DoD awards $31.8M for Diaz Chemical Superfund Site Remediation, a 5-year firm-fixed-price contract

Contract Overview

Contract Amount: $31,832,146 ($31.8M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-17

End Date: 2027-06-18

Contract Duration: 2,831 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIAZ CHEMICAL CORPORATION SUPERFUND SITE PHASE II INSITU THERMAL REMEDIAL ACTION.

Place of Performance

Location: HOLLEY, ORLEANS County, NEW YORK, 14470

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to URS GROUP, INC. for work described as: DIAZ CHEMICAL CORPORATION SUPERFUND SITE PHASE II INSITU THERMAL REMEDIAL ACTION. Key points: 1. The contract addresses a significant environmental cleanup effort at a Superfund site. 2. URS Group, Inc. is the prime contractor, indicating established industry players are involved. 3. The firm-fixed-price structure aims to control costs for the government. 4. The long duration suggests a complex and multi-year remediation process.

Value Assessment

Rating: good

The contract value of $31.8M over approximately 5 years appears reasonable for a complex Superfund site remediation. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing the value of taxpayer dollars spent on environmental cleanup.

Public Impact

Environmental cleanup of a hazardous waste site. Long-term remediation efforts impacting local environment and community. Potential for job creation in specialized environmental services. Ensuring compliance with EPA regulations and public health standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in long-term remediation projects.
Contract duration may exceed initial estimates due to unforeseen site conditions.
Contractor performance risk over an extended period.

Positive Signals

Firm-fixed-price contract helps control costs.
Awarded under full and open competition.
Addresses critical environmental remediation needs.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical area for government agencies managing hazardous sites. Spending in this sector is often driven by regulatory requirements and historical contamination.

Small Business Impact

The data indicates the prime contractor is URS Group, Inc., a large business. There is no explicit information on small business participation in this specific contract award, which warrants further investigation.

Oversight & Accountability

The Department of the Army, under the DoD, is responsible for this contract. Oversight will be crucial to ensure the remediation progresses as planned and within budget, given the project's complexity and duration.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long-term project duration increases risk of scope creep and cost escalation.
Environmental remediation projects are inherently complex and subject to unforeseen challenges.
Dependence on a single large contractor for a critical, multi-year effort.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to URS GROUP, INC.. DIAZ CHEMICAL CORPORATION SUPERFUND SITE PHASE II INSITU THERMAL REMEDIAL ACTION.

Who is the contractor on this award?

The obligated recipient is URS GROUP, 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 $31.8 million.

What is the period of performance?

Start: 2019-09-17. End: 2027-06-18.

What is the projected cost per cubic yard or ton of contaminated material to be remediated?

The provided data does not include specific metrics like cost per cubic yard or ton. To assess the efficiency of the remediation, this granular cost data would be essential. Without it, a detailed value assessment is challenging, relying instead on overall contract value against project scope.

What are the key performance indicators (KPIs) for this remediation contract and how is performance being tracked?

The contract details do not specify the key performance indicators (KPIs) or the tracking mechanisms for this remediation project. Effective oversight requires clearly defined KPIs related to cleanup progress, environmental quality improvements, and adherence to schedule and budget. Regular reporting and performance reviews are critical.

Are there any specific technological innovations or approaches being employed in this in-situ thermal remediation that could set a new benchmark?

The data does not specify the exact in-situ thermal remediation technologies being used or if they represent innovative approaches. While the project addresses a critical need, understanding the technological aspects would help determine if this contract is pioneering new methods or utilizing established practices, impacting its potential benchmark value.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DQ14R3004

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 12120 SHAMROCK PLZ STE 300, OMAHA, NE, 68154

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

Financial Breakdown

Contract Ceiling: $31,832,146

Exercised Options: $31,832,146

Current Obligation: $31,832,146

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $25,450,209

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DQ15D3006

IDV Type: IDC

Timeline