting systems like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the Army's IG office being the relevant authority.
Related Government Programs
- Environmental Remediation Services
- Architectural and Engineering Services
- Environmental Planning
- Natural Resource Management
- Base Realignment and Closure (BRAC) Environmental Services
Risk Flags
- Long contract duration may reduce cost-effectiveness over time.
- Lack of detailed performance data hinders value assessment.
- Potential for vendor lock-in due to extended single-contractor relationship.
- No explicit small business participation noted.
Tags
department-of-defense, department-of-the-army, environmental-consulting, studies-and-assessments, full-and-open-competition, large-contract, long-term-contract, professional-services, arcadis-u-s-inc, federal-contract, virginia, army-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to ARCADIS U.S., INC.. 200112!000980!2100!BT60 !TRADOC CONTRACTING ACTIVITY !GS10F0266K !C!N!*!N!DABT6001F3405 !20010927!20020927!081509838!081509838!403896368!N!ARCADIS GERAGHTY & MILLER !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!29216!650!51!FORT MONROE !HAMPTON (CITY) !VIRGINIA !+000002520000!N!N!000000000000!B510!ENVIRONMENTAL STUDIES & ASSESSMENTS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541690!*!*!6! ! ! !*!*!*!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 $19.5 million.
What is the period of performance?
Start: 2001-09-27. End: 2011-09-26.
What specific environmental studies and assessments were conducted under this contract, and what were their key findings or impacts?
The provided data indicates the contract covers 'ENVIRONMENTAL STUDIES & ASSESSMENTS' and falls under the North American Industry Classification System (NAICS) code 541620 for Environmental Consulting Services. However, the specific nature, scope, and findings of these studies are not detailed in the extract. These could range from environmental impact statements for new construction, site assessments for hazardous materials, compliance audits for regulatory bodies (like EPA), or natural resource management plans. The impact would depend on the findings; for instance, identifying contamination could lead to remediation efforts, while compliance assessments ensure the Army meets federal and state environmental laws, preventing fines and operational disruptions. Without further documentation, the precise outcomes remain unquantified.
How does the $195 million award compare to historical spending on environmental consulting by the Department of the Army?
The total award of $195,202,480 over approximately 10 years represents a significant, long-term investment in environmental consulting services for the Department of the Army. To compare this to historical spending, one would need access to historical contract data for the Army's environmental consulting needs over previous periods. Analyzing trends in annual spending, the number and value of similar contracts, and the types of services procured would provide context. For example, if historical spending was consistently lower or focused on shorter-term projects, this contract's scale might indicate an increased focus on environmental management, a shift in regulatory requirements, or consolidation of services. Conversely, if similar large-scale contracts were common, it might suggest a consistent level of environmental support needs.
What is the track record of ARCADIS U.S., Inc. in performing similar large-scale environmental consulting contracts for the federal government?
ARCADIS U.S., Inc. is a well-established firm in the environmental consulting industry, known for undertaking complex projects for both government and private sector clients. While the provided data confirms this specific large award, a comprehensive assessment of their track record would involve reviewing their performance on other federal contracts, particularly those with the Department of Defense or other agencies requiring similar environmental studies and assessments. Key indicators would include past performance reviews, any history of contract disputes or terminations, and the successful completion of projects within scope, budget, and schedule. Their longevity and the size of this contract suggest a capacity to handle significant federal requirements, but a deeper dive into their project history would be prudent.
What are the potential risks associated with a single contractor holding such a large environmental consulting contract for an extended period?
A significant risk associated with a single contractor holding a large contract for an extended period (over 10 years in this case) is the potential for complacency and reduced incentive to innovate or offer the most competitive pricing over time. This can lead to cost overruns or suboptimal service delivery if not managed rigorously. Another risk is vendor lock-in, where the agency becomes heavily reliant on the incumbent, making it difficult and costly to switch providers. Furthermore, if the contractor's capabilities degrade or their business focus shifts, the agency might be left without adequate support. Robust contract management, performance monitoring, and periodic reviews are essential to mitigate these risks.
Were there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure the success of ARCADIS U.S., Inc.'s services?
The provided data extract does not contain specific details about performance metrics or Key Performance Indicators (KPIs) established for this contract. Typically, large and long-term service contracts include such measures to objectively assess the contractor's performance against agreed-upon standards. These KPIs could relate to timeliness of reports, accuracy of assessments, compliance with regulatory requirements, client satisfaction, or cost control. The absence of this information in the data suggests it might be detailed in the full contract document or its appendices. Effective oversight would necessitate clearly defined and measurable KPIs to ensure the Department of the Army receives the expected value and quality of environmental consulting services.
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: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: NOT REPORTED (NO)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arcadis N.V. (UEI: 403896368)
Address: 630 PLAZA DR STE 200, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS10F0266K
IDV Type: FSS
Timeline
Start Date: 2001-09-27
Current End Date: 2011-09-26
Potential End Date: 2011-09-26 00:00:00
Last Modified: 2013-04-11
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