DoD's $132M Vandenberg AFB Remediation Contract with ARCADIS U.S., Inc. Faces Scrutiny
Contract Overview
Contract Amount: $132,318,799 ($132.3M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2014-07-29
End Date: 2024-09-28
Contract Duration: 3,714 days
Daily Burn Rate: $35.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF STATEMENT OF OBJECTIVE FOR PERFORMANCE-BASED REMEDIATION AT VANDENBERG AIR FORCE BASE, CALIFORNIA
Place of Performance
Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437
Plain-Language Summary
Department of Defense obligated $132.3 million to ARCADIS U.S., INC. for work described as: IGF::OT::IGF STATEMENT OF OBJECTIVE FOR PERFORMANCE-BASED REMEDIATION AT VANDENBERG AIR FORCE BASE, CALIFORNIA Key points: 1. The contract awarded to ARCADIS U.S., Inc. for remediation services at Vandenberg AFB is a significant investment. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The long duration (10 years) and firm-fixed-price structure present potential risks and opportunities for cost control. 4. The remediation services sector is critical for environmental compliance and base operations.
Value Assessment
Rating: fair
The contract's value of $132.3 million over 10 years for remediation services appears substantial. Benchmarking against similar large-scale environmental remediation contracts would be necessary to definitively assess its pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long-term nature and specific requirements of remediation services can influence the number and type of bidders.
Taxpayer Impact: The firm-fixed-price structure aims to control costs, but the long duration could lead to cost overruns if unforeseen environmental conditions arise, impacting taxpayer funds.
Public Impact
Environmental cleanup at a major military installation ensures compliance and safety. Long-term contracts can provide stability for specialized service providers. Taxpayers are funding a critical environmental stewardship effort with potential long-term cost implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) increases risk of cost escalation.
- Potential for unforeseen environmental conditions impacting scope and cost.
- Firm-fixed-price for a long-term, complex service can be challenging to manage.
Positive Signals
- Full and open competition suggests a competitive award process.
- Performance-based remediation can drive efficiency.
- Clear statement of objectives guides the contractor.
Sector Analysis
This contract falls within the environmental remediation services sector, which is crucial for government agencies managing large facilities. Spending in this sector is driven by regulatory requirements and the need to address historical contamination.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The long duration and firm-fixed-price nature of this contract warrant robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews of progress and environmental outcomes are essential.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (10 years)
- Firm-fixed-price for complex, long-term service
- Potential for unforeseen environmental conditions
- Significant contract value ($132M+)
Tags
remediation-services, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $132.3 million to ARCADIS U.S., INC.. IGF::OT::IGF STATEMENT OF OBJECTIVE FOR PERFORMANCE-BASED REMEDIATION AT VANDENBERG AIR FORCE BASE, CALIFORNIA
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 Air Force).
What is the total obligated amount?
The obligated amount is $132.3 million.
What is the period of performance?
Start: 2014-07-29. End: 2024-09-28.
What specific remediation technologies and approaches are outlined in the Statement of Objectives, and how do they align with best practices and cost-effectiveness for the identified contaminants at V
The Statement of Objectives likely details the required remediation technologies and performance standards. A thorough review would assess if these are state-of-the-art, environmentally sound, and cost-efficient for the specific contaminants present. Comparing these to industry benchmarks and successful remediation projects at similar sites would reveal if the chosen approach maximizes value and minimizes long-term environmental liabilities for the government.
Given the 10-year duration and firm-fixed-price structure, what mechanisms are in place to manage potential cost growth due to unforeseen site conditions or changes in regulatory requirements?
A firm-fixed-price contract for a decade-long environmental remediation project inherently carries risk. Robust contract clauses addressing equitable adjustments for unforeseen conditions, change order procedures, and mechanisms for incorporating evolving regulatory standards are critical. The government's oversight team must actively monitor for potential scope creep and ensure strict adherence to the contract's defined terms to mitigate uncontrolled cost increases.
How will the performance-based aspects of the contract be measured, and what are the key performance indicators (KPIs) to ensure effective environmental remediation and protect taxpayer investment?
Performance-based contracts rely on clearly defined KPIs tied to measurable outcomes. For this remediation contract, KPIs might include contaminant reduction levels, compliance with environmental standards, project completion timelines, and minimization of environmental impact during cleanup. The government's quality assurance surveillance plan (QASP) would detail how these KPIs are monitored and evaluated to ensure the contractor is delivering effective results and justifying the taxpayer's significant investment.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA890312R0033
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 630 PLAZA DR STE 200, HIGHLANDS RANCH, CO, 80129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $133,037,987
Exercised Options: $132,318,799
Current Obligation: $132,318,799
Actual Outlays: $7,750,259
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $9,288,616
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-29
Current End Date: 2024-09-28
Potential End Date: 2024-09-28 00:00:00
Last Modified: 2024-07-28
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