DoD's $15.8M Remediation Services Contract Awarded to URS Group, Inc. for Long-Term Environmental Support

Contract Overview

Contract Amount: $15,784,072 ($15.8M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-12-06

End Date: 2011-12-09

Contract Duration: 2,194 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: LIMESTONE, AROOSTOOK County, MAINE, 04750

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to URS GROUP, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 6 years indicates a significant, long-term commitment to remediation services. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 562910 points to a specialized environmental remediation market. 5. The contract was awarded to URS Group, Inc., a known entity in the federal contracting space. 6. The 'ME' state code indicates the primary place of performance is Maine.

Value Assessment

Rating: fair

Benchmarking the value of this $15.8 million contract requires more detailed cost breakdowns and comparisons to similar environmental remediation projects. Without specific deliverables or performance metrics, it's challenging to definitively assess value for money. However, the firm-fixed-price structure suggests an attempt to control costs. Further analysis would involve comparing unit costs for specific remediation activities against industry standards and other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The competitive nature of this award, while not exceptionally high, likely provided some downward pressure on pricing compared to a sole-source or limited competition scenario, benefiting taxpayers.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other Department of Defense entities requiring environmental remediation. The services delivered are environmental remediation, crucial for addressing hazardous waste and contaminated sites. The geographic impact is primarily focused on Maine, where the contract is slated for performance. The contract supports a specialized workforce in the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, despite the fixed-price structure.
Dependence on a single contractor for critical environmental services could pose a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Awarded through full and open competition, allowing for a selection from multiple potential providers.
Long contract duration suggests a stable, ongoing need for these services.

Sector Analysis

Environmental remediation services fall under the broader environmental services sector, which is a significant market driven by regulatory compliance and the need to address historical contamination. This contract represents a portion of the federal government's spending on environmental management and cleanup, a sector that includes a wide range of specialized firms. Comparable spending benchmarks would involve looking at other large-scale environmental cleanup contracts awarded by federal agencies.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. The award to URS Group, Inc., a large entity, suggests that small businesses may not have been primary bidders or recipients of the prime contract. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Department of Defense Contracts
Air Force Environmental Programs
Hazardous Waste Management
Superfund Site Cleanup

Risk Flags

Potential for cost growth due to unforeseen environmental conditions.
Contractor performance risk over the long duration.
Dependence on regulatory compliance and potential changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to URS GROUP, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is URS GROUP, 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 $15.8 million.

What is the period of performance?

Start: 2005-12-06. End: 2011-12-09.

What is the track record of URS Group, Inc. with federal environmental remediation contracts?

URS Group, Inc., now part of AECOM, has a substantial history of performing environmental remediation and engineering services for various federal agencies, including the Department of Defense, Department of Energy, and the Environmental Protection Agency. Their experience spans a wide range of complex projects, from hazardous waste site cleanup and munitions response to infrastructure support and environmental compliance. Analyzing their past performance on similar-sized contracts, including any past performance evaluations or disputes, would provide further insight into their capabilities and reliability for this specific Department of the Air Force contract.

How does the $15.8 million value compare to other federal environmental remediation contracts?

The $15.8 million value for this 6-year environmental remediation contract is moderate within the context of federal spending on such services. Large-scale environmental cleanup projects, particularly those involving Superfund sites or extensive military base cleanup, can easily reach hundreds of millions or even billions of dollars over their lifecycles. However, for specific site remediation or ongoing support services, $15.8 million over six years represents a significant commitment. Benchmarking would involve comparing the average annual value ($2.63 million/year) against similar contracts awarded by the Air Force or other DoD components for comparable scope and duration.

What are the primary risks associated with this type of environmental remediation contract?

Key risks include unforeseen site conditions (e.g., discovering more contamination than initially assessed), which can lead to cost overruns despite a firm-fixed-price contract, requiring contract modifications or change orders. Performance risks involve the contractor's ability to meet stringent environmental standards and deadlines, potentially leading to penalties or delays. Regulatory risks are also present, as environmental regulations can change, impacting remediation methods and costs. Furthermore, long-term contracts carry the risk of contractor performance degradation or financial instability over time.

How effective are firm-fixed-price contracts in managing environmental remediation projects?

Firm-fixed-price (FFP) contracts are generally preferred by agencies when the scope of work is well-defined and risks can be reasonably assessed upfront, as they provide the most cost certainty. For environmental remediation, FFP can be effective for tasks with predictable outcomes, such as routine monitoring or specific cleanup actions. However, the inherent uncertainties in environmental conditions can make defining a precise scope challenging. When unforeseen issues arise, managing them under an FFP contract can lead to contentious change order negotiations or require careful contract administration to ensure fair pricing for additional work, potentially negating some of the initial cost control benefits.

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

The Department of the Air Force consistently spends significant amounts on environmental remediation, driven by its extensive history of operations and legacy contamination issues at numerous installations worldwide. Historical spending trends reflect ongoing efforts to comply with environmental regulations like CERCLA (Superfund) and RCRA. Spending fluctuates based on the identification of new contamination, the progression of cleanup projects, and budget allocations. Analyzing multi-year spending data for the Air Force's environmental programs would reveal patterns in contract awards, types of services procured, and the overall investment in environmental stewardship and compliance.

What does the NAICS code 562910 signify in terms of market size and competition?

The NAICS code 562910, 'Remediation Services,' encompasses establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. This includes activities like site remediation, hazardous waste site cleanup, and asbestos abatement. The market size for remediation services is substantial, driven by regulatory requirements and the need to address historical industrial and military activities. Competition within this sector is typically robust, featuring a mix of large, established environmental engineering and construction firms, as well as smaller, specialized companies. The presence of multiple bidders, as seen in this contract, is characteristic of this competitive landscape.

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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 10101 REUNION PLACE, SUITE, SAN ANTONIO, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: FA890304D8679

IDV Type: IDC

Timeline