EPA awards $2.67M remediation services contract to Hydrogeologic, Inc. for California site

Contract Overview

Contract Amount: $2,668,425 ($2.7M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-09-28

End Date: 2030-09-29

Contract Duration: 2,558 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AMCO DES - RAF NEW TASK ORDER TOCORS: MICHAEL SCHULMAN PRIMARY INVOICE APPROVER: TIFFANIE PANG ALTERNATE INVOICE APPROVER: MARIA VELEZ AND LISA OUYANG

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.7 million to HYDROGEOLOGIC, INC. for work described as: AMCO DES - RAF NEW TASK ORDER TOCORS: MICHAEL SCHULMAN PRIMARY INVOICE APPROVER: TIFFANIE PANG ALTERNATE INVOICE APPROVER: MARIA VELEZ AND LISA OUYANG Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of over 6 years indicates a long-term need for these remediation services. 4. The awardee, Hydrogeologic, Inc., is positioned to deliver specialized environmental services. 5. The contract is a delivery order under a larger contract vehicle, implying it's part of a broader framework. 6. The specific NAICS code (562910) points to a focus on remediation and waste management services.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the parent contract's overall value. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, making direct price comparisons difficult. However, the total award amount of $2.67 million over approximately 6.3 years suggests a moderate annual spend for remediation services. Further analysis would require comparing the fixed fee percentage and the estimated cost base against similar CPFF contracts for environmental remediation in California.

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 number of bidders is not specified, but this method generally promotes a competitive environment. A competitive process is expected to drive down costs and ensure the government receives the best value by selecting from multiple qualified offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for environmental remediation, preventing potential overspending on services.

Public Impact

The primary beneficiaries are likely the communities and ecosystems impacted by the environmental issue requiring remediation in California. The contract will deliver essential environmental remediation services, addressing contamination and restoring affected areas. The geographic impact is focused on California, specifically the location designated for remediation. The contract may have implications for the environmental consulting and remediation workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Long contract duration (over 6 years) increases the risk of scope creep or changing environmental regulations impacting project costs.
Reliance on a single delivery order under a larger contract vehicle might limit flexibility if the parent contract terms are unfavorable.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The Environmental Protection Agency (EPA) is a reputable agency with experience in managing complex environmental contracts.
The contract is for remediation services, addressing critical environmental needs.

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry. This contract falls under the remediation services sub-sector, which involves cleaning up contaminated sites. The market is driven by regulatory requirements, historical industrial activity, and increasing environmental awareness. Spending in this area is often project-specific and influenced by the scale and complexity of the contamination. Comparable spending benchmarks would depend on the specific type of contamination and the remediation techniques employed.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses detailed in this award notice. Consequently, the direct impact on the small business ecosystem from this particular contract may be limited, unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Environmental Protection Agency (EPA). As a delivery order under a larger contract, oversight may also be influenced by the terms of the parent contract. Accountability measures would include performance reviews, adherence to the Cost Plus Fixed Fee agreement, and compliance with environmental regulations. Transparency is generally facilitated through federal contract databases, though specific project details and oversight reports may vary in accessibility.

Related Government Programs

Superfund Program (CERCLA)
RCRA Corrective Actions
Brownfields Program
Environmental Services Contracts
Remediation and Decontamination Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases potential for scope changes and cost escalation.
Specific remediation site details and complexity are not fully detailed, impacting risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.7 million to HYDROGEOLOGIC, INC.. AMCO DES - RAF NEW TASK ORDER TOCORS: MICHAEL SCHULMAN PRIMARY INVOICE APPROVER: TIFFANIE PANG ALTERNATE INVOICE APPROVER: MARIA VELEZ AND LISA OUYANG

Who is the contractor on this award?

The obligated recipient is HYDROGEOLOGIC, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2023-09-28. End: 2030-09-29.

What is the typical fixed fee percentage for Cost Plus Fixed Fee environmental remediation contracts awarded by the EPA?

The typical fixed fee percentage for Cost Plus Fixed Fee (CPFF) environmental remediation contracts awarded by the EPA can vary significantly based on factors such as contract complexity, risk, duration, and the contractor's experience. Generally, fixed fees in CPFF contracts aim to compensate the contractor for their overhead and profit. For services like environmental remediation, which can involve substantial technical expertise and potential unforeseen challenges, fixed fees might range from 5% to 15% of the estimated cost. However, specific agency guidelines and the competitive nature of the bidding process heavily influence this. Without access to the specific terms of this contract or broader EPA contracting data, providing a precise benchmark is difficult. It's crucial to compare this contract's fee against similar EPA remediation projects to assess its reasonableness.

How does the duration of this contract compare to typical environmental remediation projects?

This contract has a duration of approximately 6.3 years (2558 days from 2023-09-28 to 2030-09-29). Environmental remediation projects can vary widely in duration, from short-term cleanups lasting months to long-term monitoring and restoration efforts spanning decades. For complex sites requiring extensive investigation, design, implementation, and post-remediation monitoring, a multi-year duration is not uncommon. The EPA often manages Superfund sites that require decades of work. Therefore, a duration of over six years for a remediation services contract is within the expected range, particularly if it involves significant site characterization, multiple phases of cleanup, or long-term stewardship responsibilities. The specific nature of the contamination and the chosen remediation technologies would be key determinants of the project's timeline.

What are the potential risks associated with a Cost Plus Fixed Fee contract for environmental remediation?

Cost Plus Fixed Fee (CPFF) contracts present several potential risks, especially in complex fields like environmental remediation. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise during the project. For environmental remediation, unexpected site conditions (e.g., discovering additional contamination, encountering difficult geological formations) are common and can significantly increase costs. The fixed fee, while intended to provide profit, might become disproportionately large if costs are much lower than anticipated, or conversely, insufficient if costs escalate dramatically without corresponding adjustments. Effective government oversight, robust cost tracking, and clear contract terms are essential to mitigate these risks.

What is the significance of this contract being a 'Delivery Order'?

This contract is a 'Delivery Order,' which means it is a task order issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) or similar type of multiple-award contract. The IDIQ contract establishes the general terms and conditions, and the delivery order specifies the actual work, quantities, and prices for a particular project or requirement. The significance is that the competition and contract vehicle selection likely occurred at the IDIQ level, potentially years prior. This specific delivery order represents a discrete task within that broader framework. For taxpayers, it means the initial competition for the overarching contract may have already occurred, and this order is a call against that established agreement. It can streamline the procurement process for subsequent needs but also means the terms were set earlier, potentially impacting current market price competitiveness for this specific task.

How does the NAICS code 562910 define remediation services?

The North American Industry Classification System (NAICS) code 562910 specifically covers 'Remediation Services.' This industry includes establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. This typically involves activities such as site characterization, chemical treatment, containment, disposal, and restoration of soil, groundwater, and surface water. Establishments in this industry may operate hazardous waste treatment facilities or provide remediation services without operating such facilities. This code encompasses a wide range of activities, from removing asbestos and lead from buildings to cleaning up industrial spills and managing contaminated land, aligning with the nature of the EPA's environmental protection mission.

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: 68HE0923R0017

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $4,854,273

Exercised Options: $4,239,039

Current Obligation: $2,668,425

Actual Outlays: $906,101

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0318D0006

IDV Type: IDC

Timeline