EPA awards $28.8M contract for Wyckoff/Eagle Harbor Superfund site remediation to CH2M HILL, INC

Contract Overview

Contract Amount: $28,811,238 ($28.8M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2021-12-06

End Date: 2028-09-30

Contract Duration: 2,490 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: R10 DES: REMEDIAL DESIGN (RD) FOR WYCKOFF/EAGLE HARBOR SUPERFUND SITE

Place of Performance

Location: BAINBRIDGE ISLAND, KITSAP County, WASHINGTON, 98110

State: Washington Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $28.8 million to CH2M HILL, INC for work described as: R10 DES: REMEDIAL DESIGN (RD) FOR WYCKOFF/EAGLE HARBOR SUPERFUND SITE Key points: 1. Contract focuses on remedial design for a Superfund site, indicating a critical environmental cleanup phase. 2. The fixed-fee structure suggests a defined scope and budget, though potential for cost overruns exists. 3. Competition was full and open, implying a robust bidding process and potential for competitive pricing. 4. The contract duration of approximately 2490 days highlights the long-term nature of Superfund site remediation. 5. This award falls under Remediation Services, a key sector for environmental protection agencies. 6. The contractor, CH2M HILL, INC., is a significant player in environmental engineering and remediation services.

Value Assessment

Rating: good

The contract value of $28.8 million for remedial design at a Superfund site appears reasonable given the complexity and duration of such projects. Benchmarking against similar large-scale environmental remediation contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure aims to control costs while allowing for necessary adjustments during the design phase. Without specific per-unit cost data for design elements, a direct comparison is challenging, but the overall award size suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive offers. The EPA's decision to use full and open competition suggests confidence in the availability of multiple capable contractors for this specialized environmental remediation design work.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government receives the best value for its investment in environmental cleanup.

Public Impact

The primary beneficiaries are the communities impacted by the Wyckoff/Eagle Harbor Superfund site, receiving services aimed at environmental cleanup and restoration. The contract delivers crucial remedial design services, a foundational step for effective and safe site cleanup. The geographic impact is localized to the Wyckoff/Eagle Harbor Superfund site in Washington state. The contract supports specialized engineering and environmental science jobs within the contractor's organization and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex remediation designs, which could impact final costs.
Long project duration increases the risk of unforeseen site conditions or regulatory changes affecting the design.
Reliance on a single contractor for the design phase may limit alternative solution exploration if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The fixed-fee component of the CPFF contract provides a degree of cost control for the government.
The contractor, CH2M HILL, INC., is a well-established firm with significant experience in environmental engineering and remediation.

Sector Analysis

This contract operates within the environmental consulting and remediation services sector, a critical component of the broader engineering and construction industry. The market for Superfund site remediation is specialized, driven by government funding and regulatory mandates. Spending in this sector is often characterized by large, long-term contracts awarded through competitive bidding processes. Comparable spending benchmarks would involve analyzing other large-scale EPA remediation projects and similar state-level environmental cleanup initiatives.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While CH2M HILL, INC. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized services within the design phase. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the remedial design.

Oversight & Accountability

Oversight for this contract will be provided by the Environmental Protection Agency (EPA), likely through project managers and contracting officers. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and adherence to the Statement of Work. Transparency is generally maintained through public dockets for Superfund sites, though specific design details might be proprietary. The EPA's Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Superfund Remedial Design
Environmental Remediation Services
Hazardous Waste Site Cleanup
EPA Contracts
Remediation and Restoration

Risk Flags

Potential for cost overruns due to the 'cost plus' component of the contract.
Long project duration increases exposure to changing site conditions or regulatory requirements.
Complexity of Superfund site remediation presents inherent technical risks.
Need for robust government oversight to ensure cost reasonableness and performance quality.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $28.8 million to CH2M HILL, INC. R10 DES: REMEDIAL DESIGN (RD) FOR WYCKOFF/EAGLE HARBOR SUPERFUND SITE

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 $28.8 million.

What is the period of performance?

Start: 2021-12-06. End: 2028-09-30.

What is the track record of CH2M HILL, INC. in managing large-scale Superfund remediation projects?

