EPA Awards $71.5M ERRS IV Contract to Kemron Environmental Services for Remediation in Mississippi

Contract Overview

Contract Amount: $71,544,566 ($71.5M)

Contractor: Kemron Environmental Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2016-09-20

End Date: 2021-12-23

Contract Duration: 1,920 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF EMERGENCY AND RAPID RESPONSE SERVICES IV (ERRS IV) MISSISSIPPI PHOSPHATES CORPORATION, MS 39581

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39581

State: Mississippi Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $71.5 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: IGF::OT::IGF EMERGENCY AND RAPID RESPONSE SERVICES IV (ERRS IV) MISSISSIPPI PHOSPHATES CORPORATION, MS 39581 Key points: 1. Contract awarded for emergency and rapid response services, indicating a need for immediate environmental cleanup. 2. The award to Kemron Environmental Services suggests a competitive process, though specific details on the number of bidders are not provided. 3. The contract duration of 1920 days (approx. 5.2 years) indicates a significant, long-term commitment to environmental services. 4. The use of 'Time and Materials' pricing could lead to cost overruns if not carefully managed. 5. The contract is categorized under Remediation Services, a critical area for environmental protection and public health.

Value Assessment

Rating: fair

The contract value of $71.5M over approximately 5.2 years suggests a substantial investment in environmental remediation. Benchmarking against similar large-scale remediation contracts would be necessary to fully assess pricing effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated, but specific sources were excluded. This method aims for broad competition while potentially narrowing the field based on specific criteria, impacting price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for critical environmental cleanup services, aiming to mitigate pollution and protect public health and natural resources.

Public Impact

Ensures timely response to environmental emergencies and hazardous situations. Supports the cleanup of contaminated sites, improving environmental quality in Mississippi. Provides essential services for the Environmental Protection Agency's mission. Creates jobs and economic activity within the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing.
Complexity of managing large-scale, long-term remediation projects.
Ensuring contractor performance meets stringent environmental standards.

Positive Signals

Addresses critical environmental needs through rapid response.
Utilizes a competitive bidding process for award.
Supports EPA's environmental protection mandate.

Sector Analysis

Environmental remediation services are crucial for addressing pollution and hazardous waste. Spending in this sector is driven by regulatory requirements, environmental disasters, and public health concerns. Benchmarks vary widely based on project scope and complexity.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Robust oversight is crucial to ensure compliance with environmental regulations, manage costs effectively, and verify the quality of remediation work performed.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns due to Time and Materials (T&M) pricing structure.
Complexity and long duration of remediation projects increase oversight challenges.
Ensuring consistent environmental compliance and quality across diverse sites.
Dependence on specific contractor expertise for critical environmental tasks.
Potential for unforeseen site conditions to escalate costs and timelines.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $71.5 million to KEMRON ENVIRONMENTAL SERVICES, INC.. IGF::OT::IGF EMERGENCY AND RAPID RESPONSE SERVICES IV (ERRS IV) MISSISSIPPI PHOSPHATES CORPORATION, MS 39581

Who is the contractor on this award?

The obligated recipient is KEMRON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $71.5 million.

What is the period of performance?

Start: 2016-09-20. End: 2021-12-23.

What specific environmental hazards or sites are covered under this ERRS IV contract in Mississippi?

The contract is for Emergency and Rapid Response Services (ERRS IV) and covers remediation services. While the specific sites are not detailed in the provided data, ERRS contracts typically address a range of environmental emergencies, including hazardous substance releases, oil spills, and other pollution incidents requiring immediate attention and cleanup to protect public health and the environment.

How does the 'Full and Open Competition After Exclusion of Sources' method impact the final contract price compared to unrestricted full and open competition?

This method allows for broad competition initially but then excludes certain sources based on predefined criteria. While it aims to ensure qualified bidders, the exclusion of potential competitors could theoretically limit the downward pressure on pricing compared to a truly unrestricted full and open competition where all responsible sources are considered without prior exclusion.

What are the key performance indicators (KPIs) used to measure the effectiveness of the remediation services provided under this contract?

Effectiveness is typically measured by the successful cleanup of hazardous substances to regulatory standards, adherence to project timelines, minimization of environmental impact during remediation, and compliance with all safety and environmental protocols. Specific KPIs would be detailed in the contract's statement of work and performance requirements.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1595 SPRILL HILL RD STE 310, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $71,544,566

Exercised Options: $71,544,566

Current Obligation: $71,544,566

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: EPS41505

IDV Type: IDC

Timeline