DoD's $42.4M contract for remediation services awarded to Weston Solutions Inc. shows potential value concerns
Contract Overview
Contract Amount: $42,417,912 ($42.4M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2005-08-22
End Date: 2009-03-21
Contract Duration: 1,307 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200511!001746!5700!FA8903!HSW/PKV !FA890304D8681 !A!N! !N!0208 ! !20050822!20060415!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* !IRAQ !+000021753380!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A!D!20081230!B! ! !A! !A!U!U!2!012!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $42.4 million to WESTON SOLUTIONS INC for work described as: 200511!001746!5700!FA8903!HSW/PKV !FA890304D8681 !A!N! !N!0208 ! !20050822!20060415!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* … Key points: 1. The contract's cost-plus-fixed-fee structure may lead to cost overruns if not managed tightly. 2. Limited competition, despite being advertised as 'full and open after exclusion of sources,' warrants scrutiny. 3. The duration of the contract (over 3.5 years) suggests a significant, long-term need for these services. 4. The specific remediation services required in Iraq indicate a complex and potentially hazardous operating environment. 5. The contractor, Weston Solutions Inc., has a substantial contract value, suggesting significant capacity and experience.
Value Assessment
Rating: questionable
The total award amount of $42.4 million for remediation services over 1307 days (approximately 3.5 years) requires careful benchmarking. Without specific details on the scope of work and the nature of the remediation, it's difficult to definitively assess value for money. However, cost-plus-fixed-fee contracts can sometimes incentivize contractors to increase costs to achieve a higher fee, especially in complex environments like Iraq. Comparing this to similar remediation contracts in contingency operations would be crucial for a thorough value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the opportunity was initially broadly advertised, certain sources were later excluded. The data indicates only two bids were received. This limited competition could potentially lead to higher prices than if a broader range of qualified bidders had participated, as it reduces the pressure on the winning contractor to offer the most competitive price.
Taxpayer Impact: With only two bids, taxpayers may not have received the full benefit of competitive pricing, potentially leading to a higher overall cost for the remediation services.
Public Impact
This contract directly benefits the Department of Defense by addressing environmental remediation needs in a deployed operational theater. The services delivered are critical for maintaining operational readiness and environmental compliance in Iraq. The geographic impact is concentrated in Iraq, specifically supporting military operations there. While not explicitly stated, such contracts can have implications for the specialized workforce required for complex remediation tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure can incentivize cost escalation.
- Limited competition (2 bids) may result in suboptimal pricing.
- Operating in a contingency environment (Iraq) introduces inherent risks and potential for unforeseen costs.
- Long contract duration increases exposure to changing conditions and potential scope creep.
Positive Signals
- Contract awarded to a single entity suggests a need for specialized capabilities.
- The existence of a fixed fee component provides some level of cost predictability.
- The contract value indicates a significant undertaking, likely addressing critical needs.
Sector Analysis
This contract falls within the Construction and Remediation Services sector, a critical component of government contracting, particularly for defense and infrastructure projects. The market for environmental remediation services is substantial, driven by regulatory requirements and the need to manage hazardous materials. Contracts of this magnitude often involve specialized firms with expertise in complex engineering and environmental management, especially in challenging overseas locations. Benchmarking this spending against similar large-scale remediation projects in contingency zones would provide further context on its relative cost-effectiveness.
Small Business Impact
The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. The large award value suggests it is likely beyond the scope typically reserved for small businesses, and the primary contractor, Weston Solutions Inc., is a large business. Therefore, the direct impact on the small business ecosystem appears minimal, though large prime contractors may engage small businesses for specific support roles not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Department of the Air Force, given their roles in awarding and managing the contract. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the remediation activities and any associated risks or allegations of mismanagement.
Related Government Programs
- Environmental Remediation Services
- Contingency Operations Support
- Base Operations Support
- Construction Services
- Department of Defense Contracts
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition may impact price.
- Complexity of remediation in a contingency zone.
- Long contract duration increases risk exposure.
