Hydrogeologic, Inc. awarded $4.1M EPA contract for Superfund site remediation services in Michigan

Contract Overview

Contract Amount: $4,126,148 ($4.1M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-09-29

End Date: 2028-09-29

Contract Duration: 1,827 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HI-MILL MANUFACTURING CO. SUPERFUND SITE: RAF, DES, CLIN 0002, RI/FS TO

Place of Performance

Location: HIGHLAND, OAKLAND County, MICHIGAN, 48356

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $4.1 million to HYDROGEOLOGIC, INC. for work described as: HI-MILL MANUFACTURING CO. SUPERFUND SITE: RAF, DES, CLIN 0002, RI/FS TO Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1827 days (approx. 5 years) indicates a long-term commitment to site remediation. 3. The cost-plus-fixed-fee pricing structure may incentivize efficient cost management by the contractor. 4. The North American Industry Classification System (NAICS) code 562910 points to a focus on environmental remediation services. 5. The contract is a delivery order under a larger contract, implying a pre-established framework and vendor relationship. 6. The presence of two bids suggests moderate competition for this specific task order.

Value Assessment

Rating: good

The awarded amount of $4.13 million for Remedial Investigation/Feasibility Study (RI/FS) services at a Superfund site appears reasonable given the complexity and duration of such environmental projects. Benchmarking against similar EPA Superfund RI/FS contracts would provide a more precise value assessment, but the fixed fee component suggests a degree of cost control. The contractor, Hydrogeologic, Inc., has a history of performing environmental services, which can contribute to efficient execution and potentially better value.

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 bids. The record shows two bids were received, suggesting a moderate level of competition for this specific delivery order. While more bidders could potentially drive prices lower, the full and open nature ensures a fair process and allows the agency to select the best value offer.

Taxpayer Impact: The full and open competition, even with two bidders, provides taxpayers with assurance that the contract was not awarded without exploring market options. This process helps ensure that the selected contractor offers a competitive price and the best technical approach for the remediation services.

Public Impact

The primary beneficiaries are the communities impacted by the HI-MILL MANUFACTURING CO. SUPERFUND SITE, with improved environmental conditions. The services delivered include Remedial Investigation and Feasibility Study (RI/FS), crucial steps in determining the scope and method of environmental cleanup. The geographic impact is focused on Michigan, specifically addressing environmental concerns within the state. The contract supports specialized environmental engineering and scientific workforce roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
The long duration of the contract could lead to scope creep or evolving remediation needs not fully captured in the initial RI/FS.
Reliance on a single delivery order under a larger contract might limit flexibility if unforeseen issues arise requiring different expertise.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contractor, Hydrogeologic, Inc., likely possesses specialized expertise in Superfund site remediation.
The fixed fee component of the contract provides a degree of cost certainty for the government.
The contract addresses a critical environmental need at a designated Superfund site.

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry, driven by regulatory requirements like Superfund. Spending in this area is often project-specific and tied to government cleanup initiatives. Comparable spending benchmarks for RI/FS services can vary widely based on site complexity, contaminant types, and geographic location. The EPA's Superfund program represents a substantial portion of federal spending on hazardous waste site cleanup.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit small business subcontracting requirements noted. The prime contractor, Hydrogeologic, Inc., is not identified as a small business in this context. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this delivery order.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency (EPA) contracting officers and technical monitors. The EPA's Office of Inspector General (OIG) provides independent oversight of EPA programs and contracts to ensure efficiency and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases and public reporting requirements.

Related Government Programs

EPA Superfund Program
Hazardous Waste Remediation Services
Environmental Consulting Services
Site Investigation and Assessment Contracts

Risk Flags

Potential for cost overruns in CPFF contracts.
Unforeseen site conditions impacting scope.
Delays in regulatory approvals.
Contractor performance issues.
Changes in environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $4.1 million to HYDROGEOLOGIC, INC.. HI-MILL MANUFACTURING CO. SUPERFUND SITE: RAF, DES, CLIN 0002, RI/FS TO

Who is the contractor on this award?

The obligated recipient is HYDROGEOLOGIC, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2028-09-29.

What is the track record of Hydrogeologic, Inc. with EPA contracts, particularly for Superfund sites?

Hydrogeologic, Inc. has a history of performing environmental consulting and remediation services for various government agencies, including the EPA. Their experience often includes site investigations, feasibility studies, and remedial design. Specific to Superfund sites, their track record would involve assessing their performance on similar projects, including adherence to schedules, budget management, and technical effectiveness. A review of past performance evaluations and contract awards would provide a clearer picture of their reliability and expertise in handling complex environmental challenges under the Superfund program. Their ability to successfully navigate the regulatory and technical intricacies of these sites is a key indicator of their suitability for this contract.

How does the $4.13 million cost compare to similar RI/FS contracts for Superfund sites?

Benchmarking the $4.13 million cost for this Remedial Investigation/Feasibility Study (RI/FS) against similar Superfund site contracts requires access to a comprehensive database of historical EPA procurements. Factors influencing cost include the size and complexity of the site, the types of contaminants present, the extent of the investigation required, and the duration of the study. Generally, RI/FS contracts can range from hundreds of thousands to several million dollars. Given that this is a delivery order under a larger contract, the specific task order cost needs to be evaluated within that broader framework. Without direct comparative data on sites with similar characteristics, it's challenging to definitively state if this is high or low, but the fixed fee component suggests an effort to contain costs.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks associated with this contract include potential technical challenges in site characterization, unforeseen site conditions that could increase remediation scope, and the inherent uncertainties in cost-plus-fixed-fee contracts regarding cost overruns. Mitigation strategies likely involve robust project management by Hydrogeologic, Inc., detailed work plans, regular progress reporting to the EPA, and strict adherence to the established fixed fee. The EPA's oversight, including technical reviews and audits, serves as a critical control mechanism. Furthermore, the RI/FS phase itself is designed to identify and assess risks, informing subsequent phases of the Superfund process and allowing for adaptive management.

How effective is the cost-plus-fixed-fee (CPFF) pricing structure for managing Superfund remediation projects?

The Cost-Plus-Fixed-Fee (CPFF) pricing structure aims to balance risk and reward between the government and the contractor. The contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be effective for complex projects like Superfund RI/FS where the full scope and associated costs are not entirely predictable at the outset. It incentivizes the contractor to control costs, as the fee remains constant regardless of the final project cost. However, it requires diligent government oversight to ensure costs are reasonable and allocable. If not managed properly, there's a risk of cost escalation, though the fixed fee provides a ceiling on the contractor's profit.

What is the historical spending trend for environmental remediation services by the EPA?

The EPA's spending on environmental remediation services, particularly through the Superfund program, has historically been substantial and fluctuates based on congressional appropriations, the number of active sites, and the phase of remediation (investigation, design, construction, long-term monitoring). Annual spending can range from several hundred million to over a billion dollars. Trends are influenced by legislative mandates, national environmental priorities, and the pace at which sites are addressed. Analyzing historical EPA budget documents and contract award data would reveal specific spending patterns and identify periods of increased or decreased investment in remediation activities.

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: 68HE0523R0022

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,673,703

Exercised Options: $4,126,148

Current Obligation: $4,126,148

Actual Outlays: $1,612,681

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0318D0006

IDV Type: IDC

Timeline