EPA awards $42.2M for mine tailings cleanup, with KEMRON/ARROWHEAD JV leading remediation efforts

Contract Overview

Contract Amount: $42,175,481 ($42.2M)

Contractor: Kemron/Arrowhead JV, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2020-09-18

End Date: 2025-07-31

Contract Duration: 1,777 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REMEDIAL ACTION FRAMEWORK (RAF)/REMEDIATION ENVIRONMENTAL SERVICES (RES) TASK ORDER - NEWTON COUNTY MINE TAILINGS OU1&OU2 SPRING CITY/SPURGEON SUBDISTRICT - AWARD

Place of Performance

Location: JOPLIN, JASPER County, MISSOURI, 64804

State: Missouri Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $42.2 million to KEMRON/ARROWHEAD JV, LLC for work described as: REMEDIAL ACTION FRAMEWORK (RAF)/REMEDIATION ENVIRONMENTAL SERVICES (RES) TASK ORDER - NEWTON COUNTY MINE TAILINGS OU1&OU2 SPRING CITY/SPURGEON SUBDISTRICT - AWARD Key points: 1. Contract value of $42.2M for environmental remediation services indicates significant investment in site cleanup. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of nearly 5 years points to a complex and long-term remediation project. 4. Fixed-price contract type shifts performance risk to the contractor, encouraging efficient project completion. 5. The award falls under Remediation Services, a critical sector for environmental protection and public health. 6. The geographic focus on Newton County, Missouri, highlights specific regional environmental challenges.

Value Assessment

Rating: good

The contract value of $42.2 million for environmental remediation services appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, the fixed-price nature of the contract suggests the government has negotiated a defined cost for the work. The number of bids received (though not explicitly stated, implied by 'full and open competition') would be a key factor in assessing value, but the overall investment aligns with the complexity of mine tailings remediation.

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 bids. This approach generally fosters a competitive environment, allowing multiple qualified contractors to vie for the work. The presence of multiple bidders (implied by the competition type) typically leads to better price discovery and a wider range of technical solutions being considered, ultimately benefiting the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to contractor rivalry and a greater likelihood of receiving the most cost-effective solution for the environmental cleanup.

Public Impact

The primary beneficiaries are the residents and environment of Newton County, Missouri, through the cleanup of mine tailings. Services delivered include remediation of mine tailings at the OU1 & OU2 sites in the Spring City/Spurgeon Subdistrict. The geographic impact is localized to Newton County, Missouri, addressing specific environmental contamination. Workforce implications may include local job creation for skilled environmental technicians and engineers during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Ensuring contractor adherence to strict environmental standards throughout the multi-year remediation process.
Managing the long-term effectiveness of the remediation to prevent future environmental issues.

Positive Signals

Firm fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive bidding process that could yield cost savings.
The contract's duration allows for thorough planning and execution of complex remediation tasks.
Award to a joint venture (KEMRON/ARROWHEAD JV) may bring specialized expertise to the project.

Sector Analysis

The environmental remediation services sector is crucial for addressing legacy pollution and ensuring compliance with environmental regulations. This contract falls under NAICS code 562910 (Remediation Services), a market that includes companies specializing in hazardous waste treatment, site cleanup, and environmental consulting. The market size for environmental remediation is substantial, driven by government mandates and private sector responsibility for contaminated sites. This specific award contributes to the broader EPA mission of environmental protection and restoration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity or joint venture. While there's no explicit mention of small business subcontracting goals, large federal contracts often include provisions for small business participation. The impact on the small business ecosystem would depend on whether KEMRON/ARROWHEAD JV actively seeks out and utilizes small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract is likely managed by the Environmental Protection Agency (EPA), which awarded the contract. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified remediation services within the agreed-upon budget. Transparency is generally maintained through contract award databases and public reporting, though specific project progress reports may be internal. The EPA's Inspector General may have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Superfund Remedial Action
Environmental Consulting Services
Hazardous Waste Management
Site Remediation Contracts
Environmental Protection Agency Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring long-term effectiveness of remediation technologies.
Contractor performance and adherence to environmental standards.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $42.2 million to KEMRON/ARROWHEAD JV, LLC. REMEDIAL ACTION FRAMEWORK (RAF)/REMEDIATION ENVIRONMENTAL SERVICES (RES) TASK ORDER - NEWTON COUNTY MINE TAILINGS OU1&OU2 SPRING CITY/SPURGEON SUBDISTRICT - AWARD

Who is the contractor on this award?

