EPA awards $73M task order to AECOM for Little Scioto River remediation services

Contract Overview

Contract Amount: $72,997,302 ($73.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-02-21

End Date: 2027-12-31

Contract Duration: 1,774 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LITTLE SCIOTO RIVER TASK ORDER

Place of Performance

Location: MARION, MARION County, OHIO, 43302

State: Ohio Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $73.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: LITTLE SCIOTO RIVER TASK ORDER Key points: 1. Task order awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting potential for follow-on work. 2. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor. 3. Remediation services are critical for environmental protection and public health. 4. The duration of the task order is substantial, spanning nearly five years. 5. Competition was full and open, indicating a broad market solicitation. 6. The North American Industry Classification System (NAICS) code 562910 points to hazardous waste treatment and disposal facilities.

Value Assessment

Rating: good

The total award amount of $72,997,302.42 for nearly five years of remediation services appears reasonable given the scope. Without specific benchmarks for the Little Scioto River cleanup, direct comparison is difficult. However, AECOM's extensive experience in environmental remediation suggests they can deliver value. The firm-fixed-price structure helps control costs for the EPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that the EPA solicited proposals from all eligible responsible sources. The presence of 3 bids suggests a healthy level of interest and competition for this significant remediation project. This competitive process is expected to drive fair pricing and ensure the selection of a qualified contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the residents and environment of the Little Scioto River area in Ohio, who will see improved ecological health and reduced exposure to hazardous substances. The services delivered include remediation of contaminated sites along the Little Scioto River, likely involving soil and water cleanup. The geographic impact is concentrated in Ohio, specifically along the Little Scioto River watershed. This contract supports a specialized workforce in environmental engineering, hazardous waste management, and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep if not managed tightly.
Potential for unforeseen site conditions requiring additional funding or time extensions.
Reliance on a single contractor for a critical environmental project carries inherent risk.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
AECOM's established track record in large-scale environmental projects provides confidence in execution.
Full and open competition suggests a robust selection process and potentially competitive pricing.

Sector Analysis

Environmental remediation is a significant sector within the broader environmental services industry. This contract falls under hazardous waste management and site cleanup, a specialized area requiring significant technical expertise. The market includes large engineering firms capable of handling complex, multi-year projects. Spending in this area is often driven by regulatory requirements and Superfund site cleanups.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While AECOM is a large business, there may be opportunities for small businesses to participate as subcontractors on this project, contributing to the broader small business ecosystem within environmental services.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Oversight mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability is ensured through the firm-fixed-price contract terms and the potential for penalties or contract termination for non-performance. Transparency is generally maintained through public contract databases and EPA reporting.

Related Government Programs

Superfund Program
Brownfields Program
RCRA Corrective Actions
Clean Water Act Programs

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Long contract duration requires diligent oversight to prevent scope creep.
Reliance on a single contractor for a critical environmental function.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $73.0 million to AECOM TECHNICAL SERVICES, INC.. LITTLE SCIOTO RIVER TASK ORDER

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL 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 $73.0 million.

What is the period of performance?

Start: 2023-02-21. End: 2027-12-31.

What is AECOM Technical Services, Inc.'s track record with the EPA on similar remediation projects?

AECOM Technical Services, Inc. has a substantial history of working with the Environmental Protection Agency (EPA) on various environmental projects, including remediation. They are frequently awarded contracts under large IDIQ vehicles for services such as site assessment, design, and remediation of contaminated sites. Their experience spans numerous complex projects, often involving hazardous waste, groundwater contamination, and soil remediation. Publicly available contract data indicates numerous awards from the EPA and other federal agencies for similar services, suggesting a strong existing relationship and proven capability. This specific task order likely leverages their established expertise and past performance evaluations with the agency.

How does the $73 million award compare to other large-scale EPA remediation contracts?

The $73 million award for the Little Scioto River task order is a significant but not unprecedented amount for large-scale EPA remediation projects. Major Superfund site cleanups or extensive river basin remediation efforts can often reach into the hundreds of millions of dollars over their lifecycle. This task order, with a duration of nearly five years, represents a substantial investment in environmental cleanup. When benchmarked against similar multi-year, complex remediation efforts managed by the EPA, this award appears to be within the expected range for projects of this scope and duration, especially considering the firm-fixed-price structure which aims to contain costs.

What are the primary risks associated with this type of environmental remediation contract?

The primary risks associated with this environmental remediation contract include unforeseen site conditions, such as discovering additional contamination or encountering unexpected geological challenges, which could lead to cost overruns or schedule delays. Regulatory changes or evolving environmental standards could also impact the project's scope and cost. Contractor performance risk is present, although mitigated by AECOM's experience and the firm-fixed-price structure. There's also a potential for public or stakeholder opposition if the remediation process causes temporary disruptions or concerns. Finally, long-term effectiveness monitoring poses a risk if the remediation doesn't achieve sustained environmental improvements.

How effective are firm-fixed-price contracts in managing costs for long-term environmental remediation?

Firm-fixed-price (FFP) contracts are generally considered effective tools for managing costs in long-term environmental remediation projects, particularly when the scope of work is well-defined. By shifting the financial risk to the contractor (AECOM, in this case), the government is protected from cost overruns due to contractor inefficiencies or market fluctuations. However, the success of FFP in remediation hinges on a thorough initial assessment of the site and potential challenges. If unforeseen conditions arise that were not reasonably foreseeable during the bidding process, contract modifications and additional funding may still be necessary, potentially negating some of the cost control benefits. Clear contract language regarding contingencies and change orders is crucial.

What is the historical spending trend for EPA remediation services under similar NAICS codes?

Historical spending trends for EPA remediation services under NAICS code 562910 (Remediation Services) indicate a consistent and substantial federal investment. The EPA is a primary driver of spending in this category, often through its Superfund and other environmental cleanup programs. Annual federal outlays for remediation services have historically ranged from several hundred million to over a billion dollars, reflecting the ongoing need to address contaminated sites across the nation. Factors influencing this spending include regulatory mandates, the discovery of new contamination, and the prioritization of cleanup efforts. Contracts like this task order contribute to the overall federal expenditure in this critical sector.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $72,997,302

Exercised Options: $72,997,302

Current Obligation: $72,997,302

Actual Outlays: $45,346,713

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $42,957,404

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0001

IDV Type: IDC

Timeline