Department of the Army awards $40.4M contract for environmental services, with a significant portion for remediation
Contract Overview
Contract Amount: $43,019,684 ($43.0M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2004-08-12
End Date: 2013-03-31
Contract Duration: 3,153 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200411!001050!2100!W912BV!* !W9128F04D0026 !A!N! !Y!DS01 ! !20040812!20050814!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!61400!303!48!REESE AFB !LUBBOCK !TEXAS !+000012904321!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES,&ANALYTICAL SUPPORT !S1 !SERVICES !ZBC !BRAC !562910!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!003!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LUBBOCK, LUBBOCK County, TEXAS, 79401
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $43.0 million to ARCADIS U.S., INC. for work described as: 200411!001050!2100!W912BV!* !W9128F04D0026 !A!N! !Y!DS01 ! !20040812!20050814!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!61400!303!48!REESE AFB !LUBB… Key points: 1. Contract awarded for comprehensive environmental services, including studies and analytical support. 2. The contract value of $40.4M reflects a substantial investment in environmental management. 3. Performance period spans over 9 years, indicating a long-term need for these services. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process. 5. The primary service area is remediation, a critical component of environmental management. 6. The contractor, ARCADIS U.S., INC., has a significant role in delivering these services.
Value Assessment
Rating: good
The contract value of $40.4 million for environmental services over a 9-year period appears reasonable given the scope. Benchmarking against similar large-scale environmental remediation contracts would provide a clearer picture of value for money. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally expected to drive down prices and ensure the government receives the best value. The presence of 3 bidders suggests a moderately competitive environment for this type of specialized service.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a market where multiple qualified contractors vie for the work, leading to potentially lower prices and higher quality services.
Public Impact
The primary beneficiaries are likely military installations requiring environmental cleanup and compliance. Services delivered include environmental studies, analytical support, and remediation activities. The geographic impact is focused on Reese AFB in Lubbock, Texas, and potentially other Army facilities. The contract supports specialized environmental engineering and consulting jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long performance period could lead to scope creep if not managed tightly.
- Reliance on a single contractor for an extended duration may reduce future competitive pressure.
- Environmental remediation projects can be subject to unforeseen complexities and cost escalations.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm fixed-price contract structure shifts cost risk to the contractor.
- The contractor has a track record in providing environmental services.
Sector Analysis
This contract falls within the Environmental Consulting and Remediation Services sector, a critical area for government operations, particularly for military bases. The market for these services is substantial, driven by regulatory compliance and the need to manage legacy environmental issues. This specific contract addresses remediation needs, which can be complex and costly, requiring specialized expertise.
Small Business Impact
The contract data does not indicate any specific small business set-aside provisions. However, the prime contractor, ARCADIS U.S., INC., may engage small businesses for subcontracting opportunities to fulfill specialized aspects of the environmental services required. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting office and program managers. The firm fixed-price nature provides some cost control, but ongoing monitoring of performance, quality, and adherence to environmental regulations is crucial. Inspector General involvement would be relevant in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Environmental Consulting
- Military Base Environmental Management
- BRAC Program Support
Risk Flags
- Long contract duration may increase risk of scope creep and market irrelevance.
- Potential for unforeseen environmental conditions impacting cost and schedule.
- Reliance on a single contractor for an extended period.
Tags
department-of-defense, department-of-the-army, environmental-services, remediation, firm-fixed-price, full-and-open-competition, texas, reese-afb, large-contract, long-term-contract, consulting-and-analytical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.0 million to ARCADIS U.S., INC.. 200411!001050!2100!W912BV!* !W9128F04D0026 !A!N! !Y!DS01 ! !20040812!20050814!081509838!081509838!403896368!N!ARCADIS G&M, INC !630 PLAZA DRIVE, SUITE 200!HIGHLANDS RANC !CO!80126!61400!303!48!REESE AFB !LUBBOCK !TEXAS !+000012904321!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES,&ANALYTICAL SUPPORT !S1 !SERVICES !ZBC !BRAC !562910!E! !5!B!M! !A! !99990
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 $43.0 million.
