Army awards $333M for hazardous substance removal, with Bechtel Parsons Blue Grass JV as prime contractor

Contract Overview

Contract Amount: $333,326,126 ($333.3M)

Contractor: Bechtel Parsons Blue Grass, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2003-06-13

End Date: 2019-09-30

Contract Duration: 5,953 days

Daily Burn Rate: $56.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Official Description: 200310!001202!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0903D0023 !A!N! !Y!0001 !20030613!20030808!132084539!132084539!132084539!N!BECHTEL PARSONS BLUE GRASS, A !50 BEALE ST !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000002977103!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!S!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: RICHMOND, MADISON County, KENTUCKY, 40475

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $333.3 million to BECHTEL PARSONS BLUE GRASS, A JOINT VENTURE for work described as: 200310!001202!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0903D0023 !A!N! !Y!0001 !20030613!20030808!132084539!132084539!132084539!N!BECHTEL PARSONS BLUE GRASS, A !50 BEALE ST !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000002977103!N!N!000… Key points: 1. Contract awarded for hazardous substance removal, cleanup, and disposal services. 2. Significant value suggests a large-scale or long-term environmental remediation project. 3. Full and open competition indicates a broad search for qualified contractors. 4. The contract duration of nearly 16 years points to a complex and extensive undertaking. 5. Prime contractor is a joint venture, potentially pooling specialized expertise. 6. The North American Industry Classification System (NAICS) code 562211 aligns with hazardous waste treatment and disposal.

Value Assessment

Rating: good

The total award amount of $333,326,125.79 for hazardous substance removal services appears substantial, reflecting the scale and complexity of environmental remediation. Benchmarking this against similar large-scale cleanup contracts would provide further context on value for money. The contract type is 'COST NO FEE', which typically means the contractor is reimbursed for allowable costs but does not receive a fee, suggesting a focus on cost control and efficient execution of the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that the Army sought proposals from all responsible sources. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving the best value for the government.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, driving down prices through market forces and ensuring that the government receives competitive bids.

Public Impact

The primary beneficiaries are likely the U.S. Army and potentially surrounding communities impacted by hazardous substances. Services delivered include removal, cleanup, and disposal of hazardous materials. The contract is geographically located in Kentucky, specifically in the area served by the Blue Grass Army Depot. Workforce implications include the creation of jobs for environmental remediation specialists, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen hazardous conditions are encountered.
Long contract duration increases the risk of scope creep or changes in regulatory requirements.
Reliance on a joint venture may introduce complexities in management and accountability.
Ensuring consistent quality and safety standards over a multi-year project can be challenging.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract type 'COST NO FEE' may incentivize cost efficiency from the contractor.
The contractor's joint venture structure could bring specialized expertise to complex environmental challenges.
The long duration allows for sustained focus and development of expertise on the specific site.

Sector Analysis

This contract falls within the environmental services sector, specifically hazardous waste management and remediation. The market for such services is driven by regulatory compliance, industrial activity, and government cleanup initiatives. The U.S. Army's need for hazardous substance removal is a significant component of defense sector environmental stewardship. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies like the EPA or Department of Energy.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value contract awarded through full and open competition, it is likely that the prime contractor, Bechtel Parsons Blue Grass, A Joint Venture, will be responsible for subcontracting. Analysis of their subcontracting plan would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Defense Environmental Programs
Superfund Site Cleanups
Industrial Waste Disposal

Risk Flags

Long contract duration may increase exposure to changing regulations or economic conditions.
Complexity of hazardous substance removal can lead to unforeseen costs or delays.
Joint venture structure requires careful coordination and management.
Performance monitoring over an extended period is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $333.3 million to BECHTEL PARSONS BLUE GRASS, A JOINT VENTURE. 200310!001202!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0903D0023 !A!N! !Y!0001 !20030613!20030808!132084539!132084539!132084539!N!BECHTEL PARSONS BLUE GRASS, A !50 BEALE ST !SAN FRANCISCO !CA!94105!67000!075!06!SAN FRANCISCO !SAN FRANCISCO !CALIFORNIA!+000002977103!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !A!N!S!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !

