Cadmus Group LLC awarded $53.4M contract for water system supervision and injection control programs by EPA

Contract Overview

Contract Amount: $53,455,732 ($53.5M)

Contractor: THE Cadmus Group LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2015-09-01

End Date: 2023-06-30

Contract Duration: 2,859 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF IMPLEMENTATION OF THE PUBLIC WATER SYSTEMS SUPERVISION (PWSS) AND UNDERGROUND INJECTION CONTROL (UIC) PROGRAMS

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $53.5 million to THE CADMUS GROUP LLC for work described as: IGF::CL::IGF IMPLEMENTATION OF THE PUBLIC WATER SYSTEMS SUPERVISION (PWSS) AND UNDERGROUND INJECTION CONTROL (UIC) PROGRAMS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2859 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 5. The contract was awarded to The Cadmus Group LLC, a known entity in the consulting space. 6. The contract's scope covers Public Water Systems Supervision (PWSS) and Underground Injection Control (UIC) programs. 7. The contract was awarded by the Environmental Protection Agency (EPA), a key federal agency for environmental regulation.

Value Assessment

Rating: fair

The contract's value of $53.4 million over approximately 7.8 years suggests a significant investment by the EPA. Benchmarking this against similar contracts for environmental consulting services is challenging without more specific data on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) structure means the final cost could fluctuate, making direct value-for-money assessment difficult without detailed cost breakdowns and performance metrics. However, the duration and total value indicate a substantial commitment to these critical environmental programs.

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 presence of two bids suggests a moderate level of competition for this contract. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bids, the potential for cost savings might be limited compared to a scenario with numerous competing offers.

Public Impact

The primary beneficiaries are the public through the improved oversight and management of public water systems and underground injection control programs. Services delivered include administrative management and consulting related to environmental protection. The geographic impact is national, as the EPA oversees these programs across the United States. Workforce implications may include employment opportunities within The Cadmus Group LLC and potentially within the EPA for contract oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
Limited competition (two bidders) may not have resulted in the lowest possible price.
The long contract duration could present challenges in adapting to evolving regulatory requirements or technological advancements.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract supports critical environmental protection programs (PWSS and UIC), addressing public health and safety.
The long duration suggests a stable and consistent need for these services, allowing for focused program development and execution.

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 federal and state regulations. The EPA is a major client in this sector, awarding numerous contracts for program support, research, and technical assistance. This contract aligns with the EPA's mission to protect human health and the environment, contributing to the overall regulatory framework for water quality and resource management.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless The Cadmus Group LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), likely through contracting officers and program managers. The Inspector General's office of the EPA would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Public Water Systems Supervision Program
Underground Injection Control Program
Environmental Protection Agency Contracts
Management and Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Limited competition (2 bidders) may impact price competitiveness.
Long contract duration could pose challenges for adaptability to future needs.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $53.5 million to THE CADMUS GROUP LLC. IGF::CL::IGF IMPLEMENTATION OF THE PUBLIC WATER SYSTEMS SUPERVISION (PWSS) AND UNDERGROUND INJECTION CONTROL (UIC) PROGRAMS

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 $53.5 million.

What is the period of performance?

Start: 2015-09-01. End: 2023-06-30.

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 (EPA) on various environmental and technical consulting projects. While specific details on past performance for PWSS and UIC programs are not provided in this data snippet, their general experience in environmental consulting suggests familiarity with EPA's mission and operational needs. A deeper analysis would involve reviewing past performance evaluations, contract modifications, and any disputes or awards associated with their previous EPA engagements to fully assess their track record. This would help determine their reliability and effectiveness in delivering services aligned with EPA's objectives.

How does the awarded amount compare to similar EPA contracts for environmental consulting?

The awarded amount of $53.4 million over approximately 7.8 years for administrative management and consulting services related to water programs is substantial. To benchmark this effectively, one would need to compare it against other EPA contracts for similar services, considering factors like contract duration, scope of work complexity, and the specific programs supported. For instance, contracts focused on broad environmental policy development or large-scale data analysis might have different cost structures. Without access to a comprehensive database of comparable EPA contracts, it's difficult to definitively state whether this represents a high, low, or average value. However, the scale suggests a significant and long-term commitment to these specific environmental programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of the actual costs incurred (within allowable limits). This can potentially lead to cost overruns if the government does not maintain rigorous oversight of the contractor's expenses. For the EPA, this means ensuring that all costs submitted by The Cadmus Group LLC are reasonable, allocable, and allowable according to the contract terms. Another risk is that the contractor might prioritize completing the work quickly to maximize their return on investment, potentially at the expense of quality or thoroughness, although the fixed fee structure aims to mitigate this by ensuring a defined profit margin.

How effective are the Public Water Systems Supervision (PWSS) and Underground Injection Control (UIC) programs in ensuring environmental safety?

The PWSS and UIC programs are critical components of the EPA's efforts to protect public health and the environment. The PWSS program, authorized by the Safe Drinking Water Act (SDWA), aims to ensure that public drinking water supplies meet national health standards. The UIC program, also under the SDWA, regulates the injection of fluids into underground wells to prevent contamination of drinking water sources. The effectiveness of these programs is measured by various metrics, including compliance rates of water systems, reduction in waterborne disease outbreaks, and prevention of groundwater contamination. While these programs have historically contributed to significant improvements in water quality, ongoing challenges include aging infrastructure, emerging contaminants, and ensuring compliance across a vast number of systems. The success of contracts supporting these programs is vital for their continued effectiveness.

What is the historical spending trend for environmental consulting services by the EPA?

Historical spending by the EPA on environmental consulting services has generally been substantial, reflecting the agency's broad mandate and the complexity of environmental issues. The EPA relies heavily on external expertise for program implementation, research, policy analysis, and technical support. Spending in this category can fluctuate based on legislative priorities, budget allocations, and the initiation of new environmental initiatives or regulatory changes. While specific year-over-year spending data for environmental consulting is not provided here, the consistent need for such services suggests a sustained level of investment. The $53.4 million awarded to Cadmus Group LLC for PWSS and UIC programs represents a significant portion of the EPA's spending within this domain for the contract's duration.

What are the implications of the contract being a 'Definitive Contract'?

A 'Definitive Contract' is a standard contract type that clearly defines the rights and obligations of both the government and the contractor. Unlike basic agreements or other preliminary contract vehicles, a definitive contract typically specifies all terms and conditions, including scope of work, delivery schedules, pricing, and payment terms. In this case, it signifies that the EPA and The Cadmus Group LLC have entered into a formal, binding agreement for the provision of services related to the PWSS and UIC programs. This structure provides clarity and legal certainty for both parties throughout the contract's performance period, ensuring that expectations are well-defined and enforceable.

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-13-00032

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 5TH AVE STE 100, WALTHAM, MA, 02451

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: $97,679,478

Exercised Options: $75,757,482

Current Obligation: $53,455,732

Actual Outlays: $14,968,251

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $252,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline