DoD awards $14.1M contract for Superfund site environmental services in New Jersey
Contract Overview
Contract Amount: $14,126,952 ($14.1M)
Contractor: Arcadis U.S., Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-02
End Date: 2026-09-01
Contract Duration: 1,825 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ARCHITECT AND ENGINEERING SERVICES FOR PROPERTY INVESTIGATIONS AND REMEDIAL DESIGNS FOR WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE IN CAMDEN & GLOUSCESTER CITY, NJ
Place of Performance
Location: FAIR LAWN, BERGEN County, NEW JERSEY, 07410
Plain-Language Summary
Department of Defense obligated $14.1 million to ARCADIS U.S., INC. for work described as: ARCHITECT AND ENGINEERING SERVICES FOR PROPERTY INVESTIGATIONS AND REMEDIAL DESIGNS FOR WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE IN CAMDEN & GLOUSCESTER CITY, NJ Key points: 1. Contract focuses on critical environmental remediation and design services for a Superfund site. 2. Competition was robust, indicating potential for competitive pricing. 3. The contract type, Cost Plus Fixed Fee, requires careful monitoring of costs to ensure value. 4. Performance period spans five years, suggesting a long-term commitment to site cleanup. 5. The contractor, ARCADIS U.S., Inc., is a significant player in the engineering services sector. 6. Geographic focus on New Jersey highlights regional environmental priorities. 7. No small business set-aside was utilized, suggesting larger firms were primary targets. 8. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract value of $14.1 million for five years of environmental services appears reasonable given the scope of work at a Superfund site. Benchmarking against similar large-scale environmental remediation contracts suggests that costs are within expected ranges. The Cost Plus Fixed Fee (CPFF) structure necessitates close oversight to ensure the fixed fee remains appropriate and that costs are controlled effectively. Without specific details on the fixed fee percentage or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the overall award seems aligned with industry standards for complex environmental projects.
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 offers. The fact that it is a delivery order under an IDIQ contract suggests that a competitive process likely occurred at the IDIQ level, and potentially at the task order level as well, depending on the IDIQ's terms. The specific number of bidders for this particular delivery order is not provided, but the 'full and open' designation generally implies a healthy level of competition, which is beneficial for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where multiple companies vie for the contract, driving down costs and improving the quality of services offered.
Public Impact
Residents and the environment in Camden and Gloucester City, New Jersey, will benefit from the cleanup of the Welsbach/General Gas Mantle Superfund site. Services include property investigations and remedial designs, crucial steps for addressing hazardous waste. The geographic impact is concentrated in Southern New Jersey, addressing a specific environmental hazard. The contract supports specialized engineering and environmental science jobs within the region and potentially nationally. Successful remediation will reduce long-term environmental risks and potential health impacts for the local community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains justified.
- The long performance period (5 years) necessitates sustained monitoring of contractor performance and adherence to environmental regulations.
- Reliance on a single delivery order under a potentially larger IDIQ could limit flexibility if site conditions change significantly.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that likely yielded fair pricing.
- The contractor, ARCADIS U.S., Inc., has significant experience in environmental engineering and remediation projects.
- The contract addresses a critical Superfund site, indicating a commitment to environmental protection and public health.
- The project's focus on investigation and design lays a strong foundation for effective remediation strategies.
Sector Analysis
The engineering services sector, particularly environmental consulting and remediation, is a significant market driven by regulatory compliance and legacy contamination issues. Federal agencies, especially the Department of Defense, are major clients due to extensive land holdings and historical industrial activities. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of activities, including the specialized services required for Superfund site management. Spending in this sector is often characterized by long-term contracts, complex project scopes, and a need for specialized expertise, with significant competition among established environmental engineering firms.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most capable large-scale engineering firms for this complex Superfund site remediation. While this may not directly benefit small businesses through set-asides, large prime contractors are often required to have small business subcontracting plans on other contracts, which can indirectly create opportunities within the broader federal contracting ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the designated contract administration office within the Department of the Army. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor incurred costs against the fixed fee. Performance monitoring will involve tracking progress against project milestones, adherence to environmental standards, and quality of deliverables. Transparency is generally maintained through contract reporting requirements and public availability of contract awards. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.
Related Government Programs
- Superfund Program
- Environmental Remediation Services
- Department of the Army Contracts
- Engineering and Architectural Services
- Hazardous Waste Management
Risk Flags
- Cost Plus Fixed Fee contract requires diligent oversight.
- Long performance period necessitates sustained monitoring.
- Potential for cost overruns in CPFF contracts.
- Environmental remediation projects can face unforeseen complexities.
Tags
engineering-services, environmental-remediation, superfund-site, department-of-defense, department-of-the-army, cost-plus-fixed-fee, full-and-open-competition, delivery-order, new-jersey, federal-contract, hazardous-waste, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to ARCADIS U.S., INC.. ARCHITECT AND ENGINEERING SERVICES FOR PROPERTY INVESTIGATIONS AND REMEDIAL DESIGNS FOR WELSBACH/GENERAL GAS MANTLE SUPERFUND SITE IN CAMDEN & GLOUSCESTER CITY, NJ
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 $14.1 million.
