EPA's $44.5M Remediation Services Contract with Weston Solutions Inc. Faced Concerns Over Time and Materials Pricing

Contract Overview

Contract Amount: $44,469,285 ($44.5M)

Contractor: Weston Solutions Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2006-09-28

End Date: 2014-10-10

Contract Duration: 2,934 days

Daily Burn Rate: $15.2K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PERFORMANCE BASED SERVICES

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $44.5 million to WESTON SOLUTIONS INC for work described as: PERFORMANCE BASED SERVICES Key points: 1. Contract value of $44.5 million over 8 years. 2. Sole-source award to Weston Solutions Inc. for remediation services. 3. Significant duration (2934 days) raises questions about efficiency. 4. Time and Materials pricing structure can lead to cost overruns.

Value Assessment

Rating: questionable

The contract utilized a Time and Materials (T&M) pricing structure, which is often less cost-effective than fixed-price contracts for well-defined services. Without clear benchmarks or competitive bidding, assessing the value for money is difficult, especially given the long duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, limiting competitive pressure on pricing. The T&M structure further complicates price discovery, as costs are tied to labor hours and material usage rather than a pre-agreed scope and price.

Taxpayer Impact: The lack of competition and the T&M pricing model likely resulted in higher costs for taxpayers compared to a competitively bid, fixed-price contract.

Public Impact

Environmental cleanup services impacting public health and safety. Long-term contract duration suggests complex or ongoing environmental issues. Potential for cost overruns due to T&M pricing affects taxpayer burden.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Long contract duration
Lack of competition

Positive Signals

Performance-based services (though T&M can undermine this)
Awarded by EPA, a key environmental agency

Sector Analysis

Environmental remediation services are critical for addressing pollution and protecting public health. Spending in this sector can vary widely based on the scale and complexity of environmental challenges. This contract's value is moderate for a long-term remediation project.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting it was likely not a focus area.

Oversight & Accountability

The sole-source nature and T&M pricing warrant scrutiny. Oversight would be crucial to ensure efficient use of funds and prevent potential cost creep. The contract's long duration necessitates ongoing monitoring.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Sole-source award lacks competition.
Time and Materials pricing is prone to cost overruns.
Long contract duration (8 years) increases risk.
Lack of clear performance metrics in provided data.
Potential for inefficient service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $44.5 million to WESTON SOLUTIONS INC. PERFORMANCE BASED SERVICES

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 $44.5 million.

What is the period of performance?

Start: 2006-09-28. End: 2014-10-10.

What was the justification for the sole-source award, and were alternative competitive approaches considered?

Sole-source awards are typically granted when only one responsible source is available or when a compelling justification exists, such as unique capabilities or urgent needs. Without further documentation, it's unclear if alternatives were explored. This lack of competition raises concerns about potential overpayment and reduced innovation.

How effectively did the Time and Materials pricing control costs for remediation services over the contract's long duration?

Time and Materials contracts can be problematic for long-term projects as they incentivize longer durations and higher material usage rather than efficient completion. Effective oversight, including detailed cost tracking and justification for hours/materials, would be essential to mitigate risks of inflated costs and ensure value for taxpayer money.

What environmental outcomes were achieved, and did the contract deliver value commensurate with its $44.5 million cost?

Assessing the value requires comparing the achieved environmental remediation outcomes against the total expenditure. Without specific performance metrics and independent verification of results, it's difficult to definitively state if the $44.5 million delivered commensurate value. The T&M structure complicates this assessment.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,099,285

Exercised Options: $47,099,285

Current Obligation: $44,469,285

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPS50604

IDV Type: IDC

Timeline