EPA awards $2.8M for Moses Lake Wellfield Remedial Action Technical Support to CH2M HILL, INC

Contract Overview

Contract Amount: $2,814,416 ($2.8M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2021-11-09

End Date: 2028-09-30

Contract Duration: 2,517 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: R10 DES TO FOR MOSES LAKE WELLFIELD REMEDIAL ACTION TECHNICAL SUPPORT

Place of Performance

Location: MOSES LAKE, GRANT County, WASHINGTON, 98837

State: Washington Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.8 million to CH2M HILL, INC for work described as: R10 DES TO FOR MOSES LAKE WELLFIELD REMEDIAL ACTION TECHNICAL SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning over 2500 days, indicating a long-term need for services. 4. The award is a delivery order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 562910 points to Remediation Services, a critical environmental sector. 6. The contract is for technical support, highlighting the need for specialized expertise in environmental remediation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar technical support contracts for remedial actions. The Cost Plus Fixed Fee structure introduces inherent risk for cost escalation. However, the fixed fee component provides some level of cost certainty for the contractor's effort. Further analysis would require understanding the scope of work and the specific services provided to determine if the pricing is competitive relative to market rates for similar expertise.

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 a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these types of remediation services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for the environmental remediation needs at the Moses Lake Wellfield.

Public Impact

The primary beneficiaries are the Environmental Protection Agency (EPA) and potentially the public health and environment in the vicinity of the Moses Lake Wellfield. The services delivered are technical support for remedial action, crucial for addressing environmental contamination. The geographic impact is localized to Moses Lake, Washington, where the wellfield is located. The contract supports specialized technical roles, potentially impacting the workforce in environmental consulting and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as a portion of their profit is tied to the total cost.
The long duration of the contract (over 2500 days) increases the risk of scope creep or changes in project requirements over time.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the effectiveness of the technical support.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract is for technical support, indicating a need for specialized expertise which is being procured.
The Environmental Protection Agency is the awarding and servicing agency, a key federal body for environmental matters.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under remediation services, which involves cleaning up contaminated sites. The market for such services is driven by regulatory requirements and the need to address legacy pollution. Comparable spending benchmarks would typically involve looking at other EPA contracts for similar remedial action technical support, or contracts awarded by other environmental agencies for site cleanup.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, the direct impact on small businesses as prime contractors is not evident. However, the prime contractor, CH2M HILL, INC., may engage small businesses as subcontractors, depending on their subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA). The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements, though these are not detailed in the provided summary.

Related Government Programs

Superfund Remedial Action
Environmental Consulting Services
Hazardous Waste Management
Water Resource Management
Federal Environmental Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost risk.
Long contract duration may increase exposure to scope changes and cost escalation.
Lack of detailed performance metrics in summary data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.8 million to CH2M HILL, INC. R10 DES TO FOR MOSES LAKE WELLFIELD REMEDIAL ACTION TECHNICAL SUPPORT

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 $2.8 million.

What is the period of performance?

Start: 2021-11-09. End: 2028-09-30.

What is the track record of CH2M HILL, INC. with the EPA on similar remediation contracts?

CH2M HILL, INC. (now Jacobs Engineering Group) has a significant history of working with the Environmental Protection Agency (EPA) on various environmental projects, including remediation efforts. They have been involved in numerous large-scale cleanup projects under programs like Superfund. Their experience often includes providing technical support, engineering design, and construction management for complex environmental challenges. Analyzing their past performance on similar contracts would involve reviewing EPA contract databases for project history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. This specific contract for the Moses Lake Wellfield Remedial Action Technical Support builds upon this established relationship and expertise.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, or when there is a high degree of uncertainty in the costs involved, which can be common in complex environmental remediation. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of costs incurred, and cost-reimbursement contracts with incentive fees, which adjust profit based on performance against targets. While CPFF provides flexibility, it carries a risk of cost overruns if costs escalate beyond initial estimates, as the government bears the majority of the cost risk. For technical support in remediation, where unforeseen conditions can arise, CPFF can be appropriate but requires diligent oversight to manage costs effectively.

What are the key performance indicators (KPIs) or deliverables expected under this technical support contract?

The provided data summary does not explicitly list the key performance indicators (KPIs) or specific deliverables for this contract. However, for a 'Remedial Action Technical Support' contract, typical deliverables would likely include technical assessments, feasibility studies, design recommendations, oversight of field activities, data analysis and reporting, regulatory compliance support, and potentially assistance with contractor management during the remedial action phase. Performance would likely be evaluated based on the quality, timeliness, and accuracy of these technical outputs, as well as the contractor's ability to provide expert advice that contributes to the successful and cost-effective execution of the remedial action plan for the Moses Lake Wellfield.

What is the historical spending trend for Remedial Action Technical Support by the EPA?

Historical spending trends for Remedial Action Technical Support by the EPA can be analyzed by examining contract data over several fiscal years. The EPA consistently allocates significant funds towards environmental remediation, particularly through programs like Superfund. Spending on technical support services is a crucial component of these efforts, often comprising a substantial portion of the overall project costs. Analyzing past expenditures would reveal fluctuations based on the number of active Superfund sites, the complexity of remediation challenges, and shifts in regulatory priorities. While this specific contract is for $2.8 million, the EPA's total annual spending on remediation and related technical services likely runs into hundreds of millions or even billions of dollars, reflecting the ongoing need to address environmental contamination across the nation.

Are there any specific environmental risks or challenges associated with the Moses Lake Wellfield that necessitate this technical support?

The Moses Lake Wellfield is a critical source of drinking water for the surrounding community. While the specific contaminants and historical sources of contamination at the Moses Lake Wellfield are not detailed in this summary, wellfield contamination issues often stem from industrial activities, agricultural runoff, leaking underground storage tanks, or historical waste disposal practices. Remedial actions are undertaken to mitigate these risks and ensure the safety of the drinking water supply. Technical support is essential for understanding the hydrogeology, contaminant fate and transport, evaluating different remediation technologies, designing and overseeing the implementation of cleanup strategies, and monitoring the effectiveness of these actions to protect public health and the environment.

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: 1

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: $8,266,634

Exercised Options: $3,612,895

Current Obligation: $2,814,416

Actual Outlays: $2,427,741

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $372,492

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