EPA Spends $33.5M on Remediation Services with CH2M HILL, Inc. via Delivery Orders
Contract Overview
Contract Amount: $33,529,095 ($33.5M)
Contractor: CH2M Hill, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2008-09-30
End Date: 2016-06-10
Contract Duration: 2,810 days
Daily Burn Rate: $11.9K/day
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: A&E SERVICES
Place of Performance
Location: BELLEVUE, KING County, WASHINGTON, 98004
Plain-Language Summary
Environmental Protection Agency obligated $33.5 million to CH2M HILL, INC. for work described as: A&E SERVICES Key points: 1. Significant contract value of $33.5 million awarded for environmental remediation. 2. CH2M HILL, Inc. is the sole contractor identified for these services. 3. Contract duration spans nearly 8 years, indicating long-term need. 4. The 'Remediation Services' NAICS code suggests a specialized and critical sector.
Value Assessment
Rating: fair
The total award amount of $33.5 million over an 8-year period suggests a substantial investment. Without specific benchmarks for similar remediation projects, assessing the value is challenging. The 'TIME AND MATERIALS' pricing structure can sometimes lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded as a sole-source delivery order, indicating a lack of competition for this specific award. This method limits price discovery and may not ensure the most cost-effective solution for the government.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Environmental cleanup efforts impact public health and ecosystems. Long-term contracts can signify ongoing environmental challenges requiring sustained attention. The use of sole-source awards warrants scrutiny to ensure fair pricing and prevent potential waste.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Time and Materials pricing can be prone to cost escalation.
- Long contract duration without clear competitive phases.
Positive Signals
- Addresses critical environmental remediation needs.
- Long-term engagement suggests consistent service delivery.
Sector Analysis
The Environmental Protection Agency (EPA) operates in a sector critical for public health and environmental safety. Spending on remediation services is essential but requires careful oversight to ensure cost-effectiveness, especially when awarded through non-competitive means.
Small Business Impact
The data does not indicate any participation or subcontracting by small businesses. This contract appears to be fully executed by a large business, potentially missing opportunities to support small business growth in the environmental services sector.
Oversight & Accountability
The sole-source nature of this delivery order raises questions about the EPA's procurement strategy and whether adequate oversight was in place to justify the lack of competition. Further review of the justification for sole-source award is recommended.
Related Government Programs
- Remediation Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with T&M pricing
- Limited small business participation
- Oversight concerns regarding sole-source justification
Tags
remediation-services, environmental-protection-agency, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $33.5 million to CH2M HILL, INC.. A&E SERVICES
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 $33.5 million.
What is the period of performance?
Start: 2008-09-30. End: 2016-06-10.
What was the justification for awarding this contract as a sole-source delivery order, and were alternative competitive options explored?
The justification for a sole-source award typically involves specific circumstances, such as the urgency of the need, the unique capabilities of the contractor, or the unavailability of other sources. Without the specific justification document, it's impossible to confirm if alternatives were explored. However, sole-source awards inherently bypass competitive processes, potentially leading to higher costs and reduced innovation.
How does the 'TIME AND MATERIALS' pricing structure compare to fixed-price or cost-plus-fixed-fee contracts for similar environmental remediation projects in terms of cost control?
Time and Materials (T&M) contracts offer flexibility but can be less predictable in terms of final cost compared to fixed-price contracts. Cost-plus contracts provide cost transparency but require robust oversight. For remediation services, T&M can be advantageous if the scope is highly uncertain, but it places a greater burden on the government to monitor labor hours and material costs to prevent overruns.
What was the overall effectiveness of the remediation services provided by CH2M HILL, INC. under this contract, and did it meet the EPA's environmental protection goals?
Assessing the effectiveness requires reviewing performance metrics, project outcomes, and EPA's final acceptance of the remediation work. Without access to performance reports or project completion data, it's difficult to determine if the services met the EPA's environmental protection goals. The long duration suggests ongoing work, but the ultimate success hinges on the achieved environmental improvements and compliance.
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: 777 108TH AVENUE, N.E., BELLEVUE, WA, 98004
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,529,095
Exercised Options: $33,529,095
Current Obligation: $33,529,095
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: EPS70401
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2016-06-10
Potential End Date: 2017-05-13 00:00:00
Last Modified: 2017-05-12
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