DoD's Navy awards $23.4M for groundwater investigation in NY, facing potential cost overruns

Contract Overview

Contract Amount: $23,380,711 ($23.4M)

Contractor: Resolution Consultants - an Aecom-Ensafe Joint Venture

Awarding Agency: Department of Defense

Start Date: 2012-04-16

End Date: 2021-09-30

Contract Duration: 3,454 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: REGIONAL GROUNDWATER INVESTIGATION AND ADDITION OF ONE BORING, NWIRP, BETHPAGE, NY

Place of Performance

Location: BETHPAGE, NASSAU County, NEW YORK, 11714

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to RESOLUTION CONSULTANTS - AN AECOM-ENSAFE JOINT VENTURE for work described as: REGIONAL GROUNDWATER INVESTIGATION AND ADDITION OF ONE BORING, NWIRP, BETHPAGE, NY Key points: 1. Contract awarded to Resolution Consultants - An AECOM-Ensafe Joint Venture. 2. Significant duration of 3454 days suggests a complex, long-term project. 3. Cost Plus Award Fee contract type introduces performance incentives but also potential for higher costs. 4. No small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: questionable

The Cost Plus Award Fee structure can lead to costs exceeding initial estimates if performance targets are aggressively pursued or poorly defined. Benchmarking is difficult without specific task breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Award Fee structure may not always yield the lowest price compared to fixed-price contracts.

Taxpayer Impact: Taxpayers may face higher costs due to the incentive-based fee structure, though competition aims to mitigate this.

Public Impact

Environmental remediation projects are critical for public health and ecological balance. Groundwater contamination can impact drinking water sources for surrounding communities. Long-term monitoring and investigation are essential for effective environmental management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type
Long contract duration
No small business participation

Positive Signals

Full and open competition
Essential environmental service

Sector Analysis

Engineering services for environmental remediation are crucial for government agencies managing contaminated sites. Spending in this sector can vary widely based on the scale and complexity of the environmental challenges.

Small Business Impact

The absence of small business participation in this significant contract award indicates a missed opportunity to support smaller enterprises within the engineering services sector.

Oversight & Accountability

The Cost Plus Award Fee contract requires robust oversight to ensure performance targets are met efficiently and costs remain controlled. Regular reviews are essential to manage potential cost escalations.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Award Fee contract type
Long contract duration
Potential for cost overruns
Lack of small business participation
Environmental remediation complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to RESOLUTION CONSULTANTS - AN AECOM-ENSAFE JOINT VENTURE. REGIONAL GROUNDWATER INVESTIGATION AND ADDITION OF ONE BORING, NWIRP, BETHPAGE, NY

Who is the contractor on this award?

The obligated recipient is RESOLUTION CONSULTANTS - AN AECOM-ENSAFE JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2012-04-16. End: 2021-09-30.

What specific performance metrics are tied to the award fee, and how are they measured to ensure fair compensation and prevent cost overruns?

The specific performance metrics for the award fee are not detailed in the provided data. Typically, these metrics relate to project milestones, quality of deliverables, timeliness, and adherence to safety and environmental standards. The contracting officer's representative (COR) is responsible for monitoring contractor performance against these metrics and determining the fee awarded. Robust oversight is crucial to ensure these metrics are objective and that the fee genuinely reflects exceptional performance rather than just completion.

Given the long duration and cost-plus structure, what are the primary risks to the government regarding cost control and project scope creep?

The primary risks include uncontrolled cost escalation due to the Cost Plus Award Fee structure, where contractor profit is tied to performance, potentially incentivizing higher spending. The long duration (3454 days) increases the risk of scope creep, changing environmental regulations, and unforeseen site conditions that could necessitate contract modifications and increased costs. Without clear, fixed-price elements or stringent change control, managing the total project cost becomes challenging.

How does the government ensure the effectiveness of the groundwater investigation and boring addition to meet long-term environmental protection goals?

Effectiveness is ensured through rigorous technical oversight, adherence to established scientific protocols for groundwater investigation, and the expertise of the selected contractor. The Department of the Navy's quality assurance program and the COR's monitoring of data collection, analysis, and reporting are critical. The long duration suggests a commitment to thoroughness, and the award fee structure, if well-defined, should incentivize high-quality, effective results that contribute to long-term environmental protection goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 515 S FLOWERS ST, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $23,380,711

Exercised Options: $23,380,711

Current Obligation: $23,380,711

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $56,246

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247011D8013

IDV Type: IDC

Timeline