CH2M HILL, INC. (now part of Jacobs) has a long and extensive track record in managing complex environmental remediation projects, including numerous Superfund sites across the United States. They have been involved in various phases of remediation, from site investigation and feasibility studies to remedial design and construction oversight. Their experience spans a wide range of contaminants and site types, including industrial facilities, hazardous waste landfills, and contaminated groundwater plumes. The company has often served as a prime contractor for federal agencies like the EPA and the Department of Defense, undertaking projects with significant technical challenges and large budgets. Their historical performance generally indicates a strong capability in delivering complex environmental solutions, though like any large contractor, specific project outcomes can vary based on site-specific conditions and contract management.

How does the $28.8 million contract value compare to similar remedial design contracts for Superfund sites?

The $28.8 million contract value for remedial design at the Wyckoff/Eagle Harbor Superfund site is substantial, reflecting the complexity and scale typical of such projects. Superfund remedial design contracts can range significantly, from a few million dollars for simpler sites to tens of millions for highly complex ones involving extensive contamination, multiple operable units, or challenging geological conditions. Factors influencing cost include the volume and type of contaminants, the extent of the affected area (soil, groundwater, surface water), the proposed remediation technologies, and the required level of detail in the design documents. Without specific details on the Wyckoff/Eagle Harbor site's challenges, a precise comparison is difficult. However, this award falls within the upper range for remedial design phases, suggesting a significant undertaking requiring extensive engineering analysis and planning.

What are the primary risks associated with this remedial design contract?

The primary risks associated with this remedial design contract include: 1. **Technical Complexity:** Superfund sites often present unique and challenging environmental conditions (e.g., mixed contaminants, complex hydrogeology) that can make design difficult and prone to unforeseen issues. 2. **Scope Creep:** The iterative nature of design, especially under a CPFF contract, can lead to scope expansion if new information or regulatory requirements emerge during the design process. 3. **Schedule Delays:** The long duration (approx. 2490 days) increases the risk of external factors like regulatory changes, community concerns, or new site data impacting the design timeline. 4. **Cost Overruns:** While the fixed fee provides a baseline, the 'cost plus' component means actual costs incurred by the contractor are reimbursed, and unexpected technical challenges or inefficiencies could lead to higher overall expenditures than initially anticipated. 5. **Contractor Performance:** Ensuring the contractor maintains high technical standards and effectively manages the design process throughout the contract period is crucial.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for environmental remediation design?

The Cost Plus Fixed Fee (CPFF) contract type is often used for complex projects like environmental remediation design where the scope may not be fully defined at the outset, or where innovation and flexibility are required. The 'cost plus' element allows the contractor to be reimbursed for actual, allowable costs incurred, which is essential when dealing with the uncertainties inherent in contaminated site characterization and remediation planning. The 'fixed fee' represents the contractor's profit, which is negotiated upfront and remains constant regardless of the final cost. This structure incentivizes the contractor to control costs to maximize their fee relative to the costs incurred, while also providing a degree of cost certainty for the government regarding the profit component. However, it requires robust government oversight to ensure costs are reasonable and allocable, and it may not provide as strong a cost-saving incentive as fixed-price contracts if the base cost is not well-managed.

What is the historical spending trend for Remediation Services by the EPA?

The Environmental Protection Agency (EPA) consistently allocates significant funding towards its Superfund program, which includes remedial design and remedial action. Historical spending trends show a substantial and ongoing commitment to cleaning up hazardous waste sites across the nation. While annual appropriations can fluctuate based on congressional budgets and national priorities, the overall trend reflects a sustained effort to address legacy contamination. The Superfund program's budget typically covers site assessment, remedial design, remedial action, long-term monitoring, and enforcement activities. Spending on remedial design specifically, like this contract, represents a crucial early investment phase within the broader remediation lifecycle. Analyzing multi-year EPA budget data and Superfund program expenditures would reveal specific trends in funding allocated to design versus action phases.

What are the implications of 'full and open competition' for this specific contract?

The 'full and open competition' designation for this contract signifies that the EPA solicited proposals from all responsible sources capable of meeting the requirements. This approach is generally favored as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. For taxpayers, it means the government likely secured a fair market price through the bidding process. It also implies that the EPA established clear performance standards and evaluation criteria, allowing them to select the contractor offering the best overall value, not just the lowest price. The absence of restrictions means that any qualified firm, regardless of size or prior relationship, could compete, fostering a more dynamic marketplace for environmental remediation design services.

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: 68HE0721R0020

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: $31,194,302

Exercised Options: $30,156,767

Current Obligation: $28,811,238

Actual Outlays: $19,522,744

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $3,665,288

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