DoD Awards $362M for Remediation Services to Laguna Construction Company

Contract Overview

Contract Amount: $29,562,555 ($29.6M)

Contractor: Laguna Construction Company, Inc

Awarding Agency: Department of Defense

Start Date: 2004-03-30

End Date: 2005-12-31

Contract Duration: 641 days

Daily Burn Rate: $46.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: TAS::57 3400::TAS 200407!000767!5700!GW05 !HSW/PKV !FA890304D8690 !A!N! !N!0002 ! !20040330!20050115!362239964!362239964!078362183!N!LAGUNA CONSTRUCTION COMPANY IN!I-40 WEST EXIT 114 !LAGUNA !NM!87026!00000! !IZ!* !* !IRAQ !+000019521325!N!N!000000000000!C219!OTHER ARCHITECT&ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!U!2!003!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $29.6 million to LAGUNA CONSTRUCTION COMPANY, INC for work described as: TAS::57 3400::TAS 200407!000767!5700!GW05 !HSW/PKV !FA890304D8690 !A!N! !N!0002 ! !20040330!20050115!362239964!362239964!078362183!N!LAGUNA CONSTRUCTION COMPANY IN!I-40 WEST EXIT 114 !LAGUNA !NM!87026!00000! !IZ!* … Key points: 1. The contract value is substantial at $362.2 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for remediation services, a critical but potentially complex area. 4. The sector is Construction, with a specific NAICS code for Architectural and Engineering Services.

Value Assessment

Rating: fair

The contract value of $362.2 million is significant. Without specific unit cost data or benchmarks for remediation services, a precise pricing assessment is difficult. However, the duration of 641 days suggests a substantial scope of work.

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 method generally promotes competitive pricing and allows for the selection of the best value offer.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through market forces.

Public Impact

This contract supports critical environmental remediation efforts, likely in a deployed or operational environment (Iraq). The award to Laguna Construction Company, Inc. signifies a significant business opportunity for the firm. The duration of the contract suggests a long-term commitment to addressing environmental issues. The specific nature of remediation services can have long-lasting environmental and public health implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex remediation projects.
Geopolitical risks associated with operations in Iraq.
Ensuring quality and effectiveness of remediation services.

Positive Signals

Awarded through full and open competition.
Significant investment in environmental cleanup.
Supports operational readiness and safety.

Sector Analysis

The contract falls within the Construction sector, specifically under NAICS code 562910 for Remediation Services. This is a specialized area often involving complex environmental challenges and requiring specific expertise. Benchmarks for such contracts can vary widely based on scope and location.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of small business set-asides or participation in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Defense, suggesting oversight from a major federal agency. The use of delivery orders under a larger contract vehicle implies a structured procurement process, but specific oversight mechanisms for this particular award are not detailed.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract awarded for remediation services in a high-risk environment (Iraq).
Significant contract value ($362.2 million) requires diligent oversight.
Potential for scope creep or unforeseen environmental complexities.
Lack of detailed performance metrics in the provided data.
Long contract duration (641 days) increases exposure to changing conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to LAGUNA CONSTRUCTION COMPANY, INC. TAS::57 3400::TAS 200407!000767!5700!GW05 !HSW/PKV !FA890304D8690 !A!N! !N!0002 ! !20040330!20050115!362239964!362239964!078362183!N!LAGUNA CONSTRUCTION COMPANY IN!I-40 WEST EXIT 114 !LAGUNA !NM!87026!00000! !IZ!* !* !IRAQ !+000019521325!N!N!000000000000!C219!OTHER ARCHITECT&ENGINEERING SERVICES !C2 !CONSTRUCTION !ZOP !* !562910!E!

Who is the contractor on this award?

The obligated recipient is LAGUNA CONSTRUCTION COMPANY, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2004-03-30. End: 2005-12-31.

What specific remediation activities are covered under this contract, and what are the expected environmental outcomes?

The provided data identifies the contract as being for 'Remediation Services' under NAICS code 562910. However, it does not detail the specific activities such as hazardous waste removal, soil or water decontamination, or site restoration. Understanding these specifics is crucial for assessing the true value and effectiveness of the contract in achieving desired environmental improvements.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure taxpayer value?

The data does not specify the Key Performance Indicators (KPIs) for this remediation services contract. Effective oversight would require clearly defined KPIs related to project timelines, environmental cleanup standards, safety protocols, and cost control. Regular performance reviews against these KPIs are essential to ensure the contractor is meeting obligations and that taxpayer funds are being used efficiently and effectively.

Given the contract's duration and location (Iraq), what risk mitigation strategies are in place to address potential cost increases or project delays?

Operating in a location like Iraq presents inherent risks, including logistical challenges, security concerns, and potential political instability, all of which can impact project costs and timelines. While the contract was awarded competitively, the specific risk mitigation strategies employed by the Department of Defense and Laguna Construction Company are not detailed. Robust contingency planning and flexible contract management are vital to address unforeseen issues.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: I-40 WEST EXIT 114, LAGUNA, NM, 87026

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890304D8690

IDV Type: IDC

Timeline