EPA awards $4.9M task order to CH2M HILL for environmental remediation technical support in California

Contract Overview

Contract Amount: $4,923,139 ($4.9M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2022-03-24

End Date: 2028-09-28

Contract Duration: 2,380 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RAF DES NEW TASK ORDER FOR THE MONTROSE/DEL AMO MULTI-SITE. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TECHNICAL SUPPORT TO EPA FOR OVERSIGHT OF THE REMEDIAL INVESTIGATION, REMEDIAL DESIGN, REMEDIAL ACTION, OPERATION AND MAINTENANCE, AND FIVE-YEAR

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $4.9 million to CH2M HILL, INC for work described as: RAF DES NEW TASK ORDER FOR THE MONTROSE/DEL AMO MULTI-SITE. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TECHNICAL SUPPORT TO EPA FOR OVERSIGHT OF THE REMEDIAL INVESTIGATION, REMEDIAL DESIGN, REMEDIAL ACTION, OPERATION AND MAINTENANCE, AND FIVE-YEAR Key points: 1. Contract provides critical technical support for EPA's oversight of complex environmental cleanup phases. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. The contract duration of nearly 4 years indicates a long-term need for ongoing support. 4. Performance is tied to specific remedial actions, suggesting a focus on tangible environmental outcomes. 5. The task order falls under remediation services, a key sector for environmental protection. 6. The fixed-fee structure aims to control costs while ensuring service delivery.

Value Assessment

Rating: good

The total award amount of $4.9 million over approximately 4 years suggests a reasonable annual expenditure for specialized technical support. Benchmarking against similar EPA oversight contracts for large-scale remediation projects would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common, requires careful monitoring to ensure costs remain within projections and that the fixed fee is justified by the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for environmental remediation technical support services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The Environmental Protection Agency (EPA) benefits from enhanced technical expertise for overseeing critical environmental cleanup operations. Services delivered include oversight of remedial investigation, design, action, operation, and maintenance, as well as five-year reviews. The geographic impact is focused on sites within California, addressing specific environmental concerns in the state. The contract supports a specialized workforce of technical experts in environmental engineering and remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely managed.
Scope creep could increase costs beyond the initial fixed fee if not rigorously controlled.
Dependence on a single contractor for critical oversight functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive market and potential for good value.
Long contract duration suggests a stable and predictable need for these services.
Focus on technical support for EPA's core mission of environmental protection aligns with agency priorities.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental industry, driven by regulatory requirements and the need to address historical contamination. This contract fits within the government's ongoing efforts to manage and clean up hazardous waste sites. Comparable spending benchmarks would involve analyzing other EPA contracts for similar technical support on Superfund sites or other large-scale environmental projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). CH2M HILL, INC. is a large business. There is no explicit information on subcontracting plans for small businesses within this task order, which could represent a missed opportunity to engage the small business ecosystem in supporting these critical environmental services.

Oversight & Accountability

Oversight of this task order is the responsibility of the Environmental Protection Agency (EPA). As a cost-plus-fixed-fee contract, the EPA will monitor expenditures to ensure they align with the fixed fee and the scope of work. Transparency is facilitated through contract award databases, and the EPA's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Superfund Program
Environmental Remediation Services
Technical Assistance Grants
Hazardous Waste Management

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in complex environmental projects.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $4.9 million to CH2M HILL, INC. RAF DES NEW TASK ORDER FOR THE MONTROSE/DEL AMO MULTI-SITE. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TECHNICAL SUPPORT TO EPA FOR OVERSIGHT OF THE REMEDIAL INVESTIGATION, REMEDIAL DESIGN, REMEDIAL ACTION, OPERATION AND MAINTENANCE, AND FIVE-YEAR

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 $4.9 million.

What is the period of performance?

Start: 2022-03-24. End: 2028-09-28.

What is the track record of CH2M HILL, INC. with the EPA on similar environmental remediation contracts?

CH2M HILL, INC. (now Jacobs Engineering Group) has a long history of performing environmental consulting and remediation services for various government agencies, including the EPA. They have been involved in numerous large-scale projects, often serving in oversight and technical support roles similar to this task order. Their past performance on contracts related to the Superfund program and other hazardous waste site cleanups would be a key factor in their selection. A review of their contract history with the EPA would reveal their success in meeting performance requirements, managing costs, and adhering to schedules on comparable projects. This specific task order likely builds upon their established expertise and prior successful engagements with the agency.

How does the $4.9 million award compare to the typical cost of similar EPA technical support contracts?

The $4.9 million award for approximately four years of technical support for EPA's oversight of remedial actions is within a reasonable range for complex environmental projects. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and complexity, particularly those managed by the EPA's regional offices or the Office of Superfund Remediation and Technology Innovation. Factors such as the number and type of sites, the specific phases of remediation being overseen (investigation, design, action, O&M), and the level of technical expertise required all influence cost. Without access to detailed cost data for comparable contracts, it's difficult to definitively state if this represents exceptional value, but the full and open competition suggests a competitive pricing environment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the scope of work expands beyond initial estimates (scope creep) and performance issues if the contractor fails to provide adequate technical expertise. Mitigation strategies typically involve robust contract management by the EPA, including detailed monitoring of contractor progress, regular performance reviews, and strict change control processes. The fixed fee component provides some cost certainty, but the 'cost-plus' element means the government bears the risk of allowable costs. Clear performance work statements and defined deliverables are crucial for ensuring the contractor meets expectations and for mitigating performance risks.

How effective is the EPA in leveraging technical support contracts to achieve its environmental remediation goals?

Technical support contracts like this one are crucial for the EPA to effectively manage and oversee complex environmental remediation projects, especially given the scale and technical demands of programs like Superfund. These contracts allow the EPA to augment its in-house expertise, providing specialized knowledge in areas such as hydrogeology, risk assessment, engineering design, and regulatory compliance. The effectiveness hinges on the EPA's ability to clearly define project requirements, select qualified contractors through competitive processes, and diligently manage contract performance. When managed well, these contracts enable the EPA to ensure that cleanup actions are technically sound, cost-effective, and protective of human health and the environment, thereby advancing its core mission.

What are the historical spending patterns for environmental remediation technical support by the EPA?

The EPA consistently allocates significant funding towards environmental remediation and the associated technical support services. Historical spending patterns show a sustained investment in programs like Superfund, which inherently require extensive technical oversight. The agency utilizes various contract vehicles, including task orders under indefinite-delivery/indefinite-quantity (IDIQ) contracts and sole-source awards, to procure these services. Spending levels can fluctuate based on the number of active cleanup sites, the complexity of the remediation challenges, and overall budget appropriations. Analyzing past EPA budgets and contract awards for remediation services provides insight into the long-term commitment and scale of federal investment in this area.

What is the significance of the 'Remediation Services' NAICS code (562910) in the context of federal spending?

The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is significant as it specifically categorizes businesses involved in cleaning up contaminated sites and waste. For federal spending analysts, this code helps identify and track government expenditures related to environmental cleanup contracts across various agencies, primarily the EPA, Department of Defense, and Department of Energy. It allows for aggregation and analysis of spending within this specialized sector, enabling comparisons of contract values, competition levels, and contractor performance. Understanding this code is crucial for assessing the government's commitment to environmental protection and restoration efforts.

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: 68HE0921R0010

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: $6,123,937

Exercised Options: $4,923,139

Current Obligation: $4,923,139

Actual Outlays: $984,872

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