EPA awards $4.5M Remedial Design contract to CDM Federal Programs Corp. for Puerto Rico site

Contract Overview

Contract Amount: $4,510,986 ($4.5M)

Contractor: CDM Federal Programs Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2022-09-09

End Date: 2027-03-08

Contract Duration: 1,641 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DES CABO ROJO REMEDIAL DESIGN

Place of Performance

Location: CABO ROJO, CABO ROJO County, PUERTO RICO, 00623

Plain-Language Summary

Environmental Protection Agency obligated $4.5 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: DES CABO ROJO REMEDIAL DESIGN Key points: 1. Contract focuses on critical environmental remediation design services. 2. Single award indicates a specific need or specialized capability. 3. Long performance period suggests a complex, multi-phase project. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost management. 5. Geographic focus on Puerto Rico highlights regional environmental priorities. 6. Remediation services sector is vital for environmental protection and public health.

Value Assessment

Rating: good

The contract value of $4.5 million for remedial design services appears reasonable given the five-year performance period. Benchmarking against similar EPA remedial design contracts is challenging without more specific project scope details. However, the cost-plus-fixed-fee (CPFF) pricing structure is common for complex design projects where the full scope may evolve. The fixed fee component provides a degree of cost control for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified firms had the opportunity to bid. The fact that it resulted in a single award implies that CDM Federal Programs Corporation was selected as the best value offeror among the competitors. The level of competition is a positive indicator for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the residents and environment of Puerto Rico, particularly in the vicinity of the Des Cabo Rojo site. The contract will deliver essential remedial design services, a crucial step before physical cleanup can occur. Geographic impact is localized to Puerto Rico, addressing specific environmental concerns in that region. Workforce implications include employment for environmental engineers, scientists, and support staff involved in the design process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Complexity of remedial design in a potentially challenging geographic and environmental setting.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long-term contract duration allows for sustained focus and project completion.
Focus on environmental remediation addresses critical public health and ecological needs.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under remediation services, which involves the cleanup or containment of hazardous substances. The EPA is a major client in this sector, awarding numerous contracts for site assessment, design, and cleanup activities across the United States and its territories. Spending in this sector is driven by regulatory requirements and the need to address legacy contamination.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the specialized nature of remedial design and the competitive bidding process, it is likely that larger, established firms with relevant expertise were the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will be provided by the Environmental Protection Agency (EPA), likely through its regional offices and program managers responsible for Superfund or other remediation sites. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment milestones. Transparency is facilitated through contract award databases and public reporting on EPA's environmental cleanup efforts.

Related Government Programs

Superfund Remedial Design
Environmental Consulting Services
Hazardous Waste Remediation

Risk Flags

Potential for cost growth in CPFF contracts.
Long performance period may increase risk of cost escalation or personnel turnover.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $4.5 million to CDM FEDERAL PROGRAMS CORPORATION. DES CABO ROJO REMEDIAL DESIGN

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2022-09-09. End: 2027-03-08.

What is the specific nature of the environmental hazard at the Des Cabo Rojo site requiring remedial design?

The provided data does not specify the exact nature of the environmental hazard at the Des Cabo Rojo site. Remedial design contracts typically address sites contaminated with hazardous substances, pollutants, or contaminants. This could range from industrial waste, petroleum products, heavy metals, or other toxic materials. Further investigation into EPA's Superfund program or specific site documentation for Des Cabo Rojo would be necessary to identify the precise contaminants and the historical sources of pollution.

How does the cost-plus-fixed-fee (CPFF) structure work for this contract and what are the implications for cost control?

A Cost-Plus-Fixed-Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For this remedial design contract, the EPA will pay CDM Federal Programs Corporation for its direct and indirect costs associated with performing the design work. The fixed fee is negotiated upfront and does not change unless the contract scope is formally modified. This structure is often used when the scope of work is not precisely defined at the outset, allowing for flexibility. However, it requires robust oversight from the EPA to ensure that costs are reasonable and allocable to the contract. The agency must actively manage the project to prevent scope creep and ensure efficient resource utilization to maintain cost control.

What are the typical deliverables expected under a remedial design contract of this nature?

Typical deliverables for a remedial design contract include detailed engineering plans, specifications, and cost estimates for the proposed cleanup actions. This often involves site characterization reports, feasibility studies, treatability studies, and the development of a comprehensive Remedial Design (RD) work plan. The final RD package provides the blueprint for the subsequent Remedial Action (RA) phase, outlining exactly how the cleanup will be performed. Other potential deliverables might include permitting support, construction quality assurance plans, and health and safety plans necessary for the physical remediation work.

What is CDM Federal Programs Corporation's track record with the EPA on similar remediation projects?

Information regarding CDM Federal Programs Corporation's specific track record with the EPA on similar remediation projects is not detailed in the provided data. However, CDM Federal Programs Corporation is a known entity in the environmental consulting and engineering space, often involved in government contracts. To assess their track record, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any publicly available project portfolios or case studies provided by the company. This would help determine their experience with the types of sites, contaminants, and regulatory frameworks relevant to the Des Cabo Rojo project.

How does the $4.5 million contract value compare to the overall EPA spending on remediation in Puerto Rico?

The $4.5 million contract value represents a specific investment in the design phase for the Des Cabo Rojo site. To compare this to overall EPA spending on remediation in Puerto Rico, one would need to analyze historical and current EPA budget allocations and contract awards for the region. The EPA manages numerous sites under various programs (e.g., Superfund, Brownfields, RCRA) that involve remediation. This $4.5 million is likely a portion of a larger overall remediation effort, and its significance would be understood in the context of the total funds dedicated to environmental cleanup activities across Puerto Rico by the agency.

What are the potential risks associated with the long performance period (over 4 years) for this contract?

A long performance period, such as the 1641 days (over 4 years) for this contract, introduces several potential risks. These include the possibility of escalating labor and material costs over time, which could impact the fixed fee component if not adequately accounted for in initial pricing. There's also a risk of key personnel turnover, potentially leading to loss of institutional knowledge. Furthermore, regulatory changes or new scientific findings related to the site's contamination could necessitate contract modifications, adding complexity and potential delays. The EPA must maintain consistent oversight and communication throughout the extended period to mitigate these risks and ensure project continuity.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0222R0013

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10560 ARROWHEAD DR STE 500, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $4,531,389

Exercised Options: $4,510,986

Current Obligation: $4,510,986

Actual Outlays: $3,112,020

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,242,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0318D0003

IDV Type: IDC

Timeline