EPA awards $5.5M remediation services contract to CH2M HILL, INC. for California site

Contract Overview

Contract Amount: $5,521,471 ($5.5M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2021-04-01

End Date: 2026-09-28

Contract Duration: 2,006 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS IS A FIRM FIXED PRICE/COST PLUS FIXED FEE HYBRID TASK ORDER. THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, INCLUDING LABOR, SUBCONTRACTS, MATERIALS, EQUIPMENT, AND OTHER DIRECT COSTS, TO MEET PERFORMANCE STANDARDS AND SUCCESSFULLY ACCOMP

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $5.5 million to CH2M HILL, INC for work described as: THIS IS A FIRM FIXED PRICE/COST PLUS FIXED FEE HYBRID TASK ORDER. THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, INCLUDING LABOR, SUBCONTRACTS, MATERIALS, EQUIPMENT, AND OTHER DIRECT COSTS, TO MEET PERFORMANCE STANDARDS AND SUCCESSFULLY ACCOMP Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a hybrid firm fixed price/cost plus fixed fee, indicating a mix of risk allocation. 3. Performance period spans over five years, from April 2021 to September 2026. 4. The contract is for remediation services, a critical environmental function. 5. The agency and the primary service area are both the Environmental Protection Agency in California. 6. No small business set-aside or subcontracting was indicated, potentially limiting small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar remediation projects. The hybrid contract type suggests potential for cost overruns if not managed carefully, but also allows for flexibility in addressing unforeseen issues. The fixed price component provides some cost certainty for a portion of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning 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 competitive nature should theoretically lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices and ensuring a wider range of solutions are considered.

Public Impact

The Environmental Protection Agency (EPA) benefits from this contract by securing essential remediation services. The services delivered are focused on environmental remediation, likely addressing hazardous waste or contaminated sites. The geographic impact is specific to California, where the remediation activities will take place. The contract supports a workforce skilled in environmental engineering, site assessment, and remediation technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Hybrid contract type (FFP/CPFF) can lead to cost uncertainty if not managed diligently.
Lack of specific details on competition level (number of bidders) limits assessment of price competitiveness.
No indication of small business participation or subcontracting goals.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Long-term performance period allows for sustained focus on remediation efforts.
Contract addresses critical environmental protection needs.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under the NAICS code 562910 (Remediation Services). The market for environmental remediation is driven by regulatory compliance, legacy contamination cleanup, and ongoing industrial activities. Spending in this sector can vary based on environmental policies, enforcement actions, and the number of Superfund or similar cleanup sites requiring attention.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there an explicit mention of subcontracting requirements. This suggests that larger firms were likely the primary bidders and recipients of the award. Without subcontracting provisions, the direct impact on the small business ecosystem for this specific contract appears limited, though the prime contractor may engage small businesses independently.

Oversight & Accountability

Oversight for this contract would typically be managed by the Environmental Protection Agency (EPA) contracting officers and program managers. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Superfund Program
RCRA Corrective Actions
Brownfields Program
Defense Environmental Remediation

Risk Flags

Potential for cost overruns due to CPFF component.
Unforeseen site conditions common in remediation.
Long performance period increases exposure to changing regulations or economic factors.
Limited visibility into number of bidders for 'full and open' competition.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $5.5 million to CH2M HILL, INC. THIS IS A FIRM FIXED PRICE/COST PLUS FIXED FEE HYBRID TASK ORDER. THE CONTRACTOR SHALL FURNISH ALL NECESSARY SERVICES, INCLUDING LABOR, SUBCONTRACTS, MATERIALS, EQUIPMENT, AND OTHER DIRECT COSTS, TO MEET PERFORMANCE STANDARDS AND SUCCESSFULLY ACCOMP

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 $5.5 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-09-28.

What is the historical spending pattern for remediation services by the EPA in California?

Analyzing historical spending for EPA remediation services in California requires access to detailed historical contract data. Generally, the EPA's spending in this area fluctuates based on the number and complexity of contaminated sites, federal appropriations, and the prioritization of cleanup efforts under programs like Superfund. Factors such as the specific types of contaminants, the size of the affected area, and the chosen remediation technologies significantly influence project costs. Without specific historical data for this contract's location or type, it's difficult to provide a precise benchmark, but remediation projects can range from thousands to hundreds of millions of dollars over their lifecycle.

How does the hybrid FFP/CPFF contract structure impact cost control for this remediation project?

The hybrid Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) structure aims to balance risk and reward between the government and the contractor. The FFP portion provides cost certainty for a defined scope of work, incentivizing the contractor to control costs within that segment. The CPFF portion allows for flexibility in addressing uncertainties inherent in remediation, such as unforeseen site conditions or evolving technical requirements. However, the CPFF component requires robust government oversight to ensure costs are reasonable and allocable, as the contractor is reimbursed for allowable costs plus a fixed fee. Effective management of the transition between FFP and CPFF elements, and diligent monitoring of costs under the CPFF portion, are crucial for controlling overall project expenditure.

What are the typical performance metrics for environmental remediation contracts?

Performance metrics for environmental remediation contracts typically focus on achieving specific cleanup standards, meeting regulatory deadlines, ensuring worker and environmental safety, and managing costs effectively. Key performance indicators (KPIs) often include the percentage of contaminants removed or treated, compliance with air and water quality standards, adherence to project schedules, incident rates (safety), and the accuracy of cost reporting. For this contract, specific metrics would be detailed in the Statement of Work (SOW) and task orders, likely involving milestones for site assessment, design, implementation of remediation technologies, and final site closure reports, all subject to EPA approval.

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

CH2M HILL, INC. (now part of Jacobs) has a significant history of performing large-scale environmental engineering and remediation projects for government agencies, including the EPA. They have been involved in numerous complex cleanup efforts across the United States, often managing projects under various contract types, including those requiring extensive technical expertise and regulatory compliance. Their track record generally includes experience with Superfund sites, hazardous waste management, and water/wastewater infrastructure. A detailed review of their past performance on similar EPA contracts, including client feedback and any past performance issues, would be necessary for a comprehensive assessment.

What are the potential risks associated with long-term environmental remediation projects?

Long-term environmental remediation projects carry several inherent risks. These include technical risks, such as the discovery of unexpected subsurface conditions or the ineffectiveness of chosen remediation technologies, which can lead to scope changes and cost increases. Schedule risks can arise from permitting delays, weather impacts, or unforeseen site complexities. Financial risks include cost overruns, particularly under CPFF contracts if not closely monitored, and potential changes in funding availability. Regulatory risks involve evolving environmental standards or differing interpretations by agencies. Finally, reputational risks exist if cleanup goals are not met or if environmental incidents occur.

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 › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0920R0001

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: $6,211,975

Exercised Options: $5,521,471

Current Obligation: $5,521,471

Actual Outlays: $4,671,894

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $2,552,716

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