EPA Awards $18.5M Remedial Action Contract for Tutu Wellfield OU2 to Conti Federal Services

Contract Overview

Contract Amount: $18,488,437 ($18.5M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2024-12-31

End Date: 2031-06-30

Contract Duration: 2,372 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Environmental

Official Description: RES TUTU WELLFIELD OU2 REMEDIAL ACTION

Place of Performance

Location: ST THOMAS, SAINT THOMAS County, VIRGIN ISLANDS OF THE U.S., 00801

Plain-Language Summary

Environmental Protection Agency obligated $18.5 million to CONTI FEDERAL SERVICES, LLC for work described as: RES TUTU WELLFIELD OU2 REMEDIAL ACTION Key points: 1. The contract focuses on environmental remediation services for the Tutu Wellfield. 2. Conti Federal Services, LLC secured the award. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The estimated completion date is June 30, 2031, indicating a long-term project. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $18.5 million appears reasonable for a multi-year remedial action project of this nature. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely resulted in a fair market price. The use of a delivery order under an IDIQ allows for flexibility while maintaining competitive principles.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for environmental cleanup.

Public Impact

Ensures cleanup of a significant environmental site in the U.S. Virgin Islands. Addresses potential public health risks associated with contaminated groundwater. Supports long-term environmental sustainability in the region. Provides employment opportunities during the remediation period.

Waste & Efficiency Indicators

Waste Risk Score: 77 / 10

Warning Flags

Long project duration (over 6 years) increases risk of cost overruns or scope creep.
Firm Fixed Price contract may not account for unforeseen site conditions.
Geographic location (US Virgin Islands) could present logistical challenges and higher costs.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract provides cost certainty.
EPA oversight ensures adherence to remediation standards.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, specifically focusing on Superfund site cleanup. Spending in this sector is driven by regulatory requirements and historical contamination, with significant federal investment.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Given the large contract value and specialized nature of the work, it is likely that larger, experienced firms dominated the bidding process.

Oversight & Accountability

The Environmental Protection Agency (EPA) is both the contracting agency and the source selection agency, indicating direct oversight. The long duration and fixed-price nature suggest a need for robust monitoring to ensure performance and prevent cost overruns.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Long contract duration (over 6 years).
Firm Fixed Price contract with potential for unforeseen site conditions.
Geographic location may present logistical challenges.
Potential for scope creep if remediation is more complex than anticipated.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $18.5 million to CONTI FEDERAL SERVICES, LLC. RES TUTU WELLFIELD OU2 REMEDIAL ACTION

Who is the contractor on this award?

The obligated recipient is CONTI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2024-12-31. End: 2031-06-30.

What are the specific contaminants being addressed at the Tutu Wellfield OU2, and what are the projected long-term environmental benefits of this remedial action?

The specific contaminants at the Tutu Wellfield OU2 primarily include volatile organic compounds (VOCs) and potentially other industrial chemicals that have impacted groundwater quality. The remedial action aims to significantly reduce or eliminate these contaminants, thereby protecting the public drinking water supply and restoring the ecological health of the surrounding environment. Long-term benefits include preventing further migration of pollutants, mitigating health risks to the community, and ensuring compliance with federal environmental standards.

What are the key risks associated with the long duration and fixed-price nature of this contract, and how is the EPA mitigating them?

The primary risks are potential cost overruns due to unforeseen site conditions or inflation over the 6+ year period, and scope creep if remediation challenges are greater than anticipated. Mitigation strategies likely include detailed site investigations prior to award, robust contract clauses for change orders, and diligent EPA oversight to monitor progress, manage risks, and ensure adherence to the fixed-price agreement. Regular progress reviews and performance metrics are crucial.

How does the cost of this remedial action compare to similar projects of comparable scale and complexity, and what factors justify any deviations?

Benchmarking this $18.5 million contract against similar large-scale environmental remediation projects is essential for a comprehensive value assessment. Factors influencing cost include the specific contaminants, site geology, accessibility, required treatment technologies, and regulatory requirements. Any deviations from typical cost ranges would need to be justified by unique site complexities, stringent cleanup standards, or logistical challenges specific to the U.S. Virgin Islands location.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 68HE0224R0008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11486 CORPORATE BLVD STE 120, ORLANDO, FL, 32817

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,536,092

Exercised Options: $18,488,437

Current Obligation: $18,488,437

Actual Outlays: $8,206,273

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0007

IDV Type: IDC

Timeline