AECOM awarded $250M Army contract for remediation services, highlighting long-term environmental solutions
Contract Overview
Contract Amount: $25,024,849 ($25.0M)
Contractor: AECOM Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-27
End Date: 2034-11-26
Contract Duration: 3,651 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VSFB ORC
Place of Performance
Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437
Plain-Language Summary
Department of Defense obligated $25.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: VSFB ORC Key points: 1. Contract value of $250M over 10 years suggests significant, long-term environmental needs. 2. Full and open competition indicates a robust market for remediation services. 3. Definitive contract type implies a stable, ongoing requirement for these services. 4. Firm fixed-price structure provides cost certainty for the government. 5. The contract's duration and scope point to a substantial commitment to environmental cleanup. 6. California location suggests a focus on specific regional environmental challenges.
Value Assessment
Rating: good
The $250 million contract awarded to AECOM Technical Services, Inc. for remediation services appears to be a significant investment in environmental management. Benchmarking this against similar long-term remediation contracts would provide further insight into its value. The firm fixed-price structure is generally favorable for the government, offering predictability. However, a detailed analysis of the scope of work and historical performance of AECOM in similar roles is needed for a comprehensive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. With 5 bids received, the competition level appears healthy, which typically drives more competitive pricing and better value for the government. The presence of multiple bidders indicates a mature market for remediation services, allowing the Department of the Army to select a vendor based on technical merit and price.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that public funds are used efficiently by leveraging market forces to secure the best possible outcome for remediation services.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the public, through the cleanup and remediation of environmental sites. Services delivered include remediation of contaminated sites, environmental consulting, and potentially long-term monitoring. The geographic impact is focused on California, where the remediation activities will take place. Workforce implications include the creation of jobs for environmental scientists, engineers, technicians, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
- Reliance on a single contractor for a decade requires robust oversight to ensure performance standards are met.
- Potential for environmental incidents during remediation activities necessitates stringent safety protocols.
Positive Signals
- Award to a single, established contractor like AECOM suggests confidence in their technical capabilities and past performance.
- Firm fixed-price contract provides budget certainty for the Army.
- Full and open competition indicates a competitive market, likely leading to better service quality and pricing.
Sector Analysis
The environmental remediation services sector is a critical component of the broader environmental services industry, which is driven by regulatory compliance and the need to address historical contamination. This contract falls within the NAICS code 562910 (Remediation Services). The market for environmental remediation is substantial, with government contracts forming a significant portion due to military base cleanup and infrastructure projects. AECOM is a major player in this space, competing with other large engineering and environmental firms.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that the primary contract is with a large business, and opportunities for small businesses would likely depend on AECOM's subcontracting decisions. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes indirectly benefit small businesses through their supply chains.
Oversight & Accountability
Oversight for this definitive contract will likely be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price structure, which obligates AECOM to deliver services within the agreed-upon cost. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Environmental Remediation Services
- Department of Defense Environmental Programs
- Army Corps of Engineers Environmental Services
- Superfund Site Remediation
- Hazardous Waste Management
Risk Flags
- Long-term contract duration requires careful monitoring of performance and potential cost overruns.
- Scope of work complexity could lead to unforeseen challenges and require adaptive management.
- Environmental remediation inherently carries risks of accidental releases or exposure if not managed meticulously.
Tags
environmental-remediation, department-of-defense, us-army, definitive-contract, firm-fixed-price, full-and-open-competition, california, large-contract, environmental-services, remediation-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to AECOM TECHNICAL SERVICES, INC.. VSFB ORC
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 $25.0 million.
What is the period of performance?
Start: 2024-11-27. End: 2034-11-26.
What is AECOM Technical Services, Inc.'s track record with similar large-scale environmental remediation contracts for the Department of Defense?
AECOM Technical Services, Inc. has a significant history of performing large-scale environmental remediation and engineering services for various government agencies, including the Department of Defense. They have been involved in numerous projects related to hazardous waste management, site cleanup, and environmental compliance across military installations. Their experience often includes complex projects requiring expertise in geology, hydrology, chemical engineering, and regulatory affairs. Publicly available contract databases and agency reports often detail their past performance, including contract values, durations, and specific services rendered. A review of these records would indicate their capacity to handle the scope and duration of this new $250 million contract, assessing their ability to meet performance standards and manage risks effectively in similar past engagements.
How does the $250 million contract value compare to typical Army remediation contracts of similar scope and duration?
The $250 million contract value for remediation services awarded to AECOM over a 10-year period (approximately $25 million annually) is substantial but falls within the expected range for large, long-term environmental remediation efforts undertaken by the Department of the Army. Major environmental cleanup projects, especially those involving complex contamination or extensive site restoration, often require multi-year commitments and budgets in the tens to hundreds of millions of dollars. Factors influencing this value include the geographic scope, the types and extent of contamination, the required remediation technologies, and the duration of post-remediation monitoring. Comparing this to other definitive contracts for similar services awarded by the Army or other federal agencies in recent years would provide a benchmark to assess if the pricing is competitive and reflects the market's assessment of such services.
What are the primary environmental risks associated with the sites AECOM will be remediating under this contract?
The specific environmental risks depend heavily on the nature of the contamination at the sites covered by this contract, which are not detailed in the provided data. However, typical risks in environmental remediation include exposure to hazardous substances (e.g., heavy metals, volatile organic compounds, petroleum products, PFAS), potential for groundwater and soil contamination migration, risks associated with excavation and disposal of contaminated materials, and potential impacts on local ecosystems and human health. The contract's focus on remediation services implies that these sites have existing contamination issues that need to be addressed. AECOM's role will involve assessing these risks, developing and implementing cleanup strategies, and ensuring compliance with environmental regulations to mitigate further harm.
What is the expected effectiveness of the remediation services to be provided over the contract's 10-year duration?
The expected effectiveness of the remediation services hinges on the specific cleanup goals defined in the contract and the technologies employed. Over a 10-year duration, the Army anticipates significant progress towards, or achievement of, site closure and compliance with environmental standards. This could involve reducing contaminant levels below regulatory thresholds, stabilizing hazardous materials, preventing further migration of pollutants, and restoring affected ecosystems. AECOM's effectiveness will be measured against performance metrics outlined in the contract, such as cleanup milestones, contaminant reduction rates, and adherence to safety and environmental protocols. Long-term monitoring may also be a component to ensure the sustained effectiveness of the remediation efforts.
How has federal spending on environmental remediation services trended over the past five years, and how does this contract fit into that trend?
Federal spending on environmental remediation services has generally remained robust, driven by ongoing cleanup requirements at military installations, Superfund sites, and other federal facilities. While specific year-over-year trends can fluctuate based on budget appropriations and the initiation of new large-scale projects, the overall demand for these services is consistent due to regulatory mandates and the long-term nature of environmental cleanup. This $250 million contract, awarded over 10 years, represents a significant, albeit singular, commitment within this ongoing spending pattern. It aligns with the federal government's continuous investment in addressing environmental liabilities and ensuring compliance with environmental protection laws, reflecting a sustained focus on environmental stewardship.
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: W912PL24R0014
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 S GRAND AVE, 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: $81,372,148
Exercised Options: $25,024,849
Current Obligation: $25,024,849
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $113,067
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-11-27
Current End Date: 2034-11-26
Potential End Date: 2034-11-26 00:00:00
Last Modified: 2025-07-25
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