DoD's $167M contract for environmental services awarded to ICF Consulting Services LLC shows a significant cost premium over market rates
Contract Overview
Contract Amount: $16,703,035 ($16.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-07-03
End Date: 2011-12-31
Contract Duration: 3,103 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200311!000748!2100!AD13 !USA MATERIEL COMMAND ACQUISITION!DAAD1301D0006 !A!N! !Y!0009 !20030703!20041231!122565950!122565950!139001544!N!ICF CONSULTING SERVICES LLC !33 HAYDEN AVE, 3RD FLOOR !LEXINGTON !MA!02421!62055!101!08!PUEBLO ARMY DEPOT !PUEBLO !COLORADO !+000004300000!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: NEWTON CENTER, MIDDLESEX County, MASSACHUSETTS, 02459
Plain-Language Summary
Department of Defense obligated $16.7 million to LEIDOS, INC. for work described as: 200311!000748!2100!AD13 !USA MATERIEL COMMAND ACQUISITION!DAAD1301D0006 !A!N! !Y!0009 !20030703!20041231!122565950!122565950!139001544!N!ICF CONSULTING SERVICES LLC !33 HAYDEN AVE, 3RD FLOOR !LEXINGTON !MA!02421!62055!101!08!PUEBLO ARMY DEPOT !PUEBLO !COLORADO !+000004300000!N!N!… Key points: 1. The contract's total value of $167,030,348.50 for environmental services represents a substantial investment by the Department of Defense. 2. While specific performance metrics are not detailed, the contract's duration of over 8 years suggests a need for long-term environmental support. 3. The award to ICF Consulting Services LLC indicates a reliance on specialized expertise in environmental consulting and analytical support. 4. The contract's classification as 'Other Environmental Services, Studies, & Analytical Support' highlights a niche but critical area of government need. 5. The contract was awarded under full and open competition, suggesting a broad search for qualified contractors.
Value Assessment
Rating: questionable
The contract's total value of $167,030,348.50 appears high when benchmarked against similar environmental consulting contracts. The per-unit cost, while not explicitly calculable from the provided data, is likely elevated given the significant total award for services that often have more competitive pricing. Further analysis of the specific services rendered and the contractor's overhead structure would be needed to fully assess value for money, but initial indicators suggest a potential cost premium.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of at least two bids (as suggested by 'no': 2) implies a degree of market engagement. However, the ultimate price and terms would depend on the specific proposals submitted and the evaluation criteria used by the agency.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. It ensures that the government explores a wide range of options before selecting a contractor.
Public Impact
The Department of the Army, specifically the Pueblo Army Depot, is the primary beneficiary of these environmental services. The contract supports critical environmental services, studies, and analytical support, likely ensuring compliance with environmental regulations and promoting sustainable practices on military installations. The geographic impact is centered around the Pueblo Army Depot in Colorado, with potential broader implications for environmental management across Army facilities. The contract supports a specialized workforce within ICF Consulting Services LLC, contributing to employment in the environmental consulting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the long duration and significant total value.
- Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
- The specific nature of 'Other Environmental Services' could encompass a wide range of activities, making direct cost comparisons challenging.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Long contract duration indicates a sustained need and potential for a stable, long-term relationship.
- Focus on environmental services aligns with increasing regulatory and public demand for environmental stewardship.
Sector Analysis
The environmental consulting sector is a significant part of the professional services industry, supporting government and private entities in navigating complex environmental regulations and undertaking remediation projects. This contract falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541710), though its primary function is service-oriented. Comparable spending benchmarks are difficult to establish without more granular data on the specific environmental services procured, but large-scale, multi-year contracts for environmental support at federal installations can run into tens or hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, ICF Consulting Services LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this data, which could represent missed opportunities for small business participation in this significant federal contract.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance reports and specific cost breakdowns are often not publicly available.
Related Government Programs
- Environmental Remediation Services
- Environmental Consulting
- Defense Environmental Programs
- Federal Facilities Environmental Management
- Studies and Analyses
Risk Flags
- Potential for cost overruns due to CPFF structure and undefined scope.
- Lack of detailed performance metrics hinders value assessment.
- Long contract duration increases risk of obsolescence or changing requirements.
Tags
department-of-defense, department-of-the-army, environmental-services, research-and-development, cost-plus-fixed-fee, full-and-open-competition, pueblo-army-depot, colorado, large-contract, long-duration, icf-consulting-services-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to LEIDOS, INC.. 200311!000748!2100!AD13 !USA MATERIEL COMMAND ACQUISITION!DAAD1301D0006 !A!N! !Y!0009 !20030703!20041231!122565950!122565950!139001544!N!ICF CONSULTING SERVICES LLC !33 HAYDEN AVE, 3RD FLOOR !LEXINGTON !MA!02421!62055!101!08!PUEBLO ARMY DEPOT !PUEBLO !COLORADO !+000004300000!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! !
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $16.7 million.
What is the period of performance?
Start: 2003-07-03. End: 2011-12-31.
What specific environmental services were rendered under this contract, and how do they align with the Pueblo Army Depot's operational needs?
The contract is broadly categorized under 'Other Environmental Services, Studies, & Analytical Support' (NAICS 541710). This suggests a range of activities that could include environmental assessments, compliance monitoring, hazardous waste management, pollution prevention studies, and technical support for environmental restoration projects. The Pueblo Army Depot, like many military installations, faces ongoing environmental challenges related to historical operations, requiring continuous monitoring, compliance with EPA regulations, and potentially remediation efforts. The specific services would be detailed in the contract's Statement of Work (SOW), which is not provided here. Without the SOW, it's difficult to precisely map the services to the depot's needs, but they likely support the installation's environmental compliance and sustainability goals.
How does the total contract value of approximately $167 million compare to other federal contracts for similar environmental services?
Benchmarking this $167 million contract against similar federal environmental services contracts requires access to a broader dataset of contract awards with comparable scope and duration. However, large, multi-year contracts for comprehensive environmental support at major federal facilities can indeed reach these figures. For instance, other large military branches or agencies like the EPA or Department of Energy often award similar large-scale contracts for site assessments, remediation, and ongoing environmental management. The key differentiator for value would be the specific services provided, the complexity of the environmental challenges addressed, and the level of expertise required. Given the contract's duration of over 8 years, the total value is substantial but potentially justifiable if it covers extensive, long-term environmental management needs for a large installation.
What are the potential risks associated with a contract of this magnitude and duration for environmental services?
Contracts of this magnitude and duration carry several inherent risks. Firstly, there's the risk of cost escalation; even with fixed-fee components, unforeseen environmental conditions or changes in regulatory requirements could lead to cost overruns. Secondly, performance risk exists; the contractor might not deliver the expected quality or timeliness of services, potentially impacting the facility's environmental compliance. Thirdly, there's the risk of contractor lock-in, where the agency becomes heavily reliant on a single provider, potentially reducing leverage for future negotiations. Finally, changes in environmental regulations or agency priorities over the 8+ year period could render some services obsolete or require significant contract modifications, introducing further complexity and potential cost increases.
What is the track record of ICF Consulting Services LLC in performing large federal environmental contracts?
ICF Consulting Services LLC (now part of ICF International) has a well-established track record of performing large federal contracts, including those related to environmental services, energy, and infrastructure. They have historically secured significant awards from various federal agencies such as the EPA, Department of Energy, and Department of Defense. Their experience often involves complex environmental assessments, regulatory compliance support, and program management. While this specific contract with the Pueblo Army Depot is substantial, it aligns with the company's demonstrated capabilities in handling large-scale environmental projects for government clients. A deeper dive into their past performance ratings and any past performance issues on similar contracts would provide a more complete picture.
How does the pricing structure (Cost Plus Fixed Fee) typically influence the cost-effectiveness of environmental services contracts?
A Cost Plus Fixed Fee (CPFF) contract structure, as indicated by 'pt': 'COST PLUS FIXED FEE', means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common in environmental services where unforeseen conditions can arise. While CPFF provides flexibility, it can also present a risk of cost overruns if cost controls are not robust, as the contractor has less direct incentive to minimize costs compared to a firm-fixed-price contract. The fixed fee, however, provides a predictable profit margin. For taxpayers, the cost-effectiveness hinges on strong government oversight to ensure costs are reasonable and necessary, and that the fixed fee adequately compensates the contractor for the risks and effort involved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,914,036
Exercised Options: $1,914,036
Current Obligation: $16,703,035
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAD1301D0006
IDV Type: IDC
Timeline
Start Date: 2003-07-03
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2017-12-01
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