EPA Spends $13.6M on RAC American Creosote Remedial Action Contract with CH2M HILL, Inc

Contract Overview

Contract Amount: $13,567,605 ($13.6M)

Contractor: CH2M Hill, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2006-03-01

End Date: 2020-11-30

Contract Duration: 5,388 days

Daily Burn Rate: $2.5K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RAC AMERICAN CREOSOTE REMEDIAL ACTION

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75251

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $13.6 million to CH2M HILL, INC. for work described as: RAC AMERICAN CREOSOTE REMEDIAL ACTION Key points: 1. The contract awarded to CH2M HILL, INC. for remediation services totaled $13.6 million. 2. The primary agency involved was the Environmental Protection Agency (EPA). 3. The contract spanned over 14 years, from March 2006 to November 2020. 4. This was a Time and Materials contract, which can pose cost control challenges. 5. The NAICS code 562910 indicates a focus on Remediation Services.

Value Assessment

Rating: questionable

The contract's duration of over 14 years and Time and Materials pricing structure raise concerns about cost efficiency and potential for overruns. Benchmarking against similar long-term remediation projects is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified, but long-term, complex remediation projects often involve limited competition or sole-source awards due to specialized expertise required. This lack of transparency can hinder price discovery.

Taxpayer Impact: The extended duration and Time and Materials pricing suggest a significant taxpayer investment with potential for cost escalation over the project's lifecycle.

Public Impact

Environmental cleanup efforts at the RAC American Creosote site were funded by taxpayers. The long contract period indicates a complex and potentially lengthy remediation process. The EPA's role highlights federal involvement in environmental protection and hazardous waste management. The specific location in Texas (TX) points to a regional environmental concern.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (14+ years)
Time and Materials pricing
Lack of specified competition method

Positive Signals

Remediation of environmental site
Involvement of EPA

Sector Analysis

Environmental remediation services fall under the broader professional, scientific, and technical services sector. Spending benchmarks for such long-term, site-specific projects are highly variable, depending on the scale and complexity of the contamination.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. The nature of large-scale remediation projects often favors larger, specialized firms.

Oversight & Accountability

The lengthy duration and Time and Materials contract type suggest a need for robust oversight by the EPA to ensure cost control, adherence to scope, and effective remediation outcomes. Tracking performance and expenditures over such an extended period is critical.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Extended contract duration
Time and Materials pricing structure
Potential for cost overruns
Lack of specified competition details
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $13.6 million to CH2M HILL, INC.. RAC AMERICAN CREOSOTE REMEDIAL ACTION

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 $13.6 million.

What is the period of performance?

Start: 2006-03-01. End: 2020-11-30.

What was the total cost per unit of remediation achieved under this contract?

The provided data does not include specific metrics for the amount or type of environmental remediation completed, making it impossible to calculate a cost per unit. The contract was Time and Materials, focusing on labor and materials used rather than a fixed output.

What were the primary risks associated with this Time and Materials contract?

The primary risks associated with a Time and Materials contract of this duration include potential cost overruns due to undefined scope, contractor inefficiency, and escalating labor/material costs over 14 years. Lack of a fixed price makes budget predictability challenging for the agency.

How effective was the remediation effort in addressing the environmental contamination?

The effectiveness of the remediation effort is not detailed in the provided data. While the contract was awarded for remediation services, information regarding the environmental outcomes, cleanup levels achieved, or long-term site stability is missing.

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

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: CH2M HILL, INC., ENGLEWOOD, CO, 80112

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,567,605

Exercised Options: $13,567,605

Current Obligation: $13,567,605

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPW06021

IDV Type: IDC

Timeline