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

Positive Signals

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

Risk Flags

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 ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-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

More Contracts from Shaw Environmental, Inc.

View all Shaw Environmental, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending