EPA's $26.7M Remediation Services Contract Awarded to C M C, INC. for Alabama Site

Contract Overview

Contract Amount: $26,666,519 ($26.7M)

Contractor: C M C, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2015-08-28

End Date: 2021-12-23

Contract Duration: 2,309 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF 35TH AVE

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35207

State: Alabama Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $26.7 million to C M C, INC. for work described as: IGF::OT::IGF 35TH AVE Key points: 1. Contract value of $26.7 million over approximately 6.3 years indicates a significant investment in environmental remediation. 2. The 'Full and Open Competition After Exclusion of Sources' award type suggests a potentially complex procurement process. 3. A Time and Materials contract type can introduce cost variability if not closely managed. 4. The contract's duration and value place it within a substantial spending category for environmental services. 5. Performance context is crucial given the nature of remediation services, requiring adherence to strict environmental standards. 6. Sector positioning is within environmental consulting and remediation, a critical area for regulatory compliance and public health.

Value Assessment

Rating: fair

The contract value of $26.7 million over 2309 days (approximately 6.3 years) averages to about $11,549 per day. Without specific benchmarks for similar large-scale remediation projects in Alabama, a direct value-for-money assessment is challenging. However, the duration suggests a long-term commitment, and the Time and Materials pricing structure warrants close monitoring to ensure costs remain aligned with project scope and market rates for specialized remediation services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to specialized capabilities or prior performance. The number of offers received (3) is relatively low for a full and open competition, suggesting that the pool of qualified bidders might have been limited or that the exclusion criteria narrowed the field significantly. This level of competition may not have driven the most aggressive pricing.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers compared to a broader, more competitive bidding process. The lower number of bidders could mean less downward pressure on pricing.

Public Impact

The primary beneficiaries are likely residents and ecosystems in Alabama impacted by environmental contamination requiring remediation. Services delivered include specialized remediation activities to address hazardous substances or pollutants. Geographic impact is focused on a specific site within Alabama, contributing to local environmental improvement. Workforce implications include employment opportunities for skilled environmental technicians, engineers, and project managers involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not meticulously managed and monitored.
Limited competition (3 bidders) may have resulted in a less competitive price than a broader solicitation.
The exclusion of sources, while potentially justified, reduces the overall competitive landscape.

Positive Signals

Award to a single contractor (C M C, INC.) suggests a focused relationship for a specific, potentially complex, remediation task.
The contract duration indicates a long-term commitment to addressing environmental issues at the site.
The agency (EPA) is actively engaged in environmental cleanup, fulfilling its regulatory mandate.

Sector Analysis

The environmental remediation sector is a critical component of the broader environmental services industry, driven by regulatory requirements (like EPA mandates) and a growing focus on sustainability and pollution control. This contract falls within the remediation services sub-sector, which involves the cleanup of contaminated soil, water, and air. Market size for environmental consulting and remediation services in the US is substantial, with significant government spending allocated annually to address legacy contamination and ongoing environmental challenges. This contract represents a specific instance of federal investment in addressing environmental liabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, C M C, INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Therefore, the direct impact on the small business ecosystem is likely minimal unless C M C, INC. voluntarily engages small businesses for specialized services.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reports, site inspections, and financial reviews to ensure compliance with contract terms and environmental regulations. Accountability is maintained through performance metrics and adherence to remediation standards. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Superfund Program (CERCLA)
Resource Conservation and Recovery Act (RCRA) cleanups
Brownfields Program
Defense Environmental Restoration Program (DERP)
State-level environmental cleanup programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition may have reduced price competitiveness.
Need for robust oversight to manage scope and efficiency.
Complexity of environmental remediation can lead to unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $26.7 million to C M C, INC.. IGF::OT::IGF 35TH AVE

Who is the contractor on this award?

The obligated recipient is C M C, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2015-08-28. End: 2021-12-23.

What is the track record of C M C, INC. with the EPA and similar remediation contracts?

Assessing the track record of C M C, INC. requires a deeper dive into federal procurement databases (like FPDS-NG or SAM.gov) and potentially EPA's internal performance records. Specifically, one would look for past performance evaluations on similar environmental remediation contracts, particularly those involving Time and Materials pricing and long durations. Key indicators include on-time delivery, budget adherence, quality of work (e.g., successful remediation outcomes), and any history of disputes, claims, or contract modifications. A review of their contract history with the EPA would reveal their experience level and reliability in managing complex environmental projects, which is crucial for a contract of this magnitude and duration.

How does the average daily cost of this contract compare to industry benchmarks for similar remediation projects?

The average daily cost for this contract is approximately $11,549 ($26.7M / 2309 days). Benchmarking this against industry standards for environmental remediation is complex, as costs vary significantly based on the type and extent of contamination, geographic location, labor rates, required equipment, and regulatory requirements. Specialized remediation (e.g., hazardous waste, complex soil/groundwater contamination) commands higher daily rates than simpler site preparation. Without specific details on the nature of the contamination and the remediation techniques employed, a precise comparison is difficult. However, this daily rate should be evaluated against rates for similar EPA-funded projects or state-led initiatives in the region to determine if it represents fair market value.

What are the primary risks associated with a Time and Materials (T&M) contract for environmental remediation?

The primary risk with a Time and Materials (T&M) contract for environmental remediation is the potential for cost escalation if not managed rigorously. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred, plus a fee. This can lead to budget overruns if the scope of work expands, if work is inefficiently performed, or if labor/material costs increase unexpectedly. For remediation projects, which can encounter unforeseen site conditions (e.g., discovering more contamination than initially assessed), T&M can be flexible but also costly. Effective oversight, detailed tracking of hours and materials, and clear definitions of what constitutes 'time' and 'materials' are critical to mitigate these risks and ensure taxpayer value.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply about the contract's value and efficiency?

The 'Full and Open Competition After Exclusion of Sources' method suggests a procurement process that initially aimed for broad competition but ultimately excluded certain potential offerors. This exclusion could be based on specific technical requirements, security clearances, past performance issues with certain contractors, or unique capabilities needed for the project. While it aims for fairness, excluding sources can limit the competitive pool, potentially leading to higher prices than a truly open competition with numerous bidders. The value and efficiency depend heavily on the justification for the exclusions; if exclusions were necessary due to highly specialized needs, the resulting price might be justified. However, if exclusions were arbitrary, it could reduce competitive pressure and efficiency.

How has EPA spending on remediation services trended historically, and how does this contract fit into that pattern?

EPA spending on remediation services, particularly through programs like Superfund, has historically been substantial, reflecting the agency's mandate to clean up hazardous waste sites. Annual appropriations for Superfund and related cleanup activities fluctuate based on congressional funding levels, program priorities, and the number and complexity of sites requiring attention. This $26.7 million contract represents a significant, but not extraordinary, investment for a single remediation project over several years. It fits within the pattern of EPA utilizing large, multi-year contracts to address long-term environmental liabilities across the country. Analyzing historical spending trends would involve examining EPA's budget justifications and contract award data over the past decade to understand overall investment levels and the average size of remediation contracts.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1151 JESSAMINE STATION RD, NICHOLASVILLE, KY, 40356

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

Financial Breakdown

Contract Ceiling: $26,666,519

Exercised Options: $26,666,519

Current Obligation: $26,666,519

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: EPS41504

IDV Type: IDC

Timeline