EPA awards $2.26M contract for CAMDBS operations and maintenance to Eastern Research Group Inc

Contract Overview

Contract Amount: $2,258,109 ($2.3M)

Contractor: Eastern Research Group Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2024-12-05

End Date: 2026-02-04

Contract Duration: 426 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT FOR CAMD BUSINESS SUITE (CAMDBS) OPERATIONS AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20460

State: District of Columbia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.3 million to EASTERN RESEARCH GROUP INC for work described as: SUPPORT FOR CAMD BUSINESS SUITE (CAMDBS) OPERATIONS AND MAINTENANCE Key points: 1. Contract focuses on essential business suite operations and maintenance, indicating a need for ongoing support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The use of a Time and Materials pricing structure may present cost control challenges if not closely managed. 4. The duration of the contract (426 days) suggests a medium-term need for these services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The primary service falls under Environmental Consulting Services, aligning with the EPA's mission.

Value Assessment

Rating: fair

The contract value of $2.26 million for approximately 14 months of support appears reasonable for specialized IT operations and maintenance services. Benchmarking against similar contracts for business suite support within federal agencies is necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

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 presence of a single award (no) suggests that Eastern Research Group Inc. was selected as the most advantageous offer. The level of competition is generally positive for price discovery, as it encourages bidders to offer competitive pricing to win the contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for services.

Public Impact

The Environmental Protection Agency (EPA) benefits from the continued operation and maintenance of its CAMDBS. Essential IT services supporting business operations are delivered. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract supports a specialized workforce in environmental consulting and IT operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely monitored.
Reliance on a single contractor for critical business suite operations could pose a risk if performance issues arise.
Limited transparency into the specific tasks performed under the T&M contract without detailed reporting.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract supports essential IT infrastructure for the EPA's mission.
Eastern Research Group Inc. likely possesses specialized expertise for this type of service.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, specifically focusing on IT operations and maintenance for a specialized business suite. The North American Industry Classification System (NAICS) code 541620 (Environmental Consulting Services) is assigned. The market for such services is competitive, with numerous firms offering IT support and specialized consulting to government agencies. The value of this contract is relatively modest within the broader federal IT services market.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. However, the prime contractor may engage small businesses as subcontractors, which would contribute to their ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Environmental Protection Agency. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract awards databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

EPA IT Support Services
Environmental Consulting Contracts
Business Suite Operations and Maintenance
Federal IT Services

Risk Flags

Potential for cost creep due to T&M pricing.
Reliance on a single vendor for critical IT operations.
Need for robust government oversight of T&M hours.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.3 million to EASTERN RESEARCH GROUP INC. SUPPORT FOR CAMD BUSINESS SUITE (CAMDBS) OPERATIONS AND MAINTENANCE

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 $2.3 million.

What is the period of performance?

Start: 2024-12-05. End: 2026-02-04.

What is the track record of Eastern Research Group Inc. with the EPA and similar federal contracts?

Eastern Research Group Inc. (ERG) has a history of performing work for the Environmental Protection Agency (EPA) and other federal entities. A review of federal procurement data indicates ERG has been awarded numerous contracts across various agencies, often related to environmental consulting, data management, and technical support. For instance, ERG has previously supported EPA initiatives requiring expertise in environmental science, policy analysis, and information technology. Their experience suggests a familiarity with government contracting processes and the specific needs of agencies like the EPA. However, a detailed analysis of past performance reviews and any past performance issues would be necessary to fully assess their track record for this specific CAMDBS contract.

How does the $2.26 million contract value compare to similar EPA IT support contracts?

The $2.26 million contract value for CAMDBS operations and maintenance over approximately 14 months is a moderate-sized award within the federal IT services landscape. To benchmark effectively, one would need to compare it against other EPA contracts for similar IT operations, maintenance, and business suite support, particularly those awarded through full and open competition. Factors such as the scope of services (e.g., help desk, system administration, software development, cybersecurity), the complexity of the systems supported, and the contract duration would influence pricing. Without access to a detailed comparison of these specific elements for other EPA contracts, it's difficult to definitively state whether this award represents exceptional value, is in line with market rates, or is potentially high.

What are the primary risks associated with a Time and Materials (T&M) contract for IT operations?

The primary risk associated with a Time and Materials (T&M) contract for IT operations, such as the CAMDBS support, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If the scope of work is not clearly defined, or if project management is weak, the contractor may expend more hours or resources than initially anticipated, leading to a higher final cost for the government. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and validate the necessity of all expenditures. Additionally, T&M contracts can sometimes disincentivize contractor efficiency, as more hours worked can translate to more revenue.

How effective is full and open competition in ensuring competitive pricing for IT services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure encourages contractors to offer their best pricing and technical solutions to win the contract. When multiple bidders vie for a contract, the government can leverage this competition to negotiate favorable terms and prices. While it doesn't guarantee the lowest possible price in all circumstances, it significantly increases the probability of achieving fair and reasonable pricing compared to sole-source or limited competition scenarios.

What are the implications of this contract being a Delivery Order?

This contract being a Delivery Order (DO) implies that it is a task order issued under an existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish a framework for services or supplies over a period, allowing the government to issue DOs or Task Orders (TOs) as specific needs arise. This approach provides flexibility for the agency to procure services incrementally. For this CAMDBS contract, it means that the underlying IDIQ contract likely had terms and conditions, including pricing structures and competition requirements, already established. The issuance of a DO signifies a specific need for the CAMDBS support services within the defined period and scope of the parent IDIQ contract.

What is the significance of the NAICS code 541620 (Environmental Consulting Services) for this IT support contract?

The assignment of NAICS code 541620, 'Environmental Consulting Services,' to a contract for 'SUPPORT FOR CAMD BUSINESS SUITE (CAMDBS) OPERATIONS AND MAINTENANCE' might seem unusual at first glance, as the primary service appears to be IT-related. However, this classification often occurs when the IT system or business suite directly supports environmental consulting activities or environmental data management. The CAMDBS likely plays a crucial role in enabling the EPA's environmental programs, data analysis, or regulatory functions. Therefore, the NAICS code reflects the ultimate purpose and user base of the system being supported, rather than solely the technical nature of the IT operations and maintenance itself. It indicates that the contractor is expected to have some understanding of the environmental context in which the software operates.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $2,288,415

Exercised Options: $2,288,415

Current Obligation: $2,258,109

Actual Outlays: $2,219,287

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HERH19D0028

IDV Type: IDC

Timeline