DoD's $25.7M waste disposal contract for Utah range awarded without competition, raising value questions

Contract Overview

Contract Amount: $25,684,199 ($25.7M)

Contractor: Fpm-Aecom JV1

Awarding Agency: Department of Defense

Start Date: 2021-12-09

End Date: 2026-06-12

Contract Duration: 1,646 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTAH TEST AND TRAINING RANGE, HILL AIR FORCE BASE WASTE EXCAVATION, TRANSPORTATION, AND DISPOSAL AT SITE LF058

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to FPM-AECOM JV1 for work described as: UTAH TEST AND TRAINING RANGE, HILL AIR FORCE BASE WASTE EXCAVATION, TRANSPORTATION, AND DISPOSAL AT SITE LF058 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost certainty. 2. Long duration of 1646 days suggests a substantial, ongoing need for services. 3. The contract is for remediation services, a critical environmental function. 4. Sole-source award limits opportunities for competitive pricing and innovation. 5. The contractor, FPM-AECOM JV1, has a significant contract value. 6. Geographic focus on Utah suggests localized environmental needs.

Value Assessment

Rating: questionable

The contract's value of approximately $25.7 million over its duration warrants scrutiny due to the lack of competition. Without competitive bidding, it is difficult to benchmark the pricing against market rates or determine if the government secured the best possible value. The firm-fixed-price structure provides cost certainty for the government, but the absence of multiple bids means potential savings from a competitive environment were likely forgone. Further analysis would require comparing the per-unit costs of specific remediation tasks to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source definitive contract. The lack of competition means that only one contractor, FPM-AECOM JV1, was considered for this significant environmental remediation work. This approach bypasses the standard competitive process, which typically involves soliciting bids from multiple qualified vendors. Consequently, the government did not benefit from the price discovery and potential cost efficiencies that arise from a competitive bidding environment.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. The sole-source nature limits the government's ability to negotiate the lowest possible price, potentially leading to higher overall expenditure for the required waste excavation, transportation, and disposal.

Public Impact

The primary beneficiaries are the Department of Defense and potentially environmental regulatory bodies, ensuring compliance with waste disposal regulations at the Utah Test and Training Range. Services delivered include the critical tasks of waste excavation, transportation, and disposal at Site LF058. The geographic impact is localized to Hill Air Force Base and the surrounding areas in Utah. Workforce implications may include employment opportunities for specialized environmental remediation personnel managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source award raises concerns about the thoroughness of the justification for not competing.
Long contract duration without competitive re-evaluation could mask inefficiencies over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract addresses essential environmental remediation services, ensuring regulatory compliance.
The contractor, FPM-AECOM JV1, is likely experienced in handling such specialized tasks.

Sector Analysis

The remediation services sector is a critical component of environmental management, particularly for government facilities with historical industrial or military operations. This contract falls within the broader environmental consulting and remediation market, which is characterized by specialized expertise and stringent regulatory oversight. The North American Industry Classification System (NAICS) code 562910, Remediation Services, covers establishments primarily engaged in cleaning up sites contaminated by pollution or other environmental hazards. Spending in this sector can vary significantly based on the scale of contamination and the complexity of the remediation required.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and does not appear to have a small business set-aside component. Therefore, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor, FPM-AECOM JV1, may engage small businesses as subcontractors for specialized services or supplies, though this information is not detailed in the provided data. The absence of a small business set-aside for a sole-source contract suggests that opportunities for small business participation were not actively pursued through this procurement vehicle.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices, with potential involvement from the Department of Defense's Inspector General for audits and investigations. Transparency is limited by the sole-source nature of the award, as public justification and competitive proposals are not readily available. Accountability measures would be embedded in the contract's performance standards and reporting requirements, ensuring the contractor meets the specified remediation objectives.

Related Government Programs

Environmental Remediation Services
Defense Environmental Cleanup Program
Hazardous Waste Management
Site Remediation Contracts

Risk Flags

Sole-source award without clear justification
Potential for inflated costs due to lack of competition
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to FPM-AECOM JV1. UTAH TEST AND TRAINING RANGE, HILL AIR FORCE BASE WASTE EXCAVATION, TRANSPORTATION, AND DISPOSAL AT SITE LF058

Who is the contractor on this award?

The obligated recipient is FPM-AECOM JV1.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2021-12-09. End: 2026-06-12.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without the official justification document (e.g., a Justification and Approval or J&A), it is impossible to ascertain the precise reasons. Further investigation would involve reviewing agency procurement records and justifications to understand why competition was deemed impractical or impossible for this particular waste excavation, transportation, and disposal requirement at the Utah Test and Training Range.

How does the per-unit cost of remediation services under this contract compare to similar services at other DoD facilities?

Benchmarking the per-unit cost of remediation services for this contract against similar services at other Department of Defense (DoD) facilities is challenging without detailed cost breakdowns and specific service metrics. The provided data lacks granular cost information, focusing on the total contract value. To perform such a comparison, one would need to identify comparable remediation tasks (e.g., cubic yards of soil excavated and disposed of, type of waste, disposal method) at other DoD sites and their associated costs. Given this contract's sole-source nature, it is plausible that the per-unit costs may be higher than if it had been competitively procured. A thorough analysis would require access to detailed cost data and potentially industry cost estimating tools.

What are the potential risks associated with a long-duration, sole-source contract for environmental remediation?

A long-duration, sole-source contract for environmental remediation presents several potential risks. Firstly, the lack of competition can lead to reduced price pressure, potentially resulting in higher costs for the government over the contract's lifespan. Secondly, without regular competitive re-evaluation, there's a risk of contractor complacency or a decline in service quality if performance monitoring is not rigorous. Thirdly, unforeseen technological advancements or changes in remediation best practices might not be incorporated as readily as they would be in a competitive environment where contractors vie to offer the most efficient solutions. Finally, the government may be locked into a specific approach or contractor, limiting flexibility if circumstances change or better alternatives emerge.

What is the track record of FPM-AECOM JV1 in performing similar environmental remediation contracts for the government?

The provided data identifies FPM-AECOM JV1 as the contractor but does not offer details on their specific track record or past performance on similar government contracts. To assess their track record, one would need to consult government contract databases (like the Federal Procurement Data System - Next Generation), past performance reviews, and potentially agency-specific contract award histories. Information such as previous contract values, performance ratings, any disputes or claims, and the types of remediation services previously performed would be crucial. A strong track record would indicate experience and capability, while a history of issues could raise concerns about the suitability of this sole-source award.

How does the total spending on remediation services at Hill Air Force Base compare to other major military installations?

Determining how the total spending on remediation services at Hill Air Force Base compares to other major military installations requires a broader analysis of federal spending data across multiple sites. The current data focuses solely on this one contract valued at approximately $25.7 million. To make a meaningful comparison, one would need to aggregate all remediation-related contract spending for Hill Air Force Base over a relevant period and then compare this aggregate figure to similar spending at other large military bases. Factors such as the age of the installation, historical industrial activities, and the extent of environmental contamination would significantly influence these spending levels. This contract represents a portion of the overall remediation efforts at the base.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W9123821R0072

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 181 KENWOOD AVE, ONEIDA, NY, 13421

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,827,918

Exercised Options: $25,684,199

Current Obligation: $25,684,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline