Defense awards $17.4M contract for remediation services in Afghanistan, highlighting potential cost overruns
Contract Overview
Contract Amount: $10,564,234 ($10.6M)
Contractor: Amec E&I Holdings, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-03
End Date: 2007-11-30
Contract Duration: 606 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Construction
Official Description: 200607!000591!5700!FA8903!HSW/PKV !F4162403D8606 !A!N! !N!0104 ! !20060403!20060831!178366183!178366183!066630070!N!MACTEC ENGINEERING & CONSULTIN!1105 LAKEWOOD PKWY STE 300!ALPHARETTA !GA!30004!00000! !AF!* !* !AFGHANISTA!+000002265816!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !562910!E! !5!B!M! !A!D!20080319!B! ! !A! !A!U!Y!2!003!B! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: ALPHARETTA, FULTON County, GEORGIA, 30009
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to AMEC E&I HOLDINGS, INC. for work described as: 200607!000591!5700!FA8903!HSW/PKV !F4162403D8606 !A!N! !N!0104 ! !20060403!20060831!178366183!178366183!066630070!N!MACTEC ENGINEERING & CONSULTIN!1105 LAKEWOOD PKWY STE 300!ALPHARETTA !GA!30004!00000! !AF!* !* … Key points: 1. The contract value is $17.4 million, awarded to AMEC E&I HOLDINGS, INC. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk identified in the contract duration and the nature of services in a challenging environment. 4. The sector is Construction, specifically Remediation Services, with a PSC code of 562910.
Value Assessment
Rating: questionable
The contract was awarded on a Time and Materials basis with 3 modifications, totaling $17.4M. The initial award value is not explicitly stated, making direct pricing assessment difficult. However, the number of modifications suggests potential scope creep or unforeseen costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery. However, the Time and Materials pricing structure can sometimes lead to higher costs if not closely managed.
Taxpayer Impact: While competition was robust, the Time and Materials nature of the contract and potential for modifications could lead to taxpayer costs exceeding initial estimates if not managed effectively.
Public Impact
Awarded for services in Afghanistan, indicating a focus on supporting deployed military operations. The contract is for Remediation Services, crucial for environmental cleanup and site restoration. The duration of the contract (606 days) suggests a significant undertaking. The awardee, AMEC E&I HOLDINGS, INC., is a significant player in engineering and consulting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Contract modifications
- Services in a high-risk environment
Positive Signals
- Full and open competition
- Experienced contractor
Sector Analysis
This contract falls under the Construction sector, specifically Remediation Services (NAICS 562910). Spending in this area is often driven by infrastructure needs, environmental compliance, and support for military operations in various locations.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The awardee is a larger entity, and further analysis would be needed to determine subcontracting opportunities.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA). Oversight would focus on ensuring timely delivery, quality of services, and adherence to the Time and Materials pricing structure.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Risk associated with performing services in a challenging geopolitical environment.
- Contract modifications could indicate scope creep or unforeseen issues.
- Lack of detailed breakdown of initial award value versus final cost.
Tags
remediation-services, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to AMEC E&I HOLDINGS, INC.. 200607!000591!5700!FA8903!HSW/PKV !F4162403D8606 !A!N! !N!0104 ! !20060403!20060831!178366183!178366183!066630070!N!MACTEC ENGINEERING & CONSULTIN!1105 LAKEWOOD PKWY STE 300!ALPHARETTA !GA!30004!00000! !AF!* !* !AFGHANISTA!+000002265816!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !562910!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is AMEC E&I HOLDINGS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2006-04-03. End: 2007-11-30.
What was the initial award value before modifications, and how did the final cost compare?
The provided data does not specify the initial award value. It only shows the total value after modifications, which is $17.4 million. Without the baseline, it's impossible to assess the extent of cost growth or the effectiveness of initial pricing against the final expenditure.
What specific remediation activities were performed, and were they critical to mission success?
The data indicates 'Remediation Services' under NAICS 562910, which typically involves cleaning up contaminated sites. While crucial for environmental safety and operational readiness, the specific activities and their direct impact on mission success are not detailed in this summary.
How effectively was the Time and Materials pricing managed to control costs in Afghanistan?
Managing Time and Materials contracts in complex environments like Afghanistan presents inherent risks of cost escalation. Effective oversight would involve rigorous tracking of labor hours, material costs, and justification for all expenditures to ensure taxpayer funds were used efficiently.
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: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1105 SANCTUARY PARKWAY, ALPHARETTA, GA, 07
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F4162403D8606
IDV Type: IDC
Timeline
Start Date: 2006-04-03
Current End Date: 2007-11-30
Potential End Date: 2007-11-30 00:00:00
Last Modified: 2010-12-23
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