EPA's $15M R&D support contract to Shaw Environmental & Infrastructure, Inc. awarded in 2008

Contract Overview

Contract Amount: $14,979,681 ($15.0M)

Contractor: Shaw Environmental & Infrastructure, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2008-07-01

End Date: 2013-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ON SITE ANALYTICAL AND TECHNICAL SUPPORT FOR GWERD

Place of Performance

Location: ADA, PONTOTOC County, OKLAHOMA, 74820

State: Oklahoma Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $15.0 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC. for work described as: ON SITE ANALYTICAL AND TECHNICAL SUPPORT FOR GWERD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1825 days (5 years) indicates a long-term need for these analytical and technical services. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical, engineering, and life sciences. 5. The contract was awarded to a single vendor, Shaw Environmental & Infrastructure, Inc. 6. The contract's performance period spanned from July 2008 to June 2013.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, making direct price comparisons difficult. However, the fixed fee component provides some predictability. The total award amount of approximately $15 million over five years suggests a moderate annual spend for specialized R&D support.

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 a bid. The presence of two bidders suggests a degree of competition, though the specific details of the bidding process and the evaluation criteria are not provided. A competitive award generally aims to secure the best value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a wider range of offers and potentially lower prices due to market forces.

Public Impact

The Environmental Protection Agency (EPA) benefits from specialized analytical and technical support for its research and development activities. This contract supports scientific research and development efforts within the physical, engineering, and life sciences sectors. The services provided likely contribute to the EPA's mission of protecting human health and the environment. The geographic impact is primarily tied to the EPA's research facilities, though the outcomes of the R&D could have national implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost overruns and ensure the fixed fee remains appropriate.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the R&D support provided.
The specific nature of 'analytical and technical support' is broad and could encompass a wide range of activities, necessitating clear task orders and deliverables.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
The contract duration suggests a sustained and recognized need for the services provided by the contractor.
The contractor, Shaw Environmental & Infrastructure, Inc., was selected through a competitive process, implying they met the government's requirements.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D services market is characterized by specialized expertise and innovation. The EPA's spending in this area supports its regulatory and environmental protection mandates. Comparable spending benchmarks would typically involve other government agencies or large private sector entities investing in similar scientific research and technical support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Shaw Environmental & Infrastructure, Inc., would have determined its own subcontracting strategy, which may or may not have involved small businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would have been managed by the Environmental Protection Agency (EPA). The CPFF structure necessitates diligent monitoring of costs incurred by the contractor to ensure they align with the scope of work and the fixed fee. Accountability measures would be tied to contract deliverables and performance standards. Transparency would depend on the EPA's public reporting practices for contract awards and performance.

Related Government Programs

Environmental Research and Development
Scientific and Technical Services
EPA Research Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Broad scope of 'analytical and technical support' may lack specificity.
Limited public data on performance outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $15.0 million to SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC.. ON SITE ANALYTICAL AND TECHNICAL SUPPORT FOR GWERD

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL & INFRASTRUCTURE, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2008-07-01. End: 2013-06-30.

What specific types of analytical and technical support were provided under this contract?

The contract description 'ON SITE ANALYTICAL AND TECHNICAL SUPPORT FOR GWERD' is broad. GWERD likely refers to the EPA's Office of Ground Water and Ecosystem Restoration Division. The support could encompass a wide range of activities including laboratory analysis, field sampling, data interpretation, environmental modeling, technical assessments, and reporting related to ground water and ecosystem restoration projects. Without specific task orders or statements of work, the precise nature of the support remains general. This type of support is crucial for informing EPA's regulatory decisions and remediation strategies.

How does the Cost Plus Fixed Fee (CPFF) structure typically impact contractor performance and government oversight?

The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, such as in research and development. For contractor performance, it can incentivize efficiency as the contractor retains any cost savings below the estimated cost, while the fixed fee remains constant. However, it also requires robust government oversight to ensure costs are reasonable, allocable, and allowable, and that the fixed fee is commensurate with the risk and effort involved. The government must actively monitor expenditures and progress to prevent cost overruns and ensure the contractor is meeting performance objectives.

What is the typical annual spending for contracts of this nature and duration?

The total award for this 5-year contract was approximately $15 million, averaging around $3 million per year. Annual spending for R&D support contracts can vary significantly based on agency priorities, project scope, and the specific services required. For specialized analytical and technical support within federal agencies like the EPA, an annual spend in the low to mid-single-digit millions is not uncommon for long-term, critical research initiatives. This figure is generally considered moderate for a federal R&D support contract of this duration and scope, reflecting a sustained but not exceptionally large investment in a particular research area.

What does the NAICS code 541712 signify in terms of the contractor's capabilities?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the contractor, Shaw Environmental & Infrastructure, Inc., possesses expertise and capabilities in conducting scientific research and experimental development. This includes work in fields like chemistry, physics, engineering disciplines, environmental science, and biological sciences, excluding specialized biotechnology research. Companies under this code typically employ scientists, engineers, and technicians to perform research, analyze data, develop prototypes, and provide technical consultation within these scientific domains.

Were there any significant performance issues or contract modifications reported for this award?

Based on the provided data, there is no information regarding significant performance issues or contract modifications. The data only includes basic contract details such as the award amount, dates, contractor, and competition type. A comprehensive review would require access to contract performance reports, modification logs, and any associated documentation from the Environmental Protection Agency (EPA) or the Federal Procurement Data System (FPDS) to determine if any issues or changes occurred during the contract's lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRCI0710997

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)

Address: 5050 SECTION AVENUE, CINCINNATI, OH, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,676,750

Exercised Options: $16,084,414

Current Obligation: $14,979,681

Timeline