EPA awards $35.4M task order for Spirit Lake remediation to J.F. Brennan Company

Contract Overview

Contract Amount: $35,448,417 ($35.4M)

Contractor: J. F. Brennan Company, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2022-05-17

End Date: 2027-10-20

Contract Duration: 1,982 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPIRIT LAKE PHASE III TASK ORDER UNDER GLNPO-RRS MATOC

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55802

State: Minnesota Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $35.4 million to J. F. BRENNAN COMPANY, INC. for work described as: SPIRIT LAKE PHASE III TASK ORDER UNDER GLNPO-RRS MATOC Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 3. The long performance period indicates a complex and potentially long-term remediation effort. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The task order is part of a larger MATOC (Multiple Award Task Order Contract) vehicle. 6. The specific NAICS code points to specialized remediation services.

Value Assessment

Rating: good

The contract value of $35.4 million for remediation services appears reasonable given the multi-year performance period extending to October 2027. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for the government as it caps potential cost overruns, provided the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a 'full and open competition after exclusion of sources' clause, indicating that while the initial MATOC might have had some exclusions, this specific task order was competed broadly. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment, which typically drives better pricing and value for the government.

Taxpayer Impact: A competitive award process for this task order is beneficial for taxpayers as it likely resulted in a more cost-effective solution for the Spirit Lake remediation project compared to a sole-source award.

Public Impact

The primary beneficiaries are the environment and public health in the vicinity of Spirit Lake, Minnesota, through the cleanup of contaminated sites. The services delivered include specialized remediation activities essential for environmental restoration. The geographic impact is focused on the Spirit Lake area in Minnesota. The contract supports skilled labor in the environmental remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term remediation projects if not managed tightly.
Reliance on a single contractor for a significant duration requires robust oversight.
Environmental remediation can be subject to unforeseen site conditions impacting cost and schedule.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded under a competitive process, suggesting potential for cost efficiencies.
Long-term contract allows for sustained focus on a complex environmental issue.

Sector Analysis

This contract falls within the Environmental Remediation services sector, a critical area for government spending focused on cleaning up contaminated sites. The market for such services is specialized, involving firms with expertise in various remediation technologies and regulatory compliance. The $35.4 million award is substantial and reflects the complexity and scale of the Spirit Lake project, likely placing it among significant environmental contracts within the EPA's portfolio.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the specialized nature and significant value of environmental remediation, large, experienced contractors often dominate. Further analysis would be needed to determine the extent of small business participation, either directly or through subcontracting opportunities.

Oversight & Accountability

Oversight for this task order would primarily fall under the Environmental Protection Agency (EPA), likely through its regional offices and program managers responsible for Superfund or similar environmental cleanup initiatives. The contract's firm-fixed-price nature and long duration necessitate diligent monitoring of performance, adherence to schedule, and environmental compliance. Transparency would be facilitated through contract award databases and potentially public reports on remediation progress.

Related Government Programs

EPA Superfund Program
Great Lakes National Program Office (GLNPO)
Environmental Remediation Services Contracts
Hazardous Waste Management

Risk Flags

Long contract duration increases risk of unforeseen issues.
Firm-fixed-price requires precise initial scope definition.
Environmental remediation is inherently complex and can involve unknown site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $35.4 million to J. F. BRENNAN COMPANY, INC.. SPIRIT LAKE PHASE III TASK ORDER UNDER GLNPO-RRS MATOC

Who is the contractor on this award?

The obligated recipient is J. F. BRENNAN COMPANY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.4 million.

What is the period of performance?

Start: 2022-05-17. End: 2027-10-20.

What is the specific nature of the environmental contamination at Spirit Lake that necessitates this remediation effort?

The provided data does not specify the exact nature of the contamination at Spirit Lake. However, given the contract's focus on 'Remediation Services' under the EPA and the NAICS code 562910 (Remediation Services), it is highly probable that the site suffers from contamination by hazardous substances, pollutants, or contaminants. This could include industrial chemicals, heavy metals, petroleum products, or other waste materials that pose a risk to human health and the environment. Further investigation into EPA's GLNPO (Great Lakes National Program Office) records or specific site reports for Spirit Lake would be required to detail the contaminants and the historical sources.

How does the $35.4 million cost compare to similar large-scale environmental remediation projects managed by the EPA?

Comparing the $35.4 million cost requires context regarding the scope, duration, and complexity of the remediation. Large-scale environmental cleanup projects, especially those involving Superfund sites or significant contamination plumes, can easily run into tens or hundreds of millions of dollars over many years. For instance, major Superfund site cleanups often exceed $50 million and can extend for over a decade. The firm-fixed-price nature of this task order suggests that the EPA has a well-defined scope, which aids in cost predictability. However, without specific details on the remediation technology, volume of material to be treated, and site-specific challenges, a direct comparison to other projects is difficult. It is considered a substantial investment, indicative of a significant environmental undertaking.

What are the key performance indicators (KPIs) likely being used to monitor J. F. Brennan Company's progress on this task order?

Key performance indicators for this environmental remediation task order would likely focus on several critical areas. These would include adherence to the project schedule, ensuring milestones for different phases of remediation are met on time. Environmental compliance, such as meeting regulatory discharge limits and proper waste handling protocols, would be paramount. Performance quality, measured by the effectiveness of the remediation techniques in reducing contaminant levels to target standards, is crucial. Cost control, ensuring work stays within the firm-fixed-price budget, is also a key indicator, although the primary risk here lies with the contractor. Finally, safety performance, minimizing accidents and ensuring a safe working environment for all personnel on site, would be rigorously monitored.

What is the historical spending pattern for environmental remediation services by the EPA, and does this contract align with it?

The EPA consistently allocates significant funding towards environmental remediation, particularly through programs like Superfund and the Great Lakes National Program Office (GLNPO). Historical spending data shows billions of dollars allocated annually across various cleanup activities nationwide. Contracts for large-scale remediation projects, often awarded as task orders under larger IDIQ or MATOC vehicles, frequently range from several million to tens of millions of dollars, depending on the site's complexity and the scope of work. This $35.4 million task order aligns with the upper end of typical large remediation contracts awarded by the EPA. It reflects the agency's ongoing commitment to addressing environmental contamination and aligns with historical spending trends for substantial cleanup efforts.

What are the potential risks associated with a firm-fixed-price contract for a long-duration environmental remediation project?

While firm-fixed-price (FFP) contracts are generally preferred by the government for cost control, they carry specific risks for long-duration environmental remediation projects. The primary risk is that the contractor may underestimate the complexity, duration, or cost of the work, leading to financial losses for the contractor or, in extreme cases, contractor default. Conversely, if the scope is not perfectly defined, the contractor might cut corners on quality or safety to maintain profitability, necessitating stringent government oversight. Unforeseen site conditions (e.g., discovering unexpected types or volumes of contamination) can lead to significant change orders or disputes if not adequately addressed in the contract's contingency planning. The long duration also increases the risk of material price escalation or changes in regulatory requirements that could impact the contractor's costs.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 818 BAINBRIDGE ST, LA CROSSE, WI, 54603

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

Financial Breakdown

Contract Ceiling: $35,448,417

Exercised Options: $35,448,417

Current Obligation: $35,448,417

Actual Outlays: $35,079,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0521D0002

IDV Type: IDC

Timeline