Army awards $12.1M for environmental remediation services, highlighting long-term contract duration
Contract Overview
Contract Amount: $12,136,932 ($12.1M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-02
End Date: 2015-12-01
Contract Duration: 3,742 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!501080!2100!W912BV!USA ENGINEER DISTRICT TULSA !W912QR04D0027 !A!N! !Y!DS02 ! !20050902!20150902!083730536!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3010 BRIARPARK DR STE 4N !HOUSTON !TX!77042!43780!203!48!LONGHORN ARMY AMMUNI!HARRISON !TEXAS !+000002597873!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !ZDE !DERP !562910!E! !5!B!M! !A! !20200930!B! ! !A! !A!U!J!2!014!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MARSHALL, HARRISON County, TEXAS, 75670
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to SHAW ENVIRONMENTAL, INC. for work described as: 200512!501080!2100!W912BV!USA ENGINEER DISTRICT TULSA !W912QR04D0027 !A!N! !Y!DS02 ! !20050902!20150902!083730536!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3010 BRIARPARK DR STE 4N !HOUSTON !TX!77042!43780!203!48!LONGHORN ARMY AMMUNI!HARR… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract spans over 10 years, indicating a long-term need for these services. 3. The awarded amount of $12.1M is for a specific task order under a larger contract vehicle. 4. The contractor, Shaw Environmental, Inc., has a track record with federal agencies. 5. The services fall under environmental remediation, a critical area for military installations. 6. The contract was awarded by the Army Corps of Engineers, Tulsa District.
Value Assessment
Rating: fair
The awarded amount of $12.1M for environmental remediation services appears reasonable given the 10-year duration of the task order. Benchmarking against similar long-term remediation contracts is challenging without more specific details on the scope of work. However, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the costs involved, which can be a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a healthy level of competition for this environmental remediation work. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on environmental cleanup and compliance.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other federal agencies requiring environmental remediation services. The services delivered include remediation of contaminated sites, environmental studies, and analytical support. The geographic impact is likely focused on Army installations or sites managed by the Army Corps of Engineers, particularly within the Tulsa District's purview. The contract supports a specialized workforce in the environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) could lead to potential cost overruns if not managed effectively.
- Reliance on a single contractor for an extended period might limit flexibility in adopting new technologies or approaches.
- The specific scope of work and its evolution over a decade could present unforeseen challenges.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost certainty for the government.
- The contractor has a history of performing federal contracts, suggesting experience and capability.
Sector Analysis
The environmental services sector is a significant part of the federal contracting landscape, encompassing a wide range of activities from consulting and studies to actual site remediation. This contract fits within the broader category of environmental remediation, which is crucial for maintaining compliance with environmental regulations and ensuring the safety of military installations. Comparable spending benchmarks would depend heavily on the specific type and scale of remediation required.
Small Business Impact
There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract was awarded under full and open competition, and the primary awardee is Shaw Environmental, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and the technical point of contact within the Army Corps of Engineers, Tulsa District. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting mechanisms.
Related Government Programs
- Environmental Remediation Services
- Army Corps of Engineers Contracts
- Department of Defense Environmental Programs
- Federal Remediation Services Contracts
Risk Flags
- Long-term contract duration may introduce risks related to scope creep or unforeseen conditions.
- Firm-fixed-price nature requires careful initial scope definition to avoid contractor financial strain or disputes.
Tags
department-of-defense, department-of-the-army, army-corps-of-engineers, environmental-remediation, firm-fixed-price, full-and-open-competition, remediation-services, long-term-contract, task-order, texas, shaw-environmental-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to SHAW ENVIRONMENTAL, INC.. 200512!501080!2100!W912BV!USA ENGINEER DISTRICT TULSA !W912QR04D0027 !A!N! !Y!DS02 ! !20050902!20150902!083730536!109514559!180038382!N!SHAW ENVIRONMENTAL, INC !3010 BRIARPARK DR STE 4N !HOUSTON !TX!77042!43780!203!48!LONGHORN ARMY AMMUNI!HARRISON !TEXAS !+000002597873!N!N!000000000000!F999!OTHER ENVIRON SVCS, STUDIES, & ANALYTICAL SUPPORT !S1 !SERVICES !ZDE !DERP !562910!E! !5!B!M! !A! !202
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 $12.1 million.
What is the period of performance?
Start: 2005-09-02. End: 2015-12-01.
What is the specific nature of the environmental remediation services required under this contract?
The provided data indicates the contract falls under the NAICS code 562910, which covers Remediation Services. This typically includes activities such as hazardous waste removal, site cleanup, soil and groundwater remediation, and demolition of contaminated structures. While the specific contaminants or sites are not detailed in this summary, the services are essential for addressing environmental liabilities at federal facilities.
How does the $12.1M award compare to other environmental remediation contracts awarded by the Army?
Without specific details on the scope and duration of other Army environmental remediation contracts, a direct comparison is difficult. However, $12.1M spread over a task order duration of over 10 years suggests an average annual expenditure of approximately $1.2M. This figure is moderate within the context of large-scale federal environmental projects, which can range from hundreds of thousands to hundreds of millions of dollars depending on the complexity and scale of the remediation effort.
What are the potential risks associated with a firm-fixed-price contract for environmental remediation over a 10-year period?
A primary risk with firm-fixed-price contracts over long durations is the potential for unforeseen site conditions or changes in regulatory requirements that could significantly increase the contractor's costs. If these changes are substantial and not covered by contract modifications, the contractor might face financial losses, potentially impacting their ability to complete the work. Conversely, the government benefits from cost certainty, but must ensure the scope is well-defined to avoid disputes.
What is Shaw Environmental, Inc.'s track record with federal contracts, particularly in environmental remediation?
Shaw Environmental, Inc. has a history of performing federal contracts, as indicated by this award. While the provided data doesn't detail their entire federal contracting history, their selection for this significant task order suggests they possess the necessary qualifications and experience. Further research into their past performance ratings and other federal awards would provide a more comprehensive understanding of their track record in environmental remediation.
How has federal spending on environmental remediation services evolved over the past decade?
Federal spending on environmental remediation services has generally remained a consistent priority, driven by regulatory requirements and the need to manage legacy contamination at federal facilities. While specific year-over-year figures fluctuate based on agency priorities and available funding, the overall trend reflects a sustained commitment to environmental cleanup. Contracts like this one, spanning multiple years, are common in this sector due to the long-term nature of remediation projects.
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 › NATURAL RESOURCES - OTHER SVCS
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: Shaw Group Inc., the (UEI: 180038382)
Address: 312 DIRECTORS DRIVE, KNOXVILLE, TN, 02
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: W912QR04D0027
IDV Type: IDC
Timeline
Start Date: 2005-09-02
Current End Date: 2015-12-01
Potential End Date: 2015-12-01 00:00:00
Last Modified: 2012-08-21
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