The obligated recipient is KEMRON/ARROWHEAD JV, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.2 million.

What is the period of performance?

Start: 2020-09-18. End: 2025-07-31.

What is the historical spending pattern for environmental remediation services by the EPA in Missouri?

Analyzing historical spending patterns for environmental remediation services by the EPA in Missouri requires access to detailed federal procurement data over several fiscal years. Generally, EPA spending in this area fluctuates based on the number and scale of Superfund sites, brownfield redevelopment initiatives, and other environmental cleanup programs. Factors influencing spending include the complexity of contamination, the chosen remediation technologies, and the availability of appropriated funds. Without specific historical data for Missouri, it's difficult to provide precise figures, but remediation contracts are often multi-year and can represent significant investments, especially for large-scale projects like mine tailings cleanup. The current $42.2 million award suggests a substantial commitment to addressing environmental concerns in Newton County.

How does the contractor, KEMRON/ARROWHEAD JV, LLC, perform on other federal contracts?

Assessing the performance of KEMRON/ARROWHEAD JV, LLC on other federal contracts would involve reviewing their past performance evaluations and contract histories within federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review would look for indicators such as timely delivery, adherence to budget, quality of work, and any instances of disputes or contract terminations. A joint venture's performance can be a composite of its individual members' track records. Positive past performance is a key factor in winning new contracts, while negative performance can lead to restrictions or disqualification. Specific details on KEMRON/ARROWHEAD JV's past performance would require a dedicated search of these systems.

What are the specific environmental risks associated with mine tailings in Newton County, Missouri?

Mine tailings, particularly from historical mining operations like those in Newton County, can pose significant environmental risks due to the presence of heavy metals (such as lead, cadmium, arsenic) and potentially radioactive elements. These contaminants can leach into soil and groundwater, impacting water quality for drinking and agriculture, and harming aquatic ecosystems. Airborne dust from tailings can also be a source of exposure. The specific risks depend on the type of ore mined, the processing methods used, and the geological and hydrological conditions of the site. Remediation efforts aim to stabilize the tailings, prevent contaminant migration, and restore the affected environment to minimize long-term health and ecological impacts.

What is the typical cost range for similar environmental remediation projects of this scale?

The cost range for environmental remediation projects of this scale ($42.2 million) can vary widely depending on numerous factors, including the type and extent of contamination, the specific remediation technologies employed, site accessibility, regulatory requirements, and the duration of the project. Projects involving large volumes of contaminated soil or groundwater, complex hazardous materials, or extensive site restoration can easily run into tens or hundreds of millions of dollars. Mine tailings remediation, in particular, can be costly due to the sheer volume of material and the need for long-term containment or removal strategies. Benchmarking against similar EPA Superfund or RCRA corrective action projects provides a general context, but each site's unique characteristics dictate the final cost.

How effective are current remediation technologies for mine tailings?

Current remediation technologies for mine tailings are diverse and have evolved significantly. They generally fall into categories such as in-situ methods (e.g., capping, soil stabilization, phytoremediation) and ex-situ methods (e.g., excavation and disposal in engineered landfills, washing/separation to remove contaminants, or reprocessing). The effectiveness depends heavily on the specific contaminants, site conditions, and the chosen technology. For example, capping can effectively isolate contaminants from the environment but doesn't remove them. Excavation and disposal are thorough but can be very expensive and generate significant waste. Stabilization aims to reduce contaminant mobility. The EPA and other regulatory bodies evaluate the long-term effectiveness and protectiveness of chosen remedies on a case-by-case basis.

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: 68HE0720R0054

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kemron Environmental Services, Inc.

Address: 1359A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,988,419

Exercised Options: $42,175,481

Current Obligation: $42,175,481

Actual Outlays: $37,474,700

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0012

IDV Type: IDC

Timeline