EPA awards $3.47M for groundwater plume remediation in Texas, with CH2M HILL, INC. selected

Contract Overview

Contract Amount: $3,474,014 ($3.5M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2025-02-06

End Date: 2028-09-27

Contract Duration: 1,329 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIL FUNDED TASK ORDER - JONES ROAD GROUND WATER PLUME (DES)

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77070

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $3.5 million to CH2M HILL, INC for work described as: BIL FUNDED TASK ORDER - JONES ROAD GROUND WATER PLUME (DES) Key points: 1. Value for money assessed through competitive bidding and fixed-fee structure. 2. Competition dynamics indicate a robust market for environmental remediation services. 3. Risk indicators include contract duration and cost-plus pricing model. 4. Performance context relies on contractor's past performance and EPA oversight. 5. Sector positioning within environmental services, specifically hazardous waste remediation.

Value Assessment

Rating: good

The contract value of $3.47 million for a 4.5-year remediation project appears reasonable given the scope. The cost-plus fixed fee (CPFF) structure allows for flexibility while capping the contractor's fee. Benchmarking against similar EPA remediation contracts for groundwater plumes suggests this pricing is within expected ranges, though specific cost breakdowns would be needed for a definitive assessment. The number of bids received (4) also suggests a competitive environment that likely drove a fair price.

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 offers. The solicitation resulted in four bids, suggesting a healthy level of competition for this environmental remediation service. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for addressing the groundwater contamination.

Public Impact

The primary beneficiaries are residents and ecosystems in Texas impacted by the Jones Road groundwater plume. Services delivered include the assessment and remediation of contaminated groundwater. Geographic impact is localized to the specific area affected by the plume in Texas. Workforce implications include employment for environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee contracts can incentivize cost overruns if not closely monitored.
Long contract duration (over 4 years) increases exposure to potential scope creep or unforeseen technical challenges.
Reliance on a single contractor for a critical environmental task requires robust oversight.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential providers were considered.
The fixed fee component of the contract provides a ceiling on contractor profit, promoting cost control.
The contract is for a specific, well-defined task (groundwater plume remediation), reducing ambiguity.

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry, driven by regulatory compliance and legacy contamination cleanup. This contract falls within the hazardous waste management and site remediation sub-sector. Spending in this area is often project-specific and influenced by Superfund sites, RCRA corrective actions, and other federal and state environmental programs. Comparable spending benchmarks are difficult without knowing the specific contaminants and remediation technologies required, but EPA contracts for similar plume cleanups can range from hundreds of thousands to tens of millions of dollars.

Small Business Impact

While this contract was awarded to a large prime contractor (CH2M HILL, INC.), there is potential for small business participation through subcontracting opportunities. The nature of environmental remediation often involves specialized services that small businesses can provide. The extent of small business involvement will depend on the prime contractor's subcontracting plan and the specific needs of the remediation project. Further analysis would be needed to determine if small business set-asides were considered or if subcontracting goals were established.

Oversight & Accountability

Oversight for this contract will be primarily managed by the Environmental Protection Agency (EPA), likely through a designated contracting officer and technical point of contact. The CPFF structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and overall project objectives. Transparency is facilitated by the contract being publicly awarded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Defense Environmental Remediation

Risk Flags

Cost-Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases potential for scope creep and unforeseen issues.
Environmental remediation projects inherently carry technical and site-specific risks.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $3.5 million to CH2M HILL, INC. BIL FUNDED TASK ORDER - JONES ROAD GROUND WATER PLUME (DES)

Who is the contractor on this award?

The obligated recipient is CH2M HILL, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-02-06. End: 2028-09-27.

What is the historical performance record of CH2M HILL, INC. with the EPA on similar remediation projects?

CH2M HILL, INC. (now Jacobs Engineering Group) has a long history of performing environmental remediation services for the EPA and other federal agencies. Their track record includes numerous large-scale projects involving groundwater and soil contamination cleanup at various federal facilities and Superfund sites. Performance data, including past performance evaluations and any documented issues or successes on prior contracts, would be available through EPA's contract databases and performance reporting systems. A review of these records would indicate their experience with similar contaminants, geological conditions, and remediation technologies, providing insight into their capability to successfully execute this specific task order.

How does the cost-plus fixed fee structure compare to other contract types for environmental remediation, and what are its implications for value?

The Cost-Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves significant uncertainties, such as in complex environmental remediation. It reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but can potentially lead to higher overall costs if not managed diligently, as the government bears the risk of cost overruns. However, the 'fixed fee' component provides a ceiling on profit, incentivizing efficiency to some extent. For value, CPFF can be advantageous when technical risks are high, ensuring that necessary work is completed without the contractor being unduly penalized by unforeseen cost increases, while still providing a profit incentive.

What are the primary risks associated with this specific groundwater plume remediation project, and how are they being mitigated?

Key risks for this groundwater plume remediation project include: 1) Technical Uncertainty: The extent and nature of contamination may be more complex than initially assessed, requiring adaptive management. Mitigation involves thorough site characterization and flexible remediation strategies. 2) Cost Overruns: The CPFF structure means the government absorbs cost increases. Mitigation relies on robust EPA oversight, detailed cost tracking, and change control processes. 3) Schedule Delays: Unforeseen site conditions or regulatory hurdles can impact timelines. Mitigation involves realistic scheduling, proactive stakeholder engagement, and contingency planning. 4) Environmental/Health Risks: Potential exposure during remediation activities. Mitigation requires strict adherence to safety protocols, environmental monitoring, and emergency response plans.

What is the historical spending trend for groundwater remediation services by the EPA, and how does this award fit within that trend?

The EPA consistently allocates significant funding towards environmental remediation, including groundwater cleanup, driven by programs like Superfund and RCRA. Historical spending data reveals a steady demand for these services, often fluctuating based on the identification of new contamination sites and the progression of ongoing cleanup efforts. This $3.47 million award for the Jones Road plume appears to be a mid-sized task order within the broader EPA remediation portfolio. It aligns with the agency's ongoing commitment to addressing legacy contamination and protecting public health and the environment. Annual EPA budgets for site cleanup typically run into the billions, making this specific award a component of a much larger, sustained investment.

What specific remediation technologies are likely to be employed, and what is their typical cost-effectiveness?

The specific remediation technologies for the Jones Road groundwater plume will depend on the contaminants, hydrogeology, and site characteristics. Common technologies include Pump-and-Treat (P&T), In-Situ Chemical Oxidation (ISCO), In-Situ Bioremediation (ISB), and permeable reactive barriers. P&T is often a baseline but can be energy-intensive and slow. ISCO and ISB can be more cost-effective for certain contaminants by treating them in place, reducing long-term operational costs. Permeable reactive barriers offer passive treatment. The cost-effectiveness of each technology varies greatly; ISB is often among the most cost-effective if applicable. The selection process by the EPA and contractor will involve evaluating technical feasibility, long-term effectiveness, and life-cycle costs to determine the most appropriate and economically viable solution.

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: 68HE0624R0007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $4,255,033

Exercised Options: $3,474,014

Current Obligation: $3,474,014

Actual Outlays: $489,351

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $357,442

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0318D0004

IDV Type: IDC

Timeline