EPA Awards $25.8M for Wichita Environmental Remediation to KEMRON/ARROWHEAD JV

Contract Overview

Contract Amount: $25,799,334 ($25.8M)

Contractor: Kemron/Arrowhead JV, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2024-09-18

End Date: 2028-09-24

Contract Duration: 1,467 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAF, RES_CLIN 0002: REMEDIAL CONSTRUCTION AND REMOVAL ACTIVITIES, 57TH AND NORTH BROADWAY, WICHITA, KANSAS.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67202

State: Kansas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $25.8 million to KEMRON/ARROWHEAD JV, LLC for work described as: RAF, RES_CLIN 0002: REMEDIAL CONSTRUCTION AND REMOVAL ACTIVITIES, 57TH AND NORTH BROADWAY, WICHITA, KANSAS. Key points: 1. Contract awarded for remedial construction and removal activities in Wichita, Kansas. 2. KEMRON/ARROWHEAD JV, LLC secured the contract. 3. The contract falls under the Environmental Protection Agency's purview. 4. This is a significant award for environmental remediation services.

Value Assessment

Rating: good

The award amount of $25.8 million for a 5-year contract appears reasonable for complex environmental remediation. Benchmarking against similar EPA remediation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for environmental cleanup services.

Public Impact

Improved environmental conditions at the 57th and North Broadway site in Wichita. Potential for job creation in the local Wichita area through remediation activities. Ensures compliance with environmental regulations for public health and safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (5 years), requiring ongoing monitoring.
Firm Fixed Price contract may not account for unforeseen site conditions.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Clear scope of work for remediation and removal.
Contract awarded by a major federal agency (EPA).

Sector Analysis

Environmental remediation services are crucial for addressing contaminated sites. Spending in this sector is driven by regulatory requirements and historical land use. Benchmarks vary widely based on site complexity and scale.

Small Business Impact

The data indicates no specific small business participation in this contract. Further analysis would be needed to determine if subcontracting opportunities were pursued or if there were barriers to entry for small businesses.

Oversight & Accountability

The EPA's oversight is critical for ensuring the successful and compliant execution of this remediation project. Regular progress reports and site inspections will be key accountability measures.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Long contract duration requires sustained oversight.
Potential for unforeseen site conditions impacting cost.
No explicit small business participation.
Complexity of environmental remediation projects.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $25.8 million to KEMRON/ARROWHEAD JV, LLC. RAF, RES_CLIN 0002: REMEDIAL CONSTRUCTION AND REMOVAL ACTIVITIES, 57TH AND NORTH BROADWAY, WICHITA, KANSAS.

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 $25.8 million.

What is the period of performance?

Start: 2024-09-18. End: 2028-09-24.

What specific environmental hazards are being addressed by this contract, and what is the expected outcome in terms of site cleanup?

The contract is for remedial construction and removal activities. While specific hazards aren't detailed in the provided data, such contracts typically address soil, groundwater, or building contamination. The expected outcome is the remediation of the site to meet regulatory standards, ensuring public health and environmental safety.

Given the firm fixed price, what mechanisms are in place to manage potential cost overruns due to unforeseen site conditions?

Firm Fixed Price contracts generally place the risk of unforeseen conditions on the contractor. However, contracts often include clauses for change orders or equitable adjustments if significant, previously unknown conditions are encountered and documented. The EPA will need robust oversight to validate any such claims.

How will the effectiveness of the remediation activities be measured and verified by the EPA?

Effectiveness will likely be measured through a combination of pre- and post-remediation environmental sampling (soil, water, air), adherence to the approved remediation plan, and final site closure reports. Independent verification and compliance with EPA standards will be crucial.

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: 68HE0724R0040

Offers Received: 2

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: $25,799,334

Exercised Options: $25,799,334

Current Obligation: $25,799,334

Actual Outlays: $5,844,506

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