EPA Awards $57.5M for Southside Chattanooga Site Remediation to CMC, Inc

Contract Overview

Contract Amount: $57,479,953 ($57.5M)

Contractor: C M C, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2021-12-17

End Date: 2026-09-30

Contract Duration: 1,748 days

Daily Burn Rate: $32.9K/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: SOUTHSIDE CHATTANOOGA SITE RESIDENTIAL REMEDIATION ACTIVITIES AND SERVICES REQUIRED TO PROTECT PUBLIC HEALTH AND ENVIRONMENTAL ISSUES AT THE SITE. SSID:B4J4RA02 ;

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37402

State: Tennessee Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $57.5 million to C M C, INC. for work described as: SOUTHSIDE CHATTANOOGA SITE RESIDENTIAL REMEDIATION ACTIVITIES AND SERVICES REQUIRED TO PROTECT PUBLIC HEALTH AND ENVIRONMENTAL ISSUES AT THE SITE. SSID:B4J4RA02 ; Key points: 1. Contract awarded for environmental remediation services at the Southside Chattanooga site. 2. CMC, Inc. secured the contract valued at $57.5 million. 3. The contract aims to protect public health and the environment. 4. Remediation services fall under NAICS code 562910. 5. The contract duration is approximately 1748 days.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar remediation contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a limited competition, potentially impacting price discovery and overall value for taxpayer dollars.

Taxpayer Impact: The use of a limited competition and Time and Materials contract type may result in higher costs for taxpayers compared to a firm-fixed-price contract with full and open competition.

Public Impact

Protects public health and environmental quality in Chattanooga. Addresses long-standing environmental issues at the Southside site. Ensures compliance with environmental regulations. Supports local environmental cleanup efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Time and Materials contract type poses cost control risks.
Lack of small business participation noted.

Positive Signals

Addresses critical environmental and public health needs.
Long-term contract provides stability for remediation efforts.
Awarded by a reputable agency (EPA).

Sector Analysis

Environmental remediation services are crucial for addressing legacy pollution and ensuring public safety. Spending in this sector can vary significantly based on site complexity and regulatory requirements. This contract appears to be a significant investment for a specific site.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this remediation effort.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. The contract's duration and value suggest a need for robust oversight to ensure efficient and effective remediation.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Limited competition may lead to higher costs.
Time and Materials contract type increases cost risk.
No small business participation noted.
Potential for cost overruns due to contract type and duration.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $57.5 million to C M C, INC.. SOUTHSIDE CHATTANOOGA SITE RESIDENTIAL REMEDIATION ACTIVITIES AND SERVICES REQUIRED TO PROTECT PUBLIC HEALTH AND ENVIRONMENTAL ISSUES AT THE SITE. SSID:B4J4RA02 ;

Who is the contractor on this award?

The obligated recipient is C M C, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.5 million.

What is the period of performance?

Start: 2021-12-17. End: 2026-09-30.

What specific remediation activities are included in this contract, and how do they align with the site's known environmental hazards?

The contract specifies 'RESIDENTIAL REMEDIATION ACTIVITIES AND SERVICES REQUIRED TO PROTECT PUBLIC HEALTH AND ENVIRONMENTAL ISSUES AT THE SITE.' While the exact activities are not detailed, the focus is on addressing known public health and environmental concerns at the Southside Chattanooga site, likely involving soil, water, or building material cleanup based on the nature of residential contamination.

What factors led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and what was the potential cost impact?

The exclusion of sources typically occurs when only a limited number of contractors possess the specialized skills, technology, or security clearances required for a specific project. This limitation can reduce competitive pressure, potentially leading to higher prices than a truly open competition. The specific reasons for exclusion and their cost impact would require further investigation into the solicitation documents.

How will the EPA ensure cost control and effectiveness given the Time and Materials contract type and the long duration of this remediation project?

The EPA will likely implement stringent monitoring and reporting requirements, establish cost ceilings, and conduct regular performance reviews to manage the Time and Materials contract. Effective oversight will involve verifying the necessity and efficiency of all labor and materials used, ensuring that the contractor's efforts directly contribute to the remediation goals and taxpayer value.

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: 1151 JESSAMINE STATION PIKE, NICHOLASVILLE, KY, 40356

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

Financial Breakdown

Contract Ceiling: $71,272,091

Exercised Options: $71,272,091

Current Obligation: $57,479,953

Actual Outlays: $55,032,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0421D0012

IDV Type: IDC

Timeline