EPA awards $6M remediation task order to Hydrogeologic, Inc. for Texas site

Contract Overview

Contract Amount: $5,999,289 ($6.0M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2024-09-13

End Date: 2028-09-29

Contract Duration: 1,477 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RES TASK ORDER - NORTH EAST 2ND STREET

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75270

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.0 million to HYDROGEOLOGIC, INC. for work described as: RES TASK ORDER - NORTH EAST 2ND STREET Key points: 1. Contract value appears reasonable for a multi-year remediation effort. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project scope creep and unforeseen site conditions. 4. Performance will be assessed against remediation goals and timelines. 5. This contract falls within the environmental consulting and remediation sector. 6. The fixed fee component provides some cost certainty for the agency.

Value Assessment

Rating: good

The contract value of approximately $6 million over four years for remediation services seems within a reasonable range for a project of this nature. Benchmarking against similar environmental remediation contracts awarded by the EPA or other federal agencies would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure allows for cost reimbursement plus a fixed fee, which can incentivize efficiency while managing risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific task order. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving critical environmental remediation services. The services delivered will focus on the remediation of a specific site in Texas. The geographic impact is localized to the remediation site in Texas. Workforce implications may include the employment of environmental scientists, engineers, and technicians by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise.
Risk of schedule delays due to permitting or regulatory hurdles.
Ensuring consistent quality of remediation work over the contract duration.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Fixed fee component provides some cost predictability.
Contractor has experience in remediation services (inferred from award).

Sector Analysis

This contract operates within the environmental consulting and remediation services sector, a significant market driven by regulatory compliance and the need to address historical contamination. The North American Industry Classification System (NAICS) code 562910 (Remediation Services) categorizes this work. Spending in this sector is influenced by environmental regulations, infrastructure needs, and industrial activity. Comparable spending benchmarks would involve analyzing other federal contracts for similar environmental cleanup projects.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no explicit indication of subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on obtaining the best value through open competition, rather than specifically targeting small business participation. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and technical representatives within the Environmental Protection Agency. Performance monitoring, regular progress reports, and site inspections are standard accountability measures for remediation contracts. Transparency is generally maintained through contract award databases and public reporting, though specific project details may be sensitive.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Environmental Services Contracts
Site Remediation Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Schedule delays possible due to regulatory or permitting issues.
Ensuring consistent quality of remediation work over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.0 million to HYDROGEOLOGIC, INC.. RES TASK ORDER - NORTH EAST 2ND STREET

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 $6.0 million.

What is the period of performance?

Start: 2024-09-13. End: 2028-09-29.

What is Hydrogeologic, Inc.'s track record with the EPA on similar remediation projects?

A review of Hydrogeologic, Inc.'s contract history with the EPA would be necessary to assess their track record on similar remediation projects. This would involve examining past performance evaluations, any documented disputes or contract modifications, and the successful completion of previous task orders or contracts. Understanding their experience with the specific types of contaminants or site conditions relevant to this Texas project would provide valuable insight into their capability and reliability. Without specific historical data, it's difficult to definitively assess their past performance, but the award itself suggests they met the agency's requirements for this procurement.

How does the estimated cost per year for this contract compare to industry benchmarks for similar remediation projects?

The estimated annual cost for this contract is approximately $1.5 million ($6M / 4 years). To benchmark this against industry standards, one would need to compare it with data from similar environmental remediation projects, considering factors such as the scope of work, complexity of the site, types of contaminants, and geographic location. Industry reports and databases that track remediation costs can provide average figures. For instance, a complex hazardous waste site cleanup could cost significantly more per year than a simpler soil remediation project. A detailed comparison would require specific data on the nature of the remediation required at the Texas site.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the EPA?

The primary risk for the EPA with a CPFF contract is that the contractor may not be sufficiently incentivized to control costs beyond the fixed fee, as their costs are reimbursed. While the fixed fee provides a ceiling for profit, there's a potential for less aggressive cost management compared to fixed-price contracts. However, CPFF contracts are often used when the scope of work is not well-defined or involves significant uncertainty, as is common in remediation. The EPA's oversight and robust cost accounting standards are crucial to mitigate the risk of cost overruns and ensure that only reasonable and allocable costs are reimbursed.

What specific remediation goals or performance metrics will be used to evaluate the success of this contract?

The success of this contract will be evaluated based on specific remediation goals and performance metrics outlined in the task order's Statement of Work (SOW). These typically include achieving specific cleanup standards for soil, groundwater, or air quality, meeting regulatory compliance requirements set by the EPA and state agencies, and adhering to the project schedule. Performance metrics might involve the volume of material remediated, reduction in contaminant levels to below regulatory thresholds, successful implementation of treatment technologies, and timely completion of milestones. Regular progress reports and site inspections by EPA technical representatives will monitor adherence to these metrics.

How has EPA spending on remediation services trended over the past five fiscal years?

Analyzing EPA's spending on remediation services over the past five fiscal years would reveal trends in the agency's commitment to addressing environmental contamination. This data, often available through agency budget reports or federal spending databases, would indicate whether overall investment in remediation is increasing, decreasing, or remaining stable. Factors influencing these trends could include new environmental legislation, the identification of new Superfund sites, increased enforcement actions, or shifts in national environmental priorities. Understanding historical spending patterns provides context for the current $6 million award and helps assess the agency's long-term strategy for environmental cleanup.

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

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: $10,346,671

Exercised Options: $5,999,289

Current Obligation: $5,999,289

Actual Outlays: $1,267,156

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0010

IDV Type: IDC

Timeline