EPA's $15.4M Cadmus Group contract for water regulation development shows fair value with moderate competition

Contract Overview

Contract Amount: $15,373,800 ($15.4M)

Contractor: THE Cadmus Group LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2007-05-03

End Date: 2012-12-19

Contract Duration: 2,057 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OFFICE OF GROUND WATER & DRINKING WATER REGULATION DEVELOPMENT & IMPLEMENTATION WITH AN EMPHASIS ON ENGINEERING

Place of Performance

Location: WATERTOWN, MIDDLESEX County, MASSACHUSETTS, 02472

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $15.4 million to THE CADMUS GROUP LLC for work described as: OFFICE OF GROUND WATER & DRINKING WATER REGULATION DEVELOPMENT & IMPLEMENTATION WITH AN EMPHASIS ON ENGINEERING Key points: 1. Contract awarded to The Cadmus Group LLC for administrative management and general management consulting services. 2. The contract duration was 2057 days, indicating a long-term engagement for complex tasks. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The agency's spending in this category appears consistent with similar federal procurements. 6. Performance was rated 'satisfactory' by the agency. 7. The contract was not set aside for small businesses.

Value Assessment

Rating: good

The contract's value appears reasonable given the services provided and the duration. While specific cost breakdowns are not available, the total award amount of approximately $15.4 million over roughly five years suggests a moderate annual spend. Benchmarking against similar contracts for management consulting services in the environmental sector indicates that this pricing falls within an expected range. The Cost Plus Fixed Fee structure, while requiring diligent oversight, allows for flexibility in addressing evolving regulatory needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, the existing competition likely provided the agency with a reasonable selection of qualified contractors and a basis for price negotiation.

Taxpayer Impact: The full and open competition process, even with two bidders, generally benefits taxpayers by ensuring that the contract is awarded to the most capable and cost-effective provider, preventing potential price inflation associated with less competitive solicitations.

Public Impact

The primary beneficiary is the Environmental Protection Agency (EPA), specifically the Office of Ground Water and Drinking Water. The contract supports the development and implementation of regulations related to ground water and drinking water quality. This work directly impacts public health by contributing to safer drinking water standards across the nation. The services provided are crucial for the EPA's mission to protect human health and the environment. The contract's impact is national in scope, affecting all communities reliant on public water systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
Limited competition (two bidders) may not have yielded the absolute lowest price.
The long duration of the contract could present challenges in adapting to rapidly changing regulatory landscapes.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The contractor, The Cadmus Group LLC, has a track record of performing satisfactory work for the agency.
The contract directly supports critical public health initiatives for the EPA.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for environmental consulting services is substantial, driven by regulatory requirements and the need for specialized expertise. The EPA is a significant purchaser of such services to support its broad mandate. Comparable spending benchmarks for similar administrative and management consulting services for federal agencies often range from hundreds of thousands to millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, The Cadmus Group LLC, is not a small business. There is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, this contract does not directly contribute to the federal small business contracting goals through set-asides or prime contracting opportunities for small entities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Environmental Protection Agency. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is facilitated through contract databases like FPDS, which provide award details. While specific Inspector General (IG) involvement is not detailed, the EPA's Office of Inspector General has broad jurisdiction over agency contracts.

Related Government Programs

Clean Water Act Programs
Safe Drinking Water Act Programs
Environmental Consulting Services
Federal Regulatory Development
EPA Administrative Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Moderate competition level (2 bidders) may not have resulted in the most competitive pricing.
Long contract duration could pose challenges in adapting to evolving regulatory needs or technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $15.4 million to THE CADMUS GROUP LLC. OFFICE OF GROUND WATER & DRINKING WATER REGULATION DEVELOPMENT & IMPLEMENTATION WITH AN EMPHASIS ON ENGINEERING

Who is the contractor on this award?

The obligated recipient is THE CADMUS GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2007-05-03. End: 2012-12-19.

What is the track record of The Cadmus Group LLC with the EPA on similar contracts?

The Cadmus Group LLC has a history of working with the Environmental Protection Agency on various contracts, often related to environmental consulting, research, and program support. Their performance on this specific contract was rated 'satisfactory'. While detailed performance metrics across all their EPA engagements are not provided here, their continued awards suggest a generally positive working relationship and capability to meet agency requirements. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on other EPA contracts held by Cadmus.

How does the value of this contract compare to other EPA contracts for similar services?

The total award of approximately $15.4 million over a period of roughly five years (2007-2012) places this contract in the mid-to-large range for federal consulting services. When compared to other EPA contracts for administrative management and general management consulting, particularly those focused on regulatory development and implementation, this award appears to be within a reasonable range. Factors such as the complexity of the regulations, the scope of work, and the duration significantly influence contract values. Without direct comparisons of scope-adjusted contract values, it's difficult to definitively state if it's exceptionally high or low, but it does not appear anomalous for a long-term, specialized EPA initiative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure, like the one used here, is the potential for cost overruns. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, the government bears the risk of increased costs beyond the initially estimated amount. For services like regulatory development, where unforeseen complexities can arise, there's a risk that actual costs could escalate significantly. Effective oversight, detailed cost tracking, and clear scope management by the agency are crucial to mitigate these risks and ensure the government receives good value.

How effective has the EPA been in achieving its ground water and drinking water goals through contracts like this?

Assessing the direct effectiveness of this specific contract on achieving EPA's ground water and drinking water goals requires detailed program outcome data, which is beyond the scope of this contract's award information. However, contracts for regulatory development and implementation are critical enablers for the EPA to fulfill its statutory mandates under acts like the Safe Drinking Water Act. The 'satisfactory' performance rating suggests the contractor met the defined objectives. The long-term impact would be measured by the quality and effectiveness of the regulations developed and implemented, and their subsequent effect on water quality and public health.

What has been the historical spending trend for the EPA in administrative management and general management consulting services?

Historical spending data for the EPA in the 'Administrative Management and General Management Consulting Services' (NAICS code 541611) category shows a consistent and significant investment over the years. While specific year-over-year trends require access to comprehensive historical procurement databases, the EPA regularly procures services in this domain to support its vast regulatory, research, and operational functions. Spending in this area typically fluctuates based on agency priorities, budget allocations, and the initiation of new programs or regulatory initiatives. This $15.4 million contract represents a notable, but not extraordinary, investment within this broader spending category for the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRCI0610975

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 57 WATER ST, WATERTOWN, MA, 02472

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,063,704

Exercised Options: $20,378,917

Current Obligation: $15,373,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline