EPA awards $3.27M remediation services contract to Environmental Quality Management, Inc. in New Mexico

Contract Overview

Contract Amount: $3,274,360 ($3.3M)

Contractor: Environmental Quality Management, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2019-09-24

End Date: 2022-11-27

Contract Duration: 1,160 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW TASK ORDER NFPI

Place of Performance

Location: NAVAJO, MCKINLEY County, NEW MEXICO, 87328

State: New Mexico Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $3.3 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC for work described as: NEW TASK ORDER NFPI Key points: 1. Contract awarded for remediation services, indicating a need for environmental cleanup. 2. The contract duration of 1160 days suggests a significant, ongoing project. 3. Awarded under 'Full and Open Competition After Exclusion of Sources', requiring justification for limiting bidders. 4. The 'Time and Materials' pricing structure can pose cost control challenges if not closely monitored. 5. The contractor, Environmental Quality Management, Inc., has secured this award, suggesting prior relevant experience or capability. 6. The contract is specific to New Mexico, highlighting a regional environmental need.

Value Assessment

Rating: fair

The contract value of $3.27 million over approximately three years for remediation services appears moderate for the scope. Without specific benchmarks for the type and scale of remediation required in New Mexico, a direct value-for-money assessment is challenging. The 'Time and Materials' pricing model, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. Further analysis would require understanding the specific remediation tasks and comparing the effective hourly rates to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This solicitation type implies that while the competition was intended to be open, specific circumstances led to the exclusion of certain sources. The justification for this exclusion is critical to understanding the competitive landscape. A limited competition may result in fewer bids than a truly open process, potentially impacting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: This limited competition structure means taxpayers may not benefit from the broadest possible range of offers, potentially leading to higher costs than if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries are likely the communities and ecosystems in New Mexico requiring environmental remediation. Services delivered include remediation activities, addressing environmental contamination. The geographic impact is focused on New Mexico. Workforce implications include employment opportunities for environmental scientists, technicians, and laborers involved in the cleanup efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'Time and Materials' pricing structure.
Limited competition may have restricted the pool of potential bidders, impacting price competitiveness.
The 'Exclusion of Sources' clause requires careful scrutiny to ensure fairness and prevent undue restrictions on competition.

Positive Signals

Award to a single contractor suggests a focused and potentially efficient execution of services.
The contract addresses critical environmental remediation needs, contributing to public health and safety.
The duration indicates a commitment to resolving environmental issues comprehensively.

Sector Analysis

The environmental remediation sector is a critical component of the broader environmental services industry, which is driven by regulatory compliance and the need to address historical contamination. This contract falls within the NAICS code 562910 (Remediation Services). The market includes a range of firms specializing in hazardous waste management, site cleanup, and environmental consulting. Spending in this sector is often influenced by government regulations and Superfund site activities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, government contracts of this nature may include provisions for small business participation, either through direct awards or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA). The agency is responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing the remediation process. Transparency would be facilitated through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Environmental Consulting Services

Risk Flags

Potential for cost overruns due to T&M pricing
Limited competition may impact price competitiveness
Justification for 'Exclusion of Sources' requires review

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $3.3 million to ENVIRONMENTAL QUALITY MANAGEMENT, INC. NEW TASK ORDER NFPI

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL QUALITY MANAGEMENT, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2019-09-24. End: 2022-11-27.

What specific remediation activities are covered under this contract?

The provided data indicates the contract is for 'Remediation Services' under NAICS code 562910. While the specific tasks are not detailed, this typically encompasses a range of activities aimed at cleaning up contaminated sites. These can include site assessment, soil and groundwater remediation, hazardous waste removal, demolition of contaminated structures, and long-term monitoring. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not available in the provided snippet. The 'Time and Materials' (T&M) pricing structure suggests that the exact scope might have been flexible or evolved during the contract period, with costs accumulating based on labor hours and material usage.

How does the 'Time and Materials' pricing structure compare to other contract types for remediation services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined at the outset or is expected to change. For remediation services, T&M offers flexibility, allowing the contractor to adapt to unforeseen site conditions or evolving cleanup requirements. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. Agencies typically implement strict oversight, labor hour controls, and material cost ceilings to mitigate these risks. Fixed-price contracts, conversely, offer greater cost certainty but require a well-defined scope and may not be suitable for complex or uncertain remediation projects.

What is the significance of 'Full and Open Competition After Exclusion of Sources'?

This contract type, 'Full and Open Competition After Exclusion of Sources', signifies a deviation from standard full and open competition. It implies that the solicitation was initially intended to be open to all responsible sources, but specific sources were excluded after the initial solicitation phase, or the solicitation itself was structured to exclude certain types of entities. This often occurs when a specific capability or technology is required that only a limited number of contractors possess, or due to national security concerns. The agency must provide a justification for the exclusion of sources. This approach can limit the number of bidders, potentially impacting the government's ability to achieve the lowest possible price compared to unrestricted full and open competition.

What is the typical track record of Environmental Quality Management, Inc. in federal remediation contracts?

Without access to a comprehensive federal procurement database or specific contract history for Environmental Quality Management, Inc. (EQM), it is difficult to definitively assess their track record. However, securing a contract from the EPA, especially for remediation services, suggests they possess the necessary qualifications, experience, and capacity to perform such work. Companies in this sector often have a portfolio of projects with various federal agencies (e.g., EPA, Department of Defense, Department of Energy) and state/local governments. A deeper dive would involve reviewing past performance evaluations, other awarded contracts, and any reported issues or successes in their federal contracting history.

How does the $3.27 million award compare to historical EPA spending on remediation services in New Mexico?

To assess this $3.27 million award in context, one would need to analyze historical EPA spending data specifically for remediation services within New Mexico. This would involve looking at the number and value of similar contracts awarded over previous fiscal years. Factors such as the number of active Superfund sites, the scale of environmental challenges, and the overall budget allocated to EPA's regional offices for cleanup activities in New Mexico would influence this comparison. A higher average award value in previous years might suggest this contract is within a normal range, while a significantly lower average could indicate this is a larger or more complex project, or vice-versa.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 CARILLON BLVD 100, CINCINNATI, OH, 45240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,274,360

Exercised Options: $3,274,360

Current Obligation: $3,274,360

Actual Outlays: $2,714,664

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $2,569,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0919D0001

IDV Type: IDC

Timeline