EPA awards $1.08M for emergency oil spill response in Illinois, highlighting remediation services

Contract Overview

Contract Amount: $1,074,671 ($1.1M)

Contractor: Environmental Quality Management, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2025-03-27

End Date: 2025-10-21

Contract Duration: 208 days

Daily Burn Rate: $5.2K/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: REGION 5, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE AT BLUE CREEK OIL SPILL SITE. SSID: Z5UT FOR $1,083,000.00.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $1.1 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC for work described as: REGION 5, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE AT BLUE CREEK OIL SPILL SITE. SSID: Z5UT FOR $1,083,000.00. Key points: 1. Contract focuses on critical environmental remediation, addressing immediate threats. 2. Competition was open, suggesting a competitive bidding process for the service. 3. The contract duration is relatively short, aligning with emergency response needs. 4. Performance will be monitored by the Environmental Protection Agency (EPA). 5. The service category is Remediation Services, crucial for environmental cleanup. 6. This award falls under the EPA's broader environmental protection mission.

Value Assessment

Rating: good

The contract value of approximately $1.08 million for emergency response services appears reasonable given the nature of oil spill cleanup, which can be unpredictable and require rapid mobilization. Benchmarking against similar emergency response contracts is challenging due to the unique circumstances of each spill, but the EPA's selection of a single task order suggests a focused approach. The pricing structure, likely time and materials, is typical for such dynamic situations where the full scope of work may not be known upfront. Further analysis would require detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation might have had limitations, the final award was made through an open process. The specific details of the exclusion of sources are not provided, but the 'full and open' designation suggests multiple bidders were considered. The level of competition, even if initially limited, is generally positive for price discovery.

Taxpayer Impact: This competitive approach aims to ensure taxpayer funds are used efficiently by encouraging multiple firms to offer their best pricing and capabilities for critical environmental services.

Public Impact

The primary beneficiaries are the environment and the public in the affected region, through the cleanup of an oil spill. The service delivered is emergency response and remediation at the Blue Creek oil spill site. The geographic impact is localized to the Blue Creek oil spill site in Illinois. The contract supports specialized environmental remediation workforce needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of the spill is larger than initially assessed, given the time and materials pricing.
Ensuring timely and effective cleanup to mitigate long-term environmental damage is critical.
Dependence on specialized equipment and personnel for effective spill response.

Positive Signals

Awarded by the EPA, a primary agency for environmental protection, suggesting adherence to regulatory standards.
The contract is for emergency response, indicating a proactive measure to address environmental incidents.
The use of open competition, even with initial exclusions, suggests an effort to secure competitive pricing.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector is driven by regulatory compliance, environmental incidents, and ongoing cleanup efforts. The market size for environmental remediation is substantial, with government contracts forming a significant portion due to the EPA's oversight and funding for pollution control and disaster response. This specific award addresses an immediate environmental threat, fitting within the EPA's mandate for emergency response.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Given the specialized nature of emergency oil spill response, it's possible that larger, more experienced firms are typically awarded these types of contracts. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will be provided by the Environmental Protection Agency (EPA), the awarding agency. The task order structure allows for specific monitoring of deliverables and costs within the defined period. Transparency is generally maintained through federal contract databases, though detailed operational oversight specifics are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

EPA Superfund Program
Oil Spill Prevention, Control, and Countermeasure (SPCC) Plans
Hazardous Waste Management
Emergency Response Contracts

Risk Flags

Potential for scope creep in time and materials contracts.
Environmental risks associated with incomplete cleanup.
Dependence on contractor's specialized capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $1.1 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC. REGION 5, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE AT BLUE CREEK OIL SPILL SITE. SSID: Z5UT FOR $1,083,000.00.

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 $1.1 million.

What is the period of performance?

Start: 2025-03-27. End: 2025-10-21.

What is the track record of Environmental Quality Management, Inc. with the EPA for similar remediation services?

Environmental Quality Management, Inc. (EQM) has a history of performing environmental services for various government agencies, including the EPA. Their contract history often includes remediation, waste management, and emergency response. For instance, EQM has been involved in contracts related to hazardous waste site cleanup and environmental restoration. A detailed review of their past performance on EPA contracts, specifically for oil spill response or similar emergency situations, would reveal their experience level, past performance ratings, and any significant issues encountered. This specific contract's success will likely depend on their demonstrated ability to mobilize resources quickly and effectively manage the cleanup operations within the allocated timeframe and budget.

How does the $1.08 million award compare to typical costs for emergency oil spill responses of similar scale?

Comparing the $1.08 million award for this specific oil spill response to typical costs is complex, as each spill event is unique in its scale, location, environmental sensitivity, and required response. Emergency response contracts, especially those using time and materials, are designed to be flexible. Factors influencing cost include the volume of oil spilled, the type of environment affected (e.g., water, land, sensitive habitats), the duration of the cleanup operation, and the specialized equipment and personnel required. While $1.08 million might seem substantial, it could be well within the expected range for a significant spill requiring rapid containment and cleanup efforts. A more precise comparison would necessitate data on the specific characteristics of the Blue Creek oil spill and benchmarks from comparable, publicly documented emergency response actions.

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

The primary risks associated with this emergency response contract include potential cost overruns due to the unpredictable nature of oil spills and the time-and-materials pricing structure, delays in cleanup impacting environmental recovery, and the possibility of incomplete remediation. Mitigation strategies likely involve robust project management by the EPA, clear performance standards, regular progress reporting, and potentially pre-defined cost ceilings or contingency plans. The contractor's experience and proposed approach, evaluated during the selection process, also serve as a risk mitigation factor. Continuous monitoring of the cleanup progress and environmental impact assessments will be crucial throughout the contract period.

How effective is the EPA's current approach to managing emergency oil spill response contracts?

The EPA's approach to managing emergency oil spill response contracts is generally characterized by rapid mobilization and adherence to strict environmental regulations. Their effectiveness is often measured by the speed of containment, the thoroughness of cleanup, and the minimization of long-term environmental damage. The agency utilizes pre-qualified contractors and established procedures to ensure timely deployment of resources. However, the effectiveness can vary depending on the complexity of the spill and the adequacy of initial funding and resources. Continuous improvement in contract management, contractor performance evaluation, and post-incident reviews are vital for enhancing the EPA's overall effectiveness in these critical situations.

What has been the historical spending pattern for emergency oil spill response by the EPA in Illinois?

Historical spending patterns for emergency oil spill response by the EPA in Illinois can fluctuate significantly year-to-year, largely dependent on the occurrence and severity of spill incidents. The EPA allocates funds for such responses through various mechanisms, including direct contracts and cooperative agreements with state agencies. While specific Illinois-focused historical data for oil spill response contracts isn't readily available in this summary, the agency generally maintains a readiness to respond to environmental emergencies nationwide. Analyzing past EPA budgets and contract awards related to environmental cleanup and emergency response in the region would provide a clearer picture of historical spending trends and the frequency of such events.

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: $1,074,671

Exercised Options: $1,074,671

Current Obligation: $1,074,671

Actual Outlays: $1,074,671

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $817,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0422D0005

IDV Type: IDC

Timeline