DoD's $36.5M Remediation Services Contract Awarded to Shaw Environmental, Inc. for New York Site
Contract Overview
Contract Amount: $36,464,875 ($36.5M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-12-05
End Date: 2010-12-31
Contract Duration: 1,122 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LINDE FUSRAP REMEDIATION CONSTR SERVICES
Place of Performance
Location: TONAWANDA, ERIE County, NEW YORK, 14150
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $36.5 million to SHAW ENVIRONMENTAL, INC. for work described as: LINDE FUSRAP REMEDIATION CONSTR SERVICES Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Contract duration of over three years indicates a substantial remediation effort. 5. Geographic focus on New York highlights specific regional environmental needs. 6. The award to a single contractor implies specialized capabilities were sought.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the scope of remediation services. However, the total award of approximately $36.5 million over three years suggests a significant project. The firm-fixed-price structure aims to control costs, but the ultimate value depends on the efficiency of the contractor and the complexity of the environmental issues addressed. Without comparable contract data for similar large-scale remediation projects, a precise value-for-money assessment is difficult.
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 presence of 5 bids suggests a reasonable level of competition for this remediation services contract. While the exact number of bidders is not a definitive measure of competition quality, having multiple offers generally promotes price discovery and encourages contractors to submit competitive proposals.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, potentially leading to cost savings compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are the communities and environment in New York impacted by the contamination being remediated. Services delivered include complex environmental remediation and construction activities. The geographic impact is concentrated in New York, specifically at the designated site. Workforce implications include the creation of jobs for environmental scientists, engineers, construction workers, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen environmental complexities arise, despite fixed-price structure.
- Dependence on a single contractor for a critical and lengthy remediation project.
- Ensuring long-term effectiveness of remediation efforts beyond the contract period.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Firm-fixed-price contract type provides cost predictability for the government.
- Contract duration aligns with the likely complexity of large-scale environmental remediation.
Sector Analysis
The environmental remediation services sector is a critical component of the broader environmental services industry, which addresses pollution control, waste management, and site cleanup. This contract falls within the government's significant spending on environmental compliance and restoration. Comparable spending benchmarks would typically involve other large-scale federal or state-level remediation projects, often associated with Superfund sites or military base cleanups, which can run into tens or hundreds of millions of dollars.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was likely on technical capability and price from larger, specialized environmental firms. There is no explicit information on subcontracting plans for small businesses, but it is common for large prime contractors to utilize small businesses for specific services or supplies within such projects.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting officers and project managers, ensuring compliance with contract terms, performance standards, and environmental regulations. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details and oversight activities may not always be publicly disclosed.
Related Government Programs
- Environmental Remediation Services
- Department of Defense Contracts
- Superfund Remediation Projects
- Federal Cleanup Programs
Risk Flags
- Potential for cost overruns if unforeseen site conditions are encountered.
- Risk associated with long-term effectiveness of remediation technologies.
- Dependence on contractor's specialized expertise and resources.
Tags
remediation-services, department-of-defense, department-of-the-army, fusrap, new-york, full-and-open-competition, firm-fixed-price, environmental-cleanup, hazardous-waste, radioactive-materials, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to SHAW ENVIRONMENTAL, INC.. LINDE FUSRAP REMEDIATION CONSTR SERVICES
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $36.5 million.
What is the period of performance?
Start: 2007-12-05. End: 2010-12-31.
What is the specific nature of the environmental contamination being addressed under this contract?
The contract is for LINDE FUSRAP REMEDIATION CONSTR SERVICES. FUSRAP stands for Formerly Utilized Sites Remedial Action Program, which is managed by the U.S. Army Corps of Engineers. This program addresses contamination from Manhattan Project and other early atomic energy activities. Therefore, the contamination likely involves radioactive materials, heavy metals, or other hazardous substances resulting from historical nuclear research and development activities. The specific contaminants and their concentrations would dictate the remediation techniques employed and the complexity of the project.
How does the contract's value compare to other FUSRAP projects or similar large-scale environmental remediation contracts?
The contract value of approximately $36.5 million over three years is substantial for a single project within the FUSRAP program. However, FUSRAP projects can vary widely in scope and cost, with some remediation efforts extending for many years and costing hundreds of millions of dollars. To provide a precise comparison, one would need to analyze the scope of work, duration, and total cost of other FUSRAP projects or similar large federal environmental remediation contracts. Generally, projects involving complex hazardous waste or radioactive material cleanup are inherently expensive due to regulatory requirements, specialized equipment, and long-term monitoring.
What are the key performance indicators (KPIs) or milestones expected for Shaw Environmental, Inc. under this contract?
While specific KPIs are not detailed in the provided data, typical performance indicators for environmental remediation contracts include adherence to project schedules, meeting cleanup standards defined by regulatory agencies (e.g., EPA, state environmental departments), effective management of hazardous materials, compliance with safety protocols, and staying within the firm-fixed-price budget. Milestones would likely involve phases such as site investigation, feasibility studies, design of remediation systems, implementation of cleanup technologies, waste disposal, site restoration, and final verification sampling to confirm cleanup goals have been achieved.
What is the historical spending pattern for remediation services by the Department of the Army or the FUSRAP program?
The Department of the Army, through the Army Corps of Engineers, is the primary executor of the FUSRAP program. Historical spending on FUSRAP has been significant, reflecting the long-term commitment to addressing contamination from early atomic energy activities. Annual appropriations for FUSRAP have varied over the years, often in the range of tens to hundreds of millions of dollars, depending on the number and complexity of active projects. Analyzing historical spending data would reveal trends in project initiation, completion rates, and the overall budget allocation for remediation efforts across the nation.
What is the track record of Shaw Environmental, Inc. in handling similar large-scale, complex environmental remediation projects?
Shaw Environmental, Inc. (now part of Aptim) has a significant track record in the environmental services sector, including extensive experience with large-scale remediation projects for government agencies and private clients. They have been involved in various complex cleanup efforts, including those involving hazardous waste, radioactive materials, and industrial contaminants. Their portfolio often includes work on Department of Defense sites, Superfund sites, and other government-mandated cleanup actions. A detailed review of their past performance, client references, and any past performance issues or awards would provide a clearer picture of their capabilities for this specific FUSRAP contract.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 11206 THOMPSON AVE, LENEXA, KS, 66219
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,564,657
Exercised Options: $36,564,657
Current Obligation: $36,464,875
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACW4198D9006
IDV Type: IDC
Timeline
Start Date: 2007-12-05
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2021-01-29
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