EPA awards $25.7M for environmental remediation at Mississippi site, highlighting long-term cleanup needs

Contract Overview

Contract Amount: $25,697,046 ($25.7M)

Contractor: Kemron Environmental Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2022-06-29

End Date: 2026-09-30

Contract Duration: 1,554 days

Daily Burn Rate: $16.5K/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: ERRS V, SOUTHEASTERN WOOD PRESERVING TASK ORDER: REMEDIAL ACTION AT SOUTHEASTERN WOOD PRESERVING SITE, CANTON, MADISON COUNTY, MISSISSIPPI

Place of Performance

Location: CANTON, MADISON County, MISSISSIPPI, 39046

State: Mississippi Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $25.7 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: ERRS V, SOUTHEASTERN WOOD PRESERVING TASK ORDER: REMEDIAL ACTION AT SOUTHEASTERN WOOD PRESERVING SITE, CANTON, MADISON COUNTY, MISSISSIPPI Key points: 1. Contract addresses critical environmental cleanup, indicating a significant long-term commitment to site restoration. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of over four years points to the complexity and scale of the remediation effort. 4. The use of Time and Materials pricing may introduce cost uncertainty if not closely managed. 5. This award falls within the broader category of environmental remediation services, a key function of the EPA. 6. The geographic focus on Mississippi underscores regional environmental challenges and EPA's response.

Value Assessment

Rating: fair

The contract value of $25.7 million for environmental remediation over approximately four years appears substantial. Benchmarking against similar large-scale EPA remediation contracts is necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not rigorously managed and monitored for efficiency. Without detailed cost breakdowns or comparisons to industry standards for specific remediation tasks, it's difficult to definitively assess value for money. However, the scale of the project suggests a significant investment in addressing environmental hazards.

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,' indicating that while the competition was open, there might have been prior considerations or exclusions that were justified. The presence of 3 bidders suggests a moderate level of competition for this specific task order. A full and open competition generally promotes price discovery and allows multiple qualified contractors to bid, potentially leading to more competitive pricing.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the residents and environment of Canton, Mississippi, through the cleanup of hazardous materials. The services delivered involve complex remedial actions to address environmental contamination at the Southeastern Wood Preserving site. The geographic impact is localized to Madison County, Mississippi, but sets a precedent for environmental cleanup standards. The contract supports specialized environmental engineering and remediation workforce, contributing to the skilled labor market in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and if labor hours or material costs are not controlled.
The duration of the contract (over 4 years) necessitates sustained oversight to ensure progress and adherence to remediation goals.
The 'EXCLUSION OF SOURCES' clause in the competition type warrants further investigation to understand the rationale and ensure it did not unduly limit competition.
The specific nature of the environmental hazards at the site requires specialized expertise, and any gaps in contractor capability could pose a risk to effective remediation.

Positive Signals

The award was made under full and open competition, indicating a structured procurement process that allowed multiple vendors to participate.
The contract is for a critical environmental remediation task, addressing potential long-term public health and ecological risks.
The selection of KEMRON ENVIRONMENTAL SERVICES, INC. suggests they possess the necessary qualifications and experience for this complex project.
The contract duration allows for a phased and thorough approach to remediation, potentially leading to a more complete cleanup.

Sector Analysis

Environmental remediation services represent a significant segment within the broader environmental services industry. This contract falls under the remediation and waste management sub-sector, which is driven by regulatory compliance, legacy contamination issues, and increasing environmental awareness. The EPA is a major client in this sector, awarding numerous contracts for site cleanup, hazardous waste management, and pollution control. Comparable spending benchmarks would involve analyzing other large-scale EPA Superfund or similar site remediation contracts, considering factors like site complexity, contaminants involved, and geographic location.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, larger prime contractors like KEMRON may engage small businesses for specialized support services, but this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Environmental Protection Agency (EPA), likely through contracting officers and technical monitors. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, though detailed performance reports and cost justifications may not always be publicly accessible. The Time and Materials pricing structure necessitates robust oversight to ensure efficient use of resources and prevent cost creep.

Related Government Programs

EPA Superfund Program
RCRA Corrective Actions
Brownfields Program
Hazardous Waste Management Contracts
Environmental Consulting Services

Risk Flags

Potential for cost overruns due to T&M pricing
Complexity of environmental remediation tasks
Need for sustained oversight over long contract duration
Justification for 'exclusion of sources' in competition

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $25.7 million to KEMRON ENVIRONMENTAL SERVICES, INC.. ERRS V, SOUTHEASTERN WOOD PRESERVING TASK ORDER: REMEDIAL ACTION AT SOUTHEASTERN WOOD PRESERVING SITE, CANTON, MADISON COUNTY, MISSISSIPPI

Who is the contractor on this award?

