EPA's $38M R&D contract for lab support awarded to G AND M ARCADIS shows fair value with 20497 bids

Contract Overview

Contract Amount: $38,041,623 ($38.0M)

Contractor: G and M Arcadis (0000)

Awarding Agency: Environmental Protection Agency

Start Date: 2004-03-01

End Date: 2009-03-31

Contract Duration: 1,856 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ON-SITE LABORATORY SUPPORT SERVICES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713

State: North Carolina Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $38.0 million to G AND M ARCADIS (0000) for work described as: ON-SITE LABORATORY SUPPORT SERVICES Key points: 1. Contract value of $38M over 5 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating broad market access. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance period of 5 years allows for sustained support but requires ongoing oversight. 5. The North Carolina location may have implications for local economic impact and workforce. 6. Research and Development sector focus highlights investment in scientific advancement.

Value Assessment

Rating: fair

The contract's total value of $38M over approximately 5 years averages around $7.6M annually. Benchmarking this against similar R&D support contracts is challenging without more specific service details. However, the presence of 20,497 bids suggests a competitive environment that likely drove pricing towards market rates. The Cost Plus Fixed Fee structure introduces some risk of cost escalation, but the fixed fee component provides a degree of cost certainty for the contractor's effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The exceptionally high number of bids (20,497) indicates a robust and highly competitive marketplace for these laboratory support services. Such a large number of bidders generally leads to more favorable pricing for the government as contractors vie for the award.

Taxpayer Impact: The extensive competition for this contract is highly beneficial for taxpayers, as it likely resulted in a lower overall price than if the contract had been awarded through a less competitive process.

Public Impact

The Environmental Protection Agency (EPA) benefits from consistent on-site laboratory support services. This contract supports critical research and development activities within the EPA. The services are delivered in North Carolina, potentially impacting the local economy and scientific workforce. The R&D focus contributes to advancements in environmental science and policy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost overruns and ensure the fixed fee remains reasonable.
The long performance period necessitates continuous monitoring of contractor performance and adherence to contract terms.
Ensuring the 'fixed fee' component remains appropriate throughout the contract lifecycle requires careful review.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
A large number of bids (20,497) indicates a healthy market and potential for good value.
The contract supports critical R&D functions for the EPA, aligning with its mission.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on laboratory support services. The market for such services is diverse, encompassing scientific research institutions, private laboratories, and specialized support firms. The EPA's spending in this area is crucial for its mission of protecting human health and the environment. Comparable spending benchmarks would depend on the specific nature of the laboratory support, but the significant number of bids suggests a well-established market.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the full and open competition and the nature of specialized laboratory support, it is possible that large businesses or joint ventures were the primary bidders. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. Given the Cost Plus Fixed Fee structure, rigorous financial and performance oversight is essential to ensure costs are reasonable and allocable, and that the fixed fee is justified. Transparency would be facilitated through contract reporting mechanisms and potentially through public contract databases, though specific oversight reports are not detailed here.

Related Government Programs

EPA Research and Development Contracts
Environmental Science Support Services
Federal Laboratory Services
Scientific and Technical Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long performance period necessitates sustained monitoring of contractor performance.
Specific performance metrics (KPIs) are not detailed, making objective performance assessment challenging without further information.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $38.0 million to G AND M ARCADIS (0000). ON-SITE LABORATORY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is G AND M ARCADIS (0000).

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2004-03-01. End: 2009-03-31.

What is the track record of G AND M ARCADIS with the federal government, particularly with the EPA?

Information on G AND M ARCADIS's specific track record with the federal government, and particularly the EPA, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Understanding their past performance on similar contracts, especially those involving cost-reimbursement or fixed-fee structures, would be crucial for assessing their reliability and capability in fulfilling this current R&D laboratory support contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D support contracts of similar scope?

Cost Plus Fixed Fee (CPFF) is a common contract type for R&D where the scope is not precisely defined, allowing for flexibility. Compared to fixed-price contracts, CPFF can offer better value when uncertainty is high, as it incentivizes the contractor to perform the work without being overly constrained by a rigid price. However, it carries a higher risk of cost growth for the government than fixed-price contracts. Benchmarking requires comparing the fixed fee percentage and the total estimated cost against similar R&D contracts. If the fixed fee is within a typical range (e.g., 5-15% of estimated costs) and the overall cost aligns with market rates for the services provided, the pricing could be considered competitive. Without specific cost breakdowns and market data, a definitive comparison is difficult.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for R&D laboratory support, KPIs would focus on aspects such as the timeliness of research milestones, the quality and accuracy of laboratory results, adherence to safety protocols, efficiency in resource utilization (personnel, equipment), and the successful completion of defined research objectives. The EPA's program office responsible for the R&D would establish these KPIs in the contract's Performance Work Statement (PWS). Effective oversight would involve regular monitoring and reporting against these KPIs to ensure the contractor is meeting performance expectations.

What is the historical spending pattern for on-site laboratory support services at the EPA?

The provided data only includes details for this specific contract ($38M from 2004-2009). To understand historical spending patterns for on-site laboratory support services at the EPA, one would need to analyze procurement data over a longer period, looking at multiple contracts awarded for similar services. This would involve identifying all relevant contracts, their values, durations, and the types of services rendered. Analyzing trends in annual spending, average contract values, and the number of awarded contracts could reveal patterns in the EPA's investment in laboratory support over time and identify periods of increased or decreased expenditure.

What is the potential impact of the 'NC' (North Carolina) location on contract performance and cost?

The 'NC' designation indicates the contract is likely performed in North Carolina. This location can influence contract performance and cost in several ways. Labor costs in North Carolina may differ from other regions, potentially impacting the overall cost of services. The availability of a skilled scientific and technical workforce in the area is also a factor. Furthermore, proximity to EPA facilities or research centers in North Carolina could streamline logistics and communication, positively impacting performance. Conversely, if specialized equipment or resources are needed, the availability and accessibility within North Carolina would be relevant considerations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: PRCI0310355

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 801 CORPORATE CENTER DR #, RALEIGH

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $54,792,146

Exercised Options: $40,901,530

Current Obligation: $38,041,623

Timeline