DoD's $11.9M Remediation Services Contract Awarded to Laguna Construction Company
Contract Overview
Contract Amount: $11,914,026 ($11.9M)
Contractor: Laguna Construction Company, Inc
Awarding Agency: Department of Defense
Start Date: 2005-12-01
End Date: 2006-09-30
Contract Duration: 303 days
Daily Burn Rate: $39.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $11.9 million to LAGUNA CONSTRUCTION COMPANY, INC for work described as: Key points: 1. The Department of the Air Force awarded a $11.9 million contract for remediation services. 2. Laguna Construction Company, Inc. secured the contract under full and open competition. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. This award falls within the broader context of environmental remediation services, a critical sector for government operations.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar remediation contracts is difficult without detailed scope and performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for environmental remediation services, with the potential for costs to fluctuate based on actual expenses incurred by the contractor.
Public Impact
Environmental cleanup services are essential for maintaining safe and compliant government facilities. The use of taxpayer funds for remediation highlights the importance of cost-effective contract management. Competition in this sector can drive innovation and efficiency in environmental solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Contract duration of 303 days
Positive Signals
- Full and open competition
- Awarded by Department of the Air Force
Sector Analysis
Environmental remediation services are crucial for government agencies to address contamination and comply with environmental regulations. Spending in this sector can vary significantly based on the scale and complexity of cleanup efforts.
Small Business Impact
The data indicates that this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.
Oversight & Accountability
Oversight of Cost Plus Fixed Fee contracts is critical to ensure that costs are reasonable and allocable. The Department of the Air Force is responsible for monitoring contractor performance and expenditures.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of detailed scope of work for benchmarking.
- No indication of small business subcontracting.
- Contract duration of 303 days may be insufficient for complex remediation.
Tags
remediation-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 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 $11.9 million.
What is the period of performance?
Start: 2005-12-01. End: 2006-09-30.
What specific remediation activities were covered under this contract, and how do they compare to industry standards for similar projects?
The provided data does not detail the specific remediation activities. A thorough review of the contract's Statement of Work (SOW) would be necessary to compare the scope of work against industry standards for similar environmental cleanup projects. This would allow for a more accurate assessment of value and potential cost efficiencies.
What were the primary risk factors identified during the bidding process for this remediation contract, and how were they mitigated?
Key risks for remediation contracts often include unforeseen site conditions, regulatory changes, and contractor performance. While the data shows 'full and open competition,' it doesn't detail specific risk assessments. Mitigation strategies would typically involve detailed site investigations, robust contract clauses, and close government oversight of contractor operations and safety protocols.
How effective was the competitive bidding process in ensuring the most cost-effective solution for the Air Force's remediation needs?
The 'full and open competition' suggests a strong effort to achieve cost-effectiveness. However, the 'Cost Plus Fixed Fee' contract type introduces inherent variability in final costs. Evaluating effectiveness requires comparing the final invoiced amount against the initial bid and assessing whether the chosen contractor delivered the required remediation services efficiently and to specification.
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: 7
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: $11,972,902
Exercised Options: $11,972,902
Current Obligation: $11,914,026
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8690
IDV Type: IDC
Timeline
Start Date: 2005-12-01
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2011-08-16
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