Air Force awards $21.2M contract for environmental remediation at former Pease AFB, NH

Contract Overview

Contract Amount: $21,242,510 ($21.2M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2021-05-26

End Date: 2026-12-31

Contract Duration: 2,045 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OPTIMIZATION AND PERFORMANCE MONITORING OF SITE 8 & AIRFIELD INTERIM MITIGA TREATMENT SYSTEMS OPERATIONS, AND PERFORMANCE EVALUATION OF SUPPORTING WELL NETWORKS, AND CONTINUED REMEDIAL ASSESSMENT OF GROUNDWATER MANAGEMENT ZONES AT FORMER PEASE AFB NH

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03803

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: OPTIMIZATION AND PERFORMANCE MONITORING OF SITE 8 & AIRFIELD INTERIM MITIGA TREATMENT SYSTEMS OPERATIONS, AND PERFORMANCE EVALUATION OF SUPPORTING WELL NETWORKS, AND CONTINUED REMEDIAL ASSESSMENT OF GROUNDWATER MANAGEMENT ZONES AT FORMER PEASE AFB NH Key points: 1. Contract focuses on long-term environmental monitoring and remediation of groundwater and soil. 2. WSP USA Environment & Infrastructure Inc. is the sole awardee for this delivery order. 3. The contract duration extends over five years, indicating a sustained need for these services. 4. Performance is evaluated through monitoring of treatment systems and groundwater well networks. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. This award represents a significant investment in addressing legacy environmental contamination.

Value Assessment

Rating: good

The contract value of $21.2 million over approximately five years suggests a substantial but potentially reasonable investment for comprehensive environmental remediation services at a former Air Force base. Benchmarking against similar large-scale environmental cleanup contracts is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a fixed fee, which can incentivize efficiency but also requires careful oversight to manage costs effectively. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and scope imply a complex and critical environmental undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The fact that WSP USA Environment & Infrastructure Inc. was selected suggests they offered the most advantageous proposal based on the evaluation criteria. The number of bidders is not specified, but the 'full and open' designation is a positive indicator of a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of capable contractors to participate, leading to potentially better pricing and service quality.

Public Impact

The primary beneficiaries are the residents and environment of New Hampshire, particularly the Seacoast region, through the cleanup of a former military installation. Services delivered include ongoing operations and maintenance of treatment systems, performance evaluation of groundwater monitoring wells, and remedial assessment. The geographic impact is focused on the former Pease Air Force Base in New Hampshire, addressing long-standing environmental concerns. This contract supports specialized environmental engineering and remediation jobs, contributing to the skilled workforce in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain within reasonable bounds and the fixed fee is justified.
Long-term environmental remediation projects can be subject to unforeseen technical challenges and cost overruns.
The duration of the contract (over 5 years) necessitates sustained monitoring of contractor performance and adherence to environmental regulations.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should yield good value.
The contract addresses critical environmental cleanup needs at a former military site, demonstrating commitment to environmental stewardship.
The clear definition of services, including monitoring and assessment, provides a framework for performance evaluation.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise in managing and cleaning up contaminated sites, often stemming from industrial or military activities. The market size for environmental consulting and remediation is substantial, driven by regulatory requirements and corporate responsibility. This specific contract addresses legacy contamination at a former Air Force base, a common scenario requiring long-term, complex solutions. Comparable spending benchmarks would involve other large-scale environmental cleanup contracts awarded by federal agencies like the EPA or DoD at similar former military installations.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and the awardee is a large business (WSP USA Environment & Infrastructure Inc.). There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific award may be limited, unless WSP USA voluntarily engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force's contracting and environmental management offices. Performance monitoring, adherence to the Cost Plus Fixed Fee terms, and compliance with environmental regulations will be key areas of focus. Transparency is facilitated through contract awards databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG typically oversees contracts of this nature for waste, fraud, and abuse.

Related Government Programs

Environmental Remediation Services
Defense Environmental Cleanup Program
Superfund Program (EPA)
Groundwater Management
Site Remediation

Risk Flags

Long-term contract duration may increase exposure to cost escalation.
CPFF structure requires diligent cost oversight to prevent overspending.
Potential for unforeseen technical challenges in complex remediation projects.
Sustained agency oversight needed over the contract's multi-year term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. OPTIMIZATION AND PERFORMANCE MONITORING OF SITE 8 & AIRFIELD INTERIM MITIGA TREATMENT SYSTEMS OPERATIONS, AND PERFORMANCE EVALUATION OF SUPPORTING WELL NETWORKS, AND CONTINUED REMEDIAL ASSESSMENT OF GROUNDWATER MANAGEMENT ZONES AT FORMER PEASE AFB NH

Who is the contractor on this award?

