EPA awards $6.7M contract for Smalley-Piper groundwater system operations and maintenance

Contract Overview

Contract Amount: $6,672,158 ($6.7M)

Contractor: Versar-Envirocon JV

Awarding Agency: Environmental Protection Agency

Start Date: 2020-06-26

End Date: 2026-06-28

Contract Duration: 2,193 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATE, MONITOR AND MAINTAIN SMALLEY-PIPER GROUNDWATER EXTRACTION AND TREATMENT/SOIL FLUSHING SYSTEM

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38106

State: Tennessee Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.7 million to VERSAR-ENVIROCON JV for work described as: OPERATE, MONITOR AND MAINTAIN SMALLEY-PIPER GROUNDWATER EXTRACTION AND TREATMENT/SOIL FLUSHING SYSTEM Key points: 1. Contract focuses on essential remediation services for a specific environmental site. 2. The contract duration of approximately six years suggests a long-term commitment to site management. 3. Fixed-price contract type aims to control costs for the government. 4. The award was made under full and open competition, indicating a broad market search. 5. The geographic focus is Tennessee, highlighting regional environmental management efforts.

Value Assessment

Rating: good

The contract value of $6.7 million over approximately six years averages to about $1.1 million annually. Benchmarking this against similar environmental remediation and O&M contracts is challenging without more specific details on the system's complexity and scale. However, the fixed-price nature suggests an expectation of cost control. The number of bids received (though not provided) would further inform the value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bids received is not detailed, but the method of competition suggests a robust process aimed at achieving fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent on environmental remediation.

Public Impact

The Environmental Protection Agency (EPA) benefits from this contract by ensuring the continued operation and maintenance of a critical environmental system. The services delivered include the operation, monitoring, and maintenance of the Smalley-Piper groundwater extraction and treatment/soil flushing system. The geographic impact is localized to Tennessee, addressing specific environmental concerns within the state. This contract supports specialized environmental remediation services, potentially involving a skilled workforce in engineering and environmental science.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome-based evaluations in the provided data.
Potential for cost overruns if unforeseen technical issues arise with the remediation system.
Dependence on contractor expertise for effective long-term system management.

Positive Signals

Fixed-price contract type helps mitigate cost uncertainty for the government.
Award under full and open competition suggests a competitive bidding process.
Long contract duration allows for consistent management and potential economies of scale in operations.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a subset of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise in addressing environmental contamination and managing remediation projects. The market size for environmental consulting and remediation services is substantial, driven by regulatory requirements and ongoing cleanup efforts at various sites. This specific contract supports the EPA's mission to protect human health and the environment by ensuring the proper functioning of a remediation system.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary contractor, VERSAR-ENVIROCON JV, is likely a larger entity or a joint venture. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Environmental Protection Agency (EPA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases and reporting requirements. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Superfund Remedial Action Contracts
Environmental Consulting Services
Groundwater Treatment Systems
Site Remediation Services

Risk Flags

Potential for unforeseen technical issues with the remediation system.
Reliance on contractor expertise for long-term system effectiveness.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.7 million to VERSAR-ENVIROCON JV. OPERATE, MONITOR AND MAINTAIN SMALLEY-PIPER GROUNDWATER EXTRACTION AND TREATMENT/SOIL FLUSHING SYSTEM

Who is the contractor on this award?

The obligated recipient is VERSAR-ENVIROCON JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2020-06-26. End: 2026-06-28.

What is the specific nature and complexity of the Smalley-Piper groundwater extraction and treatment/soil flushing system?

The provided data does not detail the specific technical specifications or complexity of the Smalley-Piper groundwater extraction and treatment/soil flushing system. Understanding the system's design, the types of contaminants being addressed, the volume of water treated, and the operational challenges (e.g., energy consumption, maintenance frequency, specialized equipment) is crucial for a comprehensive assessment of the contract's value and the contractor's performance. Without this information, it is difficult to benchmark the $6.7 million contract value against industry standards for similar systems.

How does the annual cost of this contract compare to similar environmental remediation O&M contracts?

The annual cost for this contract is approximately $1.1 million ($6.7M / ~6 years). A direct comparison to similar contracts is difficult without more granular data on the scope of work, system complexity, and geographic location. However, environmental remediation and O&M can be highly variable. Factors such as the volume of groundwater treated, the concentration and type of contaminants, energy costs, and regulatory compliance requirements significantly influence pricing. Generally, long-term O&M contracts for complex environmental systems can range from hundreds of thousands to several million dollars annually, depending on these variables.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) used to evaluate the contractor's performance. Typically, for environmental remediation O&M contracts, KPIs would include metrics related to system uptime, treatment efficiency (e.g., contaminant removal rates), compliance with discharge permits, response times for system malfunctions, and adherence to safety protocols. The effectiveness of the oversight by the EPA contracting officer and the contractor's ability to meet these unstated KPIs are critical for ensuring the long-term success of the remediation effort.

What is the historical spending trend for the Smalley-Piper site remediation?

The provided data only includes information for this specific delivery order valued at $6.7 million, with a performance period from June 26, 2020, to June 28, 2026. It does not offer historical spending data for the Smalley-Piper site prior to this contract or for other contracts related to this site. To understand historical spending patterns, one would need to access federal procurement databases for previous awards associated with the Smalley-Piper site or similar remediation efforts managed by the EPA in Tennessee.

What is the track record of VERSAR-ENVIROCON JV in performing similar environmental remediation contracts?

The provided data identifies VERSAR-ENVIROCON JV as the contractor but does not offer details on their specific track record or past performance on similar environmental remediation contracts. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes from previous government contracts undertaken by this joint venture. This information is typically available through federal procurement systems like the Contractor Performance Assessment Reporting System (CPARS).

What are the potential risks associated with the long-term operation and maintenance of this environmental system?

Potential risks associated with the long-term operation and maintenance of this environmental system include unforeseen equipment failures requiring costly repairs, changes in environmental regulations necessitating system upgrades, fluctuations in energy costs impacting operational expenses, and the potential for contractor performance issues. Additionally, the effectiveness of the remediation itself could be impacted by geological or hydrological changes at the site. The fixed-price nature of the contract helps mitigate some financial risks for the government, but technical and environmental risks remain.

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: 68HE0420R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CTR STE 201, SPRINGFIELD, VA, 22151

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,023,667

Exercised Options: $8,003,532

Current Obligation: $6,672,158

Actual Outlays: $4,738,248

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $898,952

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0004

IDV Type: IDC

Timeline