EPA awards $29.6M contract for wastewater access gap support, with Eastern Research Group Inc. as prime

Contract Overview

Contract Amount: $29,553,999 ($29.6M)

Contractor: Eastern Research Group Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2024-03-04

End Date: 2027-02-15

Contract Duration: 1,078 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CLOSING AMERICAS WASTEWATER ACCESS GAP COMMUNITY PROGRAM SUPPORT

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $29.6 million to EASTERN RESEARCH GROUP INC for work described as: CLOSING AMERICAS WASTEWATER ACCESS GAP COMMUNITY PROGRAM SUPPORT Key points: 1. Contract focuses on closing the wastewater access gap, addressing critical infrastructure needs. 2. Eastern Research Group Inc. secured the award, indicating a competitive selection process. 3. The contract duration of over 3 years suggests a significant, ongoing program requirement. 4. Environmental consulting services are central to this award, highlighting the need for specialized expertise. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. No small business set-aside was utilized, suggesting the primary award was not specifically targeted for small businesses.

Value Assessment

Rating: good

The contract value of $29.6 million over approximately three years for environmental consulting services appears reasonable given the scope of addressing a national wastewater access gap. Benchmarking against similar large-scale environmental consulting contracts would provide a more precise value-for-money assessment. The cost-plus-fixed-fee pricing structure allows for flexibility while aiming for cost control, but requires careful monitoring of actual costs incurred by the contractor.

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 vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is generally expected to yield competitive pricing and a wide range of technical solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best value by selecting from a broad pool of qualified contractors.

Public Impact

Communities lacking adequate wastewater access will benefit from improved infrastructure planning and support. The program aims to deliver essential environmental consulting services to address public health and environmental concerns. The geographic impact is national, focusing on closing the wastewater access gap across the United States. The contract supports a specialized workforce in environmental consulting and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not closely managed.
Dependence on a single contractor for a critical national program requires robust performance monitoring.
Scope creep could increase the overall cost if not managed effectively within the contract terms.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration indicates a sustained commitment to addressing a significant national issue.
Focus on environmental consulting aligns with EPA's mission to protect public health and the environment.

Sector Analysis

The environmental consulting services sector is a significant market supporting government agencies in addressing complex environmental challenges. This contract fits within the broader category of professional services, specifically those focused on environmental management and infrastructure. Comparable spending in this sector often involves large-scale studies, planning, and implementation support for environmental programs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. This suggests that the primary focus was on securing the best overall solution through open competition, rather than prioritizing small business participation in the prime contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will be provided by the Environmental Protection Agency (EPA), the awarding agency. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring will be crucial to ensure cost control and adherence to the contract's objectives. Transparency will be maintained through standard government reporting mechanisms and contract close-out procedures.

Related Government Programs

EPA Wastewater Infrastructure Programs
Community Development Block Grants
Rural Water and Wastewater Infrastructure Programs
Environmental Justice Initiatives

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Performance Monitoring Intensity Required

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $29.6 million to EASTERN RESEARCH GROUP INC. CLOSING AMERICAS WASTEWATER ACCESS GAP COMMUNITY PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is EASTERN RESEARCH GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2024-03-04. End: 2027-02-15.

What is the historical spending pattern of the Environmental Protection Agency on environmental consulting services related to wastewater infrastructure?

The Environmental Protection Agency (EPA) consistently allocates significant funding towards environmental consulting services, particularly for infrastructure projects like wastewater systems. Historical data indicates a trend of increasing investment in this area, driven by aging infrastructure, evolving environmental regulations, and a focus on addressing service gaps in underserved communities. While specific figures for wastewater-related consulting vary year-to-year based on program priorities and available funding, the agency's budget typically includes substantial line items for technical assistance, planning, design, and oversight of water and wastewater projects. This $29.6 million award for closing the wastewater access gap aligns with this historical pattern of substantial investment in specialized environmental consulting to achieve critical public health and environmental goals.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry standards for similar environmental consulting services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, long-term projects where the scope may evolve or be difficult to define precisely at the outset, such as addressing a national wastewater access gap. For environmental consulting services, CPFF allows the contractor to recover allowable costs plus a predetermined fixed fee representing profit. Industry standards often see CPFF used when innovation or flexibility is paramount. While it offers flexibility, it also places a greater burden on the contracting agency (EPA in this case) to meticulously track costs and ensure efficiency. Compared to fixed-price contracts, CPFF can sometimes lead to higher overall costs if not managed tightly, but it can also ensure that the contractor is not penalized for unforeseen complexities inherent in the project. The 'good' rating for value suggests that, in this instance, the EPA likely assessed the fee as reasonable for the anticipated effort and risk.

What are the key performance indicators (KPIs) that will be used to measure the success of Eastern Research Group Inc. under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided data, for a contract focused on 'CLOSING AMERICAS WASTEWATER ACCESS GAP COMMUNITY PROGRAM SUPPORT,' typical KPIs would likely revolve around the successful delivery of consulting services that lead to tangible improvements. These could include the number of communities receiving technical assistance, the development and approval of wastewater infrastructure plans, the successful application for subsequent funding by communities based on the support provided, adherence to project timelines, and the quality of deliverables (reports, analyses, recommendations). The EPA would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure Eastern Research Group Inc. meets objectives related to program implementation, community engagement, and ultimately, contributing to the reduction of the wastewater access gap.

What is Eastern Research Group Inc.'s track record with the Environmental Protection Agency and similar government contracts?

Eastern Research Group Inc. (ERG) has a significant track record of working with the Environmental Protection Agency (EPA) and other federal agencies on environmental consulting and research projects. Their website and public contract databases often highlight extensive experience in areas such as environmental policy analysis, data management, program support, and technical assistance, aligning well with the scope of this award. ERG has been involved in numerous EPA initiatives, often serving in supportive roles for complex environmental programs. Their history suggests a capacity to handle large-scale contracts and provide specialized expertise. The fact that they were awarded this significant contract through full and open competition implies they met the EPA's technical, past performance, and cost requirements, indicating a generally positive or at least acceptable track record with the agency.

Are there any potential risks associated with the 'Cost Plus Fixed Fee' contract type for this specific program?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for this program is the potential for cost overruns if the contractor's actual costs exceed initial estimates, even though the fee is fixed. While the EPA will monitor costs, there's an inherent risk that the contractor might not be as incentivized to control costs as they would be under a firm-fixed-price contract. Scope creep is another significant risk; if the requirements of 'closing the wastewater access gap' are not clearly defined and managed, the project's scope could expand, leading to increased costs and potentially exceeding the contract's value or duration. Furthermore, ensuring the 'fixed fee' remains fair and appropriate throughout the contract lifecycle requires diligent oversight from the EPA to prevent contractor inefficiencies from being masked by cost reimbursements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 110 HARTWELL AVE STE 1, LEXINGTON, MA, 02421

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

Financial Breakdown

Contract Ceiling: $51,036,568

Exercised Options: $51,036,568

Current Obligation: $29,553,999

Actual Outlays: $10,712,031

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,741,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERC23D0001

IDV Type: IDC

Timeline