EPA Awards $7.6M Task Order for East Palestine Train Derailment Cleanup Services
Contract Overview
Contract Amount: $7,600,000 ($7.6M)
Contractor: Environmental Quality Management, Inc
Awarding Agency: Environmental Protection Agency
Start Date: 2023-02-28
End Date: 2027-01-31
Contract Duration: 1,433 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Environmental
Official Description: REGION 5, EMERGENCY AND RAPID RESPONSE SERVICES V (ERRS V): TASK ORDER INITIATION/REMOVAL WORK AT THE EAST PALESTINE OHIO TRAIN DERAILMENT SITE (C5XR)
Place of Performance
Location: EAST PALESTINE, COLUMBIANA County, OHIO, 44413
State: Ohio Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $7.6 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC for work described as: REGION 5, EMERGENCY AND RAPID RESPONSE SERVICES V (ERRS V): TASK ORDER INITIATION/REMOVAL WORK AT THE EAST PALESTINE OHIO TRAIN DERAILMENT SITE (C5XR) Key points: 1. The $7.6 million task order addresses critical cleanup needs at the East Palestine, Ohio train derailment site. 2. Environmental Quality Management, Inc. was awarded the contract, indicating a focus on specialized remediation services. 3. The contract's Time and Materials pricing structure may pose a risk for cost overruns if not closely monitored. 4. This award falls within the broader Environmental sector, specifically focusing on emergency response and remediation.
Value Assessment
Rating: questionable
The $7.6 million award for emergency response services is a significant sum. Without comparable contract data for similar rapid response events, assessing its pricing against benchmarks is difficult. The Time and Materials (T&M) contract type can lead to higher costs if not managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition approach. This method, while potentially faster in emergencies, may not yield the most competitive pricing compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for emergency environmental remediation. The effectiveness of the spending will depend on the successful and efficient cleanup of the derailment site.
Public Impact
Directly addresses environmental cleanup following a major industrial accident. Supports the recovery and safety of the affected community in East Palestine, Ohio. Demonstrates federal commitment to managing and mitigating the impact of hazardous material incidents.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition may impact overall cost-effectiveness.
- Complexity of cleanup operations could lead to unforeseen expenses.
Positive Signals
- Addresses an urgent environmental and public safety need.
- Awarded to a company with expertise in environmental quality management.
- Supports a critical national incident response.
Sector Analysis
This contract falls under the Environmental sector, specifically focusing on emergency and rapid response services for hazardous material incidents. Spending in this area is often reactive and driven by unforeseen events, making direct sector benchmarks challenging.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or if the scope necessitated larger, specialized firms.
Oversight & Accountability
The Environmental Protection Agency (EPA) is the awarding and contracting agency, implying direct oversight. However, the effectiveness of oversight for Time and Materials contracts is crucial to ensure cost control and prevent waste.
Related Government Programs
- Remediation Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Time and Materials pricing structure.
- Limited competition approach.
- Potential for scope creep in emergency response.
- Lack of clear performance metrics in the provided data.
Tags
remediation-services, environmental-protection-agency, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $7.6 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC. REGION 5, EMERGENCY AND RAPID RESPONSE SERVICES V (ERRS V): TASK ORDER INITIATION/REMOVAL WORK AT THE EAST PALESTINE OHIO TRAIN DERAILMENT SITE (C5XR)
Who is the contractor on this award?
The obligated recipient is ENVIRONMENTAL QUALITY MANAGEMENT, INC.
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $7.6 million.
What is the period of performance?
Start: 2023-02-28. End: 2027-01-31.
What specific remediation activities are included in this task order, and how do they align with the estimated cost?
The task order covers 'INITIATION/REMOVAL WORK AT THE EAST PALESTINE OHIO TRAIN DERAILMENT SITE (C5XR)'. Specific activities likely include site assessment, containment, removal of contaminated materials, and restoration. The $7.6 million cost is an estimate for these services, and detailed breakdowns would be necessary to fully assess value for money.
What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for this emergency contract?
This method, while potentially faster for urgent needs, limits the pool of potential bidders. This reduced competition could lead to higher prices than if all qualified sources were allowed to compete. It also raises questions about whether the most innovative or cost-effective solutions were considered.
How will the EPA ensure effective oversight of the Time and Materials contract to prevent cost overruns and ensure efficient cleanup?
Effective oversight will require rigorous monitoring of labor hours, material costs, and task progress. The EPA must establish clear milestones, performance metrics, and regular reporting requirements. Independent verification of work completed and adherence to environmental standards will be critical to ensure accountability and taxpayer value.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1800 CARILLON BLVD, CINCINNATI, OH, 45240
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,600,000
Exercised Options: $7,600,000
Current Obligation: $7,600,000
Actual Outlays: $7,215,965
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $2,185,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 68HE0422D0005
IDV Type: IDC
Timeline
Start Date: 2023-02-28
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-12-08
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