The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE 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 $21.2 million.

What is the period of performance?

Start: 2021-05-26. End: 2026-12-31.

What is the historical spending pattern for environmental remediation at former Pease AFB?

Historical spending data for environmental remediation at former Pease AFB is not directly available in the provided contract details. However, the current award of $21.2 million over approximately five years suggests a significant and ongoing commitment to addressing environmental issues at the site. Federal agencies like the Department of Defense and the Environmental Protection Agency often have multi-year, multi-million dollar programs for cleaning up former military installations. To understand the full historical context, one would need to access historical contract databases and budget allocations specifically for Pease AFB's environmental restoration program, looking at previous contracts for similar services, site assessments, and cleanup actions over the past decades.

How does the Cost Plus Fixed Fee (CPFF) structure impact contractor incentives and government oversight for this environmental contract?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor (WSP USA Environment & Infrastructure Inc.) for allowable costs incurred, plus a predetermined fixed fee. This structure can be beneficial for complex projects where the scope of work might evolve or where precise cost estimation is difficult, such as long-term environmental remediation. It incentivizes the contractor to complete the work efficiently to maximize their profit margin (the fixed fee). However, it places a significant burden on the government to meticulously oversee and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. Effective oversight is crucial to prevent cost overruns and ensure the government is not paying for unnecessary expenses, making robust performance monitoring and financial auditing essential components of managing this type of contract.

What are the key performance indicators (KPIs) used to evaluate WSP USA Environment & Infrastructure Inc.'s performance under this contract?

The provided contract abstract indicates that performance evaluation will focus on the 'OPTIMIZATION AND PERFORMANCE MONITORING OF SITE 8 & AIRFIELD INTERIM MITIGA TREATMENT SYSTEMS OPERATIONS, AND PERFORMANCE EVALUATION OF SUPPORTING WELL NETWORKS, AND CONTINUED REMEDIAL ASSESSMENT OF GROUNDWATER MANAGEMENT ZONES'. Key performance indicators (KPIs) would likely include metrics related to the operational efficiency and effectiveness of the treatment systems (e.g., contaminant removal rates, system uptime, energy consumption), the accuracy and reliability of groundwater monitoring data (e.g., frequency of sampling, data validation), and the timely completion of remedial assessment reports. Compliance with environmental standards and regulatory requirements would also be critical KPIs, ensuring the remediation efforts are meeting established cleanup goals and protecting human health and the environment.

What is the potential risk associated with the long duration (over 5 years) of this environmental remediation contract?

The long duration of this contract, extending from May 2021 to December 2026 (over five years), presents several potential risks. Firstly, the cost of services could escalate due to inflation or changes in market rates for labor and materials over such an extended period. Secondly, unforeseen technical challenges or discoveries at the remediation site could necessitate scope changes, potentially leading to cost increases and schedule delays. Thirdly, maintaining consistent oversight and performance management over several years requires sustained resources and attention from the contracting agency. Finally, changes in environmental regulations or scientific understanding of remediation techniques could require adaptive management, adding complexity and potential cost. Effective risk mitigation would involve robust contract management, contingency planning, and regular performance reviews.

How does this contract align with the Department of the Air Force's broader environmental cleanup responsibilities?

This contract directly aligns with the Department of the Air Force's (DAF) broader environmental cleanup responsibilities, particularly under programs like the Defense Environmental Restoration Program (DERP). DERP aims to identify, assess, and remediate or restore contaminated sites at current and former DAF installations to protect human health and the environment. The work at former Pease AFB, focusing on groundwater and soil remediation, is a typical component of these efforts. By awarding this contract, the DAF demonstrates its commitment to fulfilling its legal and ethical obligations to address the environmental legacy of its past operations, ensuring compliance with federal environmental laws like CERCLA (Superfund) and RCRA.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 751 ARBOR WAY, BLUE BELL, PA, 19422

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,242,510

Exercised Options: $21,242,510

Current Obligation: $21,242,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890316D0027

IDV Type: IDC

Timeline