EPA Awards $14M Remedial Action Contract to CH2M HILL for Sulphur Bank Mercury Mine OU1

Contract Overview

Contract Amount: $14,011,303 ($14.0M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2024-09-30

End Date: 2029-09-26

Contract Duration: 1,822 days

Daily Burn Rate: $7.7K/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 REMEDIAL DESIGN AND REMEDIAL ACTION SUPPORT SULPHUR BANK MERCURY MINE OU1

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94522

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.0 million to CH2M HILL, INC for work described as: RAF DES TASK ORDER FOR REMEDIAL DESIGN AND REMEDIAL ACTION SUPPORT SULPHUR BANK MERCURY MINE OU1 Key points: 1. Contract awarded to CH2M HILL, INC for remedial design and action support. 2. The contract is for services at the Sulphur Bank Mercury Mine OU1. 3. The total value of the award is $14,011,302.51. 4. The contract duration is 1822 days, ending in September 2029. 5. The agency is the Environmental Protection Agency (EPA).

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type. Without specific cost breakdowns or benchmarks for similar remediation projects, assessing the pricing efficiency is challenging. The fixed fee component provides some cost control, but the cost-reimbursement nature requires careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government compared to limited or sole-source awards.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential environmental remediation services.

Public Impact

Addresses environmental cleanup at a Superfund site, protecting public health and ecosystems. Supports the remediation of mercury contamination, a significant environmental hazard. The long-term nature of the contract ensures sustained effort in site cleanup. Involves complex environmental engineering and management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Long contract duration requires ongoing monitoring for performance and cost adherence.
Specific remediation outcomes and their effectiveness are not detailed in the award notice.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Addresses a critical environmental remediation need at a Superfund site.
Contract duration aligns with the likely complexity of the remediation task.

Sector Analysis

This contract falls within the Environmental Remediation sector, specifically focusing on hazardous waste cleanup. Spending in this sector is driven by regulatory requirements and the need to address legacy pollution sites. Benchmarks for similar large-scale remediation projects vary significantly based on site complexity and scope.

Small Business Impact

The award notice does not indicate any specific set-asides for small businesses. Given the nature and scale of the contract, it is likely that larger, specialized firms like CH2M HILL, INC are best positioned to perform the work. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Environmental Protection Agency is responsible for overseeing this contract. Given the long duration and cost-reimbursement nature, robust oversight mechanisms, including regular performance reviews and cost audits, will be crucial to ensure accountability and prevent waste.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
Long contract duration increases risk of scope creep or changing environmental regulations.
Lack of detailed performance metrics in the award notice hinders immediate assessment of effectiveness.
Complexity of mercury remediation requires specialized expertise and careful management.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.0 million to CH2M HILL, INC. RAF DES TASK ORDER FOR REMEDIAL DESIGN AND REMEDIAL ACTION SUPPORT SULPHUR BANK MERCURY MINE OU1

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 $14.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-09-26.

What specific remediation technologies will be employed, and what are the projected cost efficiencies of these methods compared to alternatives?

The award notice does not specify the remediation technologies. A detailed review of the contract's statement of work and subsequent performance reports would be necessary to identify the methods used. Cost efficiencies would depend on the chosen technologies' effectiveness, implementation costs, and long-term maintenance requirements, which are not publicly available at this stage.

What are the key performance indicators (KPIs) for this contract, and how will the EPA measure the success of the remedial action and design?

Key performance indicators are not detailed in the award notice. Typically, for remediation contracts, KPIs would include adherence to schedule, budget performance, environmental compliance, achievement of cleanup standards, and safety metrics. The EPA's oversight would involve regular progress reports, site inspections, and potentially third-party environmental assessments to gauge success.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar environmental remediation projects?

The specific fixed fee amount is not disclosed in the award notice, making a direct comparison difficult. Cost Plus Fixed Fee contracts aim to provide cost certainty by adding a predetermined fee to the estimated cost. Industry standards for fixed fees vary widely based on project complexity, risk, and the contractor's overhead structure. A detailed analysis of the contract's fee structure relative to similar projects is needed.

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: 68HE0924R0022

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: $25,133,679

Exercised Options: $16,495,722

Current Obligation: $14,011,303

Actual Outlays: $5,159,714

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $1,853,615

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