DoD's $6.5M Environmental Program Compliance Support Contract Awarded to AECOM Technical Services

Contract Overview

Contract Amount: $6,540,470 ($6.5M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-11

End Date: 2026-07-10

Contract Duration: 2,006 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL MANAGEMENT PROGRAM COMPLIANCE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to AECOM TECHNICAL SERVICES, INC. for work described as: ENVIRONMENTAL MANAGEMENT PROGRAM COMPLIANCE SUPPORT Key points: 1. Contract focuses on essential environmental management and compliance, critical for defense operations. 2. AECOM Technical Services, a large incumbent, secured this delivery order under a broader contract. 3. The contract's duration spans over five years, indicating a long-term need for these services. 4. Performance is in Washington D.C., a key hub for federal agency operations. 5. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 6. This award falls within the Engineering Services category, a common area for federal contracting.

Value Assessment

Rating: good

Benchmarking the $6.5 million value against similar environmental consulting contracts is challenging without more specific service details. However, the duration of over five years suggests a consistent need and potentially a competitive pricing structure over the contract's life. The firm-fixed-price type indicates a defined scope, which, if managed well, can lead to good value. Further analysis would require comparing AECOM's proposed rates to market benchmarks for similar engineering and environmental services in the D.C. area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple bidders were considered. The fact that it is a delivery order implies it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. The presence of two bidders indicates a moderate level of competition for this specific order, which generally favors price discovery and potentially better pricing for the government compared to sole-source awards.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally leads to more competitive pricing, benefiting taxpayers by ensuring the government is not overpaying for essential environmental compliance services.

Public Impact

The Department of the Navy benefits from ensured environmental compliance, mitigating risks and operational disruptions. Services delivered include support for environmental management programs, crucial for regulatory adherence. The geographic impact is concentrated in Washington D.C., supporting federal agency operations in the capital. This contract supports a specialized workforce of environmental engineers and compliance specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term environmental consulting contracts.
Reliance on a single large contractor for critical compliance functions.
Ensuring continued cost-effectiveness over the five-year performance period.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps control costs and manage budget.
Long-term duration suggests a stable and ongoing need for these vital services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing design, development, and consulting for various engineering disciplines. The federal market for environmental consulting services is substantial, driven by regulatory requirements and the need to manage the environmental impact of government operations. This specific contract supports the Department of the Navy's environmental compliance, a critical function within the broader defense sector's infrastructure management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a potentially larger IDIQ, the subcontracting opportunities for small businesses would depend on the prime contractor's (AECOM Technical Services) subcontracting plan and the nature of the services required. Larger prime contractors often utilize small businesses for specialized support, but this contract's specific structure doesn't guarantee set-aside benefits.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order, it is subject to the terms and conditions of the parent IDIQ contract. Transparency is generally maintained through contract award databases like FPDS. Specific performance monitoring and accountability measures would be detailed in the contract's statement of work and delivery order instructions. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Base Operations Support
Engineering and Technical Services
Defense Environmental Programs
Federal Facilities Environmental Compliance

Risk Flags

Potential for scope creep
Contract duration exceeds 5 years
Limited number of bidders for delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to AECOM TECHNICAL SERVICES, INC.. ENVIRONMENTAL MANAGEMENT PROGRAM COMPLIANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2021-01-11. End: 2026-07-10.

What is AECOM Technical Services' track record with the Department of Defense for environmental services?

AECOM Technical Services has a significant history of contracting with the Department of Defense (DoD) and its various branches, including the Navy, Army, and Air Force. Their portfolio includes a wide range of environmental services, such as compliance support, hazardous waste management, site remediation, and environmental planning. They are a large, established federal contractor with extensive experience in supporting military installations and operations. Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide further insight into their capabilities and reliability for this specific environmental management program compliance support.

How does the $6.5 million contract value compare to similar environmental compliance support contracts awarded by the Navy?

Comparing the $6.5 million value requires context regarding the scope and duration. This contract spans over five years (January 2021 to July 2026), making its annual value approximately $1.3 million. The Navy awards numerous environmental contracts, ranging from small, localized assessments to large-scale remediation projects. Contracts for ongoing compliance support, particularly in high-cost areas like Washington D.C., can vary significantly. Without specific details on the deliverables (e.g., number of sites, types of analysis, reporting requirements), a precise benchmark is difficult. However, for a multi-year, comprehensive compliance support role, this value appears within a reasonable range for a large federal agency.

What are the primary risks associated with this environmental compliance support contract?

Key risks include potential scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns despite the firm-fixed-price structure. Another risk is the contractor's ability to maintain consistent quality and expertise over the five-year period, especially if key personnel change. Regulatory changes could also introduce unforeseen compliance challenges that may strain the contract's scope or budget. Furthermore, reliance on a single large contractor for critical environmental functions could pose a risk if performance falters. Ensuring robust oversight and clear communication channels is crucial to mitigate these risks.

How effective is the firm-fixed-price (FFP) contract type in managing environmental compliance costs?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for well-defined services, as is often the case with routine environmental compliance support. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently. For the government, it provides budget certainty. However, its effectiveness hinges on a clearly defined Statement of Work (SOW). If the environmental regulations or site conditions are complex and subject to change, an FFP contract might lead the contractor to be overly conservative in their bids or could result in disputes if the scope needs adjustment. For ongoing compliance, where requirements are relatively stable, FFP is a suitable choice.

What is the historical spending trend for environmental management program compliance support within the Department of the Navy?

Historical spending trends for environmental management program compliance support within the Department of the Navy (DoN) indicate a consistent and significant investment. The DoN manages a vast infrastructure, including numerous bases and facilities, all subject to stringent environmental regulations. Consequently, they regularly procure services for compliance monitoring, reporting, permitting, and technical assistance. While specific figures for 'compliance support' alone can be difficult to isolate from broader environmental remediation or infrastructure projects, the overall trend shows sustained, multi-million dollar annual expenditures across the DoN for environmental services. This reflects the ongoing commitment to environmental stewardship and regulatory adherence.

What does the competition level (2 bidders) imply for the government's ability to secure competitive pricing?

Having two bidders suggests a moderate level of competition for this specific delivery order. While more than one bidder is preferable to a sole-source award, a higher number of competitors typically drives prices down more effectively. With only two bidders, there's a risk that the competition might not be as robust, potentially allowing the winning contractor to command a higher price than if there were, for example, five or more bidders vying for the contract. However, the fact that it was competed under 'full and open' conditions implies that the government did solicit widely, and the limited number of bidders might reflect the specialized nature of the services or the specific requirements of the task order.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M9549421Q0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE FL 9, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $7,690,818

Exercised Options: $6,540,470

Current Obligation: $6,540,470

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,870,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F188CA

IDV Type: FSS

Timeline