EPA awards $291M remediation contract to ESO BEHR DAYTON for environmental services in Wisconsin

Contract Overview

Contract Amount: $291,169 ($291.2K)

Contractor: OCH JV

Awarding Agency: Environmental Protection Agency

Start Date: 2021-09-08

End Date: 2028-07-31

Contract Duration: 2,518 days

Daily Burn Rate: $116/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ESO BEHR DAYTON

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53226

State: Wisconsin Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $291,169.23 to OCH JV for work described as: ESO BEHR DAYTON Key points: 1. Contract value of $291.2 million over its potential duration. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Performance period extends over several years, indicating a long-term need for services. 5. The North American Industry Classification System (NAICS) code 562910 points to a focus on remediation services. 6. The contractor, OCH JV, is relatively new to this specific large-scale federal contract. 7. The contract is designated for Wisconsin, indicating a specific geographic focus.

Value Assessment

Rating: fair

The contract value of $291.2 million is substantial for environmental remediation services. Without specific benchmarks for similar large-scale, multi-year remediation projects in Wisconsin, a precise value-for-money assessment is difficult. The Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation if not managed diligently. Comparing this to other EPA remediation contracts of similar scope and duration would be necessary for a more definitive value assessment.

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, certain sources may have been excluded prior to the final award. The presence of 4 bids suggests a moderate level of competition. This approach aims to ensure a fair selection process but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the exclusion of sources might limit the full potential for cost savings if highly competitive vendors were prevented from bidding.

Public Impact

The primary beneficiaries are likely federal and state environmental agencies requiring hazardous waste remediation. Services delivered will focus on cleaning up contaminated sites, protecting public health and the environment. The geographic impact is concentrated in Wisconsin, addressing specific environmental challenges within the state. Workforce implications may include the creation of jobs for environmental scientists, engineers, technicians, and laborers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The exclusion of sources in the competition process raises questions about the breadth of competition achieved.
The contractor, OCH JV, may have limited demonstrated experience with federal contracts of this magnitude.
Long contract duration (2028 end date) increases the risk of scope creep or changing environmental regulations impacting costs.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
Multiple bids were received, suggesting interest and a degree of market responsiveness.
The contract addresses critical environmental remediation needs, aligning with EPA's mission.
The focus on a specific state (Wisconsin) allows for tailored environmental solutions.

Sector Analysis

Environmental remediation services fall under the broader environmental consulting and waste management sector. This sector is characterized by specialized expertise, stringent regulatory compliance, and significant government procurement. The market size for environmental remediation is substantial, driven by historical industrial activity and ongoing environmental protection efforts. This contract represents a significant portion of spending within this niche, supporting the government's efforts to address legacy contamination and ensure compliance with environmental laws.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans for small businesses. The 'ss' and 'sb' fields are false. This suggests that the primary award was made to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would typically fall under the Environmental Protection Agency's contracting officers and program managers. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS, though detailed performance monitoring reports are often internal.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Defense Environmental Remediation

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Limited contractor experience with large-scale federal contracts.
Uncertainty regarding the impact of excluded sources on competition.
Long contract duration increases exposure to changing conditions.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $291,169.23 to OCH JV. ESO BEHR DAYTON

Who is the contractor on this award?

The obligated recipient is OCH JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $291,169.23.

What is the period of performance?

Start: 2021-09-08. End: 2028-07-31.

What is the typical cost range for similar multi-year environmental remediation contracts awarded by the EPA?

Determining a precise 'typical' cost range for multi-year environmental remediation contracts is complex due to the highly variable nature of contamination, site complexity, and required remediation technologies. However, contracts of this magnitude ($291 million) are generally awarded for large-scale, long-term projects involving significant hazardous waste cleanup, such as those under the Superfund program. Smaller, site-specific remediation efforts might range from a few million to tens of millions of dollars. Larger, multi-site or complex remediation contracts can easily reach hundreds of millions over their lifespan. The Time and Materials (T&M) pricing structure also means the final cost is heavily dependent on the hours worked and materials used, making direct cost comparisons challenging without detailed project scopes.

What specific types of environmental remediation services are typically covered under NAICS code 562910?

NAICS code 562910, 'Remediation Services,' encompasses a broad range of activities aimed at cleaning up contaminated or polluted grounds or buildings. This typically includes services such as site assessment, soil and groundwater remediation, hazardous waste removal and disposal, asbestos abatement, lead paint removal, and demolition of contaminated structures. It covers both planned remediation efforts and emergency response to environmental incidents. Contracts under this code often involve complex engineering, specialized equipment, and strict adherence to environmental regulations, including those set forth by the EPA.

What are the potential risks associated with a Time and Materials (T&M) contract for environmental remediation?

Time and Materials (T&M) contracts for environmental remediation present several potential risks, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or overhead. This structure can lead to cost overruns if the scope of work expands unexpectedly, if labor hours are inefficiently used, or if material costs escalate. Effective oversight, detailed tracking of hours and materials, and clear definition of tasks are crucial to mitigate these risks. Without robust management, T&M contracts can become significantly more expensive than initially anticipated.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a procurement process that began with the intent of open competition but subsequently excluded certain potential offerors before the final award. This exclusion must be justified by the procuring agency, often based on specific criteria or regulations. While it aims to maintain a competitive environment, the exclusion of sources means that not all interested and capable vendors had the opportunity to bid. The rationale for exclusion is critical to understanding the extent of competition achieved and whether it truly represented the best value for the government.

How does the contractor's track record with federal contracts influence the assessment of this award?

A contractor's track record with federal contracts is a significant factor in assessing the risk and potential success of an award. For a contract valued at $291 million, a proven history of successfully managing similar-sized, complex projects is highly desirable. This includes demonstrating on-time and within-budget performance, adherence to quality standards, and effective management of resources and risks. If ESO BEHR DAYTON (OCH JV) has a limited history with federal contracts of this scale, it introduces a higher degree of uncertainty regarding their capability to execute the project effectively. Agencies often weigh past performance heavily in their source selection decisions.

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: 68HE0521R0053

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD STE 200, MILWAUKEE, WI, 53226

Business Categories: Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $302,145

Exercised Options: $302,145

Current Obligation: $291,169

Actual Outlays: $99,567

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0118D0016

IDV Type: IDC

Timeline