EPA awards $6.88M contract for Trenton RI/FS services to CDM Federal Programs Corporation

Contract Overview

Contract Amount: $6,883,214 ($6.9M)

Contractor: CDM Federal Programs Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2023-02-17

End Date: 2027-09-29

Contract Duration: 1,685 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DES - MCLOUTH STEEL CORP (MSC) TRENTON RI/FS

Place of Performance

Location: TRENTON, WAYNE County, MICHIGAN, 48183

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.9 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: DES - MCLOUTH STEEL CORP (MSC) TRENTON RI/FS Key points: 1. Contract focuses on remediation services, a critical environmental sector. 2. Awarded via full and open competition, suggesting a robust bidding process. 3. Duration of over 4 years indicates a significant, long-term project. 4. Cost Plus Fixed Fee pricing structure requires careful monitoring of costs. 5. Geographic focus on Michigan highlights regional environmental needs. 6. No small business set-aside noted, potentially limiting direct small business participation.

Value Assessment

Rating: fair

The contract value of $6.88 million over approximately 4 years (1685 days) for Remediation Services appears moderate for a federal contract of this nature. Benchmarking against similar environmental remediation contracts would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for complex projects, carries inherent risks of cost overruns if not managed diligently. Without specific performance metrics or comparison data, it's difficult to definitively assess if this represents excellent value, but it falls within a reasonable range for specialized environmental services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a reasonable level of competition for this specialized service. A competitive bidding process generally helps to ensure that the government receives fair pricing and that the most capable contractor is selected. The level of competition here is adequate, but further analysis of the bid evaluation process would be needed to confirm optimal price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to vie for government work, leading to potentially better deals.

Public Impact

The primary beneficiaries are the Environmental Protection Agency (EPA) and potentially the local community in Trenton, Michigan, through environmental cleanup and risk reduction. The contract delivers Remediation Services, likely involving site investigations, risk assessments, and cleanup activities for contaminated areas. The geographic impact is concentrated in Trenton, Michigan, addressing specific local environmental concerns. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and support staff involved in remediation projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type necessitates stringent oversight to prevent cost escalation and ensure adherence to the fixed fee.
The long duration of the contract (over 4 years) requires sustained monitoring to ensure continued performance and adapt to any unforeseen project changes.
Lack of specific performance metrics in the provided data makes it challenging to quantitatively assess contractor performance throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, indicating a transparent and competitive procurement process.
The selection of CDM Federal Programs Corporation suggests they possess the necessary expertise and qualifications for complex remediation tasks.
The contract addresses critical environmental remediation needs, contributing to public health and safety.

Sector Analysis

This contract falls within the Environmental Services sector, a significant segment of the federal contracting market focused on managing and mitigating environmental hazards. The North American Industry Classification System (NAICS) code 562910 (Remediation Services) specifically targets companies involved in cleaning up contaminated sites. Spending in this sector is driven by regulatory requirements, historical industrial activity, and ongoing environmental protection initiatives. Comparable spending benchmarks would typically involve analyzing the average cost and duration of similar EPA-funded remediation projects across different states.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false) and does not appear to have a specific small business participation goal (sb: false). This suggests that the primary award went to a large business or that subcontracting opportunities for small businesses were not explicitly mandated at the prime contract level. Further investigation into subcontracting plans would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA), the awarding and funding agency. The contract's Cost Plus Fixed Fee structure necessitates robust financial oversight to track expenditures and ensure the fixed fee remains appropriate. Accountability measures would be tied to the successful completion of remediation milestones and adherence to environmental regulations. Transparency is generally maintained through contract award databases and public reporting, though specific project details might be subject to confidentiality.

Related Government Programs

Superfund Program
Resource Conservation and Recovery Act (RCRA) Cleanups
Brownfields Program
Federal Agency Environmental Compliance

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Long contract duration necessitates sustained performance oversight.
Potential for cost overruns inherent in CPFF structure.
Need for clear definition of scope and change control.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.9 million to CDM FEDERAL PROGRAMS CORPORATION. DES - MCLOUTH STEEL CORP (MSC) TRENTON RI/FS

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2023-02-17. End: 2027-09-29.

What is the historical performance record of CDM Federal Programs Corporation with the EPA on similar remediation contracts?

A thorough review of CDM Federal Programs Corporation's past performance with the EPA is crucial. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or disputes. Understanding their track record on similar remediation projects, particularly those involving Cost Plus Fixed Fee structures, can provide insights into their reliability, cost control capabilities, and ability to meet project deadlines and quality standards. A history of successful project completion and positive performance reviews would increase confidence in their ability to execute this current contract effectively. Conversely, a history of cost overruns, delays, or performance deficiencies would raise concerns and necessitate closer scrutiny of their proposed approach and management plan for this award.

How does the estimated cost per day for this contract compare to industry benchmarks for similar environmental remediation projects?

To benchmark the cost-effectiveness, we can estimate a daily cost by dividing the total contract value ($6,883,214.35) by the contract duration in days (1685). This yields approximately $4,085 per day. This figure needs to be compared against industry benchmarks for environmental remediation services, which can vary significantly based on the complexity of the site, the type of contaminants, the specific services required (e.g., investigation vs. active cleanup), and geographic location. Factors like labor rates, equipment costs, regulatory compliance overhead, and profit margins influence these benchmarks. If the $4,085/day is significantly higher or lower than comparable projects, it warrants further investigation into the scope of work and the specific cost drivers for this contract.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this specific remediation project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate beyond initial projections due to unforeseen site conditions, scope creep, or inefficient management, the government bears the burden of these increased costs. This necessitates robust government oversight to scrutinize all incurred costs, ensure they are reasonable, allocable, and allowable, and prevent unnecessary expenditures. The contractor, while incentivized to complete the work, may have less incentive to aggressively control costs compared to a firm-fixed-price contract, as their profit is fixed regardless of cost efficiency beyond a certain point. Effective risk mitigation involves clear definition of scope, strong change control processes, and diligent cost monitoring by the contracting officer's representative (COR).

What is the expected impact of this contract on environmental quality in the Trenton, Michigan area?

This contract is expected to have a positive impact on environmental quality in Trenton, Michigan, by addressing specific contamination issues through Remediation Services. The project likely involves investigating the extent and nature of pollution at a designated site and implementing necessary cleanup actions. Successful execution of the contract should lead to the reduction or elimination of environmental hazards, mitigating risks to human health and ecosystems. This could involve restoring land usability, preventing further spread of contaminants, and ensuring compliance with environmental regulations. The specific impact will depend on the nature and severity of the contamination being addressed, but the contract's objective is inherently geared towards environmental improvement.

How does the number of bidders (4) in this full and open competition reflect the competitiveness of the environmental remediation market?

Receiving 4 bids in a full and open competition for environmental remediation services suggests a moderately competitive market for this specific contract. While more bidders could indicate broader competition, 4 bids often represent a sufficient number to ensure fair pricing and selection of a qualified contractor. The competitiveness can also be influenced by the specialized nature of the work, the geographic location, and the contract's value. If the pool of qualified contractors for this type of specialized remediation is inherently limited, 4 bids might represent a significant portion of the available market. Conversely, if the market is robust, fewer than 5-6 bidders might suggest potential barriers to entry or a lack of widespread interest, warranting further examination of the solicitation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0522R0007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10560 ARROWHEAD DR STE 500, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $8,027,044

Exercised Options: $6,883,214

Current Obligation: $6,883,214

Actual Outlays: $3,634,560

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,621,861

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0318D0003

IDV Type: IDC

Timeline