DoD awards $39M for PFAS sampling and mitigation in Colorado, with URS Group Inc. as prime contractor

Contract Overview

Contract Amount: $39,073,013 ($39.1M)

Contractor: URS Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-25

End Date: 2023-04-30

Contract Duration: 1,678 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PFC/PFAS SAMPLING AND MITIGATION, SECURITY-WIDEFIELD, CO

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80911

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to URS GROUP, INC. for work described as: PFC/PFAS SAMPLING AND MITIGATION, SECURITY-WIDEFIELD, CO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 5 years indicates a long-term commitment to environmental remediation. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially benefiting the government. 4. The North American Industry Classification System (NAICS) code 562910 points to specialized environmental remediation services. 5. The contract was awarded as a delivery order, likely under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted for small businesses.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar PFAS remediation contracts, which can vary significantly based on scope, location, and complexity. The firm-fixed-price structure is generally favorable for the government, as it caps potential cost overruns. However, without specific details on the scope of work (e.g., number of sites, depth of sampling, type of mitigation), a precise value-for-money assessment is challenging. The total award amount of approximately $39 million over nearly five years suggests a substantial, ongoing environmental effort.

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 bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the competitiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs. However, with only two bids, the potential for significant cost savings may have been limited compared to a more crowded field.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment in Colorado, through the sampling and mitigation of PFAS contamination. Services delivered include critical environmental remediation activities, addressing a known environmental hazard. The geographic impact is focused on sites within Colorado where PFAS contamination has been identified. The contract supports specialized environmental consulting and remediation workforce, including scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of PFAS contamination is more extensive than initially assessed, despite the firm-fixed-price structure.
Dependence on a single prime contractor (URS Group, Inc.) for a critical environmental service over an extended period.
Challenges in ensuring consistent quality and performance across multiple sites and over the contract's duration.
The long-term effectiveness of the mitigation strategies may require ongoing monitoring and potential future contracts.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contractor, URS Group, Inc., likely possesses specialized expertise in environmental remediation.
The contract duration allows for comprehensive sampling and implementation of mitigation measures.

Sector Analysis

The environmental remediation sector, particularly concerning PFAS (per- and polyfluoroalkyl substances), is a growing area of focus for government agencies due to increasing regulatory scrutiny and public health concerns. This contract fits within the broader environmental consulting and remediation services market, which includes companies specializing in hazardous waste management, site assessment, and cleanup. Spending in this sector is driven by regulatory compliance, legacy contamination issues, and infrastructure development. Comparable spending benchmarks would involve analyzing other federal contracts for PFAS remediation, hazardous waste disposal, and environmental site assessments.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary contract vehicle was not specifically reserved for small businesses. While URS Group, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if subcontracting opportunities were mandated or actively pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and compliance with contract terms are key oversight functions. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance. The firm-fixed-price nature of the contract also provides a degree of accountability by capping government liability.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Site Remediation
Department of Defense Environmental Programs
PFAS Cleanup Contracts
Environmental Consulting Services

Risk Flags

Potential for scope creep if initial sampling reveals more extensive contamination.
Long contract duration may expose the project to evolving regulatory requirements.
Dependence on a single contractor for a critical environmental service.
Effectiveness of PFAS mitigation technologies can vary and may require long-term monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to URS GROUP, INC.. PFC/PFAS SAMPLING AND MITIGATION, SECURITY-WIDEFIELD, CO

Who is the contractor on this award?

The obligated recipient is URS GROUP, 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 $39.1 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-04-30.

What is the track record of URS Group, Inc. in handling large-scale PFAS remediation projects for the federal government?

URS Group, Inc., now part of AECOM, has a significant history of performing environmental services for government agencies, including the Department of Defense. Their experience encompasses a wide range of environmental challenges, including hazardous waste site investigation, remediation, and compliance support. While specific details on their PFAS remediation project portfolio would require deeper research into their past performance and project history, their established presence in the federal contracting space suggests they possess the requisite expertise and capacity. Federal procurement databases and past performance reviews would offer more granular insights into their success rates, client satisfaction, and ability to manage complex environmental projects of this nature.

How does the $39 million award compare to other federal contracts for PFAS sampling and mitigation?

The $39 million award for PFAS sampling and mitigation over approximately five years is a substantial commitment, reflecting the complexity and scale often associated with addressing per- and polyfluoroalkyl substances. Federal spending on PFAS remediation has been increasing significantly as awareness and regulatory pressures grow. Contracts in this domain can range from a few million dollars for site-specific assessments to tens or hundreds of millions for large-scale, multi-year cleanup operations across multiple facilities. This particular award appears to be in the mid-to-high range for a single, focused effort, suggesting a significant scope of work or a challenging environmental context within Colorado.

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

Key risks include the potential for unforeseen contamination complexities that could increase costs beyond initial estimates, despite the firm-fixed-price structure. Performance risks also exist, such as ensuring the effectiveness of mitigation strategies and maintaining quality over the contract's duration. The government manages these risks through contract oversight, performance monitoring, and potentially through clauses that allow for adjustments or remedies in case of contractor non-performance. The firm-fixed-price nature itself is a risk management tool, transferring cost overrun risk to the contractor. The long duration also presents a risk of changing regulatory landscapes or scientific understanding of PFAS.

What is the expected effectiveness of the PFAS sampling and mitigation services to be delivered under this contract?

The expected effectiveness hinges on the thoroughness of the sampling protocols and the appropriateness of the chosen mitigation technologies. PFAS contamination is notoriously persistent and difficult to remediate, often requiring advanced treatment methods. The contract's success will be measured by the accuracy of contaminant identification, the extent to which mitigation efforts reduce environmental concentrations to acceptable levels, and compliance with relevant environmental regulations. The long-term goal is to protect human health and the environment by containing or removing PFAS from affected areas. The specific technologies and approaches will be determined based on site-specific conditions and scientific best practices.

What have been historical spending patterns for PFAS remediation by the Department of Defense?

Historical spending by the Department of Defense (DoD) on PFAS remediation has seen a dramatic increase in recent years. Initially, spending was more focused on initial site investigations and assessments. However, as the scope of the problem became clearer and regulatory requirements tightened, the DoD has allocated billions of dollars towards cleanup and mitigation efforts across its installations worldwide. This includes funding for research, development, and implementation of various remediation technologies. The trend indicates a growing commitment and escalating investment in addressing PFAS contamination, moving from identification to active remediation.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 12120 SHAMROCK PLZ STE 300, OMAHA, NE, 68154

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

Financial Breakdown

Contract Ceiling: $39,073,013

Exercised Options: $39,073,013

Current Obligation: $39,073,013

Subaward Activity

Number of Subawards: 108

Total Subaward Amount: $255,884,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY16D0026

IDV Type: IDC

Timeline