EPA Awards $20M for Tar Creek Superfund Site Cleanup Under ARRA

Contract Overview

Contract Amount: $20,280,859 ($20.3M)

Contractor: CH2M Hill, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2009-09-25

End Date: 2011-03-31

Contract Duration: 552 days

Daily Burn Rate: $36.7K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TAS::68 8195::TAS RECOVERY - THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE $20,000,000.00 FOR TAR CREEK OU 4 REMEDIAL ACTION. THE PERIOD OF PERFORMANCE IS 9-28-09 TO 3-31-11. THIS WORK IS FOR REDEMIAL SITE CLEAN UP OF SOURCE MATERIAL FROM THE TAR CREEK SUPERFUND SITE. ARRA::YES::ARRA

Place of Performance

Location: PICHER, OTTAWA County, OKLAHOMA, 74360

State: Oklahoma Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $20.3 million to CH2M HILL, INC. for work described as: TAS::68 8195::TAS RECOVERY - THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE $20,000,000.00 FOR TAR CREEK OU 4 REMEDIAL ACTION. THE PERIOD OF PERFORMANCE IS 9-28-09 TO 3-31-11. THIS WORK IS FOR REDEMIAL SITE CLEAN UP OF SOURCE MATERIAL FROM THE TAR CREEK SUPERFUND SITE. ARRA::Y… Key points: 1. Significant federal investment in environmental remediation under the American Recovery and Reinvestment Act (ARRA). 2. Focus on a specific Superfund site (Tar Creek OU 4) indicates targeted environmental cleanup efforts. 3. The contract type (Time and Materials) can pose cost control challenges if not closely managed. 4. The sector is environmental remediation, a critical area for public health and ecological preservation.

Value Assessment

Rating: fair

The $20 million award for remedial action at the Tar Creek Superfund site appears to be a substantial investment. However, without specific cost breakdowns or historical data for similar Superfund site cleanups, a precise value assessment is difficult. The Time and Materials contract type warrants close monitoring to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified, which makes it difficult to assess the price discovery process. If this was a sole-source or limited competition award, it could potentially lead to higher costs for taxpayers compared to a full and open competition.

Taxpayer Impact: The use of ARRA funds suggests a goal of economic stimulus alongside environmental improvement. The ultimate taxpayer impact depends on the efficiency and effectiveness of the cleanup and the long-term environmental benefits achieved.

Public Impact

Direct impact on the local community near the Tar Creek Superfund site through environmental cleanup and potential job creation. Addresses long-standing environmental contamination issues, improving public health and ecological conditions. Demonstrates federal commitment to addressing legacy pollution sites under ARRA initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed effectively.
Lack of specified competition method raises questions about price discovery and potential value.
Long-term effectiveness of the remedial action needs ongoing monitoring.

Positive Signals

ARRA funding signifies a commitment to critical infrastructure and environmental projects.
Addresses a known Superfund site, indicating progress on environmental cleanup.
The contract duration allows for comprehensive remedial action.

Sector Analysis

The environmental remediation sector involves complex cleanup operations for contaminated sites. Spending benchmarks vary widely based on the scale and type of contamination. This $20 million award for a Superfund site cleanup is significant and aligns with the EPA's mission to address hazardous waste.

Small Business Impact

Analysis of small business participation is not possible with the provided data. Typically, large environmental remediation contracts may involve subcontracting opportunities for small businesses, but this information is not detailed here.

Oversight & Accountability

Oversight of this ARRA-funded contract would fall under the Environmental Protection Agency (EPA). Given the Time and Materials contract type, robust oversight is crucial to manage costs and ensure the work is performed efficiently and effectively.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract.
Uncertainty regarding the level of competition for this award.
Need for robust oversight to ensure effective use of ARRA funds.
Long-term effectiveness of cleanup requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $20.3 million to CH2M HILL, INC.. TAS::68 8195::TAS RECOVERY - THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE $20,000,000.00 FOR TAR CREEK OU 4 REMEDIAL ACTION. THE PERIOD OF PERFORMANCE IS 9-28-09 TO 3-31-11. THIS WORK IS FOR REDEMIAL SITE CLEAN UP OF SOURCE MATERIAL FROM THE TAR CREEK SUPERFUND SITE. ARRA::YES::ARRA

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 $20.3 million.

What is the period of performance?

Start: 2009-09-25. End: 2011-03-31.

What was the specific justification for using a Time and Materials contract for this remedial action, and what controls were in place to manage costs?

The justification for a Time and Materials (T&M) contract often relates to the uncertainty of the scope of work, particularly in complex environmental remediation projects where the exact nature and extent of contamination may not be fully known upfront. To manage costs, agencies typically implement strict oversight, require detailed reporting of labor hours and materials, establish cost ceilings, and conduct regular reviews to ensure the work remains within budget and is progressing as planned.

How does the $20 million cost compare to similar remedial actions at other Superfund sites, and what factors might explain any significant differences?

Comparing the $20 million cost requires data from similar Superfund site cleanups. Factors influencing cost include the size of the site, the type and concentration of contaminants, the complexity of the remediation technology required, site accessibility, and the duration of the cleanup. A site with extensive contamination or requiring advanced treatment methods would naturally incur higher costs than a smaller or less complex site.

What are the expected long-term environmental and public health benefits resulting from this remedial action, and how will their achievement be measured?

The expected long-term benefits include the reduction or elimination of hazardous substances in the environment, thereby mitigating risks to human health and ecosystems. Measurement of achievement typically involves post-remediation environmental monitoring to confirm contaminant levels are below regulatory standards, assessing the restoration of ecological functions, and evaluating the reduction in exposure pathways for the local population. The EPA sets specific cleanup goals and monitoring protocols for each Superfund site.

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: $20,280,859

Exercised Options: $20,280,859

Current Obligation: $20,280,859

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPW06021

IDV Type: IDC

Timeline