DoD's $22.2M environmental remediation contract with Stantec Consulting Services Inc. awarded in 2009

Contract Overview

Contract Amount: $22,230,943 ($22.2M)

Contractor: Stantec Consulting Services Inc.

Awarding Agency: Department of Defense

Start Date: 2009-07-06

End Date: 2018-12-31

Contract Duration: 3,465 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TERC CONTRACT-HAMILTON AAF

Place of Performance

Location: NOVATO, MARIN County, CALIFORNIA, 94945

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to STANTEC CONSULTING SERVICES INC. for work described as: TERC CONTRACT-HAMILTON AAF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 3. The duration of the contract (3465 days) indicates a long-term need for remediation services. 4. The contract was awarded to Stantec Consulting Services Inc., a known entity in the engineering and consulting sector. 5. The North American Industry Classification System (NAICS) code 562910 points to environmental remediation services. 6. The contract was awarded by the Department of Defense, specifically the Department of the Army. 7. The contract was active for over 9 years, from July 2009 to December 2018.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable project data. The Cost Plus Award Fee structure implies that the final cost could vary based on performance, making a direct price comparison difficult. However, the total award amount of over $22 million over nearly a decade suggests a significant investment in environmental remediation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a degree of competition, which generally benefits price discovery. However, the specific details of the bidding process and the number of proposals received are not provided, limiting a deeper analysis of the competitive landscape.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple firms to bid, driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Army, receiving environmental remediation services. The services delivered include remediation of contaminated sites, crucial for environmental protection and compliance. The contract's geographic impact is specified as California (SN: CALIFORNIA), indicating a focus on environmental cleanup within the state. The contract likely supported a workforce of environmental scientists, engineers, and technicians involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher costs if not managed rigorously, as contractor profits are tied to performance metrics that may be subjective.
The long duration of the contract (over 9 years) raises questions about the initial scope definition and potential for cost creep over time.
Lack of detailed performance data makes it difficult to assess the true value for money and efficiency of the remediation efforts.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract addresses critical environmental remediation needs for the Department of Defense.
The specific location in California indicates a targeted approach to environmental cleanup.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader Engineering and Construction industry. The market for environmental consulting and remediation is substantial, driven by regulatory requirements and the need to address historical contamination. Comparable spending benchmarks would typically involve analyzing other large-scale environmental cleanup contracts awarded by government agencies or major industrial clients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false) and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal, unless Stantec Consulting Services Inc. engaged small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program managers within the Department of the Army. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics and cost expenditures to ensure accountability and prevent overspending. Transparency would depend on the agency's public disclosure policies regarding contract performance and financials.

Related Government Programs

Environmental Remediation Services
Department of Defense Contracts
California Environmental Projects
Cost Plus Award Fee Contracts
Long-Term Government Contracts

Risk Flags

Long contract duration may increase risk of cost escalation.
CPAF structure requires diligent oversight to ensure value for money.
Limited information on specific remediation outcomes and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to STANTEC CONSULTING SERVICES INC.. TERC CONTRACT-HAMILTON AAF

Who is the contractor on this award?

The obligated recipient is STANTEC CONSULTING SERVICES 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 $22.2 million.

What is the period of performance?

Start: 2009-07-06. End: 2018-12-31.

What was the specific nature of the environmental remediation required under this contract?

The contract, identified by NAICS code 562910, pertains to Environmental Remediation Services. While specific details are not provided in the abbreviated data, such contracts typically involve the cleanup of hazardous substances and pollutants from soil, groundwater, or structures. This could include activities like site assessment, containment, removal, treatment, and disposal of contaminants, often at military bases or other federal facilities with historical contamination issues. The location in California suggests the remediation efforts were focused on sites within that state.

How does the Cost Plus Award Fee (CPAF) structure typically function, and what are its implications for this contract?

A Cost Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs and provides a fixed fee, plus an award fee based on performance against predetermined criteria. For this Department of Defense contract, it means Stantec Consulting Services Inc. was reimbursed for its expenses, received a base fee, and could earn additional award fees if it met or exceeded performance targets set by the Army. This structure aims to incentivize high performance by linking a portion of the contractor's profit to achieving specific objectives, but it requires robust government oversight to ensure the award fee criteria are objective and fairly applied, and that costs remain reasonable.

What does the 'full and open competition' designation imply about the bidding process and potential cost savings?

The 'full and open competition' designation signifies that the contract was awarded after soliciting offers from all responsible sources and that all responsible contractors were permitted to submit bids. This is generally the preferred method for government contracting as it maximizes the pool of potential bidders, fostering competition. In theory, this leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition contracts. The data indicates two bidders participated, suggesting some level of competition was achieved.

Given the contract's duration of over 9 years, what risks might be associated with its long-term nature?

The extended duration of this contract (3465 days, over 9 years) presents several potential risks. Firstly, there's a risk of cost escalation over time due to inflation, changes in regulatory requirements, or unforeseen site conditions that were not fully anticipated during the initial contract award. Secondly, long-term contracts can sometimes lead to complacency or a reduced sense of urgency if not actively managed. Lastly, the initial scope definition might become misaligned with evolving needs or technological advancements in remediation, potentially requiring costly modifications or amendments. Effective contract management and regular performance reviews are crucial to mitigate these long-term risks.

How does the contract's award amount of $22.2 million compare to similar environmental remediation contracts?

Directly comparing the $22.2 million award amount without more context is difficult. Environmental remediation projects vary significantly in scope, complexity, and duration. Factors such as the type and extent of contamination, the specific remediation technologies employed, site accessibility, and regulatory requirements all influence costs. To provide a meaningful comparison, one would need to analyze similar contracts awarded by the Department of Defense or other federal agencies for projects of comparable scale and complexity, ideally within the same geographic region and timeframe. The fact that this was a long-term contract (over 9 years) means the annual expenditure might have been considerably lower than the total award suggests.

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

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Stantec Incorporated (UEI: 246422307)

Address: 370 INTERLOCKEN BLVD, BROOMFIELD, CO, 80021

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,074,125

Exercised Options: $24,074,125

Current Obligation: $22,230,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA3102D0017

IDV Type: IDC

Timeline