NASA awards $331M environmental remediation contract to Boeing for Santa Susana Field Laboratory
Contract Overview
Contract Amount: $33,146,667 ($33.1M)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-08-01
End Date: 2015-03-31
Contract Duration: 2,433 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENVIRONMENTAL REMEDIATION SERVICES, SANTA SUSANA FIELD LABORATORY
Place of Performance
Location: WEST HILLS, VENTURA County, CALIFORNIA, 91304
Plain-Language Summary
National Aeronautics and Space Administration obligated $33.1 million to THE BOEING COMPANY for work described as: ENVIRONMENTAL REMEDIATION SERVICES, SANTA SUSANA FIELD LABORATORY Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 2000 days suggests a complex and long-term remediation effort. 3. Cost-plus-fixed-fee pricing structure may incentivize cost increases. 4. The contract's value is substantial, indicating a major environmental cleanup undertaking. 5. Focus on environmental remediation highlights NASA's commitment to addressing historical site contamination. 6. The geographic location in California points to specific regional environmental concerns.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specific scope. However, the $331 million award over approximately 6.7 years indicates a significant investment in environmental cleanup. Without comparable sole-source remediation contracts of similar scale and complexity, a precise value-for-money assessment is difficult. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one responsible source is available or in the interest of the government. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited.
Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could have arisen from a competitive bidding process.
Public Impact
The primary beneficiaries are the environment and the public, through the cleanup of a contaminated site. Services delivered include comprehensive environmental remediation activities at the Santa Susana Field Laboratory. The geographic impact is localized to the Santa Susana Field Laboratory site in California. Workforce implications include employment opportunities for environmental scientists, engineers, and remediation technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee contract type can lead to cost escalations.
- Long contract duration may indicate potential for unforeseen challenges and cost growth.
Positive Signals
- Addresses critical environmental remediation needs at a significant federal site.
- Boeing's extensive experience in aerospace and complex projects may be leveraged for effective remediation.
- Contract provides a clear framework for a long-term cleanup effort.
Sector Analysis
Environmental remediation services represent a specialized sector within the broader environmental services industry. This contract falls under the remediation and waste management sub-sector, which involves cleaning up contaminated sites. The market for such services is driven by regulatory requirements and the need to address historical industrial and governmental activities. Comparable spending benchmarks are difficult to establish without more specific details on the type and extent of contamination.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The large scale of this sole-source award suggests that prime contracting opportunities for small businesses may be limited, though they could potentially participate as subcontractors to the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the National Aeronautics and Space Administration (NASA). Specific oversight mechanisms would include contract performance monitoring, financial reviews, and adherence to environmental regulations. Transparency would be facilitated through NASA's contract reporting systems and potentially public environmental impact statements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Environmental Management
- EPA Superfund Program
- Defense Environmental Restoration Program
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee pricing
- Long contract duration
Tags
environmental-remediation, nasa, california, definitive-contract, large-contract, sole-source, cost-plus-fixed-fee, remediation-services, santa-susana-field-laboratory, boeing-company
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $33.1 million to THE BOEING COMPANY. ENVIRONMENTAL REMEDIATION SERVICES, SANTA SUSANA FIELD LABORATORY
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $33.1 million.
What is the period of performance?
Start: 2008-08-01. End: 2015-03-31.
What is the historical spending pattern for environmental remediation at the Santa Susana Field Laboratory prior to this contract?
Information on historical spending for environmental remediation at the Santa Susana Field Laboratory prior to this specific $331 million contract awarded in 2008 is not directly available in the provided data. However, the scale of this award suggests a significant and ongoing commitment to addressing contamination at the site. Federal agencies like NASA often have multi-year remediation programs with substantial budgets. Understanding past expenditures would require accessing NASA's historical financial records and environmental program reports related to the facility. This would provide context on the cumulative investment in cleanup efforts and potentially identify trends in remediation costs and effectiveness over time.
What specific environmental contaminants are being addressed under this contract?
The provided data does not specify the exact environmental contaminants being addressed under this contract. However, the Santa Susana Field Laboratory has a complex history involving rocket engine testing, nuclear research, and chemical handling. Consequently, potential contaminants could include volatile organic compounds (VOCs), heavy metals, radioactive materials, and petroleum hydrocarbons. A detailed remediation plan would outline the specific contaminants of concern, their locations, and the methods to be employed for their cleanup. This information is typically found in environmental assessment reports and the contract's statement of work.
What is the track record of The Boeing Company in managing large-scale environmental remediation contracts for federal agencies?
The Boeing Company has a significant track record in managing complex projects, including those with environmental components, often related to its aerospace and defense operations. While specific details of their past environmental remediation contracts with federal agencies are not in the provided data, their extensive experience in large-scale engineering and manufacturing suggests a capacity to handle such endeavors. Evaluating their performance would require reviewing past contract performance reports, any associated penalties or awards, and their history of compliance with environmental regulations on similar projects. Their involvement in the aerospace sector often necessitates managing environmental liabilities and cleanup efforts at various facilities.
How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for environmental remediation services?
The Cost-Plus-Fixed-Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs and pays a fixed fee, which is profit. This structure is often used for research and development or complex services where the scope is not well-defined. For environmental remediation, CPFF can be advantageous when the extent of contamination or the required cleanup methods are uncertain at the outset, allowing flexibility. However, it carries a risk of cost overruns, as the contractor is incentivized to incur costs to increase the total contract value (though the fee itself is fixed). Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty for the government but are less suitable for highly uncertain scopes. Performance-Based Logistics (PBL) or other incentive-based contracts might also be considered for specific remediation outcomes.
What are the potential risks associated with a sole-source award for a contract of this magnitude?
A sole-source award for a contract of this magnitude, like the $331 million environmental remediation contract to Boeing, presents several potential risks. Primarily, the lack of competition means the government may not achieve the lowest possible price, as there is no market pressure to drive down bids. This can lead to higher costs for taxpayers. Additionally, without competitive proposals, there's a reduced opportunity to explore innovative solutions or alternative approaches that other qualified contractors might offer. The government also has less leverage to negotiate favorable terms and conditions. Ensuring fair pricing and robust oversight becomes even more critical when competition is absent.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5800 WOOLSEY CANYON ROAD, CANOGA PARK, CA, 91304
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,478,926
Exercised Options: $37,478,926
Current Obligation: $33,146,667
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-01
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2023-06-28
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