EPA awards $1.84M task order for environmental remediation services to OCH JV

Contract Overview

Contract Amount: $1,843,011 ($1.8M)

Contractor: OCH JV

Awarding Agency: Environmental Protection Agency

Start Date: 2023-06-28

End Date: 2028-07-31

Contract Duration: 1,860 days

Daily Burn Rate: $991/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER: VELSICOL CHEMICAL CORPORATION

Place of Performance

Location: SAINT LOUIS, GRATIOT County, MICHIGAN, 48880

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $1.8 million to OCH JV for work described as: TASK ORDER: VELSICOL CHEMICAL CORPORATION Key points: 1. The contract value represents a modest investment within the broader environmental services sector. 2. Competition was conducted under a 'full and open competition after exclusion of sources' clause, suggesting a specific justification for limiting initial bidders. 3. The contract type is Time and Materials, which can pose cost control risks if not closely monitored. 4. Performance is expected over approximately five years, indicating a need for sustained oversight. 5. The primary service area is Michigan, focusing on remediation activities. 6. The awardee, OCH JV, is a joint venture, potentially indicating a specialized capability or a strategy to leverage diverse expertise.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more context on the scope of remediation. However, the Time and Materials pricing structure warrants careful monitoring to ensure costs remain aligned with the work performed. Comparing this to similar, smaller-scale remediation efforts, the price appears within a reasonable range, but the potential for cost escalation exists due to the contract type.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, there was a specific reason or justification for excluding certain sources from the initial bidding pool. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower field than a truly unrestricted full and open competition.

Taxpayer Impact: This procurement method, while allowing for competition, may limit the number of potential offerors, potentially impacting the government's ability to secure the most competitive pricing available in the broader market.

Public Impact

The Environmental Protection Agency (EPA) benefits from this contract by securing services for environmental remediation. The primary service delivered is remediation, addressing environmental contamination. The geographic impact is localized to Michigan, where the remediation activities will take place. The contract supports specialized environmental services workforce, including personnel from OCH JV.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not diligently managed.
The 'exclusion of sources' clause in the competition method warrants scrutiny to ensure it was fully justified and did not unduly restrict competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's potential performance quality.
The duration of the contract (over 5 years) requires sustained oversight to ensure continued value and compliance.

Positive Signals

Award to a joint venture (OCH JV) may indicate access to specialized expertise for complex remediation tasks.
The contract is for essential environmental remediation services, addressing potential public health and environmental risks.
The EPA's engagement suggests a commitment to environmental protection and compliance.

Sector Analysis

The environmental remediation services sector is a critical component of the broader environmental services industry, which is driven by regulatory compliance, cleanup mandates, and infrastructure development. This contract falls within the remediation services sub-sector, which includes activities like hazardous waste site cleanup, soil and groundwater remediation, and demolition. Spending in this sector is influenced by government regulations (like Superfund) and private sector environmental stewardship. Comparable spending can vary widely based on the scale and complexity of the contamination.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific task order. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The focus appears to be on securing specialized remediation capabilities, and the awardee is a joint venture, which may or may not include small business components within its structure.

Oversight & Accountability

Oversight for this task order will primarily reside with the Environmental Protection Agency (EPA) contracting officers and program managers. Accountability measures will be tied to the terms of the Time and Materials contract, requiring diligent tracking of labor hours and material costs against the awarded ceiling. Transparency is facilitated through federal contract databases, but detailed operational oversight rests with the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Defense Environmental Remediation

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'exclusion of sources' clause requires justification.
Lack of specific performance metrics in provided data.
Need for sustained oversight over the contract's multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $1.8 million to OCH JV. TASK ORDER: VELSICOL CHEMICAL CORPORATION

Who is the contractor on this award?

The obligated recipient is OCH JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.8 million.

What is the period of performance?

Start: 2023-06-28. End: 2028-07-31.

What is the specific nature of the environmental remediation required under this task order?

The provided data does not specify the exact nature of the environmental remediation. However, the NAICS code 562910 (Remediation Services) indicates activities such as site remediation, waste treatment, and disposal. Given the EPA's involvement, this likely pertains to addressing hazardous substances, pollutants, or contaminants at a specific site in Michigan. Further details would typically be found in the task order's statement of work, which is not included in the provided data. This could range from soil excavation and disposal to groundwater treatment or containment measures.

How does the 'full and open competition after exclusion of sources' clause impact potential cost savings for taxpayers?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was intended to be open, certain potential bidders were deliberately excluded from the initial solicitation. This exclusion, if not rigorously justified and narrowly applied, could limit the pool of qualified offerors. A smaller pool of bidders might lead to less aggressive pricing than a truly unrestricted competition where all capable firms could participate. Therefore, taxpayers might not benefit from the full spectrum of competitive pressure that could drive down costs, although the justification for exclusion would need to be assessed to understand the trade-offs.

What are the potential risks associated with a Time and Materials (T&M) contract for environmental remediation?

Time and Materials (T&M) contracts, like the one awarded to OCH JV, carry inherent risks for cost control. The contractor is reimbursed for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if work progresses inefficiently, costs can escalate beyond initial expectations. For environmental remediation, where unforeseen site conditions are common, T&M can lead to significant cost overruns if not managed with stringent oversight, clear task definitions, and robust reporting requirements from the government's perspective to ensure efficient labor utilization and reasonable material pricing.

What is the track record of OCH JV in performing environmental remediation services?

The provided data identifies OCH JV as the awardee but does not offer details on their specific track record, past performance evaluations, or previous contract history. OCH JV is noted as a joint venture, which implies a collaboration between two or more entities. To assess their track record, one would need to examine their performance on prior government contracts, client references, and any available past performance information within the Federal Awardee Performance and Integrity Information System (FAPIIS) or similar databases. Without this information, it's difficult to gauge their experience and reliability for this specific remediation task.

How does this contract's value compare to other EPA environmental remediation contracts?

The $1.84 million value of this task order is relatively modest within the broader context of EPA's environmental remediation spending. The EPA manages numerous large-scale, multi-year Superfund sites that can involve hundreds of millions or even billions of dollars in remediation costs over their lifecycles. This task order likely represents a specific, contained project or a phase of a larger effort. Comparing it directly requires identifying contracts with similar scope, duration, and complexity, which is not possible with the data provided. However, it is not an exceptionally large contract in the context of major federal environmental cleanup programs.

What are the potential implications of awarding to a joint venture for this type of contract?

Awarding to a joint venture (JV) like OCH JV for environmental remediation can have several implications. JVs are often formed to combine specialized expertise, resources, or to meet specific socioeconomic requirements (though not indicated here). For remediation, a JV might bring together a large firm's project management capabilities with a smaller firm's niche technical skills or regional presence. This can enhance the government's access to a broader range of capabilities and potentially foster innovation. However, it also necessitates clear lines of responsibility and communication within the JV structure to ensure seamless execution and accountability to the contracting agency.

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

Solicitation ID: 68HE0523R0042

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD STE 200, MILWAUKEE, WI, 53226

Business Categories: Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,958,980

Exercised Options: $2,958,980

Current Obligation: $1,843,011

Actual Outlays: $1,101,941

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,032,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0118D0016

IDV Type: IDC

Timeline