Cadmus Group LLC contract for drinking water regulations development awarded $20.3M by EPA

Contract Overview

Contract Amount: $20,322,107 ($20.3M)

Contractor: THE Cadmus Group LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2012-11-01

End Date: 2021-02-28

Contract Duration: 3,041 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OFFICE OF GROUND WATER AND DRINKING WATER REGULATIONS DEVELOPMENT AND PROGRAM IMPLEMENTATION

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $20.3 million to THE CADMUS GROUP LLC for work described as: OFFICE OF GROUND WATER AND DRINKING WATER REGULATIONS DEVELOPMENT AND PROGRAM IMPLEMENTATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. The contract duration of over 8 years (3041 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contractor, The Cadmus Group LLC, has secured this significant award, indicating a strong position in the market for environmental consulting. 6. The contract was awarded by the Environmental Protection Agency (EPA), a key agency for environmental regulation.

Value Assessment

Rating: fair

The contract value of $20.3 million over more than 8 years averages to approximately $2.5 million per year. Benchmarking this against similar contracts for administrative management and general management consulting services within the federal government is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher overall costs compared to fixed-price contracts if not closely monitored for efficiency. The value appears substantial, suggesting a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the EPA sought to leverage market competition to obtain the best value. Without knowing the number of bids received, it's difficult to definitively assess the intensity of the competition, but the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower prices and better service quality as contractors vie for the award.

Public Impact

The Office of Ground Water and Drinking Water Regulations Development and Program Implementation benefits from this contract by receiving support for its critical regulatory functions. The public benefits from improved drinking water quality and safety through the development and implementation of effective regulations. The contract supports the EPA's mission to protect human health and the environment. The geographic impact is national, as drinking water regulations affect all communities across the United States. The workforce implications include employment for consultants and subject matter experts within The Cadmus Group LLC and potentially other subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Long contract duration (over 8 years) may reduce flexibility to adapt to changing needs or market conditions.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
Limited information on the number of bidders in the full and open competition makes it hard to gauge the true competitive pressure on pricing.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contractor, The Cadmus Group LLC, has secured a significant, long-term contract, indicating established expertise and trust.
The contract supports a critical government function related to public health and environmental protection.
The EPA's oversight is expected to ensure compliance and quality of services.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is a significant part of the professional services industry, providing expertise to government agencies and private companies. The federal government is a major consumer of these services, particularly for policy development, program management, and regulatory support. Comparable spending benchmarks would typically involve looking at other large, long-term consulting contracts awarded by environmental or regulatory agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not detailed in this data, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), specifically the contracting officers and program managers responsible for the Office of Ground Water and Drinking Water. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract being awarded under full and open competition, with its details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

EPA Regulatory Development Programs
Drinking Water Standards and Regulations
Environmental Consulting Services
Federal Administrative Management Services
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may limit adaptability.
Need for robust oversight to ensure value for money.
Limited transparency on number of bidders in competition.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $20.3 million to THE CADMUS GROUP LLC. OFFICE OF GROUND WATER AND DRINKING WATER REGULATIONS DEVELOPMENT AND PROGRAM IMPLEMENTATION

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 $20.3 million.

What is the period of performance?

Start: 2012-11-01. End: 2021-02-28.

What is the track record of The Cadmus Group LLC with the federal government, particularly with the EPA?

The Cadmus Group LLC has a history of contracting with the federal government, including the EPA. This specific contract, valued at over $20 million and spanning more than 8 years, suggests a significant and established relationship. Federal procurement databases would likely show numerous other awards to Cadmus for various environmental, energy, and management consulting services across different agencies. Their ability to secure such a long-term, high-value contract indicates a proven track record of performance and responsiveness to federal requirements. Further analysis would involve examining past performance reviews, any contract disputes, and the breadth of services they have provided to the government.

How does the $20.3 million contract value compare to similar EPA contracts for regulatory development?

Comparing the $20.3 million value requires context on the scope and duration of similar EPA contracts. Regulatory development can be complex and long-term, involving scientific research, policy analysis, stakeholder engagement, and legal review. A contract of this magnitude, awarded over more than 8 years, suggests a substantial and ongoing need for expert support in these areas. Without specific data on the number of similar contracts and their exact values and durations, a precise benchmark is difficult. However, for a critical function like drinking water regulations, a multi-million dollar, multi-year contract is not unusual, reflecting the complexity and importance of the work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs escalate beyond initial estimates due to inefficiencies, scope creep, or poor management, the total expenditure for the government can increase significantly. For the EPA, this means the $20.3 million could potentially be exceeded if costs are not rigorously controlled and monitored. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk.

How effective has the EPA been in managing long-term consulting contracts like this one?

The EPA's effectiveness in managing long-term consulting contracts can vary. Agencies like the EPA often rely on external expertise for specialized tasks such as regulatory development, which requires deep technical and policy knowledge. Success hinges on strong contract management practices, including clear performance metrics, regular progress reviews, and diligent oversight of expenditures, especially under CPFF arrangements. While this contract's long duration suggests a sustained need and potentially satisfactory performance, a comprehensive assessment would require examining EPA's overall contract management performance data, including metrics on cost control, schedule adherence, and achievement of contract objectives across its portfolio.

What is the historical spending trend for drinking water regulations development and program implementation at the EPA?

Analyzing historical spending trends for drinking water regulations development and program implementation at the EPA would provide crucial context for this $20.3 million contract. This involves examining annual budget allocations and actual expenditures for this specific office or function over several fiscal years. Understanding whether spending has been consistent, increasing, or decreasing can indicate shifts in priorities, regulatory focus, or the scale of federal investment in this area. A consistent or increasing trend might justify a large, long-term contract, while a decreasing trend could raise questions about the contract's continued necessity or value.

What specific deliverables or outcomes are expected from The Cadmus Group LLC under this contract?

The contract is for 'OFFICE OF GROUND WATER AND DRINKING WATER REGULATIONS DEVELOPMENT AND PROGRAM IMPLEMENTATION.' Specific deliverables would be detailed within the contract's Statement of Work (SOW). Generally, for regulatory development, this could include drafting proposed rules, conducting impact analyses (economic, environmental, health), preparing supporting scientific and technical documentation, facilitating public comment periods, and assisting in the finalization and implementation of regulations. Program implementation support might involve developing guidance documents, training materials, or technical assistance protocols. The exact nature and quantity of these deliverables would dictate the contract's success and value.

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: SOL-CI-11-00062

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 57 WATER ST, WATERTOWN, MA, 02472

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,623,596

Exercised Options: $35,058,198

Current Obligation: $20,322,107

Actual Outlays: $96,448

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $9,963

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline