EPA awards $14.4M Superfund START 8(a) contract for Brownfields task order to KGSNE JV II LLC

Contract Overview

Contract Amount: $14,367,426 ($14.4M)

Contractor: Kgsne JV II LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2022-09-16

End Date: 2027-09-15

Contract Duration: 1,825 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPERFUND TECHNICAL ASSESSMENT & RESPONSE TEAM (START) 8-A CONTRACT BROWNFIELDS TASK ORDER

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02109

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.4 million to KGSNE JV II LLC for work described as: SUPERFUND TECHNICAL ASSESSMENT & RESPONSE TEAM (START) 8-A CONTRACT BROWNFIELDS TASK ORDER Key points: 1. Contract awarded as a delivery order under an existing IDIQ, suggesting a pre-vetted contractor. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Awarded to a joint venture, potentially indicating a focus on developing emerging small businesses. 4. The contract duration of 5 years (1825 days) provides long-term support for EPA's Brownfields program. 5. The specific NAICS code (562910) points to remediation services, a critical environmental function. 6. The contract was not competitively procured, raising questions about potential price efficiencies.

Value Assessment

Rating: fair

The contract value of $14.4 million over five years averages to approximately $2.88 million annually. Without specific details on the scope of work or comparable task orders, a precise value-for-money assessment is challenging. However, the Time and Materials pricing structure necessitates diligent oversight to ensure costs remain reasonable and do not escalate beyond anticipated levels. Benchmarking against similar remediation services contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing contract and is noted as 'NOT AVAILABLE FOR COMPETITION'. This suggests it was likely set aside for a specific type of small business or awarded under a pre-existing indefinite delivery, indefinite quantity (IDIQ) contract where competition may have already occurred or was limited. The lack of open competition means that the EPA did not solicit bids from the broader market for this specific task order.

Taxpayer Impact: The absence of open competition for this task order means taxpayers may not have benefited from the potentially lower prices that could arise from a competitive bidding process. This could lead to higher overall costs for the services rendered.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving technical assessment and response team services. Services delivered include support for the Brownfields program, which aims to revitalize contaminated properties. The contract is geographically focused on Massachusetts, indicating local environmental cleanup and redevelopment efforts. The contract supports the workforce through KGSNE JV II LLC, likely employing environmental specialists and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of open competition may result in higher prices than a competitively bid contract.
The specific scope of work and deliverables are not detailed, making it difficult to assess performance metrics.
Reliance on a single joint venture for this task order could limit future competition or innovation.

Positive Signals

Awarded to a joint venture, potentially supporting the development of small businesses.
The contract provides long-term support (5 years) for a critical EPA program.
The task order is for remediation services, addressing important environmental concerns.
The contractor is a joint venture, possibly bringing together diverse expertise.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under the Remediation Services (NAICS 562910) category. The EPA's Superfund and Brownfields programs are key drivers of spending in this sector, focusing on cleaning up hazardous waste sites and redeveloping brownfield properties. Spending in this area is influenced by regulatory requirements, environmental policy, and the availability of federal funding for cleanup initiatives. Comparable contracts often involve site assessment, cleanup, monitoring, and technical support for environmental projects.

Small Business Impact

This contract was awarded to KGSNE JV II LLC, a joint venture. While the data does not explicitly state it is a small business set-aside, joint ventures are often formed to leverage capabilities and pursue contracts that might otherwise be inaccessible to individual small businesses. The formation of this joint venture suggests a potential focus on developing or supporting small business participation in federal contracting, particularly within the environmental services sector. Further analysis would be needed to confirm if this was a specific small business initiative or subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), which awarded and manages the contract. As a delivery order under an existing contract, the initial oversight may have been part of the parent contract's management. The Time and Materials nature of the contract necessitates robust monitoring of labor hours, material costs, and adherence to the scope of work to ensure accountability and prevent cost overruns. Transparency would be enhanced by public reporting of task order performance and expenditures.

