Coast Guard awards $39.8M contract for oil spill cleanup services to Shaw Environmental, Inc
Contract Overview
Contract Amount: $39,768,440 ($39.8M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-01-09
End Date: 2006-02-26
Contract Duration: 48 days
Daily Burn Rate: $828.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICLAS INCIDENT AS DIRECTED BY THE FOSC>
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70130
Plain-Language Summary
Department of Homeland Security obligated $39.8 million to SHAW ENVIRONMENTAL, INC. for work described as: PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICLAS INCIDENT AS DIRECTED BY THE FOSC> Key points: 1. The contract focuses on emergency response for oil spills and hazardous chemical incidents. 2. Shaw Environmental, Inc. is the sole awardee, indicating a lack of competition. 3. The contract value is significant, highlighting the potential cost of environmental disasters. 4. The sector is environmental remediation, crucial for public safety and ecological health.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The awarded amount of $39.8M is substantial for a 48-day duration, suggesting high potential costs per day.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this critical service may result in higher taxpayer costs compared to a competitively bid contract.
Public Impact
Ensures rapid response to environmental emergencies, protecting coastlines and communities. Mitigates long-term ecological damage from oil spills and chemical releases. Supports the U.S. Coast Guard's mission to ensure maritime safety and environmental protection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns (Time and Materials)
Positive Signals
- Essential service for environmental protection
- Rapid response capability
Sector Analysis
This contract falls under environmental remediation services, a critical sector for responding to industrial accidents and natural disasters. Spending in this area is often reactive and can be highly variable depending on incident frequency and severity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'sb' and 'ss' fields are false. This suggests large businesses dominate the market for large-scale environmental remediation services.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, U.S. Coast Guard. Oversight would focus on ensuring timely and effective response to incidents and managing the Time and Materials costs.
Related Government Programs
- Remediation Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Time and Materials pricing
- High contract value for short duration
- No small business participation indicated
Tags
remediation-services, department-of-homeland-security, la, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $39.8 million to SHAW ENVIRONMENTAL, INC.. PROVIDE LABOR, MATERIALS AND EQUIPMENT TO MITIGATE THE HARMFUL EFFECTS OF AN OIL SPILL OR HAZARDOUS CHEMICLAS INCIDENT AS DIRECTED BY THE FOSC>
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $39.8 million.
What is the period of performance?
Start: 2006-01-09. End: 2006-02-26.
What is the typical cost range for similar oil spill mitigation contracts?
Determining a precise cost range for similar contracts is challenging due to the unpredictable nature of environmental incidents and the varying scope of services required. However, contracts for emergency response and remediation can range from hundreds of thousands to tens of millions of dollars, depending on the scale of the spill, duration of the response, and specific services rendered (labor, equipment, materials).
What are the risks associated with a sole-source award for emergency response services?
A sole-source award for emergency response services carries risks of inflated pricing due to the absence of competitive bidding. It can also lead to complacency in service delivery as the contractor faces no market pressure. Furthermore, it limits the government's ability to explore innovative solutions or leverage a broader range of specialized expertise that might be available through a competitive process.
How effective is the Time and Materials contract type for mitigating oil spills?
Time and Materials (T&M) contracts can be effective for emergency response when the scope of work is uncertain, allowing for flexibility. However, they pose a significant risk of cost escalation if not rigorously monitored. Effective oversight is crucial to ensure that hours and materials billed are reasonable and necessary for the mitigation efforts, preventing potential waste of taxpayer funds.
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 › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Shaw Group Inc., the (UEI: 180038382)
Address: 200 HORIZON CTR, TRENTON, NJ, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,768,440
Exercised Options: $39,768,440
Current Obligation: $39,768,440
Parent Contract
Parent Award PIID: DTCG8403A500106
IDV Type: BOA
Timeline
Start Date: 2006-01-09
Current End Date: 2006-02-26
Potential End Date: 2006-02-26 00:00:00
Last Modified: 2010-03-13
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