DoD's $26.5M hazardous waste cleanup contract awarded to URS Group, Inc. for Fort Wingate Depot

Contract Overview

Contract Amount: $26,534,341 ($26.5M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-10-25

End Date: 2016-12-31

Contract Duration: 2,259 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HAZARDOUS WASTE MANAGEMENT UNIT (HWMU) WORK PLAN AND REMOVAL FORT WINGATE DEPOT ACTIVITY, MCKINLEY COUNTY, NEW MEXICO

Place of Performance

Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to URS GROUP, INC. for work described as: HAZARDOUS WASTE MANAGEMENT UNIT (HWMU) WORK PLAN AND REMOVAL FORT WINGATE DEPOT ACTIVITY, MCKINLEY COUNTY, NEW MEXICO Key points: 1. Contract value of $26.5M for hazardous waste management and removal services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of approximately 6 years, suggesting a significant cleanup effort. 4. Services provided by URS Group, Inc., a known entity in environmental services. 5. Geographic focus on McKinley County, New Mexico, addressing a specific environmental concern. 6. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract's total value of $26.5 million for hazardous waste management over six years appears reasonable given the scope of work at a former depot. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost predictability, though the final cost could be influenced by unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bids indicates a healthy level of competition for this significant environmental services contract. This competitive environment generally benefits the government by driving down prices and encouraging innovative solutions.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. It ensures that the government is receiving services at a price reflective of market conditions.

Public Impact

The primary beneficiaries are the residents and environment of McKinley County, New Mexico, through the remediation of hazardous waste. Services delivered include the development of work plans and the physical removal of hazardous waste materials. The geographic impact is localized to the Fort Wingate Depot Activity site and surrounding areas in New Mexico. The contract supports a workforce skilled in environmental remediation, engineering, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen hazardous materials are encountered.
Contract duration may be extended if remediation proves more complex than initially scoped.
Dependence on contractor's expertise for effective and safe waste removal.

Positive Signals

Firm Fixed Price contract helps control budget certainty.
Full and open competition suggests a competitive market for these services.
Long contract duration allows for comprehensive site cleanup.

Sector Analysis

This contract falls within the environmental services sector, specifically hazardous waste management and remediation. The market for such services is driven by regulatory compliance, historical site contamination, and government cleanup initiatives. Spending in this sector can be substantial, with large contracts often awarded for complex Superfund sites or former military installations like Fort Wingate Depot.

Small Business Impact

Information regarding small business set-asides or subcontracting goals was not explicitly provided in the data. However, given the scale and specialized nature of hazardous waste remediation, it is common for prime contractors to engage specialized subcontractors, which could include small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency would be enhanced through regular reporting requirements and potential site inspections.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Disposal
Military Base Cleanup
Department of Defense Contracts
Superfund Site Management

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contract duration of over 6 years requires sustained oversight.
Complexity of hazardous waste remediation necessitates robust contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to URS GROUP, INC.. HAZARDOUS WASTE MANAGEMENT UNIT (HWMU) WORK PLAN AND REMOVAL FORT WINGATE DEPOT ACTIVITY, MCKINLEY COUNTY, NEW MEXICO

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 $26.5 million.

What is the period of performance?

Start: 2010-10-25. End: 2016-12-31.

What is the track record of URS Group, Inc. in handling hazardous waste contracts for the Department of Defense?

URS Group, Inc., now part of AECOM, has a significant history of performing environmental services, including hazardous waste management and remediation, for various government agencies, including the Department of Defense. They have been involved in numerous large-scale cleanup projects at military installations across the United States. Their experience typically includes site assessment, remediation design, and implementation of cleanup technologies. While specific performance metrics for this particular contract are not detailed here, URS's general track record suggests they possess the technical capabilities and experience required for such complex environmental undertakings. However, as with any large contractor, past performance reviews and any documented issues on other contracts would be crucial for a comprehensive assessment.

How does the $26.5 million contract value compare to similar hazardous waste cleanup contracts at military depots?

The $26.5 million contract value for hazardous waste management and removal at Fort Wingate Depot Activity is substantial, reflecting the complexity and scale typical of environmental cleanup at former military installations. Comparable contracts for large-scale remediation projects at military depots can range from tens of millions to hundreds of millions of dollars, depending on the site's size, the types and extent of contamination, and the remediation technologies employed. For instance, extensive soil and groundwater remediation projects at larger bases have commanded significantly higher figures. This contract's value appears to be within the expected range for a multi-year cleanup effort at a depot-sized facility, especially considering the firm fixed-price structure which often includes contingencies. A detailed benchmark would require comparing specific scope elements and site conditions.

What are the primary risks associated with this hazardous waste cleanup contract?

The primary risks associated with this hazardous waste cleanup contract include: 1. **Technical Risks:** Unforeseen site conditions, such as the discovery of previously unknown contaminants or complex geological formations, could increase the scope and cost of remediation. 2. **Cost Risks:** Despite the firm fixed-price structure, unexpected discoveries or changes in regulatory requirements could lead to change orders and cost increases. 3. **Schedule Risks:** Delays in permitting, access issues, or contractor performance could extend the project timeline. 4. **Environmental Risks:** Inadequate containment or handling procedures could lead to accidental releases, posing risks to workers and the environment. 5. **Contractor Performance Risk:** The success of the project heavily relies on the contractor's technical expertise, project management capabilities, and adherence to safety protocols. 6. **Regulatory Risk:** Evolving environmental regulations could necessitate changes in the cleanup approach.

What was the historical spending pattern for hazardous waste management at Fort Wingate Depot Activity prior to this contract?

Historical spending data specifically for hazardous waste management at Fort Wingate Depot Activity prior to this $26.5 million contract (awarded in 2010) is not detailed in the provided data. However, it is common for former military installations like Fort Wingate to have a history of environmental investigations and remediation activities spanning many years, often involving multiple contracts. The Department of Defense has a long-standing program for addressing environmental contamination at its sites. Spending patterns would likely have varied year-to-year based on the phase of cleanup (e.g., investigation, design, remediation), funding allocations, and specific site issues identified. This $26.5 million contract represents a significant, consolidated effort for a defined period, suggesting a move towards comprehensive cleanup.

How does the firm fixed-price contract type influence the government's financial exposure compared to other contract types?

The firm fixed-price (FFP) contract type significantly limits the government's financial exposure compared to cost-reimbursement or cost-plus contracts. Under an FFP agreement, the contractor assumes most of the risk for cost overruns. The price is set at the outset, and the contractor is obligated to complete the work for that amount, regardless of their actual costs. This provides the government with budget certainty and protects against escalating expenses due to contractor inefficiencies or unexpected cost increases. While FFP contracts incentivize contractors to control costs, they may also lead contractors to build in higher profit margins or contingency reserves to mitigate their own risk, potentially resulting in a higher initial price. For complex projects like hazardous waste cleanup, where uncertainties exist, the government might accept a potentially higher initial price for the benefit of cost certainty.

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: AECOM (UEI: 153561212)

Address: 12120 SHAMROCK PLAZA, SUIT, OMAHA, NE, 68154

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,704,624

Exercised Options: $26,534,341

Current Obligation: $26,534,341

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912QR04D0025

IDV Type: IDC

Timeline