EPA awards $3.98M contract for East Palestine derailment response, leveraging environmental consulting expertise

Contract Overview

Contract Amount: $3,979,124 ($4.0M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2025-06-10

End Date: 2029-11-20

Contract Duration: 1,624 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EAST PALESTINE TRAIN DERAILMENT CONTRACTOR SUPPORT UNDER THE NATIONAL RESPONSE SYSTEM, CERCLA, AND OTHER AUTHORITIES.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $4.0 million to TETRA TECH, INC. for work described as: EAST PALESTINE TRAIN DERAILMENT CONTRACTOR SUPPORT UNDER THE NATIONAL RESPONSE SYSTEM, CERCLA, AND OTHER AUTHORITIES. Key points: 1. Contract value appears reasonable for specialized environmental consulting services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include contractor performance and adherence to regulatory timelines. 4. This contract supports critical environmental remediation efforts following a major incident. 5. Positioned within the environmental consulting sector, supporting emergency response.

Value Assessment

Rating: good

The contract value of approximately $3.98 million for environmental consulting services over a five-year period seems aligned with the scope of supporting a major incident like the East Palestine derailment. Benchmarking against similar large-scale environmental response contracts, this figure appears to be within a reasonable range, especially considering the specialized expertise required. The Time and Materials pricing structure allows for flexibility but necessitates close monitoring of hours and rates to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored as it promotes a wider range of solutions and encourages competitive pricing. The specific number of bidders is not provided, but the method itself suggests a robust process aimed at achieving best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the government secures services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the residents and environment of East Palestine, Ohio, through the remediation of hazardous substances. Services delivered include environmental consulting, site assessment, and support for regulatory compliance. The geographic impact is focused on the East Palestine area and surrounding potentially affected regions. Workforce implications include the deployment of environmental scientists, engineers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Ensuring consistent quality of environmental assessments and remediation recommendations.
Maintaining effective communication and coordination between the contractor, EPA, and local stakeholders.

Positive Signals

Contractor possesses expertise in environmental consulting and response.
Full and open competition likely secured competitive pricing.
Long-term contract duration allows for sustained support during remediation.

Sector Analysis

The environmental consulting sector is crucial for managing industrial incidents and ensuring regulatory compliance. This contract falls within the broader environmental services market, which includes remediation, assessment, and compliance support. The market size for such specialized services can be substantial, particularly in response to environmental disasters. This award positions Tetra Tech as a key player in supporting federal agencies during national emergencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. The focus on a large, specialized environmental consulting firm suggests that prime contract opportunities for small businesses may be limited in this specific award, though they could potentially participate as subcontractors.

Oversight & Accountability

Oversight will be provided by the Environmental Protection Agency (EPA), which is responsible for ensuring the contractor meets contractual obligations and regulatory requirements. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through public reporting on the EPA's Superfund and emergency response initiatives.

Related Government Programs

Superfund Program
National Contingency Plan
CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act)
Emergency Response Contracts

Risk Flags

Potential for cost overruns with Time and Materials contract type.
Ensuring adequate quality control for environmental assessments.
Coordination challenges among multiple stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $4.0 million to TETRA TECH, INC.. EAST PALESTINE TRAIN DERAILMENT CONTRACTOR SUPPORT UNDER THE NATIONAL RESPONSE SYSTEM, CERCLA, AND OTHER AUTHORITIES.

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2025-06-10. End: 2029-11-20.

What is Tetra Tech's track record with the EPA on similar environmental response contracts?

Tetra Tech, Inc. has a significant history of working with the Environmental Protection Agency (EPA) on various environmental projects, including Superfund site cleanups and emergency response efforts. Their experience often involves complex site assessments, risk evaluations, and the development of remediation strategies. While specific contract details and performance reviews for every engagement are not publicly detailed, their repeated selection for such critical tasks by the EPA suggests a generally positive track record and demonstrated capability in handling large-scale environmental challenges. The EPA's contracting process typically involves evaluating past performance, making Tetra Tech's continued awards indicative of satisfactory or better performance on previous projects.

How does the $3.98 million contract value compare to similar environmental consulting contracts for disaster response?

The $3.98 million contract value for five years of support for the East Palestine derailment response appears to be within a reasonable range when compared to similar large-scale environmental consulting contracts for disaster response. Major environmental incidents often require extensive site investigation, modeling, risk assessment, and long-term remediation planning, which can incur significant costs. Contracts for Superfund site management or large-scale chemical spill responses can range from several million to tens of millions of dollars over their duration, depending on the complexity and scale of contamination. Given the nature of the East Palestine derailment and the ongoing need for expert guidance, this award seems proportionate to the anticipated scope of work and the specialized expertise required from Tetra Tech.

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

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, which can be susceptible to scope creep or inefficient resource allocation. Another risk is ensuring the quality and accuracy of the environmental assessments and remediation recommendations provided by Tetra Tech, as any deficiencies could lead to inadequate cleanup or long-term environmental damage. Furthermore, maintaining effective communication and coordination among the contractor, the EPA, and potentially other federal, state, and local agencies, as well as the affected community, presents an ongoing challenge. Mitigation strategies likely involve robust EPA oversight, regular progress reviews, strict adherence to defined work scopes, performance metrics, and clear communication protocols to manage expectations and address issues proactively.

What is the expected effectiveness of the services provided under this contract for the East Palestine derailment?

The expected effectiveness of the services provided under this contract hinges on Tetra Tech's ability to deliver accurate environmental assessments, sound remediation strategies, and comprehensive support for regulatory compliance. The contract aims to ensure that the hazardous substances released during the derailment are identified, contained, and remediated effectively, thereby protecting public health and the environment. Success will be measured by the thoroughness of the site characterization, the efficacy of the chosen cleanup methods, and the restoration of environmental conditions to safe levels. The EPA's oversight is critical in ensuring that Tetra Tech's work meets the stringent requirements of environmental regulations and contributes to a successful long-term recovery for the East Palestine community.

How does this contract fit into the EPA's broader strategy for managing environmental emergencies and Superfund sites?

This contract is a crucial component of the EPA's broader strategy for managing environmental emergencies and Superfund sites. It provides the specialized technical expertise and support necessary to address the immediate aftermath of a significant environmental incident like the East Palestine derailment, aligning with the principles of the National Contingency Plan and CERCLA. By engaging experienced contractors like Tetra Tech, the EPA can efficiently mobilize resources for site assessment, containment, and remediation planning. This award complements the agency's ongoing efforts to manage existing Superfund sites and reinforces its capacity to respond effectively to future environmental crises, ensuring a coordinated and science-based approach to protecting affected communities and ecosystems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 S WACKER DR FL 37, CHICAGO, IL, 60606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,037,640

Exercised Options: $15,037,640

Current Obligation: $3,979,124

Actual Outlays: $2,496,386

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $293,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0525D0004

IDV Type: IDC

Timeline