EPA awards $18.3M for environmental remediation services to CH2M HILL, INC

Contract Overview

Contract Amount: $18,283,333 ($18.3M)

Contractor: CH2M Hill, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2009-06-23

End Date: 2011-03-31

Contract Duration: 646 days

Daily Burn Rate: $28.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: A&E ENVIRONMENTAL SERVICES.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $18.3 million to CH2M HILL, INC for work described as: A&E ENVIRONMENTAL SERVICES. Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. Competition dynamics for this contract are not detailed, impacting price discovery assessment. 3. Contract duration of 646 days suggests a substantial scope of work. 4. The 'Remediation Services' NAICS code indicates a focus on environmental restoration. 5. Delivery order award type implies it's part of a larger contract vehicle. 6. The 'Time and Materials' pricing structure can pose cost control challenges.

Value Assessment

Rating: fair

The contract value of $18.3 million for environmental remediation services is substantial. Without comparable contract data or detailed pricing breakdowns, a precise value-for-money assessment is difficult. The 'Time and Materials' pricing type, while flexible, can lead to cost overruns if not managed diligently. Benchmarking against similar remediation projects would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The award type is listed as 'COMPETITIVE DELIVERY ORDER', suggesting it was competed. However, the specific number of bidders or the details of the competitive process are not provided in the available data. This lack of transparency makes it challenging to assess the effectiveness of the competition in driving down costs and ensuring the best value for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. A robust competition typically leads to lower prices. Without knowing the number of bidders, it's difficult to ascertain if taxpayers received the most advantageous pricing.

Public Impact

The Environmental Protection Agency (EPA) benefits from this contract by securing services for environmental remediation. The services delivered are focused on environmental cleanup and restoration. The contract is geographically located in California (CA). The workforce implications involve skilled professionals in environmental engineering and remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed competition data hinders full value assessment.
Contract duration may indicate complex or lengthy remediation efforts.

Positive Signals

Awarded to a known entity (CH2M HILL, INC.) potentially indicating past performance.
Competitive award type suggests an attempt at market-based pricing.
Focus on environmental remediation addresses critical public health and safety needs.

Sector Analysis

The environmental services sector is a significant part of the broader professional, scientific, and technical services industry. This contract falls under remediation services, which are crucial for addressing pollution and environmental hazards. Spending in this sector is often driven by regulatory requirements and government initiatives to protect natural resources. Comparable spending benchmarks would typically be found within EPA's historical remediation contracts and similar agency procurements.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses through set-asides is not evident. Subcontracting opportunities for small businesses may exist but are not detailed here. The overall impact on the small business ecosystem would depend on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA). As a delivery order under a larger contract vehicle, oversight mechanisms would be tied to the parent contract's terms. Transparency is limited by the available data; further details on performance reviews, payment approvals, and any Inspector General involvement would be needed for a comprehensive assessment.

Related Government Programs

Superfund Program
Brownfields Program
Hazardous Waste Management
Environmental Consulting Services

Risk Flags

Potential cost overruns due to T&M pricing.
Limited transparency on competition details.
Scope and specific remediation tasks not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $18.3 million to CH2M HILL, INC. A&E ENVIRONMENTAL 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 $18.3 million.

What is the period of performance?

Start: 2009-06-23. End: 2011-03-31.

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

CH2M HILL, INC. (now Jacobs Engineering Group) has a significant history of performing environmental services for various government agencies, including the EPA. They have been involved in large-scale remediation projects, often under complex contracts. Analyzing their past performance on similar EPA contracts, including any documented issues, cost variances, or successful outcomes, would provide crucial context for this specific award. Historical data would reveal their experience with the types of environmental challenges addressed by this contract and their ability to manage projects within budget and schedule.

How does the $18.3 million contract value compare to similar environmental remediation projects awarded by the EPA or other agencies?

A direct comparison of the $18.3 million contract value requires access to a database of similar environmental remediation contracts. Factors such as the scope of work (e.g., type of contamination, site size, complexity of cleanup), geographic location, and contract duration significantly influence pricing. Without specific details on the remediation tasks, it's difficult to benchmark. However, large-scale environmental cleanup projects can easily run into tens or hundreds of millions of dollars. This $18.3 million award suggests a moderately sized but significant remediation effort.

What are the primary risks associated with a 'Time and Materials' contract for environmental remediation services?

The primary risk with a 'Time and Materials' (T&M) contract for environmental remediation is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs incurred, plus a fee. If project scope creeps, unforeseen conditions arise, or labor efficiency is low, costs can significantly exceed initial estimates. This necessitates robust government oversight to monitor labor hours, material costs, and overall project progress to ensure efficiency and prevent unnecessary spending. Effective T&M management requires detailed tracking and justification of all costs.

What specific environmental remediation services are covered under this contract, and what is their expected impact?

The provided data indicates the contract is for 'Remediation Services' under NAICS code 562910. This typically encompasses a range of activities aimed at cleaning up contaminated sites. Services could include site assessment, soil and groundwater remediation, hazardous waste removal, demolition of contaminated structures, and long-term monitoring. The expected impact is the restoration of environmental quality, mitigation of health risks to surrounding communities, and compliance with environmental regulations. The specific impact depends on the nature and extent of the contamination being addressed.

What was the historical spending pattern for environmental remediation services by the EPA in California prior to this award?

Analyzing historical spending patterns for environmental remediation in California by the EPA would provide context for the $18.3 million award. This would involve examining past contracts awarded for similar services within the state. Trends in spending could indicate increasing or decreasing investment in remediation efforts, the types of environmental issues most frequently addressed, and the average contract values. Such analysis helps determine if this award is consistent with historical investment levels or represents a significant shift in EPA's remediation priorities or budget allocation for the region.

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 155 GRAND AVE, STE-1000, OAKLAND, CA, 12

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,283,333

Exercised Options: $18,283,333

Current Obligation: $18,283,333

Parent Contract

Parent Award PIID: EPS90804

IDV Type: IDC

Timeline