The obligated recipient is KEMRON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2022-06-29. End: 2026-09-30.

What is the historical spending pattern of the EPA on environmental remediation services, particularly in Mississippi?

The Environmental Protection Agency (EPA) consistently allocates significant funding towards environmental remediation across the United States, addressing legacy contamination and emerging environmental threats. Historical data indicates substantial investment in programs like Superfund, which targets the cleanup of the nation's most contaminated sites. In Mississippi, specific spending patterns are influenced by the presence of industrial sites, historical land use, and regulatory priorities. While precise historical figures for Mississippi alone require detailed database queries, the EPA's overall budget for remediation services runs into billions annually. This particular contract, valued at $25.7 million, represents a significant, albeit localized, investment within the broader context of the EPA's national remediation efforts. Analyzing past awards for similar sites or contaminants in the region would provide further context on the scale and duration of typical remediation projects undertaken by the agency.

How does the Time and Materials (T&M) pricing structure compare to other contract types for environmental remediation projects of this scale?

Time and Materials (T&M) contracts offer flexibility, allowing for adjustments in scope and effort as unforeseen conditions arise during complex projects like environmental remediation. This can be advantageous when the full extent of contamination or the most effective cleanup methods are not entirely known at the outset. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. For large-scale remediation, agencies often prefer Firm-Fixed-Price (FFP) or Cost-Plus-Fixed-Fee (CPFF) contracts to establish clearer cost ceilings and incentivize contractor efficiency. The EPA's choice of T&M here suggests a recognition of project uncertainties, but it necessitates stringent oversight, detailed reporting, and potentially labor hour/material cost limitations to mitigate financial risks for the government and ensure value for taxpayer money.

What specific environmental hazards are being addressed at the Southeastern Wood Preserving site, and what remediation techniques are anticipated?

The Southeastern Wood Preserving site in Canton, Mississippi, has a history associated with wood treatment processes, which typically involve chemicals like creosote, pentachlorophenol (PCP), and heavy metals (e.g., arsenic, chromium). These contaminants pose risks to soil, groundwater, and potentially nearby surface water bodies, impacting ecological health and human safety. The remediation techniques anticipated for such sites often include soil excavation and off-site disposal, in-situ or ex-situ soil treatment (e.g., thermal desorption, bioremediation), groundwater pump-and-treat systems, or containment measures like capping. The specific methods chosen for this $25.7 million contract will depend on detailed site investigations, risk assessments, and regulatory requirements set forth by the EPA. The contract's duration suggests a multi-faceted approach, likely involving a combination of these techniques to achieve site closure.

What is KEMRON Environmental Services, Inc.'s track record with the EPA and similar environmental remediation contracts?

KEMRON Environmental Services, Inc. has a documented history of performing environmental remediation work, including contracts with the U.S. Environmental Protection Agency (EPA) and other federal agencies. Their portfolio often includes projects involving hazardous waste site cleanup, munitions response, and environmental restoration. Examining their past performance evaluations, contract history (including value and duration of similar projects), and any past performance issues or awards is crucial for assessing their capability and reliability for this significant task order. Publicly available data suggests KEMRON has experience with complex environmental challenges, but a thorough review of their specific performance on prior EPA contracts, particularly those involving similar contaminants or remediation scales, would provide a more robust understanding of their suitability and potential risks.

How does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') impact the potential for cost savings or efficiency gains?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the solicitation was broadly advertised, allowing any qualified responsible source to submit an offer. However, the 'exclusion of sources' component suggests that certain potential bidders were identified and excluded prior to or during the solicitation process, based on specific criteria or justifications (e.g., past performance issues, security concerns, or specific technical requirements). While full and open competition generally fosters a competitive environment that can lead to better pricing and innovation, the exclusion of sources could potentially limit the number of bidders and, consequently, the intensity of competition. The presence of 3 bidders indicates a moderate level of competition. The impact on cost savings and efficiency would depend on the validity of the exclusions and the competitiveness among the remaining bidders. If the exclusions were well-justified and the remaining bidders were highly capable and competitive, significant savings could still be realized.

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

Solicitation ID: 68HE0422R0009

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1359-A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318

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

Financial Breakdown

Contract Ceiling: $25,697,046

Exercised Options: $25,697,046

Current Obligation: $25,697,046

Actual Outlays: $25,618,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0421D0016

IDV Type: IDC

Timeline