EPA's $24.3M Remediation Services Contract with Weston Solutions Inc. ran for nearly a decade

Contract Overview

Contract Amount: $24,322,406 ($24.3M)

Contractor: Weston Solutions Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2006-07-20

End Date: 2017-03-22

Contract Duration: 3,898 days

Daily Burn Rate: $6.2K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RESPONSE ACTIVITIES

Place of Performance

Location: WEST CHESTER, CHESTER County, PENNSYLVANIA, 19380

State: Pennsylvania Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $24.3 million to WESTON SOLUTIONS INC for work described as: RESPONSE ACTIVITIES Key points: 1. The contract's long duration suggests a sustained need for environmental remediation services. 2. The use of Time and Materials pricing may lead to cost overruns if not carefully managed. 3. With only two bids received, competition may have been limited, potentially impacting price. 4. The contract was awarded to a single vendor, indicating potential for a sole-source or limited competition scenario. 5. The remediation services sector is critical for environmental protection and public health. 6. Performance context is crucial to understand if the services met environmental cleanup goals.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task orders and performance metrics. The duration of nearly 10 years suggests significant work was performed. However, the Time and Materials pricing structure, while flexible, can be prone to higher costs compared to fixed-price contracts if not managed diligently. Comparing it to similar large-scale, long-term remediation contracts would provide better context on its overall value-for-money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The data indicates two bids were received for this contract, suggesting a limited competition environment. While not a sole-source award, the low number of bidders could imply barriers to entry for other firms or a specialized market. Limited competition can sometimes result in less favorable pricing for the government compared to a more robust bidding process.

Taxpayer Impact: A limited number of bidders means taxpayers may not have benefited from the most competitive pricing achievable through broader market engagement.

Public Impact

The primary beneficiaries are communities impacted by environmental contamination requiring remediation. Services delivered likely include site assessment, cleanup, and monitoring of hazardous substances. Geographic impact is concentrated in Pennsylvania, where the contract was awarded. The contract supports jobs in the environmental services sector, including scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure over a long contract duration.
Limited competition may have resulted in higher-than-market prices.
Ensuring effective oversight and performance management over a decade-long contract is a challenge.

Positive Signals

Successful completion of remediation activities, contributing to environmental protection.
Sustained engagement with a contractor capable of handling complex environmental tasks.
Long-term contract provides stability for both the agency and the contractor.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under NAICS code 562910 (Remediation Services). The market includes companies specializing in hazardous waste management, site cleanup, and environmental consulting. Spending in this sector is driven by regulatory requirements, historical industrial activity, and ongoing environmental concerns. Comparable spending benchmarks would involve looking at other large-scale EPA or DoD environmental cleanup contracts.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the nature and duration of large-scale remediation projects, prime contractors often have the capacity to handle significant portions of the work themselves. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the Environmental Protection Agency (EPA). Mechanisms likely included regular progress reports, site inspections, and performance reviews. Accountability would be tied to meeting contract deliverables and environmental standards. Transparency would depend on EPA's public reporting practices for contract performance and expenditures.

Related Government Programs

Superfund Program
Resource Conservation and Recovery Act (RCRA) cleanups
Brownfields Program
Department of Defense Environmental Remediation

Risk Flags

Potential for cost overruns due to T&M pricing
Limited competition may impact price competitiveness
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $24.3 million to WESTON SOLUTIONS INC. RESPONSE ACTIVITIES

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2006-07-20. End: 2017-03-22.

What specific remediation activities were performed under this contract?

The contract, awarded under NAICS code 562910 for Remediation Services, likely encompassed a range of activities critical to addressing environmental contamination. These could include site investigation and characterization to identify the nature and extent of pollutants, feasibility studies to determine the most effective cleanup methods, and the actual implementation of remediation technologies. This might involve excavation and disposal of contaminated soil, in-situ treatment of groundwater, containment of hazardous materials, and long-term monitoring to ensure the effectiveness of the cleanup. The specific tasks would have been detailed in individual delivery orders issued against the base contract, reflecting the diverse and evolving needs of environmental cleanup projects managed by the EPA.

How did the Time and Materials (T&M) pricing structure impact the final cost compared to a fixed-price contract?

The Time and Materials (T&M) pricing structure allows the government to pay the contractor for the actual labor hours and material costs incurred, plus a fixed fee or overhead. While offering flexibility for projects with uncertain scopes, T&M contracts carry a higher risk of cost overruns if not managed meticulously. Unlike fixed-price contracts, where the contractor assumes more risk for cost overruns, T&M shifts much of that risk to the government. For a nearly decade-long contract like this, the cumulative costs could potentially exceed what a well-defined fixed-price contract might have yielded, especially if labor hours or material costs escalated unexpectedly over the contract's lifespan. Effective oversight and strong contract management are paramount to controlling costs under T&M agreements.

What is the typical duration for large-scale environmental remediation contracts awarded by the EPA?

Large-scale environmental remediation contracts, particularly those involving complex sites like those managed under the Superfund program, often have extended durations due to the intricate nature of site assessment, planning, and cleanup activities. Durations of several years are common, and contracts can sometimes span a decade or more, especially if they involve long-term monitoring or phased remediation efforts. The nearly 10-year period for this Weston Solutions contract is not unusual for significant environmental projects. Factors influencing duration include the complexity and volume of contamination, the chosen remediation technologies, regulatory requirements, and the need for ongoing environmental monitoring to ensure long-term site safety and compliance.

What are the potential risks associated with a contract having only two bidders?

A contract receiving only two bids suggests a potentially limited competitive landscape. This can pose several risks to the government and taxpayers. Firstly, it may indicate that the pool of qualified contractors is small, or that barriers to entry (e.g., specialized equipment, experience requirements, bonding capacity) are high. This limited competition can reduce the government's leverage in negotiating favorable pricing, potentially leading to higher costs than if more bidders had participated. Secondly, it might limit the government's options if the performance of one of the bidders is unsatisfactory. While two bidders still represent some level of competition, it is significantly less robust than a scenario with five or more, which typically drives more aggressive pricing and innovation.

How does the NAICS code 562910 (Remediation Services) define the scope of work for contractors?

NAICS code 562910, 'Remediation Services,' broadly covers establishments primarily engaged in cleaning up contaminated sites to prevent further harm to the environment and public health. This includes activities such as site remediation, hazardous waste site cleanup, and environmental remediation consulting. Contractors under this code are expected to possess expertise in identifying contaminants, assessing risks, developing remediation plans, and implementing cleanup technologies. The scope can range from soil and groundwater remediation to asbestos abatement and demolition of contaminated structures. It is a critical sector supporting regulatory compliance and environmental restoration efforts across various industries and government agencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Contractor Details

Parent Company: Weston Solutions Holdings, Inc.

Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,322,406

Exercised Options: $24,322,406

Current Obligation: $24,322,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPW06042

IDV Type: IDC

Timeline