EPA awards $12.4M contract to CHEMTEXT ENVIRONMENTAL LABORATORY for environmental testing services

Contract Overview

Contract Amount: $12,381,849 ($12.4M)

Contractor: Chemtex Environmental Laboratory, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2020-11-06

End Date: 2026-09-09

Contract Duration: 2,133 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHEMTEX ENVIRONMENTAL LABORATORY, INC. TASK ORDER INITIATION

Place of Performance

Location: PORT ARTHUR, JEFFERSON County, TEXAS, 77642

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $12.4 million to CHEMTEX ENVIRONMENTAL LABORATORY, INC. for work described as: CHEMTEX ENVIRONMENTAL LABORATORY, INC. TASK ORDER INITIATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 5 years indicates a long-term need for these services. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. The task order is for environmental testing laboratories and services, a critical function for EPA. 5. The awardee, CHEMTEXT ENVIRONMENTAL LABORATORY, INC., is positioned to deliver specialized expertise. 6. The contract value is substantial, reflecting the scope and importance of environmental monitoring.

Value Assessment

Rating: good

The contract value of $12.4 million over approximately five years for environmental testing services appears reasonable given the scope. Benchmarking against similar contracts for specialized laboratory services is challenging without more detailed service descriptions. However, the firm-fixed-price structure suggests an effort to ensure cost certainty for the agency. The duration implies a consistent need for these services, which can be more cost-effective than ad-hoc arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'exclusion of sources' part is unusual and warrants further investigation, the 'full and open competition' aspect suggests that multiple bidders were likely considered. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive landscape and its impact on price discovery.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The Environmental Protection Agency (EPA) benefits from reliable environmental testing services. The contract supports the delivery of critical environmental monitoring and analysis. Services are likely to have a broad geographic impact, supporting EPA's national mission. The contract supports specialized jobs within the environmental testing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The phrase 'after exclusion of sources' in the competition type is unclear and could indicate a non-standard procurement process that may have limited competition.
Lack of detailed service descriptions makes it difficult to assess the true value for money.
The long contract duration could lead to complacency if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
Firm-fixed-price contract type helps manage cost risks for the government.
The contract addresses a core mission requirement for the Environmental Protection Agency.

Sector Analysis

The environmental testing services sector is a critical component of the broader environmental services industry, which is essential for regulatory compliance and public health. This contract falls under the 'Testing Laboratories and Services' North American Industry Classification System (NAICS) code 541380. The market for such services is driven by government regulations, industrial activity, and environmental concerns. Spending in this sector can vary significantly based on agency priorities and the complexity of environmental challenges.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of environmental testing and the contract value, it is possible that larger firms or joint ventures may be involved. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Environmental Protection Agency's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of cost control. Transparency would be enhanced by public access to contract performance reports and any associated Inspector General audits, if applicable. The agency's internal procurement policies and procedures would govern accountability.

Related Government Programs

Environmental Consulting Services
Laboratory Analysis Contracts
Environmental Monitoring Programs
EPA Research and Development Contracts

Risk Flags

Unclear competition exclusion criteria
Long contract duration may increase risk if not managed proactively

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $12.4 million to CHEMTEX ENVIRONMENTAL LABORATORY, INC.. CHEMTEX ENVIRONMENTAL LABORATORY, INC. TASK ORDER INITIATION

Who is the contractor on this award?

The obligated recipient is CHEMTEX ENVIRONMENTAL LABORATORY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2020-11-06. End: 2026-09-09.

What is the specific nature of the environmental testing services provided under this contract?

The contract is categorized under NAICS code 541380, which covers 'Testing Laboratories and Services.' This generally includes services such as chemical, biological, and environmental testing. For this specific contract with CHEMTEXT ENVIRONMENTAL LABORATORY, INC., the services likely encompass a range of analytical testing to support the Environmental Protection Agency's (EPA) mission. This could include testing for pollutants in air, water, or soil; analyzing hazardous materials; or conducting environmental impact assessments. The exact scope would be detailed in the task order's statement of work, which is not provided here but is crucial for a complete understanding of the services delivered.

How does the $12.4 million contract value compare to similar environmental testing contracts awarded by the EPA or other federal agencies?

Benchmarking the $12.4 million contract value requires a detailed comparison of the scope of work, duration, and specific services rendered. Without access to the detailed statement of work for this contract and comparable contracts, a precise comparison is difficult. However, for a contract spanning over five years (November 2020 to September 2026), $12.4 million represents an average annual value of approximately $2.48 million. This figure seems within a reasonable range for specialized laboratory services supporting a federal agency's extensive environmental monitoring and compliance activities. Larger, more complex environmental remediation or large-scale testing programs could easily exceed this amount, while smaller, more focused testing tasks would be less.

What are the potential risks associated with a firm-fixed-price contract of this duration?

Firm-fixed-price (FFP) contracts are designed to shift cost risk to the contractor, providing price certainty for the government. However, for a contract spanning over five years, potential risks include contractor underestimation of costs, leading to potential quality compromises or contractor financial distress if costs escalate unexpectedly. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. Another risk is scope creep; if the requirements evolve significantly, managing changes under an FFP contract can become contentious. Effective oversight and clear contract modifications are essential to mitigate these risks and ensure the government receives value throughout the contract's life.

What does the competition type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

The competition type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory and requires clarification. 'Full and open competition' typically means all responsible sources are permitted to submit offers. The addition of 'after exclusion of sources' suggests that certain potential sources were deliberately excluded from the competition, perhaps due to specific requirements, past performance issues, or other pre-determined criteria. While the intent might have been to ensure a highly qualified pool of bidders, the exclusion could potentially limit the breadth of competition and, consequently, the price discovery process. Understanding the rationale behind the exclusion is key to assessing its impact on fairness and value for taxpayers.

What is the track record of CHEMTEXT ENVIRONMENTAL LABORATORY, INC. with federal contracts?

Information on CHEMTEXT ENVIRONMENTAL LABORATORY, INC.'s specific track record with federal contracts, beyond this award, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on other government contracts, including their success in meeting deadlines, quality standards, and budget constraints. Examining contract close-out data, any past disputes, or awards for exceptional performance would offer further insights. Without this historical data, it's difficult to definitively assess their reliability and past value delivery to the government.

How does this contract align with the Environmental Protection Agency's broader environmental protection mission?

This contract directly aligns with the EPA's core mission of protecting human health and the environment. Environmental testing laboratories play a crucial role in monitoring pollution levels, assessing the impact of contaminants, and ensuring compliance with environmental regulations. The services provided by CHEMTEXT ENVIRONMENTAL LABORATORY, INC. likely support various EPA programs, such as those focused on clean air, clean water, hazardous waste management, and chemical safety. By ensuring accurate and timely environmental data, this contract enables the EPA to make informed decisions, enforce regulations effectively, and safeguard public and environmental well-being.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3082 25TH ST, PORT ARTHUR, TX, 77642

Business Categories: Category Business, Community Development Corporation, Corporate Entity Not Tax Exempt, Minority Owned Business, Nonprofit Organization, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,854,648

Exercised Options: $12,854,648

Current Obligation: $12,381,849

Actual Outlays: $7,702,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH20D0012

IDV Type: IDC

Timeline