EPA awards $57.4M contract for Superfund technical support in Illinois, with a 5-year performance period

Contract Overview

Contract Amount: $57,387,337 ($57.4M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2020-01-24

End Date: 2025-04-07

Contract Duration: 1,900 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPERFUND TECHNICAL ASSESSMENT&RESPONSE TEAM (START), REGION 5, TASK ORDER FOR BULK REMOVAL ACTIVITIES

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $57.4 million to TETRA TECH, INC. for work described as: SUPERFUND TECHNICAL ASSESSMENT&RESPONSE TEAM (START), REGION 5, TASK ORDER FOR BULK REMOVAL ACTIVITIES Key points: 1. Contract provides essential technical expertise for bulk removal activities under the Superfund program. 2. Full and open competition suggests a robust market for these specialized environmental services. 3. The contract's duration and scope indicate a significant, long-term need for environmental remediation support. 4. Performance is benchmarked against similar EPA technical assistance contracts. 5. The use of Time and Materials pricing requires careful monitoring to ensure cost control. 6. This award supports the agency's mission to address hazardous waste sites and protect public health.

Value Assessment

Rating: good

The contract value of $57.4 million over approximately five years represents a substantial investment in environmental remediation. Benchmarking against similar EPA technical assistance contracts for Superfund sites indicates that this award falls within a typical range for large-scale, multi-year support. The Time and Materials (T&M) pricing structure, while common for services requiring flexibility, necessitates diligent oversight to manage costs effectively and ensure value for money. Without specific cost breakdowns or comparable per-unit data, a definitive value assessment is challenging, but the overall scale suggests a significant commitment to addressing environmental hazards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive nature of the procurement process generally leads to better price discovery and a wider selection of qualified contractors. This approach aligns with federal acquisition regulations aimed at maximizing competition and achieving the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, potentially driving down costs and ensuring the government receives high-quality services at a fair market price.

Public Impact

The primary beneficiaries are communities impacted by Superfund sites requiring bulk removal activities, leading to improved environmental conditions and public health. The contract delivers critical technical assessment and response team services, essential for the effective cleanup of hazardous waste. Geographic impact is focused on Region 5, specifically Illinois, addressing localized environmental contamination. Workforce implications include the employment of specialized environmental scientists, engineers, and technicians by the contractor.

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 closely monitored, as it allows for reimbursement of direct labor hours and costs.
The long duration of the contract (nearly 5 years) increases the risk of scope creep or evolving requirements that may not be adequately captured in the initial pricing.
Lack of specific performance metrics or detailed deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
The absence of small business subcontracting goals (sb: false) may limit opportunities for smaller firms to participate in this large federal contract.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely resulted in a fair price.
The contract addresses critical environmental needs within the EPA's Superfund program, indicating alignment with national environmental priorities.
The selection of Tetra Tech, Inc. suggests a contractor with established capabilities in environmental consulting and remediation services.
A long-term contract (nearly 5 years) provides stability and ensures continuity of essential services for environmental cleanup efforts.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, a critical component of the broader environmental services industry. This sector is characterized by specialized expertise in areas such as site assessment, remediation, regulatory compliance, and technical support for government agencies. The market size for environmental consulting is substantial, driven by regulatory requirements, corporate sustainability initiatives, and government cleanup programs like Superfund. This specific award represents a significant portion of spending within the technical support sub-segment for hazardous waste site remediation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large, multi-year contract for specialized environmental services, it is likely that the prime contractor, Tetra Tech, Inc., will be responsible for managing subcontracting opportunities. The absence of explicit small business set-aside requirements means that opportunities for small businesses will depend on the prime contractor's subcontracting plan and the availability of small businesses capable of performing specialized tasks within the scope of this large award.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Environmental Protection Agency (EPA), the awarding agency. The EPA Contracting Officer and Technical Point of Contact will be responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Given the nature of Superfund work, the EPA's Office of Inspector General (OIG) may also conduct audits or investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS, which provide public access to contract award details.

Related Government Programs

Superfund Remedial Action Contracts
EPA Technical Assistance and Services Contracts
Environmental Consulting Services
Hazardous Waste Site Cleanup

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of scope creep over the contract's extended duration.
Need for diligent oversight to ensure contractor performance and adherence to technical requirements.
Complexity of managing large-scale environmental remediation projects.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $57.4 million to TETRA TECH, INC.. SUPERFUND TECHNICAL ASSESSMENT&RESPONSE TEAM (START), REGION 5, TASK ORDER FOR BULK REMOVAL ACTIVITIES

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.4 million.

What is the period of performance?

Start: 2020-01-24. End: 2025-04-07.

What is the historical spending pattern for Superfund technical assessment and response team services by the EPA, particularly in Region 5?

Historical spending on Superfund technical assessment and response team (START) services by the EPA is substantial, reflecting the ongoing need to manage and remediate hazardous waste sites across the nation. While specific historical data for Region 5 is not provided here, the EPA consistently awards multi-year contracts for these critical services. These contracts often range from tens to hundreds of millions of dollars annually, depending on the number of sites requiring attention and the complexity of the remediation efforts. Spending patterns are influenced by legislative appropriations, the identification of new Superfund sites, and the progress of ongoing cleanup projects. The $57.4 million awarded to Tetra Tech, Inc. for Region 5 is indicative of the significant investment required for comprehensive technical support in managing bulk removal activities over a multi-year period.

How does the pricing structure (Time and Materials) for this contract compare to other EPA environmental consulting contracts?

Time and Materials (T&M) pricing is a common structure for environmental consulting services, especially when the scope of work involves unpredictable elements or requires flexibility in staffing and resources, such as emergency response or complex site investigations. Compared to fixed-price contracts, T&M offers greater adaptability but carries a higher risk of cost escalation if not rigorously managed. Many EPA environmental consulting contracts utilize a hybrid approach, incorporating T&M for certain labor categories or phases while using fixed-price elements for specific deliverables. The appropriateness of T&M for this $57.4 million Superfund contract depends on the EPA's ability to closely monitor labor hours, direct costs, and material usage, ensuring that the final cost aligns with the value delivered and remains competitive with market rates for similar services.

What is Tetra Tech, Inc.'s track record with the EPA and specifically with Superfund contracts?

Tetra Tech, Inc. is a well-established government contractor with a significant history of performing environmental services for the EPA, including extensive work on Superfund projects. They have a demonstrated track record in areas such as site assessment, remedial design, construction management, and technical support for hazardous waste cleanup. The EPA frequently awards contracts to Tetra Tech due to their expertise and capacity to handle complex environmental challenges. While specific details of past performance on similar START contracts are not provided in this data, Tetra Tech's overall presence and repeated awards from the EPA suggest a generally positive performance history and a strong understanding of the agency's requirements and Superfund program objectives.

What are the key performance indicators (KPIs) typically used to evaluate the success of Superfund Technical Assessment and Response Team (START) contracts?

Key performance indicators (KPIs) for Superfund START contracts typically focus on the effectiveness and efficiency of technical support provided for bulk removal and other remediation activities. Common KPIs include the timely completion of site assessments and technical reports, adherence to regulatory requirements and cleanup standards, accuracy of cost estimates and budget management, and the successful implementation of removal actions. Other important metrics involve the quality of technical recommendations, the effectiveness of contractor coordination with EPA project managers and other stakeholders, and compliance with health and safety protocols. While specific KPIs for this contract are not detailed, the EPA would likely monitor these aspects to ensure the contractor is meeting program objectives and delivering value.

Are there any known risks or challenges associated with managing large, long-term environmental consulting contracts like this one?

Yes, managing large, long-term environmental consulting contracts presents several inherent risks and challenges. One primary risk is cost overruns, particularly with Time and Materials (T&M) contracts, if labor hours and material costs are not meticulously tracked and controlled. Scope creep, where the project's requirements expand beyond the original agreement, is another significant challenge that can lead to increased costs and extended timelines. Contractor performance issues, such as delays, quality deficiencies, or failure to meet regulatory compliance, can also pose risks. Furthermore, changes in environmental regulations, site conditions, or agency priorities over the contract's duration can necessitate adjustments that impact cost and schedule. Effective risk mitigation requires robust contract administration, clear communication, proactive issue resolution, and strong oversight from the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 S WACKER DR STE 3700, CHICAGO, IL, 60606

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

Financial Breakdown

Contract Ceiling: $57,387,337

Exercised Options: $57,387,337

Current Obligation: $57,387,337

Actual Outlays: $53,343,558

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $7,068,262

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0519D0005

IDV Type: IDC

Timeline