DoD's $21.7M PFAS Remediation Contract Awarded to AECOM Technical Services, Inc. for Environmental Services

Contract Overview

Contract Amount: $21,665,136 ($21.7M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-30

End Date: 2026-03-31

Contract Duration: 2,739 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMY NATIONAL GUARD - PFAS REMEDIAL INVESTIGATIONS/ FEASABILITY STUDIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to AECOM TECHNICAL SERVICES, INC. for work described as: ARMY NATIONAL GUARD - PFAS REMEDIAL INVESTIGATIONS/ FEASABILITY STUDIES Key points: 1. Value for money assessed through competitive bidding and benchmarking against similar environmental remediation contracts. 2. Competition dynamics indicate a robust market for PFAS remediation services, with multiple bidders vying for this contract. 3. Risk indicators include potential for cost overruns common in complex environmental projects and the long duration of the contract. 4. Performance context relies on AECOM's track record in environmental consulting and the specific requirements of PFAS remediation. 5. Sector positioning places this contract within the broader environmental services industry, a growing area due to regulatory pressures.

Value Assessment

Rating: good

The contract's value of approximately $21.7 million for PFAS remedial investigations and feasibility studies appears reasonable given the complexity and scope of environmental remediation. Benchmarking against similar large-scale environmental consulting contracts suggests that pricing is competitive, especially considering the specialized nature of PFAS contamination. The firm-fixed-price structure provides cost certainty, though potential for change orders exists in long-term environmental projects. AECOM's established presence in the federal contracting space further supports the assessment of value.

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 presence of 7 bidders suggests a healthy level of competition for this type of environmental service. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award. The number of bidders implies that the market is sufficiently mature to support multiple capable firms.

Taxpayer Impact: Taxpayers benefit from a competitive award process through potentially lower prices and higher quality services. Full and open competition ensures that the government is not limited to a single provider, fostering efficiency and cost savings.

Public Impact

The primary beneficiaries are the Army National Guard and the Department of Defense, who will receive critical environmental investigation and planning services. Services delivered include detailed site investigations and feasibility studies to address PFAS contamination, crucial for environmental protection and compliance. The geographic impact is focused on sites managed by the Army National Guard, potentially across various installations. Workforce implications include employment opportunities for environmental scientists, engineers, geologists, and technicians within AECOM and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2018-2026) increases the risk of scope creep and potential for unforeseen environmental challenges.
PFAS contamination is a complex and evolving scientific and regulatory landscape, posing inherent technical risks.
Reliance on a single prime contractor for extensive investigations requires robust oversight to ensure quality and adherence to scope.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially favorable pricing.
AECOM Technical Services, Inc. has a significant track record with federal agencies, indicating experience and capability.
Firm-fixed-price contract type provides cost predictability for the government, mitigating budget uncertainty.

Sector Analysis

The environmental consulting and remediation sector is a significant and growing market, driven by increasing regulatory scrutiny and public awareness of environmental hazards like PFAS. This contract fits within the remediation services sub-sector, specifically addressing contamination cleanup and planning. The federal government is a major client in this space, with substantial spending allocated to environmental compliance and restoration across various agencies. Comparable spending benchmarks would involve looking at other large-scale environmental investigation and remediation contracts awarded by agencies like the EPA, DoD, and DOE.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside noted, the prime contractor, AECOM, is a large business. Large federal contractors are often required to meet subcontracting goals for small businesses. It is likely that AECOM will utilize small businesses for various aspects of the work, such as specialized testing, local support services, or specific technical expertise, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the contracting officer and the designated contract administration office within the Department of the Army. Performance will be monitored through regular reporting, site inspections, and adherence to contract milestones. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction for this particular delivery order would depend on the nature of any potential issues, the DoD IG generally has oversight over DoD contracts.

Related Government Programs

Environmental Remediation Services
PFAS Cleanup Programs
Department of Defense Environmental Contracts
Army National Guard Facilities Management
Environmental Consulting Services

Risk Flags

Long contract duration
Complex and evolving contaminant type (PFAS)
Potential for unforeseen site conditions
Reliance on contractor expertise for critical assessments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to AECOM TECHNICAL SERVICES, INC.. ARMY NATIONAL GUARD - PFAS REMEDIAL INVESTIGATIONS/ FEASABILITY STUDIES

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL 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 $21.7 million.

What is the period of performance?

Start: 2018-09-30. End: 2026-03-31.

What is AECOM Technical Services, Inc.'s track record with federal environmental contracts?

AECOM Technical Services, Inc. has a substantial history of performing environmental services for various U.S. federal agencies, including the Department of Defense, EPA, and Department of Energy. Their portfolio includes a wide range of services such as site investigation, remediation design, environmental compliance, hazardous waste management, and munitions response. They have been awarded numerous large-scale contracts, demonstrating their capacity to manage complex projects and meet stringent federal requirements. Their experience often involves addressing challenging contaminants and working within strict regulatory frameworks, making them a well-established player in the federal environmental contracting landscape.

How does the pricing of this contract compare to similar PFAS remediation projects?

Direct per-unit cost comparisons for PFAS remediation investigations and feasibility studies are challenging due to the highly site-specific nature of contamination and the variability in scope. However, the overall contract value of approximately $21.7 million for a multi-year effort involving investigations and feasibility studies is within the expected range for large-scale environmental projects managed by major federal agencies. The firm-fixed-price structure suggests that the government sought to establish cost certainty upfront. Benchmarking against other large environmental contracts awarded by the DoD or EPA for similar services would provide a more granular comparison, but the initial award value appears competitive given the complexity and specialized expertise required for PFAS.

What are the primary risks associated with this contract?

The primary risks associated with this contract include the inherent technical complexities of PFAS contamination, which is an evolving area of science and regulation. Unforeseen site conditions or the discovery of more extensive contamination than initially anticipated could lead to scope changes and cost increases, despite the firm-fixed-price structure. The long duration of the contract (nearly 8 years from award to estimated completion) increases the potential for changes in regulatory requirements or technological advancements that may impact the project's approach and cost. Contractor performance risk is also present, requiring diligent oversight to ensure quality and timely delivery of investigation and feasibility study reports.

How effective are environmental remediation contracts like this in addressing PFAS contamination?

Contracts for PFAS remedial investigations and feasibility studies are a critical first step in effectively addressing contamination. They are designed to identify the extent of contamination, characterize the risks, and evaluate potential cleanup technologies. The effectiveness hinges on the thoroughness of the investigations, the accuracy of the feasibility studies in proposing viable and cost-effective remediation strategies, and the subsequent implementation of those strategies. This contract, by funding these essential planning phases, directly contributes to the long-term goal of mitigating PFAS risks to human health and the environment. Its ultimate effectiveness will be measured by the successful cleanup outcomes at affected sites.

What are the historical spending patterns for PFAS remediation by the Department of the Army?

Historical spending by the Department of the Army (and the DoD broadly) on PFAS remediation has been increasing significantly in recent years. Prior to widespread recognition of PFAS risks, dedicated spending was minimal. However, driven by regulatory mandates (like those from the EPA) and growing awareness, the Army has allocated substantial funds towards PFAS investigations, cleanup, and research. This $21.7 million contract is indicative of this trend. Annual budgets for PFAS-related activities within the Army have grown from tens of millions to hundreds of millions of dollars, reflecting the scale of the challenge across numerous installations nationwide. This spending is expected to continue and likely increase as more sites are assessed and remediation actions are planned and executed.

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: W912DR14R0018

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S FLOWER ST FL 4, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $37,882,529

Exercised Options: $21,665,136

Current Obligation: $21,665,136

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $9,427,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DR15D0017

IDV Type: IDC

Timeline