Air Force Remediation Contract Awarded for $13.6M to Ayuda Arcadis 8A Joint Venture

Contract Overview

Contract Amount: $13,649,890 ($13.6M)

Contractor: Ayuda Arcadis 8A Joint Venture LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-20

End Date: 2028-04-17

Contract Duration: 2,401 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIR FORCE PLANT 6 & DOBBINS ARB OPTIMIZED REMEDIATION CONTRACT

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30063

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to AYUDA ARCADIS 8A JOINT VENTURE LLC for work described as: AIR FORCE PLANT 6 & DOBBINS ARB OPTIMIZED REMEDIATION CONTRACT Key points: 1. Contract awarded to a joint venture, potentially impacting small business participation. 2. The contract is for remediation services, a critical environmental function. 3. Fixed-price contract type aims to control costs, but scope creep is a risk. 4. The award falls under the remediation services sector, with significant government spending.

Value Assessment

Rating: fair

The contract value of $13.6M for a 5-year period appears reasonable for specialized remediation services. Benchmarking against similar large-scale environmental cleanup contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may have restricted the pool of potential bidders and could impact price discovery.

Taxpayer Impact: The limited competition raises questions about whether the government secured the best possible price for taxpayers. Further justification for excluding other sources is needed.

Public Impact

Environmental cleanup at Air Force facilities ensures compliance and public safety. The contract supports job creation within the environmental services industry. Long-term remediation efforts can have lasting positive impacts on local ecosystems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Potential for scope creep in long-term remediation projects.
Joint venture structure requires monitoring for small business subcontracting.

Positive Signals

Fixed-price contract type provides cost certainty.
Award to a joint venture can foster specialized capabilities.
Long duration allows for comprehensive project completion.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, which is a subset of the broader professional, scientific, and technical services industry. Government spending in this area is driven by regulatory requirements and the need to manage legacy environmental issues at federal sites.

Small Business Impact

The awardee is an 8A joint venture, suggesting an intent to support small businesses. However, the specific structure and the prime contractor's role in subcontracting to other small businesses need further examination to ensure genuine small business benefit.

Oversight & Accountability

The contract's duration and value warrant regular oversight to ensure performance, cost control, and adherence to environmental regulations. The 'exclusion of sources' justification should be closely reviewed by oversight bodies.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition justification
Potential for cost overruns if scope is not well-defined
Ensuring genuine small business participation
Long-term environmental monitoring requirements
Performance risks associated with complex remediation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to AYUDA ARCADIS 8A JOINT VENTURE LLC. AIR FORCE PLANT 6 & DOBBINS ARB OPTIMIZED REMEDIATION CONTRACT

Who is the contractor on this award?

The obligated recipient is AYUDA ARCADIS 8A JOINT VENTURE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2021-09-20. End: 2028-04-17.

What specific environmental hazards are being addressed by this contract, and what is the expected outcome of the remediation?

The contract is for general remediation services at Air Force Plant 6 and Dobbins ARB. Specific hazards are not detailed in the provided data but typically include soil and groundwater contamination from historical industrial activities. The expected outcome is the reduction or elimination of these contaminants to meet regulatory standards, ensuring environmental safety and compliance.

How does the 'exclusion of sources' clause impact the overall risk profile and potential cost savings for this contract?

Excluding sources inherently limits competition, which can increase risk by reducing the number of bidders and potentially leading to less competitive pricing. This could result in higher costs for the government compared to a fully open competition. The risk is mitigated if the excluded sources were genuinely incapable or if the selected vendor offers unique, essential capabilities.

What mechanisms are in place to ensure the effectiveness and long-term success of the remediation efforts under this fixed-price contract?

Effectiveness is typically ensured through detailed performance work statements, milestone-based payments, and rigorous government inspection and acceptance processes. For long-term success, post-remediation monitoring plans are crucial. The fixed-price nature incentivizes the contractor to complete the work efficiently, but oversight must confirm the remediation meets all environmental standards and is sustainable.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 ACOMA ST, DENVER, CO, 80204

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,311,274

Exercised Options: $13,666,280

Current Obligation: $13,649,890

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,104,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN18D1001

IDV Type: IDC

Timeline