Tags
department-of-defense, department-of-the-air-force, remediation-services, construction, iraq, cost-plus-fixed-fee, limited-competition, contingency-operations, weston-solutions-inc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.4 million to WESTON SOLUTIONS INC. 200511!001746!5700!FA8903!HSW/PKV !FA890304D8681 !A!N! !N!0208 ! !20050822!20060415!044519429!044519429!044519429!N!WESTON SOLUTIONS, INC !1400 WESTON WAY !WEST CHESTER !PA!19380!00000! !IZ!* !* !IRAQ !+000021753380!N!N!000000000000!Z111!MAINT/OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !562910!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS 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 $42.4 million.
What is the period of performance?
Start: 2005-08-22. End: 2009-03-21.
What is the specific nature of the 'remediation services' required under this contract, and what environmental hazards are being addressed?
The contract specifies 'Remediation Services' under NAICS code 562910. While the exact nature of the remediation is not detailed in the provided summary, this NAICS code typically covers services such as hazardous waste treatment and disposal, site remediation, and asbestos abatement. Given the contract's location in Iraq, it is plausible that the services relate to cleaning up contaminated sites from military operations, managing hazardous materials used in equipment, or addressing legacy environmental issues. Further investigation into the contract's statement of work would be necessary to identify the specific hazards and remediation techniques employed.
How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar remediation projects in contingency environments?
Cost-plus-fixed-fee (CPFF) contracts are often used when the scope of work is not well-defined or when unforeseen circumstances are likely, as is common in contingency operations. While CPFF provides flexibility, it carries a risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Compared to fixed-price contracts, CPFF can offer better value if cost savings are achieved through efficient performance, but it requires robust oversight to prevent unnecessary expenditures. For remediation projects, especially those involving hazardous materials or complex site conditions, CPFF is a common, albeit scrutinized, choice due to the inherent uncertainties.
What were the specific reasons for excluding other potential sources in this 'full and open competition after exclusion of sources' award?
The designation 'full and open competition after exclusion of sources' implies that the opportunity was initially posted for broad competition, but certain potential offerors were subsequently excluded from the bidding process. The reasons for exclusion are typically based on specific criteria outlined in the solicitation, such as failure to meet minimum qualifications, technical requirements, past performance standards, or security clearances. Without access to the detailed solicitation and award documents, the precise rationale for excluding other sources remains unclear. This exclusion mechanism can sometimes limit the competitive landscape, even if the initial intent was full and open competition.
What is Weston Solutions Inc.'s track record with similar large-scale environmental remediation contracts, particularly in overseas or contingency environments?
Weston Solutions Inc. is a significant player in the environmental services sector, with a history of performing large-scale remediation and construction projects for government agencies, including the Department of Defense. Their experience often includes managing complex environmental challenges, hazardous waste, and infrastructure support in various locations. To fully assess their track record for this specific contract, a review of their past performance on similar projects, particularly those in challenging overseas environments like Iraq, would be beneficial. This would involve examining client feedback, project outcomes, and any history of cost or schedule issues on comparable contracts.
How has spending on remediation services in Iraq by the Department of Defense evolved over time, and does this contract represent a significant shift or continuation?
Spending on remediation services in Iraq by the Department of Defense has likely fluctuated significantly over the years, influenced by the scale and nature of military operations, evolving environmental regulations, and shifting strategic priorities. Early phases of operations might have seen higher spending on immediate cleanup and waste management, while later phases could focus on long-term site restoration or addressing legacy contamination. This $42.4 million contract, awarded in 2005 for services extending into 2009, represents a substantial investment during a period of active military engagement. Understanding historical spending patterns would require analyzing DoD's budget allocations and contract awards for environmental services in Iraq across different fiscal years.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)
Address: 1400 WESTON WAY, WEST CHESTER, PA, 06
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890304D8681
IDV Type: IDC
Timeline
Start Date: 2005-08-22
Current End Date: 2009-03-21
Potential End Date: 2009-03-21 00:00:00
Last Modified: 2008-10-02
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