What is the period of performance?
Start: 2021-09-02. End: 2026-09-01.
What is ARCADIS U.S., Inc.'s track record with similar environmental remediation contracts for the Department of Defense or EPA Superfund sites?
ARCADIS U.S., Inc. has a substantial track record in environmental consulting and remediation, including work on Superfund sites and for various federal agencies. They are frequently awarded contracts for complex environmental investigations, risk assessments, and remedial design/remedial action projects. Their experience often involves managing large-scale, multi-year projects requiring expertise in hydrogeology, environmental engineering, and regulatory compliance. While specific details on past DoD or EPA Superfund contracts awarded to ARCADIS would require deeper database searches, their general profile aligns with the requirements for managing a site like the Welsbach/General Gas Mantle Superfund site. Their history suggests they possess the necessary technical capabilities and project management experience to handle such demanding environmental challenges.
How does the awarded amount of $14.1 million compare to the estimated value or budget for this specific Superfund site remediation phase?
The provided data indicates an award amount of $14,126,952. Without access to the government's initial cost estimates or budget allocations for this specific phase of the Welsbach/General Gas Mantle Superfund site remediation, a direct comparison is difficult. However, Superfund site cleanups are notoriously complex and expensive, often spanning many years and involving significant costs for investigation, design, and implementation. The $14.1 million figure represents the total value of this delivery order, which covers a five-year period. It is plausible that this amount falls within the expected range for comprehensive environmental investigation and remedial design services at a site of this nature. Further analysis would require comparing this award to similar Superfund site contracts of comparable scope and duration.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation, and how are they mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their profit (the fixed fee) is predetermined. This can lead to cost overruns if not managed diligently. For the government, the risk is paying higher-than-necessary costs while the contractor still earns their fee. Mitigation strategies include rigorous government oversight of all incurred costs, detailed review of invoices, performance monitoring to ensure efficiency, and clear definition of the scope of work to prevent scope creep that could justify additional costs. The fixed fee itself acts as a ceiling on the contractor's profit, and the government's ability to audit costs is crucial. Effective communication and a strong working relationship between the contracting officer's representative (COR) and the contractor are also vital for managing risks.
What is the historical spending trend for engineering and environmental services at Superfund sites managed by the Department of the Army?
Historical spending trends for engineering and environmental services at Superfund sites managed by the Department of the Army (DoA) generally show significant and consistent investment. The DoA, like other federal agencies, is responsible for addressing contamination on current and former military installations, many of which are designated Superfund sites. Spending in this category is driven by regulatory mandates (like CERCLA/Superfund) and the long-term nature of environmental cleanup. Contracts typically involve multi-year efforts for site investigation, feasibility studies, remedial design, and long-term monitoring. While specific aggregate spending figures for DoA-managed Superfund sites require detailed analysis of historical contract data, it is understood to be a substantial portion of the agency's environmental program budget, often running into hundreds of millions or even billions of dollars over time across numerous sites.
How does the competition level (full and open) for this contract potentially impact the quality of the environmental investigation and design services provided?
A full and open competition process generally enhances the quality of services by allowing a wider pool of qualified contractors to submit proposals. This increased competition encourages firms to differentiate themselves not only on price but also on the technical merit of their proposed approach, innovation, and past performance. For environmental investigation and design services at a complex Superfund site, this means the government is more likely to select a contractor offering the most robust and technically sound methodology. The competitive pressure incentivizes contractors to propose high-caliber personnel and state-of-the-art techniques to win the contract, ultimately benefiting the quality and effectiveness of the environmental cleanup efforts.
What are the implications of this contract being a delivery order under an IDIQ contract for future environmental remediation efforts at this site or similar sites?
This contract being a delivery order under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that a broader, pre-competed contract vehicle exists. This approach allows the agency to efficiently procure services for multiple tasks or projects over a period, often with streamlined ordering processes compared to starting a new full-and-open competition each time. For future remediation efforts at this site or similar ones, it means that subsequent phases or related tasks could potentially be ordered under the same IDIQ, assuming the IDIQ's scope and terms permit. This can lead to faster procurement cycles and potentially better pricing if the IDIQ itself was competitively awarded. However, it also means that the scope of work is generally defined by the original IDIQ, and significant deviations might necessitate a new procurement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DQ20R3014
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 630 PLAZA DR STE 200, HIGHLANDS RANCH, CO, 80129
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $19,423,577
Exercised Options: $19,423,577
Current Obligation: $14,126,952
Actual Outlays: $634,700
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,919,686
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912DQ21D3001
IDV Type: IDC
Timeline
Start Date: 2021-09-02
Current End Date: 2026-09-01
Potential End Date: 2026-09-01 00:00:00
Last Modified: 2026-02-11
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