Army awards $33.2M contract for New Bedford Harbor Superfund site cleanup to Jacobs Project Management Co

Contract Overview

Contract Amount: $33,186,939 ($33.2M)

Contractor: Jacobs Project Management CO.

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2026-07-31

Contract Duration: 1,039 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DRAFT FINAL CELL 1 REMOVAL, NEW BEDFORD HARBOR SUPERFUND SITE, NEW BEDFORD, MA

Place of Performance

Location: NEW BEDFORD, BRISTOL County, MASSACHUSETTS, 02746

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to JACOBS PROJECT MANAGEMENT CO. for work described as: DRAFT FINAL CELL 1 REMOVAL, NEW BEDFORD HARBOR SUPERFUND SITE, NEW BEDFORD, MA Key points: 1. Contract value represents a significant investment in environmental remediation. 2. Competition dynamics for this large-scale environmental project warrant further examination. 3. Performance history of the contractor in similar Superfund site cleanups is a key risk indicator. 4. The contract duration of over three years suggests a complex and lengthy remediation process. 5. This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, highlighting specialized environmental services. 6. The fixed-fee structure on a cost-plus basis introduces potential for cost overruns if not managed tightly.

Value Assessment

Rating: fair

The contract value of $33.2 million for environmental remediation at a Superfund site is substantial. Benchmarking this against similar large-scale Superfund cleanup contracts would provide better context for value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, can sometimes lead to higher costs if the fixed fee is not adequately justified by the scope of work and if cost controls are not robust. Without specific cost breakdowns or comparisons to industry standards for similar remediation tasks, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring a competitive market. However, the number of actual bidders and the specific evaluation criteria are not detailed here. For complex environmental remediation projects, the pool of qualified bidders might be limited, even under full and open competition, which could influence the final pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the complex environmental cleanup services required at the New Bedford Harbor Superfund site.

Public Impact

The primary beneficiaries are the residents and environment of New Bedford, Massachusetts, through the cleanup of a hazardous Superfund site. The services delivered involve extensive environmental remediation, likely including soil and sediment removal, water treatment, and long-term monitoring. The geographic impact is focused on the New Bedford Harbor area, addressing long-standing environmental contamination. This contract could have implications for the local environmental services workforce, potentially creating or sustaining jobs in specialized remediation fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as a portion of their profit is tied to the total cost.
The complexity of Superfund site remediation introduces inherent risks of unforeseen conditions and scope changes, potentially impacting cost and schedule.
Ensuring robust oversight and accurate cost tracking is crucial for managing the fixed fee effectively over the contract's duration.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, Jacobs Project Management Co., likely has experience in large-scale environmental projects, which is a positive signal for execution.
The defined period of performance (over three years) indicates a structured approach to managing the remediation process.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, specifically focusing on environmental remediation. The market for Superfund site cleanups is specialized, involving a limited number of large engineering and construction firms with the expertise and capacity to handle such complex projects. Spending in this sector is driven by regulatory requirements and the need to address historical environmental contamination across the nation. Comparable spending benchmarks would typically be found in reports analyzing federal environmental cleanup contracts or specific Superfund program expenditures.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. This suggests the contract was likely awarded to a large prime contractor. There is no explicit information on subcontracting plans for small businesses. For large-scale environmental remediation projects, prime contractors often engage specialized subcontractors, and it would be beneficial to understand if small businesses are included in the subcontracting chain to ensure broad economic impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of the Army) and potentially involve program managers and technical experts. Accountability measures would be tied to the contract's performance metrics, milestones, and adherence to the fixed-fee structure. Transparency could be enhanced through public reporting on project progress and expenditures, especially given the Superfund designation. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Protection Agency (EPA) Superfund Program
Army Corps of Engineers Civil Works Projects
Department of Energy Environmental Management
Hazardous Waste Remediation Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Complexity of Superfund site remediation introduces inherent risks.
Need for robust oversight to manage contractor performance and costs.
Ensuring long-term effectiveness of remediation strategies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to JACOBS PROJECT MANAGEMENT CO.. DRAFT FINAL CELL 1 REMOVAL, NEW BEDFORD HARBOR SUPERFUND SITE, NEW BEDFORD, MA

Who is the contractor on this award?

