EPA awards $257,000 task order to Environmental Restoration LLC for orphaned well site remediation in Texas

Contract Overview

Contract Amount: $375,000 ($375.0K)

Contractor: Environmental Restoration LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2025-08-07

End Date: 2026-08-21

Contract Duration: 379 days

Daily Burn Rate: $989/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 6, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE SWEENY ORPHANED WELL SITE: (V6ZA) FOR $257,000.00.

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75270

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $375,000 to ENVIRONMENTAL RESTORATION LLC for work described as: REGION 6, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE SWEENY ORPHANED WELL SITE: (V6ZA) FOR $257,000.00. Key points: 1. Contract focuses on emergency response for orphaned well sites, a critical environmental need. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The task order duration of 379 days indicates a medium-term project. 4. The contractor, Environmental Restoration LLC, has a track record in environmental services. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. The award amount is relatively small, suggesting a focused scope of work.

Value Assessment

Rating: good

The contract value of $257,000 is modest for environmental remediation services. Benchmarking against similar emergency response contracts for orphaned wells is difficult without more specific data on the scope of work and site complexity. However, the award amount appears reasonable for a task order of this nature. The Time and Materials pricing structure warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the exclusion of specific sources requires further investigation to understand the rationale. The presence of at least one bidder suggests some level of competition, but the exact number of bidders and their qualifications would provide a clearer picture of the competitive landscape and its impact on pricing.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the exclusion of sources warrants scrutiny to ensure it did not limit potential cost savings.

Public Impact

The primary beneficiaries are communities impacted by orphaned oil and gas wells, which pose environmental and safety risks. The services delivered involve emergency response and remediation activities at the Sweeny Orphaned Well Site. The geographic impact is localized to the Sweeny, Texas area. The contract supports the EPA's mission to protect human health and the environment, potentially creating short-term employment for skilled remediation workers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not diligently managed and monitored.
The 'Exclusion of Sources' clause in the competition type requires understanding to ensure no potential cost-saving bidders were unfairly excluded.
The specific scope of remediation for the orphaned well site is not detailed, making it hard to assess the true value and potential risks.

Positive Signals

Awarded under full and open competition, indicating a commitment to a broad bidding process.
The contractor, Environmental Restoration LLC, is likely experienced in environmental remediation.
The contract addresses a critical environmental need related to orphaned wells.

Sector Analysis

The environmental remediation sector is a significant market driven by regulatory compliance, legacy site cleanup, and disaster response. This contract falls within the broader environmental consulting and remediation services industry, which includes specialized services for oil and gas well plugging and abandonment. Spending in this area is often project-specific and influenced by government funding initiatives and environmental regulations. Comparable spending benchmarks would depend heavily on the size and complexity of the orphaned well site.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Environmental Restoration LLC, a company name that does not immediately suggest a small business, implies it may be a larger entity. Further analysis would be needed to determine if small business participation is a requirement or has occurred through subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency (EPA) contracting officers and technical representatives. The EPA has established Inspector General (IG) functions to investigate fraud, waste, and abuse in its programs. Transparency is facilitated through contract award databases like FPDS.gov, where basic award information is publicly available. The Time and Materials nature of the contract necessitates robust oversight to ensure labor hours and material costs are reasonable and allocable.

Related Government Programs

EPA Superfund Program
EPA Brownfields Program
Department of the Interior - Bureau of Land Management (Oil and Gas Leasing)
State-level Orphaned Well Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Rationale for 'Exclusion of Sources' in competition needs clarification.
Scope of work for remediation is not fully detailed, impacting risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $375,000 to ENVIRONMENTAL RESTORATION LLC. REGION 6, (ERRS V); TASK ORDER FOR THE EMERGENCY RESPONSE SWEENY ORPHANED WELL SITE: (V6ZA) FOR $257,000.00.

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL RESTORATION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $375,000.

What is the period of performance?

Start: 2025-08-07. End: 2026-08-21.

What is the track record of Environmental Restoration LLC with the EPA and similar remediation contracts?

Environmental Restoration LLC has a history of performing environmental services, including remediation projects. A detailed review of their contract history with the EPA and other federal agencies would reveal their performance on similar task orders, including any past performance issues, award trends, and the types of environmental challenges they have addressed. Analyzing their past performance on Time and Materials contracts specifically would be crucial to understanding their ability to manage costs effectively. Without access to proprietary past performance evaluations, a definitive assessment is limited, but public contract databases can offer insights into their award history and the value of contracts they have secured.

How does the $257,000 award compare to the average cost of orphaned well remediation projects?

The $257,000 award for the Sweeny Orphaned Well Site remediation is a relatively modest sum for environmental cleanup projects. The cost of remediating orphaned wells can vary dramatically based on factors such as the number of wells, their depth, the type of contaminants present, the geological conditions, and the required cleanup standards. Some complex remediation projects can run into millions of dollars. This specific task order likely covers a defined scope of emergency response or initial assessment and stabilization, rather than a full, long-term remediation effort. Therefore, comparing it directly to the average cost of all orphaned well remediation projects might be misleading without understanding the specific scope and complexity of the Sweeny site.

What are the primary risks associated with this Time and Materials contract?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and subcontracts. If not managed diligently, this structure can incentivize longer project durations or increased material usage, leading to costs exceeding initial estimates. For this EPA contract, risks include potential inefficiencies in labor application, inflated material costs, or scope creep that is not adequately controlled. Effective oversight, detailed tracking of hours and materials, and clear task definitions are critical to mitigating these risks and ensuring value for taxpayer money.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' suggests that the EPA initially intended to solicit offers from all responsible sources (full and open competition). However, specific sources were subsequently excluded from consideration. The reasons for exclusion must be justified and documented, often due to specific technical requirements, security concerns, or prior performance issues with certain contractors. While it aims to maintain a competitive environment, the exclusion of sources can potentially limit the pool of bidders and may raise questions about whether the most cost-effective solutions were explored. Understanding the specific criteria for exclusion is key to assessing the impact on competition and taxpayer value.

What is the EPA's overall spending trend on orphaned well remediation?

The EPA's spending on orphaned well remediation has seen increased attention and funding, particularly with the Bipartisan Infrastructure Law providing significant resources for plugging, remediation, and reclamation of abandoned oil and gas wells. Historically, funding for such activities has been more limited and often addressed through specific programs or grants. The current trend indicates a heightened federal commitment to addressing the environmental legacy of orphaned wells across the nation. This specific $257,000 task order represents a small component of the broader EPA initiative, which aims to tackle a substantial number of wells nationwide over the coming years.

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: 1666 FABICK DR, FENTON, MO, 63026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $375,000

Exercised Options: $375,000

Current Obligation: $375,000

Actual Outlays: $3,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0422D0001

IDV Type: IDC

Timeline