DoD's $61M remediation contract with ARCADIS U.S., Inc. awarded via full and open competition
Contract Overview
Contract Amount: $61,175,450 ($61.2M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-26
End Date: 2024-09-30
Contract Duration: 3,657 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PERFORMANCE-BASED REMEDIATION, JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY.
Place of Performance
Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641
Plain-Language Summary
Department of Defense obligated $61.2 million to ARCADIS U.S., INC. for work described as: IGF::OT::IGF PERFORMANCE-BASED REMEDIATION, JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY. Key points: 1. Contract awarded for environmental remediation services at Joint Base McGuire-Dix-Lakehurst. 2. Long-term contract duration of 10 years suggests a need for sustained environmental management. 3. Firm Fixed Price contract type aims to control costs for the government. 4. The contract was awarded using full and open competition, indicating a broad search for qualified contractors. 5. The scale of the contract suggests significant environmental challenges requiring specialized expertise. 6. Performance-based remediation implies a focus on achieving specific environmental outcomes rather than just tasks.
Value Assessment
Rating: good
The contract's value of approximately $61 million over 10 years averages to $6.1 million annually. Benchmarking this against similar large-scale environmental remediation contracts for military bases is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs predictably. The long duration implies a stable, ongoing need, and the competitive award process should have driven a reasonable price, though direct comparisons are difficult without granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bidders indicates a healthy level of interest and competition for this significant environmental remediation project. This broad competition is generally favorable for price discovery and ensures the government can select from a wide pool of qualified contractors, potentially leading to better value.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, ensuring the government receives the best possible services for its investment.
Public Impact
Benefits military readiness by ensuring environmental compliance and safety at a major joint base. Delivers essential environmental remediation services, addressing contamination and restoring affected areas. Geographic impact is concentrated at Joint Base McGuire-Dix-Lakehurst in New Jersey. Supports a specialized workforce in environmental engineering and remediation services. Ensures compliance with environmental regulations, protecting public health and natural resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) could lead to complacency or reduced urgency if not actively managed.
- Firm Fixed Price contracts can sometimes incentivize contractors to cut corners if not carefully monitored for quality.
- Reliance on a single contractor for a decade may limit opportunities for adopting newer, more efficient remediation technologies introduced later in the contract period.
Positive Signals
- Awarded via full and open competition, suggesting a robust vetting of potential contractors.
- Performance-based aspects encourage focus on achieving desired environmental outcomes.
- Long-term nature allows for consistent application of remediation strategies and builds institutional knowledge.
- Firm Fixed Price contract provides cost certainty for the government over the contract period.
Sector Analysis
Environmental remediation services represent a critical sector supporting government operations, particularly within defense and infrastructure. This contract falls under the broader environmental consulting and remediation market, which is driven by regulatory compliance, legacy contamination cleanup, and ongoing environmental stewardship. The market involves specialized firms capable of handling complex site assessments, hazardous material removal, and long-term monitoring. Spending in this sector is often influenced by federal and state environmental regulations and the presence of historical industrial or military activities.
Small Business Impact
This contract was awarded using full and open competition and does not indicate any specific small business set-aside. The prime contractor, ARCADIS U.S., Inc., is a large business. While the contract details do not explicitly mention subcontracting goals for small businesses, large federal contracts often include provisions for small business participation. The absence of a set-aside suggests that the primary focus was on securing the best technical and price solution from the broadest possible market, rather than specifically targeting small businesses for the prime contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the requiring activity within the Department of the Army at Joint Base McGuire-Dix-Lakehurst. Performance-based contracts often rely on clearly defined metrics and deliverables to assess contractor performance. Transparency is generally maintained through contract awards databases and reporting requirements. While specific IG jurisdiction isn't detailed here, the Inspector General for the Department of Defense would have oversight authority over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Environmental Remediation Services
- Base Operations Support
- Defense Environmental Programs
- Hazardous Waste Management
- Site Remediation
Risk Flags
- Long contract duration may require active management to prevent performance decay.
- Firm Fixed Price contracts can incentivize cost-cutting that might impact quality if not monitored.
- Potential for unforeseen environmental conditions requiring scope adjustments or additional funding.
