Army's $10.3M environmental services contract awarded to Shaw Environmental, Inc. for Myrtle Beach AFB
Contract Overview
Contract Amount: $10,291,769 ($10.3M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-06-08
End Date: 2012-08-29
Contract Duration: 4,100 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200112!000773!2100!CA45 !USA ENGINEER DISTRICT, OMAHA !DACW4593D0044 !A!N!*!N!002603 !20010608!20020830!048985691!028655181!106521081!N!IT CORPORATION !312 DIRECTORS DRIVE !KNOXVILLE !TN!37923!49120!051!45!MYRTLE BEACH AFB !HORRY !S CAROLINA!+000000579799!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!541330!*!*!5!B!M!B!*!*!*!B!*!*!A! !A !N!S!2!011!A! !C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: MYRTLE BEACH, HORRY County, SOUTH CAROLINA, 29579
Plain-Language Summary
Department of Defense obligated $10.3 million to SHAW ENVIRONMENTAL, INC. for work described as: 200112!000773!2100!CA45 !USA ENGINEER DISTRICT, OMAHA !DACW4593D0044 !A!N!*!N!002603 !20010608!20020830!048985691!028655181!106521081!N!IT CORPORATION !312 DIRECTORS DRIVE !KNOXVILLE !TN!37923!49120!051!45!MYRTLE BEACH AFB !HORRY… Key points: 1. Contract awarded for environmental services, indicating a need for specialized support at a military installation. 2. The contract's duration of over 10 years suggests a long-term commitment to environmental management. 3. Awarded under full and open competition, implying a robust bidding process. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight to manage costs. 5. The contract falls under the Base Realignment and Closure (BRAC) environmental program, highlighting its role in military infrastructure changes. 6. The specific service code (541330) points to engineering services, suggesting a focus on technical analysis and design.
Value Assessment
Rating: fair
The contract value of $10.3 million over approximately 10 years for environmental services at Myrtle Beach AFB appears reasonable given the scope and duration. However, without specific benchmarks for similar BRAC-related environmental remediation or study contracts, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure necessitates close monitoring of costs to ensure efficiency and prevent overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access to the best available solutions, the relatively low number of bidders might warrant further investigation into potential barriers to entry or market concentration for specialized environmental services.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a competitive environment, potentially leading to lower prices and better service quality. It ensures that the government is not limited to a single provider and can leverage the market to secure the best value.
Public Impact
The primary beneficiaries are the Department of the Army and the personnel at Myrtle Beach Air Force Base, who receive essential environmental services. Services delivered likely include environmental studies, assessments, and potentially remediation activities related to the base's operations and closure. The geographic impact is concentrated at Myrtle Beach AFB in South Carolina, affecting the local environment and potentially the surrounding community. The contract supports a workforce of environmental professionals and technicians employed by Shaw Environmental, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus-fixed-fee (CPFF) contract type can incentivize cost growth if not rigorously managed, potentially increasing the final cost to taxpayers.
- A contract duration exceeding 10 years, while indicating long-term need, also presents risks related to evolving environmental regulations and technological advancements.
- The relatively low number of bids (2) in a full and open competition might suggest limited market capacity or high barriers to entry for this specialized service.
Positive Signals
- Awarded through full and open competition, maximizing the pool of potential offerors and promoting a competitive bidding environment.
- The contract addresses critical environmental services for a military installation, contributing to compliance and operational readiness.
- The fixed fee component in the CPFF structure provides some cost certainty for the government regarding the contractor's profit margin.
Sector Analysis
This contract falls within the Engineering Services (NAICS 541330) sector, specifically addressing environmental consulting and support. The market for environmental services supporting government facilities, particularly military bases undergoing changes like BRAC, is substantial. Companies in this sector offer a range of expertise from site assessment and remediation to regulatory compliance and waste management. Benchmarks for similar contracts would typically consider factors like the size of the installation, the complexity of environmental issues, and the duration of the required services.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a full and open competition, the primary focus was likely on securing the best overall offer. However, large prime contractors like Shaw Environmental are often encouraged or required to subcontract portions of their work to small businesses, which could provide opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The CPFF structure requires diligent oversight to ensure that costs incurred are allowable, reasonable, and allocable. Transparency is generally maintained through contract reporting mechanisms, though specific public access to detailed performance or cost data may be limited.
