DoD's $31.9M Remediation Services Contract with Weston Solutions Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $31,933,556 ($31.9M)

Contractor: Weston Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2012-04-27

End Date: 2020-12-24

Contract Duration: 3,163 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PERFORMANCE-BASED REMEDIATION (PBR) AT JOINT BASE ELMENDORF-RICHARDSON, AK AND CLEAR AIR FORCE STATION, AK

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to WESTON SOLUTIONS INC for work described as: PERFORMANCE-BASED REMEDIATION (PBR) AT JOINT BASE ELMENDORF-RICHARDSON, AK AND CLEAR AIR FORCE STATION, AK Key points: 1. The contract awarded to Weston Solutions Inc. for remediation services at Joint Base Elmendorf-Richardson and Clear Air Force Station represents a significant investment. 2. While awarded under full and open competition, the long duration and firm-fixed-price structure warrant a closer look at cost-effectiveness and potential for price creep. 3. The absence of small business participation raises questions about broader economic impact and potential missed opportunities for smaller firms. 4. The 'Remediation Services' sector is critical for environmental compliance but can be prone to cost overruns if not managed tightly.

Value Assessment

Rating: fair

The contract's total value of $31.9 million over an 8-year period suggests a substantial commitment. Benchmarking against similar long-term environmental remediation contracts is necessary to determine if the pricing is competitive and reflects true value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which is a positive indicator for price discovery. However, the long performance period and the nature of remediation services may limit the effectiveness of initial price competition over time.

Taxpayer Impact: Taxpayers are impacted by the total $31.9 million expenditure. Ensuring efficient service delivery and avoiding cost overruns are key to maximizing the value of this investment.

Public Impact

Environmental cleanup at critical military installations ensures operational readiness and compliance. Long-term contracts can provide stability for contractors but require robust oversight to prevent complacency. The lack of small business involvement may limit the diversity of solutions and economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years)
No small business participation
Firm Fixed Price on complex remediation

Positive Signals

Awarded via Full and Open Competition
Performance-Based Remediation (PBR) structure

Sector Analysis

The Remediation Services sector (NAICS 562910) involves environmental cleanup and waste management. Spending in this sector is often driven by regulatory requirements and infrastructure maintenance, with contract values varying widely based on project scope and duration.

Small Business Impact

This contract did not involve small businesses, as indicated by the 'sb' field being false. This suggests a missed opportunity to leverage the capabilities of small businesses in the remediation sector and potentially achieve greater cost efficiencies or innovative solutions.

Oversight & Accountability

Oversight is crucial for long-term, firm-fixed-price contracts, especially in complex fields like environmental remediation. The Department of the Air Force must ensure robust monitoring of performance, costs, and adherence to environmental standards throughout the contract's duration.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to long duration and fixed price
Lack of small business participation
Limited visibility into ongoing price competitiveness
Complexity of environmental remediation services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to WESTON SOLUTIONS INC. PERFORMANCE-BASED REMEDIATION (PBR) AT JOINT BASE ELMENDORF-RICHARDSON, AK AND CLEAR AIR FORCE STATION, AK

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS 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 $31.9 million.

What is the period of performance?

Start: 2012-04-27. End: 2020-12-24.

What specific performance metrics were used to justify the firm-fixed-price structure for this long-term remediation project, and how effectively have they been monitored?

The contract specifies a Firm Fixed Price (FFP) structure, often chosen for its predictability. However, for complex, long-term environmental remediation, defining comprehensive performance metrics that accurately capture all potential variables and risks is challenging. Effective oversight would involve rigorous tracking of milestones, environmental quality indicators, and adherence to safety protocols, with mechanisms for adjustments or penalties if performance deviates significantly from the agreed-upon standards.

Given the 8-year duration, what mechanisms are in place to ensure the initial pricing remains competitive and reflects current market rates for remediation services?

Long-term FFP contracts can risk becoming uncompetitive if market rates change significantly. Mechanisms to mitigate this include periodic price reviews, incorporating economic price adjustment clauses (though not explicitly stated here), or ensuring the initial competition was robust enough to secure favorable long-term rates. The Department of the Air Force should have processes to validate ongoing cost-effectiveness against industry benchmarks.

How does the absence of small business participation impact the overall cost-effectiveness and innovation potential of this remediation contract?

Excluding small businesses from a contract of this size can limit the pool of potential bidders, potentially reducing competitive pressure and innovation. Small businesses often offer specialized expertise and agility. Their absence may mean the government missed out on potentially more cost-effective solutions or novel approaches to remediation that could have been brought forward by a more diverse contractor base.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

Address: 70 NE LOOP 410 STE 600, SAN ANTONIO, TX, 78216

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

Financial Breakdown

Contract Ceiling: $31,956,887

Exercised Options: $31,933,556

Current Obligation: $31,933,556

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890309D8589

IDV Type: IDC

Timeline