EPA awards $14.6M contract for Iron King Mine cleanup, supporting remediation services in California

Contract Overview

Contract Amount: $14,590,425 ($14.6M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2025-09-29

End Date: 2028-09-27

Contract Duration: 1,094 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RAF DES NEW TASK ORDER FOR IRON KING MINE-HUMBOLDT SMELTER REMEDIAL DESIGN/REMEDIAL ACTION SUPPORT

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.6 million to CH2M HILL, INC for work described as: RAF DES NEW TASK ORDER FOR IRON KING MINE-HUMBOLDT SMELTER REMEDIAL DESIGN/REMEDIAL ACTION SUPPORT Key points: 1. Contract focuses on critical environmental remediation, addressing long-standing contamination. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of nearly three years allows for sustained project execution. 4. This award falls under the Remediation Services NAICS code, indicating specialized environmental work. 5. The contractor, CH2M HILL, INC, has a significant presence in environmental services. 6. The contract type is Cost Plus Fixed Fee, which requires careful oversight of costs.

Value Assessment

Rating: good

The contract value of $14.6 million for a nearly three-year remediation project appears reasonable given the scope of work. Benchmarking against similar large-scale Superfund site remediation contracts suggests that costs are within expected ranges. The Cost Plus Fixed Fee structure necessitates close monitoring of direct costs to ensure value for money, but the fixed fee component provides some cost certainty. Without specific per-unit cost data for remediation activities, a precise value-for-money assessment is challenging, but the overall award seems aligned with industry standards for complex environmental projects.

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 presence of four bidders (no=4) suggests a healthy level of competition for this significant environmental remediation project. A competitive bidding process generally leads to more favorable pricing for the government and taxpayers, as contractors vie to offer the most attractive technical and cost proposals. The EPA's approach here likely ensured they received a range of options and expertise.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through market forces. It ensures that the government is not locked into a single provider and can leverage the best available services at a competitive price, maximizing the return on public funds invested in environmental cleanup.

Public Impact

The primary beneficiaries are communities impacted by the Iron King Mine and Humboldt Smelter contamination, receiving crucial environmental cleanup services. The contract will deliver essential Remedial Design and Remedial Action support, crucial for mitigating environmental and health risks. The geographic impact is focused on Arizona (mine location) and potentially California (contractor's operational base or where services are managed). This project will likely involve a workforce of environmental engineers, scientists, and remediation specialists, contributing to the skilled labor market in the environmental sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage indirect costs and prevent cost overruns.
The long duration of the contract necessitates ongoing performance monitoring to ensure milestones are met.
Ensuring the contractor's adherence to strict environmental regulations and safety protocols is paramount.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
The contractor, CH2M HILL, INC, is a well-established firm with experience in large-scale environmental projects.
The contract aims to address significant environmental contamination, providing a clear public benefit.

Sector Analysis

The environmental remediation sector is a critical component of the broader environmental services industry, which is driven by regulatory compliance and the need to address legacy pollution. This contract falls within the remediation services sub-sector, focusing on the cleanup of contaminated sites, often associated with mining or industrial activities. The market for such services is substantial, influenced by Superfund program funding and other federal and state environmental initiatives. Comparable spending benchmarks for large-scale Superfund site cleanups can range from tens to hundreds of millions of dollars, depending on the complexity and scale of contamination.

Small Business Impact

This contract was not set aside for small businesses (sb=false) and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, CH2M HILL, INC, may engage small businesses as subcontractors for specialized services, which would indirectly benefit the small business sector.

Oversight & Accountability

Oversight for this contract will be managed by the Environmental Protection Agency (EPA), likely through designated contracting officers and technical representatives. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to scrutinize incurred costs against the fixed fee. Transparency will be maintained through regular reporting requirements from the contractor and potentially through public-facing EPA project updates. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Superfund Program
Hazardous Waste Site Cleanup
Environmental Remediation Contracts
Federal Remedial Action Contracts

Risk Flags

Cost Plus Fixed Fee contract requires robust oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for environmental hazards at former mining sites.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.6 million to CH2M HILL, INC. RAF DES NEW TASK ORDER FOR IRON KING MINE-HUMBOLDT SMELTER REMEDIAL DESIGN/REMEDIAL ACTION SUPPORT

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 $14.6 million.

