State Department's $45.6M sewage treatment contract awarded to Veolia Water West Operating Services Inc

Contract Overview

Contract Amount: $45,634,405 ($45.6M)

Contractor: Veolia Water West Operating Services Inc

Awarding Agency: Department of State

Start Date: 2015-09-01

End Date: 2020-09-30

Contract Duration: 1,856 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF O&M FOR SBIWTP

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

Department of State obligated $45.6 million to VEOLIA WATER WEST OPERATING SERVICES INC for work described as: IGF::OT::IGF O&M FOR SBIWTP Key points: 1. Contract value of $45.6 million over five years suggests significant operational scope. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Contract duration of 1856 days (approx. 5 years) aligns with long-term infrastructure needs. 5. Awarded by the International Boundary and Water Commission, highlighting cross-border environmental cooperation. 6. The contract supports essential sewage treatment operations, crucial for public health and environmental protection.

Value Assessment

Rating: good

The contract value of $45.6 million for five years of sewage treatment operations appears reasonable given the scope of maintaining critical infrastructure. Benchmarking against similar large-scale water and wastewater treatment contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of predictable costs, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally expected to drive down prices and ensure the government receives the best value. The number of bidders and the specifics of the evaluation process would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, potentially leading to lower prices and higher quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are communities served by the sewage treatment facilities, ensuring public health and environmental safety. Essential services include the operation and maintenance of sewage treatment infrastructure. The geographic impact is localized to the area where the International Boundary and Water Commission operates, likely along the U.S.-Mexico border. Workforce implications include employment opportunities for skilled operators, maintenance technicians, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise, despite the fixed-price nature.
Dependence on a single contractor for critical infrastructure operation poses a risk if performance falters.
Ensuring consistent adherence to environmental regulations and standards throughout the contract term.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long-term contract duration allows for stable operations and maintenance of critical infrastructure.

Sector Analysis

The water and wastewater treatment sector is a critical component of public infrastructure, involving significant capital investment and ongoing operational costs. This contract falls within the broader utilities and environmental services industry. Spending in this sector is often driven by regulatory requirements, aging infrastructure, and population growth. Comparable spending benchmarks would involve analyzing other large-scale municipal or federal contracts for operating and maintaining similar treatment facilities.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, the direct impact on small businesses through this specific award is likely minimal unless they are involved as subcontractors. Further investigation into subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely be managed by the International Boundary and Water Commission (IBWC), a joint U.S.-Mexico agency. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency would be facilitated through contract award databases and potentially public reports from the IBWC. Inspector General jurisdiction would depend on the specific IG office responsible for the Department of State's operations.

Related Government Programs

Environmental Protection Agency (EPA) grants and contracts for water infrastructure
Army Corps of Engineers civil works projects
Department of Interior water resource management contracts
State Department diplomatic and consular facilities maintenance

Risk Flags

Potential for environmental non-compliance if operations are not maintained to standard.
Risk of cost escalation if unforeseen operational issues arise.
Dependence on contractor performance for critical public health infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $45.6 million to VEOLIA WATER WEST OPERATING SERVICES INC. IGF::OT::IGF O&M FOR SBIWTP

Who is the contractor on this award?

The obligated recipient is VEOLIA WATER WEST OPERATING SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).

What is the total obligated amount?

The obligated amount is $45.6 million.

What is the period of performance?

Start: 2015-09-01. End: 2020-09-30.

What is the track record of Veolia Water West Operating Services Inc. in managing similar federal contracts?

Veolia Water West Operating Services Inc. is a subsidiary of Veolia Environnement, a global leader in water and waste management. The company has a significant history of operating and maintaining water and wastewater treatment facilities for municipalities and government agencies across the United States. While specific federal contract performance data for this exact subsidiary can be complex to isolate, Veolia's broader portfolio includes numerous large-scale contracts involving advanced treatment technologies and stringent regulatory compliance. Assessing their performance on this specific State Department contract would involve reviewing performance reports, any documented disputes or contract modifications, and client satisfaction feedback if publicly available. Their extensive experience suggests a strong capability to manage such operations.

How does the awarded amount of $45.6 million compare to similar sewage treatment contracts awarded by the federal government?

The awarded amount of $45.6 million over approximately five years for sewage treatment operations is substantial, reflecting the complexity and scale of maintaining critical environmental infrastructure. To benchmark this value, one would compare it to contracts for similar facilities (e.g., capacity, technology) awarded by agencies like the EPA, Army Corps of Engineers, or Department of Defense. Factors such as geographic location (affecting labor and material costs), specific treatment processes required (e.g., advanced nutrient removal), and the duration of the contract significantly influence pricing. Without direct comparisons of facilities with identical characteristics, it's challenging to definitively state if $45.6 million is high or low, but it aligns with the expected investment for long-term, large-scale environmental service contracts.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential operational failures leading to environmental non-compliance, cost overruns despite the fixed-price structure (due to unforeseen issues), and contractor performance deficiencies. Mitigation strategies are typically embedded within the contract itself. The firm fixed-price (FFP) nature of the contract shifts much of the cost risk to the contractor. Performance standards, key performance indicators (KPIs), and regular reporting requirements serve as mitigation for performance issues. The International Boundary and Water Commission (IBWC) would provide oversight, conducting site visits and reviewing performance data. Contractual clauses for remedies, penalties, or termination for default also act as risk mitigation tools.

What is the historical spending pattern for sewage treatment services by the International Boundary and Water Commission or the Department of State?

Historical spending data for sewage treatment services specifically by the International Boundary and Water Commission (IBWC) or the Department of State is not readily available in aggregated public databases. However, the IBWC's mission inherently involves managing water resources and infrastructure along the U.S.-Mexico border, which would necessitate spending on treatment facilities. The Department of State also operates facilities globally that require such services. Analyzing past contracts awarded by the IBWC for similar O&M services, or looking at the State Department's facilities management budgets, would provide insight. The $45.6 million awarded here suggests a significant, long-term commitment, potentially indicating a consistent need for such services over time rather than a one-off expenditure.

How does the 'Full and Open Competition' award mechanism impact the overall value and efficiency for taxpayers?

Awarding this contract through 'Full and Open Competition' is generally considered the most advantageous mechanism for taxpayers. It ensures that all responsible sources are permitted to compete, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals from a wide range of qualified contractors, increasing the likelihood of selecting the offer that provides the best overall value, not just the lowest price. The transparency inherent in this process also enhances accountability. While it may require more upfront effort in solicitation and evaluation, the long-term benefits of competitive pricing and superior service delivery typically outweigh these initial costs for taxpayers.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Sewage Treatment Facilities

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: IBM15R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veolia Environnement (UEI: 494763675)

Address: 2300 CONTRA COSTA BLVD, STE 350, PLEASANT HILL, CA, 94523

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

Financial Breakdown

Contract Ceiling: $45,634,405

Exercised Options: $45,634,405

Current Obligation: $45,634,405

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline