EPA Awards $10.9M for Newton County Mine Tailings Superfund Site Remediation to EQM Services, LLC

Contract Overview

Contract Amount: $10,911,731 ($10.9M)

Contractor: EQM Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2024-05-01

End Date: 2026-08-31

Contract Duration: 852 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Environmental

Official Description: R7: NEWTON COUNTY MINE TAILINGS SUPERFUND SITE (SITE), OPERABLE UNIT# 01 AND 02 (OU1 AND OU2).

Place of Performance

Location: IOLA, ALLEN County, KANSAS, 66749

State: Kansas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $10.9 million to EQM SERVICES, LLC for work described as: R7: NEWTON COUNTY MINE TAILINGS SUPERFUND SITE (SITE), OPERABLE UNIT# 01 AND 02 (OU1 AND OU2). Key points: 1. EQM Services, LLC secured a significant contract for Superfund site cleanup. 2. The contract is not available for competition, raising questions about price discovery. 3. The fixed-price contract aims to manage remediation costs for OU1 and OU2. 4. This award falls within the Environmental Protection Agency's broader cleanup mission.

Value Assessment

Rating: questionable

The contract value is $10.9 million. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar remediation contracts. Benchmarking is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been fully competed.

Public Impact

Environmental cleanup of a Superfund site in Kansas. Potential long-term health and environmental benefits for the local community. Government contract awarded to a specific company, EQM Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Remediation Services, a critical component of environmental protection. Spending in this sector is driven by regulatory requirements and the need to address hazardous sites.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation is needed to determine small business participation.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Accountability will depend on the EPA's contract management and performance monitoring processes.

Related Government Programs

Risk Flags

Tags

remediation-services, environmental-protection-agency, ks, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $10.9 million to EQM SERVICES, LLC. R7: NEWTON COUNTY MINE TAILINGS SUPERFUND SITE (SITE), OPERABLE UNIT# 01 AND 02 (OU1 AND OU2).

Who is the contractor on this award?

The obligated recipient is EQM SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-08-31.

What is the justification for awarding this contract on a limited competition basis, and what steps are being taken to ensure fair pricing?

The justification for limited competition needs to be clearly documented by the EPA. Without this documentation, it's impossible to assess the rationale. To ensure fair pricing, the EPA should conduct robust market research and potentially engage independent cost estimators to validate EQM Services, LLC's proposed costs against industry benchmarks.

What are the specific risks associated with the 'NOT AVAILABLE FOR COMPETITION' designation for this Superfund site remediation?

The primary risk is the potential for inflated costs due to the absence of competitive bidding. This could lead to inefficient use of taxpayer funds. Additionally, a lack of competition might reduce the incentive for the contractor to innovate or optimize the remediation process, potentially impacting the overall effectiveness and timeline of the cleanup.

How will the effectiveness of the remediation services provided by EQM Services, LLC be measured and ensured?

Effectiveness will be measured through adherence to the contract's performance work statement, which should include specific technical requirements and measurable outcomes for the remediation of Operable Units 1 and 2. The EPA will likely conduct regular site inspections, review progress reports, and potentially utilize third-party environmental consultants to verify the quality and completeness of the cleanup activities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENTENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HE0724R0013

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 CARILLION BLVD, CINCINNATI, OH, 45240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,648,675

Exercised Options: $10,911,731

Current Obligation: $10,911,731

Actual Outlays: $6,693,988

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $819,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0724D0005

IDV Type: IDC

Timeline

Start Date: 2024-05-01

Current End Date: 2026-08-31

Potential End Date: 2028-08-31 00:00:00

Last Modified: 2026-01-28

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