What is the period of performance?

Start: 2025-09-29. End: 2028-09-27.

What is the historical spending pattern for remediation services at the Iron King Mine or similar sites managed by the EPA?

Historical spending data for the Iron King Mine specifically is not detailed in the provided information. However, the EPA's Superfund program, which this contract likely supports, has a long history of significant investment in site remediation. Annual spending on Superfund site cleanups can fluctuate based on the number of active sites, the phase of cleanup (investigation, design, construction, long-term monitoring), and available appropriations. Large-scale remediation projects, similar to what this contract entails, often span multiple years and can involve tens to hundreds of millions of dollars in total costs over their lifecycle. Analyzing EPA's historical budget allocations for remediation services and comparing them to the current award can provide context on the scale and priority of this particular project within the agency's broader environmental protection mission.

How does the contractor's (CH2M HILL, INC) track record with the EPA compare to other firms in this sector?

CH2M HILL, INC (now part of Jacobs) has a well-established and extensive track record working with the EPA and other federal agencies on large-scale environmental engineering and remediation projects. They have been a significant player in the environmental services market for decades, often securing prime contracts for complex Superfund sites and other hazardous waste management initiatives. Their experience typically includes remedial design, remedial action, site investigation, and long-term environmental monitoring. When compared to other major environmental consulting and engineering firms that compete for EPA contracts (such as AECOM, Tetra Tech, or HDR), CH2M HILL/Jacobs is generally considered a top-tier provider with a proven ability to manage technically challenging and high-value projects. Their past performance ratings and successful project completions with the EPA would be a key factor in the agency's decision-making process for awarding new contracts.

What are the key performance indicators (KPIs) likely to be used to measure the success of this remediation contract?

Key performance indicators (KPIs) for this remediation contract will likely focus on technical execution, schedule adherence, cost control, safety, and environmental compliance. Specific KPIs could include: 1. Completion of Remedial Design milestones on time and within budget. 2. Successful implementation of Remedial Action activities according to approved plans and specifications. 3. Achievement of cleanup goals and environmental standards as defined in the Record of Decision (ROD) for the site. 4. Maintenance of stringent safety protocols, measured by metrics like incident rates (e.g., Total Recordable Incident Rate - TRIR). 5. Compliance with all applicable environmental regulations and permit requirements. 6. Effective cost management, ensuring expenditures align with the Cost Plus Fixed Fee structure and project budget. 7. Timely and accurate reporting of project progress, environmental monitoring data, and financial status to the EPA.

What is the estimated total cost of the Iron King Mine cleanup project, considering this award is for design and support?

This $14.6 million award is specifically for the Remedial Design (RD) and Remedial Action (RA) support phase, which includes the planning and initial execution of cleanup activities. It is not the total estimated cost for the entire Iron King Mine cleanup project. Large-scale Superfund site cleanups often involve multiple phases and contracts over many years. The total cost for a project of this nature can easily run into tens or even hundreds of millions of dollars, depending on the extent of contamination, the chosen cleanup technologies, and the duration of post-cleanup monitoring. The EPA would have developed a comprehensive cost estimate for the entire project lifecycle, and this delivery order represents a significant, but not final, portion of that overall investment.

Are there any known environmental risks or challenges associated with the Iron King Mine site that this contract aims to address?

The Iron King Mine site is known to have significant environmental contamination issues, primarily related to historical mining operations. These typically include heavy metal contamination (such as lead, arsenic, and cadmium) in soil and potentially groundwater, as well as acid mine drainage. These contaminants pose risks to human health and the environment, including potential impacts on local ecosystems and water resources. This contract's objective, Remedial Design/Remedial Action support, is precisely to address these risks by developing and implementing effective cleanup strategies. The specific challenges will involve characterizing the full extent of contamination, selecting appropriate and cost-effective remediation technologies (e.g., soil stabilization, capping, excavation, water treatment), and managing the long-term environmental protection measures required for a former mining site.

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: 68HE0925R0028

Offers Received: 4

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: $15,980,262

Exercised Options: $14,590,425

Current Obligation: $14,590,425

Actual Outlays: $403,702

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