Environmental Protection Agency awards $6.6M contract for remediation services to Environmental Restoration LLC

Contract Overview

Contract Amount: $6,600,000 ($6.6M)

Contractor: Environmental Restoration LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2021-08-18

End Date: 2027-01-26

Contract Duration: 1,987 days

Daily Burn Rate: $3.3K/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: TO INITIATION, $2,700,000 INITIAL FUNDING REQUEST

Place of Performance

Location: LEWISTON, NIAGARA County, NEW YORK, 14092

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.6 million to ENVIRONMENTAL RESTORATION LLC for work described as: TO INITIATION, $2,700,000 INITIAL FUNDING REQUEST Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges if not closely managed. 3. The duration of the contract is substantial, spanning over 1900 days, indicating a long-term need for these services. 4. The initial funding request was significantly lower than the final award amount, warranting further investigation into scope changes or cost escalations. 5. The contractor, Environmental Restoration LLC, has secured this award, indicating their capability in the environmental remediation sector. 6. The contract is for remediation services, a critical area for environmental protection and compliance.

Value Assessment

Rating: fair

The contract's total award value is $6.6 million. Benchmarking this against similar environmental remediation contracts requires detailed analysis of scope, duration, and specific services rendered. The Time and Materials pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The significant difference between the initial funding request ($2.7M) and the final award ($6.6M) suggests potential scope creep or unforeseen complexities that impacted the overall cost.

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'. This indicates that while the competition was intended to be open, there was a specific exclusion of certain sources. The number of bidders is not explicitly stated, but the 'full and open' nature suggests multiple entities were likely considered. This level of competition is generally favorable for price discovery and ensuring fair market value.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to cost savings and better service quality.

Public Impact

The primary beneficiaries are likely the areas requiring environmental remediation, leading to improved environmental conditions. The services delivered will focus on cleaning up contaminated sites, a crucial aspect of environmental protection. The geographic impact is specified as New York (NY), indicating that the remediation efforts will take place within this state. The contract supports the Environmental Protection Agency's mission to protect human health and the environment. The contract may indirectly impact the environmental services workforce by creating demand for skilled labor in remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
The significant increase from the initial funding request to the final award warrants scrutiny of scope changes and cost justifications.
The 'exclusion of sources' in the competition, while potentially justified, could limit the breadth of competition and innovation.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
The contract addresses critical environmental remediation needs, aligning with the EPA's core mission.
The long contract duration suggests a sustained commitment to addressing environmental issues in New York.

Sector Analysis

Environmental remediation is a specialized sector within the broader environmental services industry. This contract falls under NAICS code 562910 (Remediation Services). The market for environmental remediation is driven by regulatory requirements, historical contamination, and industrial cleanup needs. Spending in this sector can vary significantly based on the scale and complexity of cleanup projects. Comparable spending benchmarks would depend on the specific type of contamination and the geographic region.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, larger contracts often have subcontracting requirements that can benefit small businesses, provided they have the specialized capabilities needed for remediation services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA). The contract's duration and value suggest that regular performance reviews and financial audits would be standard. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones.

Related Government Programs

Superfund Program
Brownfields Program
RCRA Corrective Actions
Federal Facility Cleanup Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Significant increase from initial funding request to award value.
Limited competition due to exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.6 million to ENVIRONMENTAL RESTORATION LLC. TO INITIATION, $2,700,000 INITIAL FUNDING REQUEST

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL RESTORATION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2021-08-18. End: 2027-01-26.

What specific remediation activities are covered under this contract?

The contract specifies 'Remediation Services' under NAICS code 562910. While the exact scope is not detailed in the provided data, these services typically encompass a range of activities aimed at cleaning up contaminated sites. This can include site assessment, hazardous waste removal, soil and groundwater treatment, containment, and long-term monitoring. The specific nature of the contamination (e.g., chemical spills, historical industrial waste) and the required cleanup technologies would dictate the precise activities performed. Further details would likely be found in the contract's statement of work.

How does the Time and Materials pricing structure compare to fixed-price contracts for similar remediation projects?

Time and Materials (T&M) contracts offer flexibility, allowing for adjustments in scope and effort as a project progresses, which can be beneficial for complex or uncertain remediation tasks. However, T&M contracts generally carry a higher risk of cost overruns for the government compared to fixed-price contracts. With T&M, the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials used. This can lead to higher overall costs if project timelines extend or if labor and material usage is not efficiently managed. Fixed-price contracts, conversely, provide greater cost certainty for the government but may require more detailed upfront scope definition and can be less adaptable to unforeseen challenges.

What factors might explain the significant increase from the initial funding request to the final award amount?

The substantial difference between the initial funding request of $2.7 million and the final award of $6.6 million could be attributed to several factors. Common reasons include a more detailed understanding of the site's contamination during the planning phase, leading to an expanded scope of work. Unforeseen complexities discovered during initial assessments, such as deeper contamination, wider affected areas, or the presence of more hazardous substances than initially anticipated, could necessitate additional resources and time. Changes in regulatory requirements or the need for specialized equipment or techniques not accounted for in the initial estimate also contribute. Furthermore, the competitive bidding process itself might have led to a higher initial bid based on perceived project needs.

What is the track record of Environmental Restoration LLC in handling large-scale environmental remediation contracts?

To assess the track record of Environmental Restoration LLC, a review of their past performance on similar contracts would be necessary. This would involve examining their history with government agencies, particularly the EPA, and other clients. Key indicators include their ability to complete projects on time and within budget, their safety record, the quality of their remediation work, and any history of contract disputes or performance issues. Information on their experience with specific types of contamination and remediation technologies relevant to this New York-based contract would also be crucial. Publicly available contract databases and performance evaluations can provide insights into their capabilities and reliability.

What are the potential risks associated with the 'exclusion of sources' in the contract's competition method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while still competitive, introduces a specific risk: it limits the pool of potential bidders. If the exclusion was not strictly necessary for technical or security reasons, it could inadvertently reduce competition, potentially leading to higher prices or less innovative solutions than might have been achieved with a truly unrestricted open competition. The justification for excluding sources needs to be robust to ensure that the government is still obtaining the best value. Without knowing the specific reasons for exclusion, it's difficult to quantify the precise risk, but it inherently narrows the market.

How does this contract align with the EPA's broader environmental restoration goals in New York?

This contract directly supports the EPA's mission to protect human health and the environment by addressing contaminated sites. In New York, the EPA is involved in various initiatives, including the Superfund program, which targets the cleanup of hazardous waste sites, and other programs addressing industrial pollution and legacy contamination. A contract for remediation services in New York indicates the agency is actively working to identify and clean up sites within the state, contributing to improved environmental quality and public safety. The specific location and nature of the remediation would determine its precise alignment with state and federal environmental priorities.

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: 1666 FABICK DR, FENTON, MO, 63026

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

Financial Breakdown

Contract Ceiling: $6,600,000

Exercised Options: $6,600,000

Current Obligation: $6,600,000

Actual Outlays: $6,564,664

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0220D0001

IDV Type: IDC

Timeline