What is the period of performance?
Start: 2004-08-12. End: 2013-03-31.
What is the historical spending pattern for environmental services at Reese AFB or similar Army installations?
Analyzing historical spending for environmental services at Reese AFB and comparable Army installations would provide crucial context for the $40.4 million award. Without specific historical data for this location, we can infer that environmental remediation and management are ongoing needs for military facilities due to past operations and regulatory requirements. Contracts for such services often span multiple years and can range from millions to tens of millions of dollars, depending on the scale of contamination and the scope of work. For instance, Base Realignment and Closure (BRAC) initiatives often involve significant environmental cleanup efforts. Understanding the trend of spending in this category over the past decade would help determine if this award represents an increase, decrease, or consistent level of investment in environmental services for the Army.
How does the awarded price compare to industry benchmarks for similar environmental remediation projects?
Benchmarking the $40.4 million contract against industry standards for similar environmental remediation projects is essential for assessing value. Factors influencing cost include the type and extent of contamination, the complexity of the site, the remediation technologies employed, and the duration of the project. Large-scale remediation efforts at military installations, often involving hazardous materials, can be particularly expensive. While specific per-unit cost comparisons are difficult without detailed project specifications, the firm fixed-price nature of this contract suggests that the government has negotiated a ceiling price. Industry reports and cost data from similar government contracts, if available, would be used to determine if this award falls within the expected range for the scope of work described, considering the contractor's expertise and the project's duration.
What are the key performance indicators (KPIs) used to evaluate ARCADIS G&M, INC.'s performance on this contract?
Key Performance Indicators (KPIs) for this environmental services contract would likely focus on the successful and timely completion of remediation activities, adherence to environmental regulations, and cost control within the firm fixed-price structure. Specific KPIs might include the percentage of contaminants removed or treated, compliance with regulatory deadlines (e.g., EPA milestones), reduction in environmental risks, and the accuracy of analytical reporting. The government would monitor these KPIs through regular progress reports, site inspections, and potentially independent verification of remediation effectiveness. Failure to meet these KPIs could result in penalties or contract modifications, underscoring the importance of robust performance management by the Department of the Army.
What is ARCADIS G&M, INC.'s track record with similar environmental contracts for the Department of Defense?
ARCADIS G&M, INC. (and its successor ARCADIS U.S., INC.) has a significant track record in providing environmental services, including remediation, to various government agencies, including the Department of Defense. Their experience likely encompasses a wide range of projects, from site investigations and risk assessments to the design and implementation of complex cleanup strategies. Examining their past performance on similar large-scale environmental contracts, particularly those involving military installations, would reveal their ability to manage complex projects, meet stringent regulatory requirements, and deliver results within budget and schedule. Past performance evaluations and contract awards data from federal procurement databases would be consulted to assess their reliability and expertise in this domain.
What are the potential risks associated with the long duration (over 9 years) of this contract?
The long duration of this contract, spanning over 9 years, presents several potential risks. Firstly, there is the risk of scope creep, where the requirements may expand beyond the original intent, potentially leading to cost overruns if not managed carefully. Secondly, market conditions, regulatory landscapes, and technological advancements in environmental remediation can change significantly over such a long period, potentially making the initially agreed-upon methods or costs less optimal. Thirdly, there's a risk of contractor complacency or reduced innovation over time. To mitigate these risks, the contract likely includes mechanisms for periodic reviews, change order processes, and performance-based incentives. The government must maintain active oversight to ensure the contract remains relevant and cost-effective throughout its term.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arcadis N.V. (UEI: 403896368)
Address: 630 PLAZA DRIVE, SUITE 200, HIGHLANDS RANC, CO
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F04D0026
IDV Type: IDC
Timeline
Start Date: 2004-08-12
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2014-11-14
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