DoD's $38.6M environmental remediation contract with CH2M HILL CONSTRUCTORS, INC. awarded under full and open competition
Contract Overview
Contract Amount: $38,571,246 ($38.6M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-30
End Date: 2021-12-30
Contract Duration: 3,013 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF P2:400839 E-TRAVIS AFB PRB TASK ORDER
Place of Performance
Location: FAIRFIELD, SOLANO County, CALIFORNIA, 94533
Plain-Language Summary
Department of Defense obligated $38.6 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF P2:400839 E-TRAVIS AFB PRB TASK ORDER Key points: 1. The contract value represents a significant investment in environmental remediation services for the Department of Defense. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract duration of over 8 years indicates a long-term commitment to environmental cleanup. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The specific remediation services provided are crucial for environmental compliance and safety. 6. The contract's geographic focus on California highlights regional environmental priorities.
Value Assessment
Rating: good
The total award amount of $38.6 million for environmental remediation services over an 8-year period appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental cleanup contracts for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure generally indicates that the contractor has a clear understanding of the project requirements and associated costs, which can lead to cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 2 bids indicates a moderate level of competition for this significant environmental remediation project. While more bidders could potentially drive prices lower, the fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: The use of full and open competition for this contract is beneficial for taxpayers as it encourages multiple companies to bid, which typically leads to more competitive pricing and better value for the government's investment.
Public Impact
The Department of the Army benefits from the contractor's expertise in environmental remediation, ensuring compliance with environmental regulations. Services delivered include remediation of contaminated sites, contributing to environmental protection and public health. The geographic impact is concentrated in California, addressing specific environmental challenges in that state. The contract supports a workforce skilled in environmental engineering, construction, and hazardous material handling.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
- Reliance on a single contractor for an extended period might limit opportunities for innovation or cost savings from alternative approaches.
- The fixed-price nature, while beneficial for cost certainty, could incentivize the contractor to cut corners if oversight is insufficient.
Positive Signals
- The firm-fixed-price contract type transfers significant cost risk to the contractor.
- Awarding under full and open competition suggests a thorough evaluation of multiple potential providers.
- The contract's focus on remediation addresses critical environmental compliance and safety needs.
Sector Analysis
Environmental remediation services represent a critical sector within government contracting, essential for managing legacy contamination and ensuring compliance with environmental laws. The market includes specialized firms capable of handling complex cleanup operations. This contract fits within the broader category of environmental services, which can range from consulting and assessment to full-scale cleanup and waste management. Comparable spending benchmarks would typically be assessed based on the specific types of contaminants and the scale of the remediation required.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services. Further investigation into subcontracting reports would be needed to fully assess the impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration 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 suspected fraud, waste, or abuse.
Related Government Programs
- Environmental Restoration, Superfund
- Hazardous Waste Management
- Site Remediation Services
- Defense Environmental Programs
Risk Flags
- Long contract duration
- Potential for scope creep
- Reliance on single contractor
Tags
department-of-defense, environmental-remediation, california, full-and-open-competition, firm-fixed-price, delivery-order, remediation-services, army, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF P2:400839 E-TRAVIS AFB PRB TASK ORDER
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 $38.6 million.
What is the period of performance?
Start: 2013-09-30. End: 2021-12-30.
What specific types of environmental remediation were performed under this contract?
The provided data indicates the contract falls under NAICS code 562910 (Remediation Services), suggesting a broad range of activities. While specific details are not in the summary data, typical services under such contracts include the cleanup of contaminated soil and groundwater, hazardous waste removal, demolition of contaminated structures, and long-term monitoring of remediation sites. These services are crucial for addressing environmental liabilities at military installations and other federal facilities, ensuring compliance with regulations like CERCLA (Superfund) and RCRA. The exact nature of the contamination (e.g., petroleum, solvents, heavy metals) and the remediation technologies employed would dictate the specific tasks performed.
How does the $38.6 million award compare to other large environmental remediation contracts awarded by the Department of Defense?
The $38.6 million award for this contract is a substantial sum, indicative of a significant environmental remediation project. To benchmark effectively, one would compare this figure against other large-scale remediation contracts awarded by the DoD or other federal agencies over similar timeframes and for comparable scopes of work. For instance, Superfund site cleanups or major base realignment and closure (BRAC) environmental actions can often run into tens or hundreds of millions of dollars. Without specific comparable contract data, it's difficult to definitively state if this award is high or low, but it falls within the range of significant environmental cleanup investments.
What are the primary risks associated with a long-term (over 8 years) environmental remediation contract?
Long-term environmental remediation contracts carry several inherent risks. Firstly, the potential for scope creep is significant; as investigations progress or unforeseen conditions arise, the scope of work may expand, potentially increasing costs beyond initial projections, even under a fixed-price contract if change orders are necessary. Secondly, technological advancements in remediation could render the initially chosen methods less efficient or effective over time, creating a risk of suboptimal outcomes or the need for costly adaptations. Thirdly, regulatory changes during the contract's lifespan could impose new requirements or standards, necessitating modifications. Finally, contractor performance degradation over an extended period, or the loss of key personnel, can also pose risks to project success and timely completion.
What does the 'firm fixed price' contract type imply about the contractor's responsibility and potential for cost overruns?
A 'firm fixed price' (FFP) contract type places the primary responsibility for cost control and managing potential overruns squarely on the contractor. Under an FFP agreement, the contractor is obligated to complete the specified work for the agreed-upon price, regardless of their actual costs. This means that any cost savings achieved by the contractor contribute to their profit, while any cost overruns are absorbed by the contractor. This structure incentivizes the contractor to be highly efficient and to accurately estimate costs upfront. For the government, it provides a high degree of cost certainty, as the total price is fixed, barring any modifications to the contract scope.
What is the historical spending trend for environmental remediation services within the Department of Defense?
Historical spending on environmental remediation within the Department of Defense has been substantial and ongoing for decades, driven by the need to address contamination from past military activities and comply with stringent environmental regulations. While specific annual figures fluctuate based on budget allocations, ongoing cleanup projects, and new discoveries, the DoD consistently allocates billions of dollars annually towards environmental restoration and compliance. This includes funding for site assessments, remediation activities, compliance programs, and conservation efforts. The trend reflects a long-term commitment to environmental stewardship and fulfilling legal obligations, often involving multi-year, multi-million dollar contracts similar to the one analyzed.
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 › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,571,246
Exercised Options: $38,571,246
Current Obligation: $38,571,246
Subaward Activity
Number of Subawards: 90
Total Subaward Amount: $11,279,649
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912QR12D0005
IDV Type: IDC
Timeline
Start Date: 2013-09-30
Current End Date: 2021-12-30
Potential End Date: 2021-12-30 00:00:00
Last Modified: 2021-02-19
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