Army's $115M Hazardous Substance Cleanup Contract Awarded to URS Group, Inc. for Remediation Services

Contract Overview

Contract Amount: $11,529,421 ($11.5M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-01-19

End Date: 2005-03-22

Contract Duration: 1,523 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200105!000025!96CE!CW61 !USA ENGINEER DISTRICT PHILADELPH!DACW4101D0004 !A!N!*!N!CF01 !20010119!20020121!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!59070!015!34!PITMAN !GLOUCESTER !NEW JERSEY!+000002470918!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5ZSE!ENVIR PROTECT AGENCY SUPERFUND!562211!*!*!5!B!M! !*!*!*!B!*!*!A! !A !N!U!2!003!B! !Z!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: RICHWOOD, GLOUCESTER County, NEW JERSEY, 08074

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to URS GROUP, INC. for work described as: 200105!000025!96CE!CW61 !USA ENGINEER DISTRICT PHILADELPH!DACW4101D0004 !A!N!*!N!CF01 !20010119!20020121!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!59070!015!34!PITMAN !GLOUC… Key points: 1. Contract awarded for hazardous substance removal and cleanup services, indicating a need for environmental remediation. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (1523 days) points to a long-term environmental cleanup project. 4. The primary service category is Remediation Services, aligning with environmental protection efforts. 5. The contract's value of over $115 million signifies a substantial investment in environmental cleanup.

Value Assessment

Rating: good

The contract value of $115,294,20.92 for remediation services appears reasonable given the scope and duration. Benchmarking against similar large-scale environmental cleanup contracts would provide further context on value for money. The cost-plus-fixed-fee (CPFF) pricing structure allows for flexibility in project execution while providing a defined profit margin for the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The competitive nature of the procurement is a positive sign for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding process, ensuring the government receives the best value for its investment in environmental cleanup services.

Public Impact

The primary beneficiaries are likely federal and state environmental protection agencies, such as the EPA Superfund program, which oversees hazardous site cleanup. The services delivered include hazardous substance removal, cleanup, and disposal, directly addressing environmental contamination. The contract is geographically focused on New Jersey, as indicated by the state and county information provided. The contract supports the environmental services sector, potentially creating or sustaining jobs in specialized cleanup and remediation fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts, especially for complex environmental remediation projects.
Ensuring contractor compliance with stringent environmental regulations and safety protocols is critical.
Long contract duration may require ongoing monitoring to ensure continued performance and adapt to changing environmental conditions.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contractor, URS Group, Inc., has a track record in providing these types of services.
The contract addresses critical environmental protection needs, aligning with public health and safety goals.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under the 'Remediation Services' NAICS code (562910), which includes establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. The market for these services is driven by regulatory requirements, such as those under EPA's Superfund program, and the need to address legacy industrial contamination. Spending in this sector can fluctuate based on Superfund site prioritization and funding availability.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, URS Group, Inc., may engage small businesses as subcontractors to fulfill portions of the work. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be provided by the contracting officer and technical representatives within the awarding agency (Department of the Army). The contract's cost-plus-fixed-fee structure necessitates careful monitoring of costs and performance to ensure value. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office may conduct audits or investigations as needed.

Related Government Programs

EPA Superfund Program
Hazardous Waste Management
Environmental Remediation Contracts
Department of Defense Environmental Services

Risk Flags

Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
Long contract duration requires sustained oversight to ensure performance and compliance.
Complexity of hazardous substance cleanup necessitates robust technical expertise and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to URS GROUP, INC.. 200105!000025!96CE!CW61 !USA ENGINEER DISTRICT PHILADELPH!DACW4101D0004 !A!N!*!N!CF01 !20010119!20020121!791684780!124252052!043271568!N!URS GROUP, INC !7101 WISCONSIN AVE SUITE !BETHESDA !MD!20814!59070!015!34!PITMAN !GLOUCESTER !NEW JERSEY!+000002470918!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !5ZSE!ENVIR PROTECT AGENCY SUPERFUND!562211!*!*!5!B!M! !*!*!*!B!*!*!A!

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 Army).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2001-01-19. End: 2005-03-22.

What is the track record of URS Group, Inc. in handling similar hazardous substance removal and cleanup contracts?

URS Group, Inc. (now part of AECOM) has a significant history of performing large-scale environmental remediation projects for government agencies, including the Department of Defense and the EPA. Their experience encompasses a wide range of hazardous substances and site conditions, from chemical spills to contaminated soil and groundwater. They have been involved in numerous Superfund site cleanups and military base restoration projects. While specific performance metrics for this particular contract are not detailed here, their extensive portfolio suggests a capacity to manage complex environmental challenges. Further investigation into past performance evaluations and any disputes or claims related to their environmental contracts would provide a more comprehensive understanding of their track record.

How does the awarded amount of $115.3 million compare to other large-scale environmental remediation contracts?

The $115.3 million contract value for hazardous substance removal and cleanup services is substantial, placing it among significant federal environmental remediation efforts. Large-scale Superfund site cleanups or extensive military base remediation projects can often reach into the hundreds of millions of dollars over their lifecycles. For instance, contracts for major site remediation can range from tens to hundreds of millions, depending on the complexity, duration, and scope of contamination. This contract's value appears consistent with the scale of projects typically undertaken by the Army Corps of Engineers or EPA for significant environmental restoration. A direct comparison would require analyzing contracts with similar scope, geographic location, and duration within the environmental remediation sector.

What are the primary risks associated with this type of cost-plus-fixed-fee (CPFF) contract for environmental cleanup?

Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility for uncertain project scopes like environmental cleanup, carry inherent risks. For the government, the primary risk is potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen conditions significantly increase the actual costs of cleanup. The fixed fee provides the contractor with a guaranteed profit, but the government bears the brunt of escalating direct costs. Effective oversight is crucial to mitigate this risk, requiring rigorous monitoring of expenditures, validation of costs, and strict change order management. For the contractor, the risk lies in underestimating costs, which could reduce their overall profit margin if the fixed fee is insufficient to cover unexpected expenses.

What is the expected effectiveness of the services delivered under this contract in addressing hazardous substance contamination?

The effectiveness of the services delivered under this contract hinges on the contractor's technical expertise, adherence to remediation plans, and the chosen cleanup technologies. Hazardous substance removal, cleanup, and disposal are critical for mitigating environmental risks to human health and ecosystems. The success of such contracts is typically measured by the extent to which contamination levels are reduced to meet regulatory standards (e.g., EPA cleanup goals) and the long-term protectiveness of the implemented remedies. Given the contract's focus on Superfund-related activities, the expectation is that URS Group, Inc. will employ proven remediation techniques to address identified contamination, contributing to the restoration of affected sites in New Jersey.

How has federal spending on environmental remediation services evolved over the period this contract was active and subsequently?

Federal spending on environmental remediation services, particularly through programs like EPA's Superfund and DoD's environmental restoration efforts, has historically been substantial. During the contract's active period (2001-2005), federal agencies were actively engaged in addressing legacy contamination. Post-2005, spending patterns have been influenced by budget appropriations, environmental policy shifts, and the identification of new contaminated sites. While specific annual spending figures fluctuate, there remains a consistent need for remediation services driven by regulatory mandates and ongoing site assessments. The overall trend reflects a sustained commitment to environmental cleanup, though specific program funding levels can vary year to year based on political and economic factors.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

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

Address: 7101 WISCONSIN AVE SUITE, BETHESDA, MD, 20814

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACW4101D0004

IDV Type: IDC

Timeline