EPA awards $6.3M task order to CH2M HILL for LAVA Cap Mine site remediation services

Contract Overview

Contract Amount: $6,318,533 ($6.3M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2023-09-19

End Date: 2028-02-29

Contract Duration: 1,624 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW DES TASK ORDER FOR LAVA CAP MINE SITE RI/FS, RD/RA AND O&M SITE SSID: 093Y CO: MENA MEDEIROS

Place of Performance

Location: NEVADA CITY, NEVADA County, CALIFORNIA, 95959

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.3 million to CH2M HILL, INC for work described as: NEW DES TASK ORDER FOR LAVA CAP MINE SITE RI/FS, RD/RA AND O&M SITE SSID: 093Y CO: MENA MEDEIROS Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 3. The duration of the contract is over 4 years, indicating a long-term commitment to site remediation. 4. The task order is for Remediation Services, a critical environmental function. 5. The contract is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract is not set aside for small businesses, implying larger firms were likely involved.

Value Assessment

Rating: good

The award amount of $6.3M for a 4+ year remediation project appears reasonable given the scope. Benchmarking against similar EPA Superfund site remediation contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates careful monitoring of costs to ensure efficiency, but it is a common and accepted pricing model for complex environmental projects where exact costs can be difficult to predict upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The EPA's use of full and open competition suggests they sought the best value from a broad range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for environmental cleanup, reducing the potential for overpayment.

Public Impact

The primary beneficiaries are the environment and public health, through the cleanup of a contaminated mine site. Services delivered include Remedial Investigation/Feasibility Study (RI/FS), Remedial Design/Remedial Action (RD/RA), and Operations & Maintenance (O&M). The geographic impact is localized to the LAVA Cap Mine site in California. The contract supports specialized environmental engineering and remediation workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Long contract duration requires sustained oversight to ensure performance and adherence to scope.
Complexity of environmental remediation can lead to unforeseen challenges and schedule delays.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Task order addresses critical environmental remediation needs.
Contractor (CH2M HILL) is likely experienced in environmental services.

Sector Analysis

This contract falls within the Environmental Services sector, specifically focusing on hazardous waste remediation and site cleanup. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and legacy contamination from industrial activities. Comparable spending benchmarks for Superfund site cleanups vary widely based on site complexity, but multi-million dollar awards for comprehensive RI/FS, RD/RA, and O&M are common.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, CH2M HILL, is likely a large business, and the focus of this task order is on securing specialized expertise. The absence of small business set-asides may limit direct opportunities for smaller firms on this specific task order, though they might be involved in the broader IDIQ contract if applicable.

Oversight & Accountability

Oversight will likely be managed by the Environmental Protection Agency (EPA) contracting officers and technical representatives. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the federal procurement process, with contract awards being publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

EPA Superfund Program
RCRA Corrective Actions
Brownfields Program
Defense Environmental Restoration Program

Risk Flags

Potential for cost overruns
Unforeseen site conditions
Long-term environmental liability
Regulatory compliance challenges

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.3 million to CH2M HILL, INC. NEW DES TASK ORDER FOR LAVA CAP MINE SITE RI/FS, RD/RA AND O&M SITE SSID: 093Y CO: MENA MEDEIROS

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 $6.3 million.

What is the period of performance?

Start: 2023-09-19. End: 2028-02-29.

What is CH2M HILL's track record with the EPA on similar environmental remediation contracts?

CH2M HILL (now Jacobs) has a long history of performing environmental services for the EPA and other federal agencies. They have been involved in numerous Superfund site cleanups, providing services ranging from site assessment and feasibility studies to remedial design and construction oversight. Their experience typically includes managing complex projects with significant technical challenges and stringent regulatory requirements. Specific performance data on past EPA contracts, including any past performance evaluations or disputes, would provide a more detailed understanding of their reliability and effectiveness in delivering similar services.

How does the $6.3M award compare to the total estimated cost of the LAVA Cap Mine site cleanup?

The $6.3 million award represents a task order for specific services (RI/FS, RD/RA, O&M) over a defined period. It is unlikely to represent the total estimated cost for the entire cleanup of the LAVA Cap Mine site. Comprehensive Superfund site cleanups can often cost tens or even hundreds of millions of dollars, depending on the nature and extent of contamination, the chosen remedy, and the duration of long-term operations and maintenance. This task order is a component of the overall remediation effort, and further funding actions may be anticipated as the project progresses through its various phases.

What are the primary risks associated with this Cost Plus Fixed Fee contract type for this project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for complex environmental remediation, is the potential for cost overruns if the contractor's estimated costs are inaccurate or if unforeseen site conditions arise. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of reimbursing allowable costs. Effective oversight by the EPA is crucial to monitor expenditures, ensure efficiency, and prevent scope creep. The CPFF structure is often used when the scope of work is not fully defined at the outset, which is common in initial investigation and design phases of remediation projects.

What is the significance of the 'Remediation Services' NationalНаименование (NAICS) code 562910?

The NAICS code 562910, 'Remediation Services,' signifies that the primary business activity covered by this contract involves cleaning up contaminated sites. This includes activities such as site investigation, feasibility studies, design of cleanup strategies, actual cleanup operations (e.g., excavation, treatment, containment), and ongoing monitoring and maintenance. Companies classified under this NAICS code specialize in environmental restoration, often dealing with hazardous materials and complex engineering challenges to mitigate environmental risks and comply with regulatory standards.

What does the contract duration of 1624 days imply for the LAVA Cap Mine site cleanup timeline?

A contract duration of 1624 days, approximately 4.45 years, suggests a phased approach to the LAVA Cap Mine site cleanup. This timeframe likely encompasses the Remedial Investigation/Feasibility Study (RI/FS) to understand the contamination, the Remedial Design (RD) to plan the cleanup, the Remedial Action (RA) to implement the cleanup, and potentially the initial phase of Operations & Maintenance (O&M). Such a duration indicates that the EPA anticipates a multi-year effort to address the site's environmental issues, reflecting the complexity and scale of the contamination.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0922R0013

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: $7,767,263

Exercised Options: $6,585,876

Current Obligation: $6,318,533

Actual Outlays: $4,003,315

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $117,782

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