EPA awards $11.5M contract for hazardous soil remediation in Perth Amboy, NJ, addressing PCB, white phosphorus, and UXO threats

Contract Overview

Contract Amount: $11,524,000 ($11.5M)

Contractor: Environmental Restoration LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2022-05-13

End Date: 2027-01-26

Contract Duration: 1,719 days

Daily Burn Rate: $6.7K/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: WRITTEN ORDER TO CONFIRM VERBAL GIVEN TO MITIGATE THE THREATS POSED BY PCB CONTAMINATED SOIL WHICH WAS DISCOVERED TO ALSO CONTAIN WHITE PHOSPHOROUS, AS WELL AS UNEXPLODED ORDINANCE (UXO). FORMER HARRY GOLDBERG & SONS METAL SITE IN PERTH AMBOY, NJ

Place of Performance

Location: PERTH AMBOY, MIDDLESEX County, NEW JERSEY, 08861

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $11.5 million to ENVIRONMENTAL RESTORATION LLC for work described as: WRITTEN ORDER TO CONFIRM VERBAL GIVEN TO MITIGATE THE THREATS POSED BY PCB CONTAMINATED SOIL WHICH WAS DISCOVERED TO ALSO CONTAIN WHITE PHOSPHOROUS, AS WELL AS UNEXPLODED ORDINANCE (UXO). FORMER HARRY GOLDBERG & SONS METAL SITE IN PERTH AMBOY, NJ Key points: 1. Contract addresses complex environmental hazards including PCBs, white phosphorus, and unexploded ordnance. 2. The remediation services are critical for mitigating environmental and safety risks at a former industrial site. 3. The contract duration of over 1700 days indicates a substantial and long-term cleanup effort. 4. The use of a Time and Materials contract type suggests potential for scope adjustments during remediation. 5. The award was made under full and open competition, indicating a competitive bidding process. 6. The contractor, Environmental Restoration LLC, is tasked with a high-stakes environmental cleanup.

Value Assessment

Rating: good

The contract value of $11.5 million for a multi-year remediation project involving hazardous materials appears reasonable. Benchmarking against similar large-scale environmental cleanup contracts, especially those involving UXO and chemical contaminants, would provide a more precise value assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, but it is often necessary for complex, unpredictable remediation work.

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,' which implies that while the competition was open, specific sources may have been excluded for reasons not detailed in the provided data. However, the 'full and open' designation generally suggests a robust bidding process. The presence of multiple bidders (indicated by 'no': 3, likely referring to bids received or offers) is a positive sign for price discovery and achieving a competitive outcome.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. This approach aims to secure the best value for the government and, by extension, the public.

Public Impact

The primary beneficiaries are the residents and environment of Perth Amboy, New Jersey, by mitigating significant health and safety risks. The services delivered involve the complex remediation of contaminated soil, including hazardous chemicals and unexploded ordnance. The geographic impact is localized to the former Harry Goldberg & Sons Metal Site in Perth Amboy, NJ. The contract supports specialized environmental cleanup jobs, potentially involving a skilled workforce in remediation and hazardous material handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type carries inherent risk of cost overruns if not meticulously managed and monitored.
The presence of unexploded ordnance (UXO) introduces significant safety risks for personnel involved in the remediation.
The complexity of mixed contaminants (PCBs, white phosphorus, UXO) requires specialized expertise and equipment, increasing operational challenges.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The Environmental Protection Agency (EPA) is the awarding and contracting agency, indicating oversight by a federal environmental authority.
The contractor, Environmental Restoration LLC, is likely experienced in handling complex environmental remediation projects.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector addresses the cleanup of contaminated sites, often involving complex regulatory frameworks and specialized technical expertise. The market size for environmental remediation is substantial, driven by historical industrial activity, regulatory mandates, and ongoing environmental stewardship efforts. This specific contract addresses a unique combination of hazardous materials, including persistent organic pollutants (PCBs) and explosive remnants, requiring advanced cleanup technologies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may engage small businesses for specialized support services as part of their overall project execution, though this is not explicitly mandated by the contract type.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reports, site inspections, and performance reviews to ensure the contractor meets contractual obligations and safety standards. Accountability is maintained through the contract's terms and conditions, including potential penalties for non-compliance. Transparency is generally facilitated through public reporting on EPA projects and environmental cleanup status, though specific details of daily operations may be less public.

Related Government Programs

Superfund Program (CERCLA)
RCRA Corrective Actions
Military Munitions Response Program (MMRP)
Brownfields Program

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Significant safety risks associated with Unexploded Ordnance (UXO).
Complexity of mixed hazardous contaminants (PCBs, white phosphorus, UXO).
Long contract duration increases exposure to unforeseen issues.
Need for specialized contractor expertise and equipment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $11.5 million to ENVIRONMENTAL RESTORATION LLC. WRITTEN ORDER TO CONFIRM VERBAL GIVEN TO MITIGATE THE THREATS POSED BY PCB CONTAMINATED SOIL WHICH WAS DISCOVERED TO ALSO CONTAIN WHITE PHOSPHOROUS, AS WELL AS UNEXPLODED ORDINANCE (UXO). FORMER HARRY GOLDBERG & SONS METAL SITE IN PERTH AMBOY, NJ

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 $11.5 million.

What is the period of performance?

Start: 2022-05-13. End: 2027-01-26.

What is the historical spending pattern for Environmental Restoration LLC with the EPA?

Analyzing the historical spending of Environmental Restoration LLC with the EPA requires access to federal procurement databases like FPDS or USASpending.gov. Without direct access to this data, a precise answer cannot be provided. However, a general assessment would involve looking at the number and value of previous contracts awarded to this contractor by the EPA. High historical spending could indicate a strong working relationship and proven capability, or it could suggest a lack of broader competition. Conversely, limited historical engagement might raise questions about their capacity for such a large project or suggest they are a newer entrant to EPA contracting. A review would also identify the types of services previously contracted to understand their specialization and track record in similar remediation efforts.

How does the $11.5 million contract value compare to similar EPA hazardous site remediation contracts?

Comparing the $11.5 million contract value requires benchmarking against similar EPA remediation projects, particularly those involving complex contaminants like PCBs and UXO. Large-scale hazardous waste site cleanups can range from millions to hundreds of millions of dollars, depending on the site's size, the type and extent of contamination, and the remediation technologies required. A contract of this magnitude suggests a significant cleanup operation. To assess value-for-money, one would ideally compare the cost per unit of contaminant removed, cost per acre remediated, or cost per cubic yard of soil treated against similar projects. The presence of UXO and multiple hazardous substances likely increases the cost compared to simpler contamination scenarios, making direct comparisons challenging without detailed project scope information.

What are the primary risks associated with this specific contract, beyond the inherent dangers of the contaminants?

Beyond the significant risks posed by PCBs, white phosphorus, and UXO, other primary risks associated with this contract include potential scope creep due to the Time and Materials (T&M) pricing structure. T&M contracts can lead to cost overruns if the scope of work is not clearly defined or if work proceeds inefficiently. Another risk is contractor performance; ensuring Environmental Restoration LLC has the necessary specialized expertise, equipment, and safety protocols for handling such a complex and dangerous site is crucial. Delays in permitting, unforeseen site conditions (beyond the known contaminants), or community relations issues could also pose risks. Furthermore, the long duration (over 1700 days) increases the exposure to changing regulatory requirements or economic fluctuations that could impact project feasibility or cost.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers in this case?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific needs or limitations. While 'full and open' suggests an attempt to solicit bids from all qualified sources, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately not considered. The effectiveness for taxpayers hinges on the justification for excluding sources. If exclusions were based on legitimate technical requirements, security needs, or prior performance issues, then the remaining competition could still yield good value. However, if sources were excluded arbitrarily, it could limit competition, potentially leading to higher prices or less innovative solutions. The fact that there were 3 bids suggests some level of competition was achieved, but understanding the rationale behind any exclusions is key to assessing taxpayer value.

What are the long-term environmental and public health implications if this remediation is not completed successfully?

If this remediation is not completed successfully, the long-term environmental and public health implications for Perth Amboy, NJ, could be severe. Persistent contaminants like PCBs can leach into groundwater and soil, posing risks for decades, potentially contaminating drinking water sources and agricultural land. The presence of white phosphorus and UXO presents ongoing safety hazards, increasing the risk of accidental detonation or exposure, which can cause severe injury or death. Failure to remediate could also hinder future land development and economic opportunities for the area. Furthermore, unresolved contamination can lead to chronic health issues for nearby residents, including potential links to cancer and developmental problems, depending on the specific contaminants and exposure pathways.

What specific performance metrics or milestones are likely being used to track the success of this remediation contract?

Tracking the success of this complex remediation contract likely involves a multi-faceted approach with specific performance metrics and milestones. Key performance indicators (KPIs) would probably include the volume or mass of contaminated soil removed and properly disposed of, the percentage reduction in contaminant concentrations to meet regulatory cleanup standards, and adherence to strict safety protocols (e.g., zero lost-time incidents related to UXO handling). Milestones might be defined by phases of the cleanup, such as site characterization completion, initiation of excavation, completion of specific treatment processes, and final site restoration. Regular progress reports detailing work completed, challenges encountered, and upcoming activities would be crucial. The EPA's project officers would likely conduct site visits and review analytical data to verify cleanup effectiveness against established benchmarks.

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: $11,524,000

Exercised Options: $11,524,000

Current Obligation: $11,524,000

Actual Outlays: $7,105,743

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