EPA Awards $43.1M for Velsicol North Disposal Area Soil Vapor Extraction System Remedial Action

Contract Overview

Contract Amount: $43,141,059 ($43.1M)

Contractor: Kemron/Arrowhead JV, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2023-05-30

End Date: 2027-05-29

Contract Duration: 1,460 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VELSICOL NORTH DISPOSAL AREA SOIL VAPOR EXTRACTION SYSTEM REMEDIAL ACTION

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $43.1 million to KEMRON/ARROWHEAD JV, LLC for work described as: VELSICOL NORTH DISPOSAL AREA SOIL VAPOR EXTRACTION SYSTEM REMEDIAL ACTION Key points: 1. The contract focuses on environmental remediation services, a critical but often costly sector. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract is a delivery order under a larger contract, indicating phased execution. 4. The project is located in Tennessee, potentially impacting local environmental conditions and economy.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial for a single delivery order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which generally promotes competitive pricing. However, the specific pricing for this delivery order is not detailed, making a direct price discovery assessment difficult.

Taxpayer Impact: The significant award amount suggests a considerable investment of taxpayer funds towards environmental cleanup.

Public Impact

Addresses long-term environmental contamination at the Velsicol North Disposal Area. Aims to improve soil and groundwater quality in Tennessee. Remediation activities could lead to local job creation and economic activity. Potential for long-term monitoring and maintenance costs beyond the current award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long project duration (4 years) increases risk of scope creep and cost escalation.
Specific remediation technology effectiveness needs monitoring.

Positive Signals

Full and open competition should drive better pricing.
Environmental remediation is a necessary public service.
Delivery order structure allows for phased funding and oversight.

Sector Analysis

Environmental remediation services are crucial for addressing legacy pollution. Spending in this sector can vary widely based on the scale and complexity of the contamination. This award is significant for a single site remediation project.

Small Business Impact

The contract was awarded to KEMRON/ARROWHEAD JV, LLC. Information on small business participation within this joint venture is not provided, but the prime contractor is not a small business.

Oversight & Accountability

The Environmental Protection Agency is both the contracting agency and the awarding agency, suggesting direct oversight. The delivery order structure allows for incremental review and approval of work.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long project duration.
Potential for environmental risks if remediation is incomplete.
Lack of detailed performance metrics provided.
Joint venture structure obscures small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $43.1 million to KEMRON/ARROWHEAD JV, LLC. VELSICOL NORTH DISPOSAL AREA SOIL VAPOR EXTRACTION SYSTEM REMEDIAL ACTION

Who is the contractor on this award?

The obligated recipient is KEMRON/ARROWHEAD JV, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2023-05-30. End: 2027-05-29.

What is the estimated total cost of the entire remedial action, and how does this delivery order fit into the overall project budget?

The provided data only details this specific delivery order's award amount ($43.1M). The total cost of the entire remedial action is not specified. Understanding the full project scope and budget is crucial for assessing the value and long-term financial commitment required for complete site cleanup.

What are the key performance indicators (KPIs) for this remedial action, and how will their achievement be measured to ensure effectiveness and taxpayer value?

Specific KPIs for this remedial action are not detailed in the provided data. Effective oversight would require clearly defined metrics for soil vapor extraction efficiency, contaminant reduction levels, and environmental compliance. Regular reporting and independent verification of these KPIs are essential to ensure the project meets its environmental objectives and justifies the taxpayer investment.

Given the Cost Plus Fixed Fee structure, what controls are in place to mitigate potential cost overruns and ensure the contractor remains incentivized to control expenses?

The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. Robust oversight by the EPA is critical, including detailed review of incurred costs, adherence to the fixed fee, and strict change order management. Incentives for efficiency and penalties for non-performance should be clearly defined within the contract to ensure the contractor actively manages 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 › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0422R0017

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kemron Environmental Services, Inc.

Address: 1359A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,947,500

Exercised Options: $43,141,059

Current Obligation: $43,141,059

Actual Outlays: $24,345,146

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0012

IDV Type: IDC

Timeline