EPA's $15.5M Remedial Action Contract with CH2M HILL, INC. for Texas Superfund Sites

Contract Overview

Contract Amount: $15,464,879 ($15.5M)

Contractor: CH2M Hill, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2007-09-20

End Date: 2011-01-15

Contract Duration: 1,213 days

Daily Burn Rate: $12.7K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: REMEDIAL ACTION

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75251

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $15.5 million to CH2M HILL, INC. for work described as: REMEDIAL ACTION Key points: 1. Contract awarded for remediation services, indicating a focus on environmental cleanup. 2. The contract duration of 1213 days suggests a significant, long-term environmental project. 3. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The 'TIME AND MATERIALS' pricing type can sometimes lead to cost overruns if not closely managed. 5. The contract was not set aside for small businesses, suggesting a focus on specialized capabilities. 6. The geographic focus on Texas points to specific environmental challenges within the state.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's scope and pricing structure. However, the total award amount of $15.5 million over approximately 3.3 years for remediation services in Texas suggests a substantial investment in environmental cleanup. The 'TIME AND MATERIALS' pricing model, while flexible, carries inherent risks for cost control compared to fixed-price contracts. Further analysis would require comparing the unit rates within this order to similar remediation projects and the overall cost-effectiveness of the cleanup outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this particular delivery order. Delivery orders under IDIQ contracts can vary widely in their competitive nature, ranging from full and open competition to sole-source awards based on specific task requirements. Without details on the bidding process, it's impossible to assess the extent of competition and its impact on price discovery for this specific task.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or sole-source awards may result in higher prices, while robust competition typically drives down costs and encourages more efficient service delivery.

Public Impact

The primary beneficiaries are communities impacted by environmental contamination at Superfund sites in Texas. The contract delivers essential remediation services to address hazardous waste and pollution. Geographic impact is concentrated in Texas, specifically at sites designated for Superfund cleanup. Workforce implications include employment for environmental engineers, technicians, and construction labor involved in cleanup operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to 'TIME AND MATERIALS' pricing.
Lack of transparency on competition level for this specific delivery order.
Environmental remediation projects can face unforeseen technical challenges impacting timelines and costs.

Positive Signals

Addresses critical environmental cleanup needs at Superfund sites.
Awarded to a known contractor (CH2M HILL, INC.) with experience in the field.
Focus on a specific geographic region (Texas) allows for targeted environmental action.

Sector Analysis

Environmental remediation services fall under the broader environmental services sector, which includes waste management, site cleanup, and consulting. This sector is crucial for addressing legacy pollution and ensuring compliance with environmental regulations. The market is characterized by specialized firms capable of handling complex technical and logistical challenges. Spending in this area is often driven by government mandates, particularly under programs like the EPA's Superfund, which addresses the nation's most contaminated sites.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope of work or the required specialized expertise was deemed beyond the capacity of small businesses, or that the procurement strategy prioritized larger, established firms. Consequently, there are likely limited direct subcontracting opportunities for small businesses on this specific award, though the prime contractor may engage them for specific tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA), which is responsible for managing Superfund sites and overseeing remediation efforts. Accountability measures would be tied to the delivery order's performance requirements, milestones, and the 'TIME AND MATERIALS' reporting. Transparency is generally facilitated through contract databases, but specific details on task order execution and cost tracking may be internal to the agency and contractor.

Related Government Programs

Superfund Program
Hazardous Waste Management
Environmental Remediation Services
EPA Contracts

Risk Flags

Potential for cost overruns due to T&M pricing.
Unclear competition level for this specific delivery order.
Long duration of remediation projects introduces schedule and technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $15.5 million to CH2M HILL, INC.. 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 $15.5 million.

What is the period of performance?

Start: 2007-09-20. End: 2011-01-15.

What is the track record of CH2M HILL, INC. in performing similar environmental remediation contracts for the EPA?

CH2M HILL, INC. (now Jacobs Engineering Group) has a significant history of performing large-scale environmental remediation and engineering services for government agencies, including the EPA. They have been involved in numerous Superfund site cleanups and other hazardous waste management projects across the United States. Their experience typically encompasses site assessment, feasibility studies, remedial design, construction, and long-term monitoring. While specific performance metrics for individual contracts are not publicly detailed, their sustained presence and awards in this sector suggest a generally competent track record. However, like any large contractor, they may have faced performance issues or disputes on specific projects, which would require deeper investigation into contract performance reports and litigation records.

How does the $15.5 million award compare to the average cost of similar EPA remediation contracts?

Comparing the $15.5 million award requires context regarding the scope, complexity, and duration of the remediation effort. EPA remediation contracts, particularly for Superfund sites, can vary dramatically in cost. Some involve extensive cleanup of large industrial sites requiring decades of work and hundreds of millions of dollars, while others might be smaller, localized cleanups. This $15.5 million award, spread over approximately 3.3 years, suggests a moderately sized project. To benchmark effectively, one would need to compare it against contracts for similar types of contaminants, site sizes, and remediation technologies in the Texas region or nationally. The 'TIME AND MATERIALS' pricing also adds a layer of variability, making direct cost-per-unit comparisons difficult without detailed task breakdowns.

What are the primary risks associated with the 'TIME AND MATERIALS' (T&M) contract type for this remediation project?

The primary risk associated with the 'TIME AND MATERIALS' (T&M) contract type for this remediation project is the potential for cost overruns and a lack of definitive cost certainty for the government. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or overhead. If project scope creeps, inefficiencies arise, or unforeseen technical challenges significantly increase labor hours or material needs, the total cost can escalate beyond initial estimates. Effective oversight, detailed progress tracking, and clear definition of work are crucial to mitigate these risks and ensure the contractor is performing efficiently and that costs are reasonable.

What does the 'delivery order' designation imply about the overall contract structure and competition?

The 'delivery order' designation indicates that this specific award is a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts establish a framework for services to be provided over a period, allowing the agency to issue multiple delivery or task orders as needed. The competition for the IDIQ contract itself might have been full and open, or limited. However, the competition for individual delivery orders can vary; some may be competed among all IDIQ holders, while others might be issued sole-source or to a limited number of contractors based on specific technical requirements or urgency. Without knowing the specifics of the parent IDIQ, the competitive landscape for this $15.5 million order remains unclear.

How has EPA spending on remediation services in Texas trended over the past decade?

Analyzing EPA spending trends on remediation services in Texas requires access to historical contract data beyond this single award. Generally, Superfund program funding and remediation spending can fluctuate based on congressional appropriations, the identification of new contaminated sites, and the progression of existing cleanup projects. Texas, being a large state with significant industrial activity, often has numerous sites requiring remediation. Historical data would likely show periods of increased investment corresponding to major cleanup initiatives or new site designations, and potentially periods of reduced spending due to budget constraints or project completions. A detailed analysis would involve examining EPA's historical contract databases and budget allocations specifically for Texas remediation efforts over the last 10-20 years.

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: CH2M Hill Companies, Ltd. (UEI: 027620574)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,464,879

Exercised Options: $15,464,879

Current Obligation: $15,464,879

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPW06021

IDV Type: IDC

Timeline