DoD Restructures Hazardous Waste Contract to Bechtel National, Inc. for $4.5B Over 10 Years
Contract Overview
Contract Amount: $4,512,659,364 ($4.5B)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-18
End Date: 2028-01-27
Contract Duration: 6,889 days
Daily Burn Rate: $655.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: RESTRUCTURED CONTRACT TO FACILITATE A CONTRACTUAL VEHICLE FOR THE LIFE OF THE DAAA09-02-D-0025 CONTRACT FROM SYSTEMIZATION THROUGH CLOSURE. THIS IS SEEN AS AN ADMINISTRATIVE CHANGE TO DAAA09-02-D-0025
Place of Performance
Location: PUEBLO, PUEBLO County, COLORADO, 81006
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $4.51 billion to BECHTEL NATIONAL, INC. for work described as: RESTRUCTURED CONTRACT TO FACILITATE A CONTRACTUAL VEHICLE FOR THE LIFE OF THE DAAA09-02-D-0025 CONTRACT FROM SYSTEMIZATION THROUGH CLOSURE. THIS IS SEEN AS AN ADMINISTRATIVE CHANGE TO DAAA09-02-D-0025 Key points: 1. Contract restructured for systemization through closure, extending its lifecycle. 2. Significant value of $4.5B highlights long-term commitment to hazardous waste management. 3. Competition method is 'Full and Open', suggesting a competitive initial award. 4. Sector focus is hazardous waste treatment and disposal, critical for environmental safety.
Value Assessment
Rating: questionable
The contract's total value is substantial at over $4.5 billion. Without specific unit cost data or benchmarks for hazardous waste treatment over a decade, it's difficult to assess if this pricing is competitive or represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery. However, the restructuring and long duration may obscure the initial competitive advantage.
Taxpayer Impact: The significant expenditure over a decade suggests a substantial taxpayer investment in hazardous waste management, the ultimate value of which depends on efficient service delivery and environmental outcomes.
Public Impact
Ensures continued hazardous waste management services for the Department of Defense. Long-term contract provides stability for service provider and predictable service availability. Potential for environmental impact, both positive through proper disposal and negative if not managed effectively. Significant financial commitment from taxpayers over an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for restructured phases.
- Long contract duration may lead to cost overruns if not managed closely.
- Potential for scope creep in 'systemization through closure' phases.
Positive Signals
- Initial award was through full and open competition.
- Contract structure aims for lifecycle management, potentially improving efficiency.
- Clear designation of hazardous waste treatment and disposal services.
Sector Analysis
This contract falls within the hazardous waste treatment and disposal sector, a critical but often costly area for government agencies. Benchmarks for such long-term, comprehensive services are scarce, making direct cost comparisons challenging.
Small Business Impact
The data indicates this is a large prime contract awarded to Bechtel National, Inc. There is no information provided regarding subcontracting opportunities for small businesses within this restructured contract.
Oversight & Accountability
The restructuring of a contract for its entire lifecycle necessitates robust oversight to ensure adherence to original competitive principles and to manage costs effectively over the extended period. Accountability for environmental compliance is also paramount.
Related Government Programs
- Hazardous Waste Treatment and Disposal
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of transparency on cost breakdown post-restructure.
- Extended duration increases risk of unforeseen cost increases.
- Potential for contractor lock-in due to long-term nature.
- Environmental compliance risks over a decade.
- Difficulty in benchmarking costs for unique lifecycle services.
Tags
hazardous-waste-treatment-and-disposal, department-of-defense, co, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.51 billion to BECHTEL NATIONAL, INC.. RESTRUCTURED CONTRACT TO FACILITATE A CONTRACTUAL VEHICLE FOR THE LIFE OF THE DAAA09-02-D-0025 CONTRACT FROM SYSTEMIZATION THROUGH CLOSURE. THIS IS SEEN AS AN ADMINISTRATIVE CHANGE TO DAAA09-02-D-0025
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $4.51 billion.
What is the period of performance?
Start: 2009-03-18. End: 2028-01-27.
What specific performance metrics will be used to ensure the value of this restructured contract is realized over its extended duration?
The effectiveness of this restructured contract hinges on clearly defined performance metrics tied to hazardous waste treatment and disposal efficiency, environmental compliance, and cost control. Without these, the $4.5B investment risks becoming a costly, poorly managed undertaking. Regular reviews and audits against these metrics are crucial for accountability and value realization.
How will the Department of Defense mitigate the risk of cost escalation or scope creep given the contract's extension to cover the 'life of the contract'?
Mitigation strategies should include stringent change control processes, detailed milestone-based funding, and independent cost reviews at key contract phases. The 'systemization through closure' phases require careful definition and oversight to prevent undefined work from inflating costs. Regular performance reviews against baseline estimates are essential.
What is the anticipated environmental effectiveness of this long-term hazardous waste management contract?
The environmental effectiveness will depend on the contractor's adherence to stringent regulatory standards and the DoD's oversight. The contract's structure, aiming for lifecycle management, theoretically supports consistent environmental stewardship. However, measurable outcomes like waste reduction, proper disposal rates, and minimal environmental incidents must be tracked and reported.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 12011 SUNSET HILLS RD STE 110, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,512,659,364
Exercised Options: $4,512,659,364
Current Obligation: $4,512,659,364
Actual Outlays: $399,144,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-18
Current End Date: 2028-01-27
Potential End Date: 2028-01-27 12:01:00
Last Modified: 2025-12-15
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