Department of Defense awards $12.6M contract for site characterization at Offutt AFB, completed over 10 years

Contract Overview

Contract Amount: $12,617,283 ($12.6M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2018-03-31

Contract Duration: 3,652 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB

Place of Performance

Location: ARLINGTON, WASHINGTON County, NEBRASKA, 68002

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to GILBANE FEDERAL for work described as: ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 10 years is substantial, indicating a long-term need for these services. 3. The North American Industry Classification System (NAICS) code 561920 points to services related to convention and trade show organizers, which may be a misclassification or a specialized niche. 4. The contract type 'COST NO FEE' implies the government reimburses the contractor for allowable costs but does not pay a fee, often used when the scope is uncertain. 5. The absence of small business set-aside indicates it was not specifically targeted for small businesses. 6. The contract was awarded by the Department of the Army, a component of the Department of Defense.

Value Assessment

Rating: fair

The contract's total value of $12.6 million over 10 years averages to $1.26 million per year. Without specific details on the scope of 'ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB' and comparable contracts, it is difficult to definitively benchmark value. The 'COST NO FEE' contract type suggests that the government bears the cost risk, and the final price is determined by actual expenses. This structure can sometimes lead to higher overall costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not provided, making it difficult to assess the impact on competition. A limited competition may result in less aggressive pricing compared to a truly full and open process.

Taxpayer Impact: Excluding sources, even with an intent for open competition, may reduce the number of competitive bids, potentially leading to higher costs for taxpayers than if all qualified vendors could participate.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel at Offutt Air Force Base, who receive the environmental remediation and site characterization services. The services delivered are crucial for understanding and managing environmental conditions at a former Air Force base, ensuring compliance with environmental regulations. The geographic impact is localized to Offutt Air Force Base in Nebraska. The contract likely supports a workforce involved in environmental consulting, engineering, and site assessment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 'Convention and Trade Show Organizers' appears to be a mismatch for 'ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB,' raising questions about the accuracy of the classification and potential procurement irregularities.
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further investigation into why specific sources were excluded and if this limited competition.
The 'COST NO FEE' contract type can present cost control challenges if not rigorously monitored by the government.

Positive Signals

The contract was awarded by the Department of the Army, indicating a significant federal agency requirement.
The long duration (10 years) suggests a stable, ongoing need for the services, providing continuity for the contractor and potentially for the base's environmental management.
The contract was competed, even with exclusions, showing an effort to obtain services through a competitive process.

Sector Analysis

The environmental consulting and site characterization sector is a critical component of government contracting, particularly for agencies managing large facilities and historical sites. This contract falls within the broader environmental services industry, which includes remediation, assessment, and compliance services. Spending in this sector is driven by regulatory requirements, infrastructure development, and base realignment or closure activities. Comparable spending benchmarks would typically involve analyzing other environmental remediation contracts awarded by the Department of Defense or EPA for similar scope and scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and value of the work were likely beyond the capacity or specific requirements for small business participation. There is no explicit information on subcontracting plans, but given the nature of the work, it is possible that specialized services could be subcontracted, potentially to small businesses, though this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. The 'COST NO FEE' structure necessitates close monitoring of incurred costs to ensure they are allowable, reasonable, and allocable. Transparency would be enhanced through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Base Realignment and Closure (BRAC) Program Support
Environmental Consulting Services
Department of Defense Facilities Management
Site Assessment and Characterization Contracts

Risk Flags

NAICS Code Mismatch
Limited Competition Due to Source Exclusion
Cost Control Risks with 'Cost No Fee' Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to GILBANE FEDERAL. ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2008-03-31. End: 2018-03-31.

What specific environmental issues were addressed by the 'ER-SITE CHARACTERIZATION/FORMER OFFUTT AFB' contract, and what were the key findings?

The provided data does not detail the specific environmental issues addressed by the contract, only its title and the awarding agency. 'ER-SITE CHARACTERIZATION' typically involves identifying and assessing the nature and extent of contamination at a site, often former industrial or military locations. This could include soil, groundwater, or vapor contamination from past activities. Without access to the contract's statement of work or final reports, the key findings remain unknown. Such characterization is a precursor to remediation efforts. The contract's duration of 10 years suggests a comprehensive and potentially complex environmental assessment process at the former Offutt AFB.

How does the $12.6 million total contract value compare to similar environmental site characterization contracts awarded by the Department of Defense?

Benchmarking the $12.6 million contract value requires comparing it to similar environmental site characterization contracts awarded by the Department of Defense. Factors influencing cost include the size of the site, the complexity of potential contamination, the duration of the characterization effort, and the specific services required (e.g., sampling, analysis, modeling). A 10-year duration for this value suggests an average annual spend of $1.26 million. Larger, more complex projects, especially those involving extensive remediation planning alongside characterization, can easily exceed this amount. Conversely, smaller, more focused characterizations might cost less. Without specific details on the scope of work and comparable contract data, a precise comparison is challenging, but $1.26 million annually for long-term site characterization is within a plausible range for a military installation.

What are the potential risks associated with a 'COST NO FEE' contract for environmental site characterization?

A 'COST NO FEE' contract means the government reimburses the contractor for all allowable, allocable, and reasonable costs incurred in performing the work, but pays no additional fee. The primary risk for the government is the potential for cost overruns, as the contractor has less financial incentive to control expenses compared to a fixed-price contract. If cost-containment measures are not robustly implemented and monitored, the total cost to the government could exceed initial estimates or what might have been achieved under a different contract type. For the contractor, the risk is that incurred costs might be deemed unallowable or unreasonable by the government, leading to non-reimbursement. Effective oversight and clear cost accounting standards are crucial to mitigate these risks.

What is the significance of the NAICS code 561920 ('Convention and Trade Show Organizers') being associated with this environmental site characterization contract?

The association of NAICS code 561920 ('Convention and Trade Show Organizers') with an environmental site characterization contract is highly unusual and suggests a potential misclassification or a very niche application of services. Environmental site characterization typically falls under categories like 'Environmental Consulting Services' (541620) or 'Engineering Services' (541330). A mismatch in NAICS codes can sometimes occur due to administrative errors, broad interpretations of service categories, or unique contract structures. It raises a flag for further review to ensure the procurement process accurately reflected the services being procured and that the competition was appropriately targeted. It is unlikely that convention organizers possess the technical expertise for environmental site characterization.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the potential for cost savings for the taxpayer?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a mixed picture for taxpayer savings. While it aims for open competition, the explicit exclusion of certain sources limits the bidder pool. If the excluded sources were capable and competitive, their absence could reduce the overall competitive pressure, potentially leading to higher prices than if the competition had been entirely unrestricted. The extent of savings depends heavily on the number and competitiveness of the bidders who were *not* excluded. If the remaining bidders were highly competitive and the scope was well-defined, significant savings could still be realized. However, the exclusion itself introduces a risk that optimal pricing was not achieved.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Convention and Trade Show Organizers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gilbane, Inc. (UEI: 022726165)

Address: 2730 SHADELANDS DR # 100, WALNUT CREEK, CA, 94598

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,617,283

Exercised Options: $12,617,283

Current Obligation: $12,617,283

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123806D0022

IDV Type: IDC

Timeline