Related Government Programs

Superfund Program
Brownfields Program
Environmental Services Contracts
8(a) Small Business Program
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Non-competitive award
Time and Materials pricing structure
Limited public information on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.4 million to KGSNE JV II LLC. SUPERFUND TECHNICAL ASSESSMENT & RESPONSE TEAM (START) 8-A CONTRACT BROWNFIELDS TASK ORDER

Who is the contractor on this award?

The obligated recipient is KGSNE JV II LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2022-09-16. End: 2027-09-15.

What is the specific scope of work for this Brownfields task order, and how does it align with the EPA's broader Brownfields program objectives?

The provided data indicates this is a task order under the SUPERFUND TECHNICAL ASSESSMENT & RESPONSE TEAM (START) 8(a) CONTRACT for Brownfields. While the specific scope of work is not detailed, Brownfields task orders typically involve activities such as site assessments (Phase I and Phase II), cleanup planning, community outreach, and technical assistance to facilitate the redevelopment of contaminated properties. These activities directly support the EPA's Brownfields Program goal of revitalizing communities by addressing the environmental, legal, and financial barriers to redeveloping underutilized or abandoned sites. The 'START' designation suggests a focus on rapid response and technical expertise for assessment and initial response actions.

How does the Time and Materials (T&M) contract type compare to other contract types used for similar environmental remediation services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined at the outset or is expected to change. For environmental remediation, T&M can be suitable for assessment or emergency response tasks where the extent of contamination or the required actions are initially uncertain. However, T&M contracts carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or hourly rate. This necessitates rigorous oversight by the contracting officer to ensure that hours are reasonable and allocable, and that costs are not inflated. If not managed effectively, T&M contracts can lead to cost overruns compared to competitively bid fixed-price contracts where the contractor assumes more risk.

What is the track record of KGSNE JV II LLC in performing federal contracts, particularly those related to environmental services?

Information regarding the specific track record of KGSNE JV II LLC is not provided in the data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. To assess their track record, one would typically look at past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract awards, and any history of disputes or terminations. Given this is an 8(a) contract, it's possible it's one of their initial significant awards, or it leverages the experience of its parent entities. Further investigation into federal contract databases and performance reviews would be necessary to establish a comprehensive understanding of their past performance.

Given this contract was 'NOT AVAILABLE FOR COMPETITION', what are the implications for price discovery and potential cost savings for taxpayers?

When a contract is 'NOT AVAILABLE FOR COMPETITION' (often referred to as sole-source or non-competitive), it means the government did not solicit bids from multiple potential offerors. This significantly limits price discovery, as there is no direct comparison of pricing from different companies vying for the same work. In a competitive environment, multiple bids allow the government to select the offer that provides the best value, often balancing price and technical approach. Without competition, the government relies on negotiation and its understanding of fair and reasonable pricing, which may not yield the same cost savings as a competitive process. Taxpayers may therefore incur higher costs than they would have under a fully competed contract, although the government aims to ensure prices are still fair and reasonable.

How does the $14.4 million contract value compare to historical EPA spending on similar Superfund Technical Assessment and Response Team (START) or Brownfields task orders?

The $14.4 million value for this 5-year task order represents an average annual value of approximately $2.88 million. To benchmark this effectively, one would need to compare it against historical spending data for similar START and Brownfields task orders issued by the EPA. Factors such as the specific geographic region, the complexity of the sites involved, and the scope of services (e.g., assessment-heavy vs. remediation-focused) can significantly influence contract values. Without access to a database of comparable task orders, it is difficult to definitively state whether this contract value is high, low, or average. However, it appears to be a substantial award, reflecting the ongoing need for technical support in managing contaminated sites.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 293 BOSTON POST RD W STE 100, MARLBOROUGH, MA, 03

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,367,426

Exercised Options: $14,367,426

Current Obligation: $14,367,426

Actual Outlays: $10,512,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0122D0001

IDV Type: IDC

Timeline