Shaw Environmental awarded $10.8M for Radford Army Ammunition Plant environmental remediation
Contract Overview
Contract Amount: $10,849,471 ($10.8M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-20
End Date: 2015-07-05
Contract Duration: 3,210 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENVIRONMENTAL REMEDIATION, RADFORD ARMY AMMUNITION PLANT
Place of Performance
Location: KNOXVILLE, KNOX County, TENNESSEE, 37923
Plain-Language Summary
Department of Defense obligated $10.8 million to SHAW ENVIRONMENTAL, INC. for work described as: ENVIRONMENTAL REMEDIATION, RADFORD ARMY AMMUNITION PLANT Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3210 days (approx. 8.8 years) indicates a long-term need for remediation services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The award was made by the Department of the Army, a major component of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 562910 points to Remediation Services. 6. The contract was awarded to Shaw Environmental, Inc.
Value Assessment
Rating: good
The contract value of $10.8 million over nearly nine years suggests a moderate annual spend for environmental remediation services at a large facility like the Radford Army Ammunition Plant. Without specific benchmarks for similar large-scale remediation projects at military installations, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. Further analysis would require comparing the per-unit costs or overall project cost to similar remediation efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonable level of competition for this environmental remediation service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair market price and encourage contractors to offer their best value solutions.
Public Impact
The primary beneficiaries are the Department of Defense and the Army, ensuring compliance with environmental regulations at the Radford Army Ammunition Plant. The services delivered include environmental remediation, crucial for mitigating contamination and restoring the site. The geographic impact is localized to Radford, Virginia, where the ammunition plant is located. Workforce implications may include employment opportunities for environmental scientists, engineers, and technicians involved in the remediation process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
- Reliance on a single contractor for an extended period might reduce future competitive opportunities.
- Environmental remediation projects can be complex and carry inherent risks of unexpected site conditions.
Positive Signals
- Firm-fixed-price contract type transfers cost risk to the contractor.
- Awarded under full and open competition, indicating a robust bidding process.
- The contract addresses a critical environmental compliance need for a major military installation.
Sector Analysis
Environmental remediation services represent a significant sector within government contracting, particularly for agencies managing large industrial sites or historical contamination. The market includes specialized firms capable of handling complex cleanup operations, hazardous waste management, and regulatory compliance. Spending in this sector is driven by environmental regulations, legacy site issues, and ongoing operational needs. Comparable spending benchmarks would typically involve analyzing other large-scale environmental cleanup contracts awarded by the Department of Defense or the Environmental Protection Agency.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were not specifically targeted for this award. The implications for the small business ecosystem are that they likely did not directly receive this prime contract. However, depending on the prime contractor's subcontracting plans, there might be opportunities for small businesses to participate as subcontractors, though this is not explicitly detailed in the award data.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to meet defined deliverables within the agreed price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.
Related Government Programs
- Environmental Services
- Defense Environmental Cleanup
- Munitions Response Program
- Army Base Realignment and Closure (BRAC) Environmental Activities
Risk Flags
- Long-term contract duration
- Potential for unforeseen site conditions in environmental remediation
Tags
environmental-remediation, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, remediation-services, radford-army-ammunition-plant, shaw-environmental-inc, virginia, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to SHAW ENVIRONMENTAL, INC.. ENVIRONMENTAL REMEDIATION, RADFORD ARMY AMMUNITION PLANT
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $10.8 million.
What is the period of performance?
Start: 2006-09-20. End: 2015-07-05.
What is the historical spending trend for environmental remediation at the Radford Army Ammunition Plant prior to this contract?
Detailed historical spending data prior to this specific $10.8 million contract (awarded 2006) for the Radford Army Ammunition Plant is not directly available in the provided data snippet. However, the duration of this contract (over 8 years) suggests a sustained and significant need for environmental remediation services at the facility. To understand historical trends, one would typically need to access historical contract databases (like FPDS) for earlier awards related to environmental cleanup at this specific plant, looking at the total obligated amounts, contract types, and durations of previous contracts. This would reveal if spending has been consistent, increasing, or decreasing over time, and whether remediation efforts have been episodic or continuous.
How does the per-unit cost of this remediation contract compare to similar projects at other Army ammunition plants?
The provided data does not include specific per-unit cost metrics (e.g., cost per acre remediated, cost per ton of soil treated) that would allow for a direct comparison to similar projects at other Army ammunition plants. The total award value of $10.8 million is for a broad scope of 'Remediation Services' over a long duration (3210 days). To perform such a comparison, detailed breakdowns of the work performed and associated costs would be necessary, along with data from comparable contracts at facilities like the Holston Army Ammunition Plant or the Iowa Army Ammunition Plant. Benchmarking would require identifying contracts with similar remediation objectives, site conditions, and regulatory requirements.
What specific environmental risks or contaminants was this contract intended to address at the Radford Army Ammunition Plant?
The provided data identifies the contract's purpose as 'ENVIRONMENTAL REMEDIATION, RADFORD ARMY AMMUNITION PLANT' under NAICS code 562910 (Remediation Services). However, it does not specify the particular environmental risks or contaminants targeted. Radford Army Ammunition Plant has a long history of industrial activity, potentially involving explosives manufacturing and related processes, which could lead to contamination from compounds like volatile organic compounds (VOCs), heavy metals, or energetic materials. A comprehensive understanding of the specific risks would require consulting the contract's statement of work (SOW), environmental assessments, or publicly available site information from the Army or EPA regarding the plant's environmental condition.
What is Shaw Environmental, Inc.'s track record with large-scale environmental remediation contracts for the Department of Defense?
The data indicates Shaw Environmental, Inc. was awarded this $10.8 million contract. To assess their track record with the DoD, one would need to search contract databases for other awards to Shaw Environmental, Inc. (or its successors/predecessors) from the Department of Defense and its various branches (Army, Navy, Air Force). Key metrics to examine would include the total value of contracts held, the types of services performed (e.g., hazardous waste, site cleanup, munitions response), contract durations, performance ratings (if available), and any history of contract disputes or modifications. A broader search would reveal the extent of their experience and success in managing similar large-scale environmental projects for federal agencies.
What percentage of the total contract value was obligated and spent by the contract's end date?
The provided data snippet includes the total award amount ('a': 10849470.94) but does not specify the total amount obligated or the actual amount spent by the contract's end date (July 5, 2015). To determine this, one would need to access more detailed contract financial data, typically found in systems like the Federal Procurement Data System (FPDS) or agency-specific financial reports. This data would show the 'Total Payments' made against the contract and the 'Total Undelivered Orders' or remaining obligated balance. Without this information, it's impossible to assess the contract's financial execution rate or if the full value was utilized.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 312 DIRECTORS DRIVE, KNOXVILLE, TN, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,849,471
Exercised Options: $10,849,471
Current Obligation: $10,849,471
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912QR04D0027
IDV Type: IDC
Timeline
Start Date: 2006-09-20
Current End Date: 2015-07-05
Potential End Date: 2015-07-05 00:00:00
Last Modified: 2013-07-25
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