DoD awards $145M contract for Radford Army Ammunition Plant waste processing facility

Contract Overview

Contract Amount: $145,180,368 ($145.2M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-08

End Date: 2026-06-30

Contract Duration: 1,726 days

Daily Burn Rate: $84.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: W9123621C4000 - CONSTRUCTION OF ENERGETIC WASTE INCINERATOR AND CONTAMINATED WASTE PROCESSOR (EWI/CWP) AT RADFORD ARMY AMMUNITION PLANT (RFAAP), RADFORD, VA

Place of Performance

Location: RADFORD, RADFORD CITY County, VIRGINIA, 24143

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $145.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: W9123621C4000 - CONSTRUCTION OF ENERGETIC WASTE INCINERATOR AND CONTAMINATED WASTE PROCESSOR (EWI/CWP) AT RADFORD ARMY AMMUNITION PLANT (RFAAP), RADFORD, VA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating defined scope and cost. 3. The project duration is over 1700 days, highlighting a long-term commitment to infrastructure development. 4. The awardee, Parsons Government Services Inc., has a significant presence in government contracting. 5. The contract value of $145M represents a substantial investment in specialized waste processing capabilities. 6. The North American Industry Classification System (NAICS) code 236210 points to industrial building construction.

Value Assessment

Rating: good

The contract value of $145 million for the construction of an energetic waste incinerator and contaminated waste processor appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale industrial construction projects for defense facilities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost risks for the government, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not explicitly stated, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and innovation. The government's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this specialized construction need.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through competitive bidding and encourage a wider pool of contractors to participate, potentially leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Radford Army Ammunition Plant, which will gain enhanced capabilities for managing hazardous waste. The services delivered include the construction of a specialized facility for incinerating energetic waste and processing contaminated materials. The geographic impact is localized to Radford, Virginia, where the RFAAP is located. The project will likely have implications for the construction workforce in the region, creating jobs during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely managed throughout the long project duration.
Dependence on a single contractor for a critical infrastructure project could pose risks if performance issues arise.
Ensuring compliance with stringent environmental and safety regulations for hazardous waste processing facilities.

Positive Signals

Awarded through full and open competition, suggesting a robust and competitive bidding process.
Firm fixed-price contract type helps to control costs and provides budget certainty.
The project addresses a critical need for specialized waste management at a major military installation.

Sector Analysis

This contract falls within the industrial building construction sector, specifically catering to specialized defense infrastructure. The market for constructing facilities capable of handling energetic and contaminated waste is niche, often involving contractors with specific expertise in environmental engineering and hazardous materials management. The value of this contract, at $145 million, is significant and reflects the complexity and specialized nature of the required construction. Comparable spending benchmarks would likely be found in other large-scale military base infrastructure upgrades or environmental remediation projects.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this large-scale construction project (sb: false). While there is no explicit small business set-aside, the prime contractor, Parsons Government Services Inc., may engage small businesses as subcontractors for specialized services or materials. The impact on the small business ecosystem will depend on the subcontracting opportunities created, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices responsible for the Radford Army Ammunition Plant. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and cost. Transparency is typically facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Infrastructure Projects
Environmental Remediation and Waste Management Contracts
Army Ammunition Plant Operations and Maintenance
Industrial Facility Construction
Hazardous Waste Treatment Facilities

Risk Flags

Long project duration may increase risk of cost escalation or scope creep.
Specialized nature of waste processing requires high contractor expertise.
Potential environmental and safety compliance challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.2 million to PARSONS GOVERNMENT SERVICES INC.. W9123621C4000 - CONSTRUCTION OF ENERGETIC WASTE INCINERATOR AND CONTAMINATED WASTE PROCESSOR (EWI/CWP) AT RADFORD ARMY AMMUNITION PLANT (RFAAP), RADFORD, VA

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $145.2 million.

What is the period of performance?

Start: 2021-10-08. End: 2026-06-30.

What is the track record of Parsons Government Services Inc. in constructing similar specialized waste processing facilities for the Department of Defense?

Parsons Government Services Inc. has a substantial history of performing large-scale engineering and construction projects for the U.S. government, including significant work within the defense sector. While specific details on their experience with 'energetic waste incinerators and contaminated waste processors' require deeper investigation into their project portfolio, the company is known for its capabilities in complex infrastructure development, environmental engineering, and facility construction. Their past performance on similar projects, particularly those involving hazardous materials or specialized industrial processes, would be a key factor in assessing their suitability and the potential risks associated with this contract. A review of their contract history with agencies like the Army Corps of Engineers or the Defense Contract Management Agency would provide further insight into their reliability and expertise in delivering such critical infrastructure.

How does the awarded amount of $145 million compare to the estimated cost or budget for this type of specialized construction project?

Without access to the government's initial cost estimates or pre-solicitation budget information, a direct comparison of the awarded amount to the estimated cost is challenging. However, $145 million is a significant sum, indicative of a complex, large-scale industrial construction project involving specialized environmental and safety considerations. To benchmark the value, one would typically compare this figure against similar projects awarded by the Department of Defense or other federal agencies for the construction of hazardous waste treatment, incineration, or specialized processing facilities. Factors such as geographic location, specific technological requirements, and prevailing construction market conditions in Virginia would influence the reasonableness of the price. A thorough value-for-money analysis would involve assessing the contractor's bid against independent cost estimates and market rates for comparable construction services.

What are the primary risks associated with the long duration (over 1700 days) of this construction contract?

The extended duration of over 1700 days for this construction contract presents several potential risks. Firstly, there is an increased likelihood of scope creep or design changes over such a long period, which could lead to cost overruns if not managed meticulously. Secondly, material and labor costs can fluctuate significantly over several years, potentially impacting the contractor's profitability and, by extension, the project's final cost if not adequately accounted for in the firm fixed-price agreement. Thirdly, unforeseen site conditions or regulatory changes could arise, necessitating modifications to the construction plan. Finally, maintaining consistent project oversight and quality control over an extended timeline requires sustained effort and resources from the government's contracting and inspection teams to ensure the facility is built to specification and meets all safety and environmental standards upon completion.

What is the expected effectiveness of the Energetic Waste Incinerator and Contaminated Waste Processor (EWI/CWP) in meeting the Army's waste management needs at RFAAP?

The effectiveness of the EWI/CWP will be measured by its ability to safely and efficiently process the specific types and volumes of energetic and contaminated waste generated at the Radford Army Ammunition Plant (RFAAP). Its successful operation is critical for environmental compliance, safety, and operational continuity at the facility. Key performance indicators would likely include processing capacity, destruction and removal efficiency (DRE) for hazardous constituents, emissions control meeting regulatory standards, and operational uptime. The design specifications and the contractor's ability to meet them during construction are paramount. Post-construction, ongoing operational performance monitoring and periodic assessments will determine its long-term effectiveness in fulfilling the Army's waste management mission at RFAAP.

How has spending on industrial building construction for defense facilities evolved over the past five years, and where does this contract fit in?

Spending on industrial building construction for defense facilities can fluctuate based on modernization needs, infrastructure degradation, and specific mission requirements. Over the past five years, the Department of Defense has likely seen consistent investment in upgrading and maintaining its vast network of installations, including specialized facilities like ammunition plants. This $145 million contract for an EWI/CWP at RFAAP represents a significant, targeted investment in addressing a critical waste management capability. It fits within the broader category of defense infrastructure spending, specifically focusing on environmental and operational safety enhancements at a key Army site. Analyzing historical spending trends for similar construction projects (e.g., hazardous material handling, specialized processing plants) would provide context on whether this award is typical, above, or below the average for such specialized defense infrastructure projects.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123620R4000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 100 W WALNUT ST, PASADENA, CA, 91124

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

Financial Breakdown

Contract Ceiling: $145,180,368

Exercised Options: $145,180,368

Current Obligation: $145,180,368

Actual Outlays: $6,235,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline