DoD's $22.3M Remediation Services Contract Awarded to Laguna Construction Company
Contract Overview
Contract Amount: $22,277,413 ($22.3M)
Contractor: Laguna Construction Company, Inc
Awarding Agency: Department of Defense
Start Date: 2005-04-21
End Date: 2006-10-31
Contract Duration: 558 days
Daily Burn Rate: $39.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 27
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Plain-Language Summary
Department of Defense obligated $22.3 million to LAGUNA CONSTRUCTION COMPANY, INC for work described as: Key points: 1. Contract awarded for remediation services, indicating environmental or infrastructure needs. 2. Full and open competition suggests a competitive bidding process. 3. The contract value of $22.3M is moderate for specialized services. 4. Potential for long-term environmental impact and ongoing monitoring. 5. Sector context points to infrastructure maintenance within the Department of the Air Force.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $22.3M needs to be benchmarked against similar remediation projects to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires diligent oversight to ensure cost-effectiveness.
Taxpayer Impact: Taxpayer funds are utilized for environmental remediation, aiming to address potential hazards and restore affected areas, which is a necessary public service.
Public Impact
Environmental cleanup efforts protect public health and ecosystems. Investment in infrastructure maintenance ensures operational readiness for military bases. Transparency in contracting processes builds public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for scope creep in remediation projects.
Positive Signals
- Full and open competition promotes fair pricing.
- Awarded by Department of the Air Force, indicating a critical need.
- Contract duration of 558 days allows for thorough project completion.
Sector Analysis
This contract falls within the construction and environmental services sector, specifically focusing on remediation. Spending benchmarks for similar environmental cleanup contracts on federal property can vary significantly based on the scope and complexity of the contamination.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight is crucial for Cost Plus Fixed Fee contracts to manage costs and ensure the work meets environmental standards and project objectives.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
- Lack of detailed scope of work makes precise value assessment challenging.
- Potential for unforeseen environmental conditions requiring additional funding.
- No indication of small business participation.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.3 million to LAGUNA CONSTRUCTION COMPANY, INC. See the official description on USAspending.
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 $22.3 million.
What is the period of performance?
Start: 2005-04-21. End: 2006-10-31.
What specific environmental hazards were addressed by this remediation contract, and what was the expected outcome?
The provided data does not specify the exact environmental hazards. Remediation services typically address issues like soil or groundwater contamination from hazardous substances, pollutants, or contaminants. The expected outcome would be the reduction or elimination of these hazards to meet regulatory standards and protect human health and the environment.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs for this remediation project?
The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs plus a predetermined fixed fee. While the fixed fee provides some cost certainty, the contractor is incentivized to incur costs to increase their profit margin, as the fee is fixed. This necessitates strong government oversight to scrutinize costs and prevent unnecessary expenditures.
What is the long-term financial and environmental implication of this remediation contract for the Department of Defense?
The long-term financial implication involves ensuring the fixed fee and allowable costs represent good value for the remediation performed. Environmentally, the contract aims to mitigate or eliminate existing contamination, preventing further degradation and potential long-term liabilities. Successful remediation can lead to safer land use and reduced future environmental management costs.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 27
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: I-40 WEST EXIT 114, LAGUNA, NM, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,277,413
Exercised Options: $22,277,413
Current Obligation: $22,277,413
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8690
IDV Type: IDC
Timeline
Start Date: 2005-04-21
Current End Date: 2006-10-31
Potential End Date: 2006-10-31 00:00:00
Last Modified: 2011-08-16
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