DoD's $149M landscaping contract awarded to Environmental Specialists, Inc. shows potential value concerns

Contract Overview

Contract Amount: $14,942,293 ($14.9M)

Contractor: Environmental Specialists, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-25

End Date: 2005-10-02

Contract Duration: 738 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63103

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to ENVIRONMENTAL SPECIALISTS, INC. for work described as: Key points: 1. The contract's duration and fixed-price nature suggest a predictable cost structure, but the final cost of $149M warrants scrutiny. 2. Competition was robust, with a full and open process, which typically drives better pricing. 3. The contract was awarded to a single entity, Environmental Specialists, Inc., indicating their success in a competitive bid. 4. Performance context is limited without specific metrics on service quality or timeliness. 5. The contract falls within the professional and commercial support services sector. 6. No small business set-aside was utilized, suggesting larger firms were expected to compete. 7. The contract's value is substantial, representing a significant investment in base support services.

Value Assessment

Rating: fair

The total award amount of $149M over two years for landscaping services is substantial. Benchmarking this against similar large-scale base maintenance contracts is difficult without more granular data on the scope of services. The fixed-price nature provides cost certainty, but the sheer scale of the award necessitates a review of whether the price reflects true market value for the services rendered across multiple installations. Without specific performance metrics or comparisons to other contracts of similar scope and duration, assessing the value-for-money is challenging.

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 bids. The presence of two bids suggests a moderate level of competition for this substantial contract. While two bidders is better than one, a higher number of bids would typically be expected for a contract of this magnitude to ensure the most competitive pricing and best value for the government.

Taxpayer Impact: A full and open competition, even with two bidders, is generally favorable for taxpayers as it aims to secure the best possible price through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive enhanced base aesthetics and potentially improved environmental conditions. Services delivered include comprehensive landscaping and grounds maintenance across potentially multiple military installations. The geographic impact is likely concentrated around the military bases where the services are performed. Workforce implications include employment opportunities for individuals in landscaping, groundskeeping, and related support roles, primarily through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The total award amount of $149M is high and requires detailed justification to ensure it aligns with market rates for landscaping services.
Lack of specific performance metrics makes it difficult to assess if the contractor is delivering optimal value.
The contract's long duration (over two years) could lead to cost inefficiencies if market conditions change significantly.

Positive Signals

The contract was awarded through full and open competition, indicating a fair and transparent bidding process.
The firm-fixed-price contract type provides cost certainty for the government.
The contractor, Environmental Specialists, Inc., was selected through a competitive process, suggesting they met the government's requirements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on grounds maintenance and landscaping. The market for such services is broad, encompassing numerous private companies. Large government contracts like this often represent significant portions of a company's revenue and can influence market dynamics. Comparable spending benchmarks would involve analyzing other large-scale base operations and maintenance contracts, particularly those for landscaping and environmental services across federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests the scope and value of the contract were deemed suitable for larger, established companies capable of handling extensive landscaping operations across potentially multiple sites. There is no explicit information on subcontracting plans, but for a contract of this size, it is common for prime contractors to engage small businesses for specialized tasks or local services, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures would be tied to the contract's performance standards and delivery requirements. Transparency is facilitated by the public nature of contract awards, though detailed operational oversight specifics are usually internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Environmental Remediation Services
Public Works and Engineering Services
Federal Grounds Maintenance Contracts

Risk Flags

High Contract Value
Limited Competition (2 Bidders)
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to ENVIRONMENTAL SPECIALISTS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL SPECIALISTS, 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 $14.9 million.

What is the period of performance?

Start: 2003-09-25. End: 2005-10-02.

What specific landscaping and grounds maintenance tasks were included in this $149M contract?

The provided data categorizes the contract under 'Landscaping Services' (nd: Landscaping Services) and lists the North American Industry Classification System (NAICS) code as 561730, which covers landscaping services. However, the specific tasks are not detailed. Typically, such large contracts for the Department of Defense would encompass a wide range of activities including mowing, trimming, pest control, fertilization, snow removal, tree care, irrigation system maintenance, and potentially environmental management aspects like erosion control and stormwater management across potentially multiple military installations. The firm-fixed-price nature suggests a defined scope of services was agreed upon at the time of award.

How does the $149M award compare to historical spending on landscaping services by the Department of the Army?

Without access to historical spending databases specifically for landscaping services by the Department of the Army, a direct comparison is not possible. However, $149 million is a substantial sum for landscaping services over a two-year period. This figure suggests either a very broad scope covering numerous large installations, or potentially includes ancillary services beyond basic groundskeeping. Analyzing trends in federal spending on base maintenance and support services would be necessary to contextualize this award. It is possible this represents a consolidation of multiple smaller contracts or a significant expansion of services.

What were the key evaluation criteria used to award this contract to Environmental Specialists, Inc.?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' (ct: FULL AND OPEN COMPETITION) with a 'DEFINITIVE CONTRACT' (aw: DEFINITIVE CONTRACT) type. While the specific evaluation criteria are not listed, for a full and open competition, agencies typically evaluate bids based on a combination of factors, which may include technical approach, past performance, management capability, and price. Given the substantial value, technical expertise and the ability to manage large-scale operations across potentially multiple sites would likely have been heavily weighted alongside price. Environmental Specialists, Inc. must have demonstrated superior performance or value in these areas to win the bid against at least one other competitor.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract, while offering cost certainty to the government, carries risks for both parties. For the government, the primary risk is that the contractor may cut corners on quality or service to maximize profit if the initial price was too high or if costs escalate unexpectedly. Conversely, if the contractor underestimated costs, they could incur significant losses, potentially leading to financial instability or a desire to renegotiate terms, which is difficult under an FFP. For a contract of this magnitude ($149M) and duration (over two years), the risk of unforeseen market fluctuations (e.g., fuel prices, labor costs) impacting the contractor's profitability is significant. This could lead to disputes or a decline in service quality if not managed carefully by the contractor.

Are there any indications of contractor performance issues or successes with Environmental Specialists, Inc. on previous contracts?

The provided data does not include specific details on the past performance of Environmental Specialists, Inc. on this or other contracts. However, the fact that they were awarded a definitive contract of $149 million by the Department of the Army suggests they likely have a track record of successfully performing government contracts. Agencies typically assess past performance as a key factor in source selection. Without access to contract performance reports or award histories, it's impossible to definitively state their performance record. Further investigation would require accessing databases like the Contractor Performance Assessment Reporting System (CPARS).

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 3001 E 83RD ST, KANSAS CITY, MO, 64132

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline