EPA awards $12.76M R&D contract to Shaw Environmental, Inc. for environmental services
Contract Overview
Contract Amount: $12,761,294 ($12.8M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2003-06-15
End Date: 2008-06-30
Contract Duration: 1,842 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45212
State: Ohio Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $12.8 million to SHAW ENVIRONMENTAL, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. The duration of 1842 days (approx. 5 years) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541710 points to research and development activities. 5. The contract was awarded to a single entity, Shaw Environmental, Inc. 6. The contract was awarded by the Environmental Protection Agency (EPA).
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee structure means the final cost is tied to actual expenses plus a predetermined fee, which can lead to variations. Comparing it to similar R&D contracts for environmental services would require access to a broader dataset of comparable procurements to assess if the overall cost was reasonable for the scope of work.
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 two bids suggests a moderate level of competition for this specific R&D requirement. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially better value for the government.
Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging contractors to offer more competitive pricing and terms to secure the award.
Public Impact
The primary beneficiaries are likely the Environmental Protection Agency and its mission to protect human health and the environment. The services delivered are expected to be in the realm of research and development related to environmental science and engineering. The geographic impact is likely focused on areas relevant to EPA's research initiatives, potentially nationwide. Workforce implications could include employment for scientists, engineers, and support staff within Shaw Environmental, Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- Limited competition (two bidders) may not have resulted in the lowest possible price.
- The long contract duration could present challenges in adapting to evolving research needs or technologies.
Positive Signals
- Awarded through full and open competition, ensuring a fair process.
- The contract supports critical R&D for the EPA's environmental mission.
- Shaw Environmental, Inc. is a single awardee, implying they were selected as the most capable bidder.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on environmental sciences. The market for environmental R&D services is driven by regulatory requirements, technological advancements, and public demand for sustainable solutions. Comparable spending benchmarks would depend on the specific nature of the R&D, but federal agencies frequently invest in this area to address complex environmental challenges.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Shaw Environmental, Inc., would determine any subcontracting opportunities based on their project needs and procurement policies.
Oversight & Accountability
Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), specifically the contracting officer and program managers responsible for the R&D project. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed project-specific information may be limited due to proprietary or sensitive research data.
Related Government Programs
- Environmental Research and Development Programs
- EPA Science and Technology Programs
- Environmental Consulting Services
- Federal Research Grants and Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to manage costs.
- Limited competition (2 bidders) may impact optimal price discovery.
- Long contract duration could pose risks if research needs evolve rapidly.
Tags
environmental-services, research-and-development, cost-plus-fixed-fee, full-and-open-competition, environmental-protection-agency, shaw-environmental-inc, naics-541710, ohio, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $12.8 million to SHAW ENVIRONMENTAL, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2003-06-15. End: 2008-06-30.
What specific environmental research areas does this contract cover?
The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific environmental research areas are not detailed, this code suggests the work could encompass a broad range of scientific and engineering disciplines applied to environmental problems. This might include areas such as pollution control technologies, climate change research, ecological studies, hazardous waste remediation science, or the development of new environmental monitoring techniques. Further details would typically be found in the contract's statement of work or performance work statement.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and incentive?
The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where the scope of work is not precisely defined at the outset, making fixed-price contracts unsuitable. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it carries risk for the government if costs escalate significantly beyond initial estimates, as the government bears the cost risk. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less flexibility for performance-based incentives. Compared to Cost Reimbursement No Fee, CPFF provides a profit incentive.
What is the typical duration for federal R&D contracts in the environmental sector?
The typical duration for federal R&D contracts in the environmental sector can vary widely depending on the complexity and scope of the research. Contracts can range from short-term feasibility studies lasting a few months to multi-year, large-scale research initiatives. A duration of 1842 days (approximately 5 years), as seen in this EPA contract, is not uncommon for significant R&D efforts that require sustained investigation, data collection, analysis, and development over an extended period. Shorter contracts might focus on specific experiments or technology assessments, while longer ones often involve iterative development and validation processes.
What does the number of bids (2) suggest about the competitiveness for this specific EPA R&D contract?
Receiving two bids for this EPA R&D contract suggests a moderate level of competition. While 'full and open competition' theoretically allows all eligible entities to bid, the actual number of interested and qualified bidders can be influenced by factors such as the specialized nature of the R&D, the contract value, the required expertise, and the agency's outreach efforts. Two bidders indicate that at least two firms were capable and willing to pursue the work. However, a higher number of bids (e.g., five or more) is generally preferred as it typically leads to more robust price discovery and a greater likelihood of achieving the best possible value for the government.
What is the significance of NAICS code 541710 for this contract?
NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is significant because it categorizes the primary economic activity of the contract. This code tells us that the work performed by Shaw Environmental, Inc. for the EPA is focused on scientific inquiry and experimentation to discover or improve knowledge and products. It distinguishes this contract from those focused on services, construction, or manufacturing, and helps in benchmarking spending and understanding the market landscape for R&D providers within the federal procurement system.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Timeline
Start Date: 2003-06-15
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2013-09-20
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