The obligated recipient is JACOBS PROJECT MANAGEMENT CO..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-07-31.

What is the track record of Jacobs Project Management Co. in managing similar large-scale Superfund site cleanups?

Jacobs Project Management Co. is a well-established firm with extensive experience in engineering, procurement, and construction, including significant involvement in environmental remediation projects. They have a history of managing complex projects for government agencies, including environmental cleanup and infrastructure development. While specific details on their performance on other Superfund sites are not provided in this data, their general profile suggests they possess the capabilities required for such undertakings. A deeper dive into their past performance on contracts with similar scope, complexity, and value, particularly those involving hazardous waste remediation, would be necessary to fully assess their track record and associated risks for this specific New Bedford Harbor project.

How does the awarded amount of $33.2 million compare to the estimated cost or historical spending for the New Bedford Harbor Superfund site cleanup?

The provided data indicates a contract award of $33.2 million with an estimated completion date in July 2026. To assess if this amount is reasonable, it needs to be compared against the total estimated cost for the entire New Bedford Harbor Superfund site cleanup, which is a multi-year, multi-phase effort. Historical spending data for the site would reveal the total investment made to date and projected future costs. Without access to the EPA's or Army Corps of Engineers' comprehensive cost estimates and historical expenditure reports for this specific Superfund site, it is difficult to benchmark this $33.2 million award effectively. It represents a significant portion of funding, but its adequacy depends on the overall project scope and remaining work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation lies in the potential for cost escalation. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If the project encounters unforeseen complexities, scope creep, or inefficiencies, the total cost to the government can increase significantly, even though the contractor's fee remains constant. This structure can incentivize contractors to incur costs, as their profit is guaranteed as a percentage of the total expenditure. Robust government oversight, stringent cost controls, and clear definition of work are critical to mitigate these risks and ensure value for money.

What is the expected effectiveness of the remediation services under this contract in addressing the contamination at the New Bedford Harbor Superfund site?

The effectiveness of the remediation services will depend heavily on the specific technologies and methodologies employed by Jacobs Project Management Co., as outlined in their technical proposal and the contract's statement of work. Superfund sites often involve complex contamination challenges, such as persistent organic pollutants in sediments or groundwater plumes. The contract's success will be measured by its ability to meet predefined cleanup standards and regulatory requirements set by the EPA and state agencies. Key performance indicators likely include the volume of material remediated, contaminant levels achieved, and long-term monitoring results. Without detailed technical specifications and performance metrics from the contract, a definitive assessment of expected effectiveness is not possible, but the award signifies a commitment to addressing the site's contamination.

How has federal spending on environmental remediation and Superfund sites evolved over the past decade, and where does this contract fit in?

Federal spending on environmental remediation, particularly through the EPA's Superfund program and related initiatives within agencies like the Department of Defense and Department of Energy, has fluctuated over the past decade. Funding levels are often influenced by budget appropriations, environmental policy priorities, and the identification of new or existing contaminated sites requiring cleanup. While specific year-over-year spending figures vary, there is a consistent need for substantial investment in addressing legacy contamination. This $33.2 million contract for the New Bedford Harbor Superfund site represents a significant, targeted allocation of resources towards a specific, high-priority cleanup effort. It fits within the broader federal commitment to environmental restoration and compliance with regulations like CERCLA (Superfund).

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912WJ14R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 1999 BRYAN ST, DALLAS, TX, 75201

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

Financial Breakdown

Contract Ceiling: $33,186,939

Exercised Options: $33,186,939

Current Obligation: $33,186,939

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $31,262,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912WJ15D0001

IDV Type: IDC

Timeline