USAID awards $29M contract for dioxin remediation at Bien Hoa Airbase, Vietnam

Contract Overview

Contract Amount: $28,995,555 ($29.0M)

Contractor: Vina E&C Investment and Construction JSC

Awarding Agency: Agency for International Development

Start Date: 2022-06-15

End Date: 2026-09-30

Contract Duration: 1,568 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USAID CIVIL WORKS FOR DIOXIN REMEDIATION AT BIEN HOA AIRBASE AREA PHASE 1

Plain-Language Summary

Agency for International Development obligated $29.0 million to VINA E&C INVESTMENT AND CONSTRUCTION JSC for work described as: USAID CIVIL WORKS FOR DIOXIN REMEDIATION AT BIEN HOA AIRBASE AREA PHASE 1 Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract duration indicates a long-term commitment to the remediation effort. 4. Fixed-price contract type aims to control costs for the government. 5. The project addresses a critical environmental hazard with international implications.

Value Assessment

Rating: good

The contract value of $28.99 million for dioxin remediation appears reasonable given the scale and complexity of environmental cleanup projects. Benchmarking against similar large-scale environmental remediation contracts, especially those involving hazardous materials in international settings, would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, but the total cost will depend on the successful execution of the remediation activities over the contract's duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a healthy level of competition for this significant environmental remediation project. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a wide range of potential solutions and competitive pricing, maximizing the value of federal dollars spent on this critical environmental cleanup.

Public Impact

The primary beneficiaries are the environment and public health in Vietnam, specifically around the Bien Hoa Airbase area. Services delivered include the remediation of dioxin contamination, a persistent and harmful environmental pollutant. The geographic impact is localized to the Bien Hoa Airbase area in Vietnam. Workforce implications may include the creation of local jobs for skilled and unskilled labor involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen remediation challenges arise.
Ensuring long-term effectiveness of the remediation technology employed.
Geopolitical considerations and local regulatory compliance in Vietnam.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition likely secured competitive pricing.
USAID's experience in managing complex international development projects.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on environmental remediation. The market for such services is driven by government mandates, international agreements, and the need to address legacy environmental contamination from past industrial and military activities. Comparable spending benchmarks would involve other large-scale hazardous waste cleanup projects funded by government agencies or international bodies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Analysis of small business participation would require further investigation into the contract's specific clauses and the prime contractor's subcontracting plan, if applicable. Without this information, the direct impact on the small business ecosystem remains undetermined.

Oversight & Accountability

Oversight for this contract would likely be managed by USAID's contracting officers and program officials, potentially with support from their Office of Inspector General. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment milestones. Transparency would be facilitated through contract award notices and potentially public reports on remediation progress.

Related Government Programs

Environmental Remediation Services
International Development Projects
Hazardous Waste Management
Department of Defense Environmental Programs (historical context)

Risk Flags

Long contract duration may increase exposure to changing conditions.
Complexity of dioxin remediation requires specialized expertise.
Potential for unforeseen environmental challenges.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $29.0 million to VINA E&C INVESTMENT AND CONSTRUCTION JSC. USAID CIVIL WORKS FOR DIOXIN REMEDIATION AT BIEN HOA AIRBASE AREA PHASE 1

Who is the contractor on this award?

The obligated recipient is VINA E&C INVESTMENT AND CONSTRUCTION JSC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2022-06-15. End: 2026-09-30.

What is the historical spending by USAID on environmental remediation projects, particularly in Southeast Asia?

USAID has a history of funding environmental remediation projects globally, often linked to its development assistance programs and addressing legacy environmental issues from past U.S. military or industrial activities. Specific historical spending data for environmental remediation in Southeast Asia would require a detailed analysis of USAID's procurement databases and program reports. However, such projects are typically complex and resource-intensive, often involving multi-year efforts and significant financial commitments, as evidenced by the $28.99 million allocated for the Bien Hoa Airbase project. This contract represents a substantial, targeted investment in addressing a critical environmental hazard in the region.

How does the cost per unit of remediation for this contract compare to similar projects globally?

Determining a precise 'cost per unit' for remediation is challenging without specific details on the volume of contaminated material, the type of contaminants, and the remediation methods employed. The $28.99 million contract covers Phase 1 of dioxin remediation at Bien Hoa Airbase. To benchmark effectively, one would need to identify comparable projects that specify the amount of soil or water treated, the concentration of contaminants removed, and the technologies used. Generally, dioxin remediation is expensive due to the persistent nature of the contaminant and the specialized techniques required. Without granular data on the scope of work and unit metrics, a direct cost-per-unit comparison to other global projects is not feasible from the provided summary.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Key performance indicators for this dioxin remediation contract would likely focus on the effectiveness of the cleanup, adherence to environmental standards, project timelines, and budget management. Success would be measured by the reduction of dioxin levels in the soil and water to meet agreed-upon regulatory standards, ensuring the safety of the surrounding environment and population. Performance metrics might include the volume of material remediated, the percentage of contaminant reduction achieved, compliance with environmental monitoring protocols, and timely completion of project milestones. USAID's contracting officers would monitor these KPIs throughout the contract duration to ensure satisfactory performance by VINA E&C INVESTMENT AND CONSTRUCTION JSC.

What is the track record of VINA E&C INVESTMENT AND CONSTRUCTION JSC in handling large-scale environmental remediation projects?

Information regarding the specific track record of VINA E&C INVESTMENT AND CONSTRUCTION JSC in handling large-scale environmental remediation projects, particularly those involving dioxin, is not detailed in the provided contract summary. A thorough assessment would require reviewing the company's past performance on similar contracts, client references, and any publicly available project portfolios or case studies. Given the critical nature of dioxin remediation, USAID would have likely conducted due diligence on the contractor's capabilities and experience during the procurement process to ensure they possess the necessary expertise and resources to successfully execute this complex project.

What are the potential risks associated with the long duration (1568 days) of this contract?

The long duration of this contract, approximately 4.3 years, presents several potential risks. These include the possibility of unforeseen environmental conditions or technical challenges emerging during the remediation process, which could lead to scope changes or cost increases, despite the fixed-price nature. There's also a risk of technological obsolescence if newer, more efficient remediation methods become available. Furthermore, geopolitical stability, changes in local regulations, and the contractor's sustained capacity and financial health over such an extended period are factors that require ongoing monitoring. USAID will need robust oversight to manage these long-term risks effectively.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 72044021B00001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 92 LY TU TRONG STREET, VUNG TAU

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,995,555

Exercised Options: $28,995,555

Current Obligation: $28,995,555

Actual Outlays: $15,232,737

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline