EPA awards $8.77M contract for Superfund site oversight, with remediation services in California

Contract Overview

Contract Amount: $8,772,804 ($8.8M)

Contractor: Tetra Tech, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-11-17

End Date: 2028-11-16

Contract Duration: 1,826 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RAF DES TASK ORDER FOR OVERSIGHT SUPPORT COOPER DRUM SUPERFUND SITE

Place of Performance

Location: SOUTH GATE, LOS ANGELES County, CALIFORNIA, 90280

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $8.8 million to TETRA TECH, INC. for work described as: RAF DES TASK ORDER FOR OVERSIGHT SUPPORT COOPER DRUM SUPERFUND SITE Key points: 1. Contract focuses on critical oversight and support for the Cooper Drum Superfund site. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. Performance is expected over five years, indicating a long-term commitment to site remediation. 6. The North American Industry Classification System (NAICS) code points to Remediation Services. 7. The contractor, Tetra Tech, Inc., has a significant presence in environmental services.

Value Assessment

Rating: good

The contract value of $8.77 million over five years for Superfund site oversight appears reasonable given the complexity of environmental remediation projects. Benchmarking against similar EPA oversight contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be effective when project scope is not fully defined, but requires diligent oversight to manage costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should drive fair pricing and encourage innovative solutions. This approach is generally favored for ensuring the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective services for environmental cleanup, ensuring funds are used efficiently for Superfund site remediation.

Public Impact

The primary beneficiaries are communities impacted by the Cooper Drum Superfund site, receiving enhanced oversight for cleanup activities. Services delivered include crucial oversight, technical support, and potentially project management for remediation efforts. The geographic impact is specific to the Cooper Drum Superfund site located in California. Workforce implications may include employment opportunities for environmental scientists, engineers, and project managers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require careful monitoring to ensure costs remain within reasonable bounds and the fixed fee is justified.
The long duration of the contract (5 years) necessitates ongoing performance evaluation to ensure continued effectiveness and contractor accountability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable pricing.
The contract is for a critical environmental remediation support function, addressing a Superfund site which is a high-priority EPA mission.
The contractor, Tetra Tech, Inc., is a well-established firm with extensive experience in environmental services, suggesting a lower risk of performance issues.

Sector Analysis

This contract falls within the Environmental Consulting and Remediation Services sector, a critical component of the broader environmental services industry. This sector is characterized by specialized technical expertise and regulatory compliance requirements. Spending in this area is driven by federal and state mandates for environmental protection and cleanup, such as the Superfund program. Comparable spending benchmarks would involve analyzing other EPA contracts for similar site oversight and remediation support services, as well as contracts awarded by other agencies for environmental management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Tetra Tech, Inc., may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem if such arrangements are pursued.

Oversight & Accountability

Oversight of this contract will be managed by the Environmental Protection Agency (EPA), likely through contracting officers and technical monitors. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through federal contract databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Superfund Program
Environmental Remediation Services
EPA Contract Vehicles
Hazardous Waste Management

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for rigorous government oversight to ensure contractor performance and cost control.
Complexity of Superfund site remediation can lead to unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $8.8 million to TETRA TECH, INC.. RAF DES TASK ORDER FOR OVERSIGHT SUPPORT COOPER DRUM SUPERFUND SITE

Who is the contractor on this award?

The obligated recipient is TETRA TECH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2023-11-17. End: 2028-11-16.

What is Tetra Tech, Inc.'s track record with the EPA on similar environmental oversight contracts?

Tetra Tech, Inc. is a large, well-established government contractor with extensive experience in environmental services, including significant work with the Environmental Protection Agency (EPA). They frequently secure contracts related to Superfund site remediation, environmental consulting, and engineering support. While specific performance details for past contracts are often proprietary or not readily aggregated, their consistent award of such contracts by the EPA suggests a generally positive track record and demonstrated capability. Analyzing contract performance reports (if publicly available) or past performance evaluations would provide a more granular assessment of their reliability and effectiveness in similar roles.

How does the $8.77 million value compare to similar EPA Superfund oversight contracts?

The $8.77 million award for five years of oversight support for the Cooper Drum Superfund site represents an average annual value of approximately $1.75 million. This figure needs to be benchmarked against similar EPA contracts for Superfund site oversight, which can vary significantly based on site complexity, the scope of work (e.g., feasibility studies, remedial design, construction oversight), and the specific phase of remediation. Contracts for complex, multi-year remediation projects can range from a few million to tens or even hundreds of millions of dollars. Without knowing the specific remediation activities at Cooper Drum, a direct comparison is difficult, but the value appears within a plausible range for dedicated oversight support over a five-year period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation oversight?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation oversight is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the 'fixed fee' component is predetermined. If costs escalate significantly beyond initial projections due to unforeseen site conditions, scope creep, or inefficient management, the contractor may be incentivized to cut corners on quality or oversight to protect their fee. Conversely, the government bears the risk of paying for costs that might have been avoided with a different contract type. Robust government oversight, clear definition of allowable costs, and diligent monitoring of progress are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for taxpayer money in environmental services contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in environmental services contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting a contractor with the best technical capabilities and cost-effectiveness. This process provides transparency and accountability. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals. For highly specialized or complex services, ensuring a sufficient number of qualified bidders can sometimes be a challenge.

What is the historical spending trend for EPA's Superfund site oversight contracts?

Historical spending on EPA's Superfund site oversight contracts has generally trended upwards over the years, reflecting the ongoing need to manage and remediate a large inventory of contaminated sites across the nation. Funding levels for the Superfund program fluctuate based on congressional appropriations, administration priorities, and the number and complexity of sites requiring attention. While specific data on 'oversight' contracts as a distinct category can be difficult to isolate from broader remediation and site management contracts, the overall budget allocated to Superfund activities, which includes oversight, has seen significant investment. Factors like increased regulatory stringency and the aging of industrial infrastructure contribute to sustained demand for these services.

What are the potential performance challenges for Tetra Tech, Inc. on this specific contract?

Potential performance challenges for Tetra Tech, Inc. on this contract could include managing the complexities inherent in Superfund site remediation, such as unexpected geological or chemical conditions that may arise during cleanup. Ensuring consistent and effective communication and coordination with the EPA and other stakeholders is also critical. Furthermore, maintaining a highly skilled and experienced project team over the five-year duration, especially in a competitive labor market for environmental professionals, could present a challenge. Adhering strictly to the Cost Plus Fixed Fee structure's reporting and cost justification requirements without administrative burden is another area requiring careful management.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0923R0018

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1 S WACKER DR STE 3700, CHICAGO, IL, 60606

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

Financial Breakdown

Contract Ceiling: $9,422,576

Exercised Options: $8,772,804

Current Obligation: $8,772,804

Actual Outlays: $683,883

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0318D0014

IDV Type: IDC

Timeline