Who is the contractor on this award?

The obligated recipient is BECHTEL PARSONS BLUE GRASS, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $333.3 million.

What is the period of performance?

Start: 2003-06-13. End: 2019-09-30.

What is the specific nature of the hazardous substances being removed and the environmental conditions at the Blue Grass Army Depot site?

The provided data identifies the service as 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' under NAICS code 562211. While the specific substances are not detailed, this code covers hazardous waste treatment and disposal. The Blue Grass Army Depot in Kentucky has a history of environmental concerns related to its past operations, including the storage and demilitarization of chemical weapons and conventional munitions. Remediation efforts often involve soil and groundwater contamination from various industrial processes and waste disposal practices. A comprehensive environmental assessment would detail the types of contaminants (e.g., heavy metals, volatile organic compounds, unexploded ordnance) and the extent of contamination requiring cleanup.

How does the $333M award compare to historical spending on similar environmental remediation contracts by the Department of Defense?

The $333 million award for hazardous substance removal is a substantial sum, indicative of a major environmental cleanup project. To benchmark this, one would compare it against other large-scale remediation contracts awarded by the Department of Defense (DoD) or other federal agencies like the Environmental Protection Agency (EPA) for similar services. For instance, Superfund site cleanups managed by the EPA can range from tens to hundreds of millions of dollars over their lifetimes. DoD contracts for base realignment and closure (BRAC) environmental actions or munitions response often involve significant expenditures. Without specific comparable contract data, it's difficult to definitively state if this award represents high or low value, but its magnitude suggests a complex, long-term undertaking.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in this contract?

The provided data does not detail specific Key Performance Indicators (KPIs) or risk mitigation strategies. However, for a contract of this nature and duration, KPIs would typically focus on schedule adherence, cost control, environmental compliance, safety performance (e.g., incident rates), and the successful removal and disposal of specified hazardous substances according to regulatory standards. Risk mitigation strategies would likely include thorough site assessments, contingency planning for unforeseen conditions, robust safety protocols, regular progress reporting, and potentially performance bonds. The 'COST NO FEE' contract type suggests a focus on reimbursing allowable costs, implying that cost control and efficient execution are implicitly critical performance areas.

What is the track record of Bechtel Parsons Blue Grass, A Joint Venture, in handling large-scale environmental remediation projects?

Bechtel Parsons Blue Grass, A Joint Venture, is the prime contractor for this significant hazardous substance removal contract. Bechtel is a well-known global engineering, procurement, and construction company with extensive experience in large-scale projects, including environmental remediation and defense infrastructure. Parsons Corporation is also a major engineering, design, and construction firm with a strong presence in government services and infrastructure. As a joint venture, their combined expertise is likely leveraged for this specific project. While the data doesn't detail their specific track record on this exact type of project, the parent companies' reputations suggest a capacity to manage complex environmental challenges. Further investigation into their past performance on similar DoD or EPA contracts would provide a more detailed assessment.

What are the potential long-term implications of this contract for environmental quality and regulatory compliance in Kentucky?

This contract is crucial for addressing historical environmental contamination at the Blue Grass Army Depot, directly impacting environmental quality in the surrounding region of Kentucky. Successful execution will lead to the removal and proper disposal of hazardous substances, mitigating risks to soil, groundwater, and potentially local ecosystems and public health. It ensures compliance with federal and state environmental regulations (e.g., RCRA, CERCLA). The long duration suggests a sustained commitment to remediation, potentially resolving legacy environmental issues that could otherwise persist for decades. This contributes to the overall environmental stewardship of military installations and supports the state's environmental protection goals.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc.

Address: 830 EASTERN BYPASS STE 106, RICHMOND, KY, 40475

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $333,326,126

Exercised Options: $333,326,126

Current Obligation: $333,326,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0903D0023

IDV Type: IDC

Timeline