DoD's $23.3M environmental consulting contract for Air Force bases shows fair value and strong competition

Contract Overview

Contract Amount: $23,312,398 ($23.3M)

Contractor: Ageiss Inc

Awarding Agency: Department of Defense

Start Date: 2015-08-28

End Date: 2017-09-07

Contract Duration: 741 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF ENVIRONMENTAL RESTORATION PROGRAM SUPPORT AT MULTIPLE AIR FORCE INSTALLATIONS

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to AGEISS INC for work described as: IGF::CL::IGF ENVIRONMENTAL RESTORATION PROGRAM SUPPORT AT MULTIPLE AIR FORCE INSTALLATIONS Key points: 1. The contract was awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar environmental consulting services. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. The duration of the contract (741 days) suggests a substantial scope of work. 5. The contractor, AGEISS INC, has a track record in providing environmental services to the government. 6. The contract falls under environmental consulting services, a critical area for military installations.

Value Assessment

Rating: good

The contract's total value of $23.3 million over approximately two years suggests a reasonable annual spend for comprehensive environmental consulting services across multiple Air Force installations. Benchmarking against similar contracts for environmental remediation and consulting services indicates that the pricing is within an acceptable range, especially considering the complexity and geographic spread of the work. The firm fixed-price structure further supports value by locking in costs and incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while initial proposals might have been limited, the final award was made after a broad solicitation. The presence of 5 bidders suggests a healthy level of competition for this environmental consulting requirement. This competitive environment is generally conducive to achieving fair market prices and ensuring that the government receives quality services at a reasonable cost.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as multiple firms vied for the contract, driving down potential costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Air Force and its various installations, which receive essential environmental consulting services. Services delivered include environmental restoration program support, crucial for compliance and operational readiness. The geographic impact is multi-installation, covering multiple Air Force bases. The contract supports a workforce of environmental consultants and related technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if environmental restoration needs are more extensive than initially defined.
Dependence on AGEISS INC's performance could impact Air Force environmental compliance timelines.
The 'exclusion of sources' aspect of the competition warrants a closer look to ensure no qualified bidders were unduly excluded.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, AGEISS INC, has prior experience in similar government contracts.
The contract duration of over two years allows for sustained support and project completion.

Sector Analysis

Environmental consulting services represent a significant segment within the broader professional services market supporting government operations. This contract, valued at over $23 million, falls within the typical range for large-scale environmental support contracts awarded by federal agencies. The market is characterized by specialized firms capable of addressing complex regulatory requirements and technical challenges, such as those faced by military installations. Comparable spending benchmarks for environmental remediation and consulting services often range from millions to tens of millions annually, depending on the scope and number of sites involved.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' flag is false. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses opportunistically.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. The firm fixed-price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Military Base Operations Support
Federal Environmental Consulting Contracts
Air Force Installation Support Programs

Risk Flags

Potential for scope creep in environmental restoration projects.
Contractor performance risk impacting compliance timelines.
Adequacy of competition given 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to AGEISS INC. IGF::CL::IGF ENVIRONMENTAL RESTORATION PROGRAM SUPPORT AT MULTIPLE AIR FORCE INSTALLATIONS

Who is the contractor on this award?

The obligated recipient is AGEISS 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 $23.3 million.

What is the period of performance?

Start: 2015-08-28. End: 2017-09-07.

What is the track record of AGEISS INC in performing environmental consulting services for the federal government?

AGEISS INC has a history of performing environmental consulting and support services for various federal agencies, including the Department of Defense. Their contract portfolio often includes tasks related to environmental restoration, compliance, and management at military installations. While specific performance metrics for this particular contract are not detailed here, their sustained engagement in this sector suggests a capacity to meet government requirements. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations from previous contracts to fully assess their reliability and effectiveness in delivering environmental solutions.

How does the value of this contract compare to similar environmental consulting contracts awarded by the Department of Defense?

The $23.3 million contract value for environmental consulting services over approximately two years is within the expected range for large-scale support at multiple military installations. Contracts for similar services, such as environmental remediation, compliance monitoring, and hazardous waste management, awarded by agencies like the EPA or other branches of the DoD, can range from several million to tens of millions of dollars annually. The scope, number of installations covered, and specific services required (e.g., restoration vs. ongoing compliance) heavily influence these values. This contract appears to represent a significant, but not outlier, investment in maintaining environmental standards at Air Force facilities.

What are the primary risks associated with this environmental consulting contract?

Key risks include the potential for unforeseen environmental conditions at the Air Force installations that could significantly increase project scope and costs, despite the firm fixed-price structure. There's also a risk related to contractor performance; delays or inadequate service delivery by AGEISS INC could impact the Air Force's environmental compliance status and operational continuity. Furthermore, the 'exclusion of sources' aspect in the competition, while permissible, carries a risk if it inadvertently limited the pool of highly qualified bidders, potentially affecting long-term value. Regulatory changes in environmental policy could also introduce new requirements or complexities not fully anticipated at the time of award.

How effective is the firm fixed-price contract type in managing costs for environmental restoration programs?

The firm fixed-price (FFP) contract type is generally effective in managing costs for well-defined projects by shifting the risk of cost overruns to the contractor. For environmental restoration programs, where the scope can sometimes be uncertain, FFP requires careful initial definition of work and potential contingencies. It incentivizes the contractor to control costs and improve efficiency to maximize profit. However, if unforeseen conditions arise that necessitate significant scope changes, contract modifications and potential price adjustments may be required, which can add administrative burden and potentially increase the final cost if not managed strictly. For predictable, recurring services, FFP is highly effective; for highly variable restoration work, it requires robust change management.

What is the historical spending trend for environmental consulting services within the Department of the Air Force?

Historical spending data for environmental consulting services within the Department of the Air Force typically shows a consistent and substantial investment. Agencies like the Air Force are mandated to manage environmental compliance, restoration, and conservation across numerous installations, often involving complex and long-term projects. Annual spending can fluctuate based on specific cleanup initiatives, infrastructure upgrades requiring environmental impact assessments, and evolving regulatory landscapes. While precise figures require detailed historical analysis, it's common for the Air Force to allocate hundreds of millions, if not billions, of dollars over several years towards environmental programs, encompassing consulting, remediation, and compliance activities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 848 CUSTER ST, CHEYENNE, WY, 82009

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,312,398

Exercised Options: $23,312,398

Current Obligation: $23,312,398

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890313D0004

IDV Type: IDC

Timeline