Department of Defense awards $11.17M contract for environmental remediation services in Colorado

Contract Overview

Contract Amount: $11,168,448 ($11.2M)

Contractor: CDM Smith-Bay West JV, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2023-06-23

End Date: 2028-05-15

Contract Duration: 1,788 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BONITA PEAK LONG TERM RI/FS BPMD

Place of Performance

Location: SILVERTON, SAN JUAN County, COLORADO, 81433

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to CDM SMITH-BAY WEST JV, A JOINT VENTURE for work described as: BONITA PEAK LONG TERM RI/FS BPMD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1788 days indicates a long-term commitment to the remediation project. 4. The North American Industry Classification System (NAICS) code 562910 points to specialized environmental remediation services. 5. The award is a delivery order under a larger contract, implying a phased approach to work. 6. The contract is for services in Colorado, indicating a specific geographic focus.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract ceiling and the scope of work. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While CPFF can be appropriate for complex projects where costs are difficult to predict, it requires robust oversight to ensure value for money. Comparing this to similar long-term environmental remediation contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders (no) suggests a reasonable level of competition for this specific delivery order. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through bidding.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the environment in Colorado, through the remediation of contaminated sites. Services delivered include long-term remediation and site investigation. The geographic impact is concentrated in Colorado. Workforce implications may include employment for environmental scientists, engineers, and technicians involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize fee.
Long contract duration increases the risk of scope creep and cost escalation.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The nature of environmental remediation can involve unforeseen complexities and cost increases.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract is for essential environmental remediation services, addressing potential environmental hazards.
The joint venture structure may bring together specialized expertise for complex remediation tasks.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise in addressing environmental contamination and compliance. The market size for environmental consulting and remediation is substantial, driven by regulatory requirements and historical industrial activity. This contract represents a specific instance of federal spending within this sector, likely addressing legacy contamination issues.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor is likely a larger entity or joint venture. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability. Transparency is generally facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Defense Environmental Programs
Superfund Remediation
Military Munitions Response Program

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration increases exposure to changing economic conditions and scope creep.
Environmental remediation projects can encounter unforeseen technical challenges.
Need for robust oversight to ensure value for money with CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to CDM SMITH-BAY WEST JV, A JOINT VENTURE. BONITA PEAK LONG TERM RI/FS BPMD

Who is the contractor on this award?

The obligated recipient is CDM SMITH-BAY WEST JV, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2023-06-23. End: 2028-05-15.

What is the track record of CDM Smith-Bay West JV in performing similar environmental remediation contracts for the Department of Defense?

Assessing the track record of CDM Smith-Bay West JV requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations, and any reported issues or successes. For environmental remediation, key performance indicators often include adherence to schedule, budget, environmental compliance, and safety. A joint venture's track record is a composite of its member firms' experiences and their collaborative history. Without specific data on past performance for this JV, it's difficult to definitively assess their capability, but the award suggests they met the government's criteria for this specific contract. Further investigation into their project history, client references, and any past disputes or commendations would provide a more comprehensive understanding of their reliability and expertise in handling complex environmental challenges.

How does the estimated cost of $11.17 million compare to similar long-term environmental remediation projects undertaken by the Department of Defense?

Comparing the $11.17 million cost requires context regarding the scope, duration, and complexity of the remediation. Environmental remediation projects can vary significantly in cost based on factors such as the type and extent of contamination, the chosen remediation technologies, site accessibility, and regulatory requirements. A 1788-day (approximately 4.9 years) duration suggests a substantial, long-term effort. To benchmark this cost, one would need to identify comparable DoD contracts for similar types of contamination (e.g., hazardous waste, unexploded ordnance, chemical spills) over similar timeframes and in similar geographic regions. Factors like the number of sites involved, the specific cleanup goals, and the required treatment processes are crucial for a meaningful comparison. Without access to a database of comparable contract values and detailed scopes of work, it is challenging to definitively state whether $11.17 million represents a high, low, or average cost for this type of long-term environmental remediation effort.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this environmental remediation project?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this environmental remediation project is the potential for cost overruns without a corresponding increase in the contractor's effort or a commensurate benefit to the government. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total project expenditure. For complex environmental remediation, where unforeseen conditions are common, this can lead to the government paying significantly more than initially anticipated. Effective risk mitigation requires stringent oversight, detailed cost tracking, robust change order management, and clear definition of allowable costs to ensure the contractor exercises cost control and the government receives value for its investment.

What specific environmental challenges or contaminants is this contract intended to address at BONITA PEAK?

The provided data identifies the project as 'BONITA PEAK LONG TERM RI/FS BPMD,' which likely stands for Remedial Investigation/Feasibility Study (RI/FS) for the "B" Parcel Management Demonstration (BPMD) at Bonita Peak. This suggests the contract is focused on the initial phases of environmental cleanup: investigating the nature and extent of contamination (RI) and evaluating potential cleanup strategies (FS). The specific contaminants and environmental challenges are not detailed in the award notice but are likely related to historical industrial or military activities at the Bonita Peak site. Typical contaminants addressed in such federal remediation projects can include heavy metals, volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs), petroleum hydrocarbons, pesticides, or explosives. The RI/FS process is designed to identify these specific issues and determine the most effective and cost-efficient remediation approaches.

How does the level of competition (4 bidders) impact the potential for cost savings or improved service quality for this contract?

Having four bidders for this delivery order under a full and open competition generally indicates a healthy level of competition, which is positive for the government. A greater number of bidders typically increases the likelihood that contractors will submit more competitive pricing to win the contract. This competitive pressure can lead to cost savings for the government compared to a sole-source or limited-competition scenario. Furthermore, competition can drive innovation and encourage contractors to offer higher quality services or more efficient approaches to differentiate themselves. While four bidders is a good number, the specific nature of the specialized remediation services required might limit the pool of highly qualified firms, making this a reasonable, though not exceptionally high, level of competition. The ultimate impact on cost savings and quality depends on the specific bids submitted and the evaluation criteria used.

What are the potential long-term implications for the environment and local community in Colorado resulting from this remediation contract?

The long-term implications of this remediation contract for the environment and the local community in Colorado are expected to be positive, assuming successful execution. The primary goal of environmental remediation is to reduce or eliminate hazardous substances, thereby mitigating risks to ecological systems and human health. Successful cleanup can lead to the restoration of contaminated land, making it safer for future use and preventing the spread of pollutants into groundwater or surrounding ecosystems. For the local community, this can mean improved public health, increased property values, and the potential for economic development in areas previously impacted by contamination. The 'long-term' nature of the contract suggests a commitment to addressing significant environmental issues, contributing to the overall environmental health and sustainability of the region.

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

Solicitation ID: W9128F21R0033

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 75 STATE ST STE 701, BOSTON, MA, 02109

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

Financial Breakdown

Contract Ceiling: $12,333,254

Exercised Options: $11,168,448

Current Obligation: $11,168,448

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,079,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0011

IDV Type: IDC

Timeline