DoD's $49.6M Central Treatment Plant Upgrade Contract Awarded to WSP USA
Contract Overview
Contract Amount: $49,565,847 ($49.6M)
Contractor: WSP USA Environment & Infrastructure Inc.
Awarding Agency: Department of Defense
Start Date: 2016-05-26
End Date: 2021-10-21
Contract Duration: 1,974 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CENTRAL TREATMENT PLANT UPGRADES IGF::OT::IGF
Place of Performance
Location: KELLOGG, SHOSHONE County, IDAHO, 83837
State: Idaho Government Spending
Plain-Language Summary
Department of Defense obligated $49.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: CENTRAL TREATMENT PLANT UPGRADES IGF::OT::IGF Key points: 1. Contract awarded to WSP USA Environment & Infrastructure Inc. for significant infrastructure upgrades. 2. The project falls under 'Other Heavy and Civil Engineering Construction' with a substantial value. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration was 1974 days, indicating a long-term project.
Value Assessment
Rating: fair
The contract value of $49.6 million for heavy civil engineering construction appears within a reasonable range for a multi-year, complex project. Benchmarking against similar large-scale infrastructure upgrades would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is generally expected to yield fair market prices.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
Ensures critical infrastructure functionality for military operations and personnel. Supports environmental compliance and public health through upgraded treatment facilities. Contributes to the local economy through construction jobs and related services. Represents a significant investment in long-term facility maintenance and modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on long-duration construction projects.
- Risk of schedule delays due to unforeseen site conditions or regulatory hurdles.
- Dependence on a single contractor for a critical infrastructure upgrade.
Positive Signals
- Awarded through full and open competition, promoting price fairness.
- Firm Fixed Price contract type provides cost certainty.
- Project addresses essential infrastructure needs.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is vital for maintaining and upgrading public and military infrastructure. Spending in this sector can fluctuate based on government priorities and infrastructure needs.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no direct information on small business subcontracting opportunities within this award.
Oversight & Accountability
Oversight would typically involve contract management by the Department of the Army to ensure adherence to contract terms, quality standards, and timely completion. Performance reviews and milestone tracking are key accountability mechanisms.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (1974 days) increases risk of cost escalation and scope creep.
- Lack of small business participation noted.
- Potential for unforeseen environmental or geological challenges in heavy construction.
- Dependence on a single entity for critical infrastructure upgrades.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, id, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. CENTRAL TREATMENT PLANT UPGRADES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE 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 $49.6 million.
What is the period of performance?
Start: 2016-05-26. End: 2021-10-21.
What was the specific scope of the 'Central Treatment Plant Upgrades' and how does its cost compare to similar projects of equivalent complexity and scale?
The specific scope details for the 'Central Treatment Plant Upgrades' are not provided in the data. However, the $49.6 million cost for a definitive contract awarded under full and open competition for heavy and civil engineering construction over nearly five years suggests a substantial project. A comprehensive comparison would require detailed project specifications and market data for similar infrastructure upgrades.
What are the primary risks associated with a nearly five-year construction contract for critical infrastructure, and what mitigation strategies were likely employed?
Primary risks include potential cost overruns due to inflation or unforeseen site conditions, schedule delays from weather or regulatory issues, and contractor performance issues. Mitigation strategies likely involved robust contract clauses, contingency planning, regular progress monitoring, performance incentives/penalties, and thorough pre-award risk assessments.
How effectively does the firm fixed price contract type ensure value for money given the project's long duration and potential for unforeseen challenges?
A firm fixed price contract provides cost certainty for the government, transferring most of the risk to the contractor. For a long-duration project, this can be effective if the initial price accurately reflects anticipated costs and risks. However, it may lead to higher initial bids to cover contractor contingencies, potentially impacting value if risks do not materialize.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W912DW15R0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: John Wood Group P.L.C. (UEI: 214007270)
Address: 751 ARBOR WAY STE 180, BLUE BELL, PA, 19422
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,565,847
Exercised Options: $49,565,847
Current Obligation: $49,565,847
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-26
Current End Date: 2021-10-21
Potential End Date: 2021-10-21 00:00:00
Last Modified: 2022-02-07
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