Related Government Programs
- Base Realignment and Closure (BRAC) Program
- Environmental Remediation Services
- Military Base Operations Support
- Engineering and Architectural Services
- Department of Defense Environmental Compliance
Risk Flags
- Cost Overrun Risk (CPFF)
- Long-Term Contract Management Challenges
- Potential for Evolving Regulatory Requirements
- Limited Competition (2 Bidders)
Tags
environmental-services, department-of-defense, department-of-the-army, myrtle-beach-afb, south-carolina, cost-plus-fixed-fee, full-and-open-competition, brac, engineering-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to SHAW ENVIRONMENTAL, INC.. 200112!000773!2100!CA45 !USA ENGINEER DISTRICT, OMAHA !DACW4593D0044 !A!N!*!N!002603 !20010608!20020830!048985691!028655181!106521081!N!IT CORPORATION !312 DIRECTORS DRIVE !KNOXVILLE !TN!37923!49120!051!45!MYRTLE BEACH AFB !HORRY !S CAROLINA!+000000579799!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !1ZBC!BASE REALIGN & CLOS (BRAC) ENV!541330!*!*!5!B!M!B!*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $10.3 million.
What is the period of performance?
Start: 2001-06-08. End: 2012-08-29.
What is the track record of Shaw Environmental, Inc. with Department of Defense contracts, particularly for environmental services?
Shaw Environmental, Inc. has a history of performing contracts for the Department of Defense. While specific details on all past performance are not provided here, their selection for this significant environmental services contract suggests they met the government's requirements for capability and experience. Analyzing their past performance on similar contracts, including any past performance evaluations, dispute history, or awards, would provide a more comprehensive understanding of their reliability and effectiveness in delivering services to the DoD. A review of their contract history would reveal the types of environmental services they have provided, the value of those contracts, and the agencies they have served within the DoD.
How does the $10.3 million contract value compare to similar environmental services contracts awarded by the Army or other DoD branches?
Comparing the $10.3 million contract value requires context regarding the specific services, duration, and complexity. Environmental services can range widely from simple assessments to complex, long-term remediation projects. For a contract spanning over 10 years, this value might be considered moderate. However, without knowing the exact scope (e.g., number of sites, type of contaminants, remediation technologies required), a direct comparison is difficult. Generally, larger, more complex remediation projects or those involving extensive site characterization at multiple locations would command higher values. The fact that this contract is tied to the BRAC program suggests it might involve closure-related activities, which can be extensive and costly.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental services, and how are they mitigated?
The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs. If the government's oversight is insufficient, the contractor may not be incentivized to control costs as tightly as they would under a fixed-price contract. This can lead to the final cost exceeding initial estimates. Mitigation strategies include robust government oversight by the Contracting Officer's Representative (COR) to scrutinize all incurred costs, ensuring they are reasonable, allocable, and allowable according to the contract terms. Clear definition of work requirements and performance standards is also crucial. The fixed fee component provides some predictability regarding the contractor's profit, but the overall cost is variable.
What is the significance of this contract being part of the Base Realignment and Closure (BRAC) environmental program?
This contract's inclusion in the BRAC environmental program signifies its role in addressing environmental liabilities and responsibilities associated with the closure or realignment of military installations. BRAC projects often involve complex environmental investigations, cleanup activities, and long-term monitoring to ensure compliance with environmental laws and protect human health and the environment. Contracts under BRAC are critical for managing the legacy environmental impacts of past military activities and facilitating the transition of bases to non-military use. This specific contract likely supports the environmental cleanup or management efforts at Myrtle Beach AFB as part of the broader BRAC initiative.
Given the 10+ year duration, what are the potential challenges in managing this contract effectively over its lifecycle?
Managing a contract of this length presents several challenges. Firstly, ensuring continuity of government oversight and expertise is crucial; personnel changes within the government can lead to loss of institutional knowledge. Secondly, environmental regulations and best practices evolve over time, requiring the contract to remain adaptable. The government must ensure the contract's scope and requirements can be updated to reflect these changes, potentially through contract modifications. Thirdly, maintaining contractor performance and motivation over such an extended period requires consistent communication, performance evaluations, and potentially incentive structures. Finally, budget fluctuations and changing priorities within the DoD could impact funding availability for long-term environmental programs.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 312 DIRECTORS DRIVE, KNOXVILLE, TN, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DACW4593D0044
IDV Type: IDC
Timeline
Start Date: 2001-06-08
Current End Date: 2012-08-29
Potential End Date: 2012-08-29 00:00:00
Last Modified: 2014-06-03
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