Tags
defense, department-of-defense, department-of-the-army, joint-base-mcguire-dix-lakehurst, new-jersey, environmental-remediation, remediation-services, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.2 million to ARCADIS U.S., INC.. IGF::OT::IGF PERFORMANCE-BASED REMEDIATION, JOINT BASE MCGUIRE-DIX-LAKEHURST, NEW JERSEY.
Who is the contractor on this award?
The obligated recipient is ARCADIS U.S., 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 $61.2 million.
What is the period of performance?
Start: 2014-09-26. End: 2024-09-30.
What is the historical spending trend for environmental remediation at Joint Base McGuire-Dix-Lakehurst prior to this contract?
Analyzing historical spending for environmental remediation at Joint Base McGuire-Dix-Lakehurst prior to this 2014 contract award would require accessing historical contract databases and budget allocations for the base. Typically, such spending fluctuates based on identified contamination sites, regulatory requirements, and available funding. Long-term contracts like this one often consolidate previous, potentially smaller or more fragmented, remediation efforts. Without specific historical data, it's difficult to establish a precise trend, but the initiation of a large, 10-year contract suggests a recognized, ongoing need for significant environmental management that may have been addressed through various means previously.
How does the average annual cost of this contract compare to similar environmental remediation contracts at other large military installations?
The average annual cost of this contract is approximately $6.1 million ($61M / 10 years). Comparing this to similar contracts requires access to a benchmark database of environmental remediation contracts at other large military installations, considering factors like the scope of work, geographic location, and specific environmental challenges. Large-scale remediation projects at military bases can vary significantly in cost. Factors such as the type and extent of contamination (e.g., PFAS, legacy industrial chemicals, unexploded ordnance), the size of the installation, and local labor and material costs all influence pricing. This $6.1M annual average appears substantial, suggesting a complex and extensive remediation effort, but a definitive comparison would necessitate detailed analysis of comparable contract scopes and market rates.
What are the key performance indicators (KPIs) used to measure the success of ARCADIS U.S., Inc. under this performance-based contract?
As this is a performance-based contract, success is measured against specific Key Performance Indicators (KPIs) outlined in the contract's Performance Work Statement (PWS). While the exact KPIs are not publicly detailed, they typically relate to achieving specific environmental cleanup standards (e.g., contaminant reduction levels below regulatory thresholds), meeting project milestones for site investigation and remediation, ensuring compliance with health and safety protocols, timely reporting, and effective waste management. The firm fixed-price nature, combined with performance incentives or penalties tied to these KPIs, drives the contractor's focus on achieving measurable environmental outcomes efficiently and effectively.
What is ARCADIS U.S., Inc.'s track record with the Department of Defense and other federal agencies for similar environmental services?
ARCADIS U.S., Inc. has a significant track record providing environmental consulting and remediation services to various government agencies, including the Department of Defense (DoD) and the Environmental Protection Agency (EPA). They have been involved in numerous projects related to site assessment, remediation design, construction management, and long-term environmental monitoring at military installations and federal facilities across the United States. Their experience often includes managing complex, large-scale projects involving hazardous waste, contaminated groundwater, and soil remediation. Past performance evaluations, available through federal contract databases, would provide more granular detail on their success rates and client satisfaction across these diverse projects.
What are the potential risks associated with a 10-year contract for environmental remediation, and how are they mitigated?
A 10-year contract for environmental remediation presents several risks, including potential cost overruns if unforeseen contamination is discovered, contractor performance degradation over time, and the risk of technological obsolescence if remediation methods become outdated. Mitigation strategies often include robust contract language with clear scope definitions, contingency funds for unforeseen conditions, strong government oversight with regular performance reviews, and potentially incorporating clauses for contract modifications or re-competition if significant changes occur. For this specific contract, the firm fixed-price structure helps mitigate cost escalation, while the performance-based nature incentivizes sustained quality delivery. Regular technical reviews and government quality assurance personnel are crucial for ongoing oversight.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912BV14R0007
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 630 PLAZA DR STE 200, HIGHLANDS RANCH, CO, 80129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,468,307
Exercised Options: $61,175,450
Current Obligation: $61,175,450
Actual Outlays: $875,124
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $5,509,999
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-26
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-01-14
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