EPA's $21.9M contract for wastewater management support awarded to Eastern Research Group Inc

Contract Overview

Contract Amount: $21,903,627 ($21.9M)

Contractor: Eastern Research Group Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2016-07-01

End Date: 2022-04-30

Contract Duration: 2,129 days

Daily Burn Rate: $10.3K/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 TECHNICAL AND ADMINISTRATIVE PROGRAM SUPPORT FOR THE OFFICE OF WASTEWATER MANAGEMENT

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $21.9 million to EASTERN RESEARCH GROUP INC for work described as: IGF::CL::IGF TECHNICAL AND ADMINISTRATIVE PROGRAM SUPPORT FOR THE OFFICE OF WASTEWATER MANAGEMENT Key points: 1. Contract provides essential technical and administrative support for the Office of Wastewater Management. 2. Eastern Research Group Inc. has held this contract for approximately six years. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The contract duration is over 2000 days, indicating a long-term need for these services. 6. The contract value is substantial, reflecting the importance of wastewater management oversight.

Value Assessment

Rating: good

The contract value of approximately $21.9 million over six years suggests a reasonable annual spend for specialized consulting services. Benchmarking against similar contracts for environmental consulting and program support would provide a clearer picture of value for money. The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain aligned with the fixed fee and the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair market pricing and a selection of the most qualified offeror. The presence of two bids suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it promotes competitive pricing and ensures the government receives the best value for its investment.

Public Impact

The Office of Wastewater Management benefits from consistent technical and administrative support, enabling effective program execution. Services delivered likely include policy analysis, technical assistance, data management, and stakeholder engagement related to wastewater regulations. The geographic impact is national, supporting EPA's oversight of wastewater systems across the United States. Workforce implications include support for EPA staff and potential engagement of specialized consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee if not properly managed.
Long contract durations (over 2000 days) may reduce flexibility and opportunities for re-competition or adopting newer service models.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract has been successfully managed for an extended period, suggesting consistent performance.
The contract supports a critical environmental function (wastewater management), indicating a clear and ongoing government need.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, which is a subset of professional services. The market for environmental consulting is diverse, encompassing regulatory compliance, impact assessments, and program management. The EPA is a significant purchaser of such services to fulfill its mandate. Comparable spending benchmarks would involve looking at other large federal agencies procuring similar environmental program support.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were indirectly involved or if there were opportunities missed for their participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. The Inspector General's office likely has jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, though detailed performance reports may not be publicly available.

Related Government Programs

EPA Office of Wastewater Management Programs
Environmental Consulting Services Contracts
Federal Environmental Regulatory Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may limit opportunities for innovation or competitive re-bidding.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $21.9 million to EASTERN RESEARCH GROUP INC. IGF::CL::IGF TECHNICAL AND ADMINISTRATIVE PROGRAM SUPPORT FOR THE OFFICE OF WASTEWATER MANAGEMENT

Who is the contractor on this award?

The obligated recipient is EASTERN RESEARCH GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2016-07-01. End: 2022-04-30.

What specific tasks and deliverables were expected under this contract for the Office of Wastewater Management?

While the specific Statement of Work (SOW) is not provided in the abbreviated data, contracts for 'Environmental Consulting Services' supporting an office like Wastewater Management typically involve a range of technical and administrative functions. These often include providing expert analysis on regulations (e.g., Clean Water Act), assisting in the development of policy recommendations, managing data related to wastewater permits and compliance, conducting technical reviews of permit applications, supporting public outreach and stakeholder engagement, and providing general program management support. Deliverables could include reports, studies, technical guidance documents, data analyses, and meeting minutes. The Cost Plus Fixed Fee structure suggests that the contractor was reimbursed for allowable costs plus a predetermined fixed fee for their efforts.

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

The approximate annual value of this contract is around $3.65 million ($21.9M / 6 years). To benchmark this, one would need to analyze the Federal Procurement Data System (FPDS) or similar databases for contracts awarded by the EPA or other agencies for 'Environmental Consulting Services' (NAICS code 541620) over a comparable period. Factors such as contract duration, scope complexity, and specific agency needs influence pricing. Without direct comparative data, it's difficult to definitively state if this represents high, low, or average pricing. However, for specialized technical and administrative support to a major federal office, this annual figure appears within a plausible range for long-term, complex engagements.

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

The primary risk with a CPFF contract is the potential for cost escalation. While the fee is fixed, the contractor is reimbursed for allowable costs. If cost controls are weak or the scope of work expands without adequate adjustments, the total cost to the government can exceed initial projections. For a contract of this duration (over six years), there's also a risk of the contractor's approach becoming outdated or less efficient compared to market innovations. Ensuring robust oversight, clear performance metrics, and diligent cost monitoring by the EPA is crucial to mitigate these risks and ensure the government receives value for money.

What is the track record of Eastern Research Group Inc. in performing similar federal contracts?

Eastern Research Group Inc. (ERG) has a significant history of performing federal contracts, particularly with agencies like the EPA. Their profile often includes providing scientific, technical, and analytical support services. Based on publicly available contract data, ERG has been awarded numerous contracts across various environmental and public health domains. Their performance on this specific EPA contract, spanning over six years, suggests a sustained ability to meet the agency's needs. A deeper dive into past performance reviews, any contract disputes, or awards/debarments would provide a more comprehensive assessment of their track record.

How has EPA's spending on wastewater management support evolved over the years, and does this contract represent a significant portion?

Analyzing EPA's historical spending on wastewater management support would require examining budget documents and contract databases over multiple fiscal years. This specific contract, valued at approximately $21.9 million over six years, represents a consistent investment in program support. Whether it constitutes a 'significant portion' depends on the total EPA budget allocated to wastewater management and the number of other contracts supporting this area. Typically, such contracts are essential for the day-to-day operations and policy implementation of major EPA offices. Trends in federal spending on environmental programs can be influenced by legislative priorities, regulatory changes, and national needs, such as infrastructure investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental 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-16-00012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 110 HARTWELL AVE STE 1, LEXINGTON, MA, 02421

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: $70,920,454

Exercised Options: $39,272,422

Current Obligation: $21,903,627

Actual Outlays: $2,627,539

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $7,125,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline