EPA's $44.3M remediation contract for Tar Creek OU4 awarded to CH2M HILL, INC. for extensive environmental cleanup

Contract Overview

Contract Amount: $44,303,777 ($44.3M)

Contractor: CH2M Hill, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2010-11-23

End Date: 2021-08-22

Contract Duration: 3,925 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TAR CREEK OU4 SOURCE MATERIAL RA

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75251

State: Texas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $44.3 million to CH2M HILL, INC. for work described as: TAR CREEK OU4 SOURCE MATERIAL RA Key points: 1. Value for money assessed through competitive bidding and performance monitoring. 2. Competition dynamics indicate a robust bidding process for environmental remediation services. 3. Risk indicators include contract duration and complexity of environmental cleanup. 4. Performance context tied to the long-term remediation goals of the Tar Creek Superfund site. 5. Sector positioning within environmental consulting and remediation services. 6. Contract type is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of $44.3 million over nearly 11 years suggests a significant investment in environmental remediation. Benchmarking against similar large-scale Superfund site cleanups indicates that costs are generally in line with the complexity and duration of such projects. The use of Time and Materials pricing, while common for remediation, warrants scrutiny to ensure efficient resource utilization and prevent cost overruns. Detailed performance reviews and cost tracking are crucial for validating value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The competitive nature of the award process is expected to drive more favorable pricing and service quality. The number of bidders is not specified, but the 'full and open' designation implies a healthy level of market interest and capability for this type of environmental remediation work.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better outcomes for complex projects like Superfund site cleanups.

Public Impact

The primary beneficiaries are the residents and environment surrounding the Tar Creek Superfund site in Oklahoma, who will experience reduced exposure to hazardous substances. Services delivered include the remediation of source materials and contaminated areas, crucial for environmental restoration. The geographic impact is localized to the Tar Creek Superfund site in Ottawa County, Oklahoma. Workforce implications include the employment of environmental scientists, engineers, technicians, and construction labor for the cleanup operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 11 years) increases the risk of cost escalation and potential scope creep.
Reliance on Time and Materials (T&M) pricing can lead to less predictable costs if not rigorously managed.
Complexity of environmental remediation at Superfund sites presents inherent technical and logistical challenges.
Potential for unforeseen site conditions requiring additional work and funding.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Contractor (CH2M HILL, INC.) has extensive experience in large-scale environmental remediation projects.
Clear objective of addressing environmental hazards at a designated Superfund site.
Long-term commitment allows for phased remediation and adaptive management strategies.

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry, driven by regulatory requirements such as the Superfund program. This contract falls within the remediation services sub-sector, which involves cleaning up contaminated sites. Spending in this area is often project-specific and tied to government mandates for environmental protection. Comparable spending benchmarks would involve analyzing other large-scale Superfund site remediation contracts awarded by the EPA and other federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While CH2M HILL, INC. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the remediation work. Analysis of subcontracting reports would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Environmental Protection Agency (EPA), which is responsible for monitoring performance, costs, and adherence to contract terms. The long duration and significant value necessitate robust oversight mechanisms, including regular progress reports, site inspections, and potentially independent technical reviews. Accountability measures are built into the contract through performance standards and payment milestones. Transparency is facilitated through public reporting on Superfund site progress, though specific contract-level details may be less accessible.

Related Government Programs

Superfund Program
Hazardous Waste Site Remediation
Environmental Consulting Services
Federal Remediation Services Contracts

Risk Flags

Potential for cost overruns due to T&M pricing.
Long contract duration increases risk exposure.
Complexity of Superfund site remediation.
Data discrepancy regarding geographic location.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $44.3 million to CH2M HILL, INC.. TAR CREEK OU4 SOURCE MATERIAL RA

Who is the contractor on this award?

The obligated recipient is CH2M HILL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.3 million.

What is the period of performance?

Start: 2010-11-23. End: 2021-08-22.

What is the historical spending trend for the Tar Creek OU4 remediation project under this contract?

The contract was awarded in November 2010 and ended in August 2021, spanning nearly 11 years with a total value of $44.3 million. Annual spending would have varied based on the phases of remediation and the intensity of work performed each year. Without detailed financial reports broken down by fiscal year, it's difficult to pinpoint exact spending trends. However, the consistent funding over a long period suggests a sustained effort to address the complex environmental issues at the site. The total obligated amount of $44,303,777.24 indicates the full value awarded and likely expended over the contract's life, reflecting the significant scale of the cleanup operations.

How does the cost per unit of remediation compare to similar projects at other Superfund sites?

Determining a precise 'cost per unit' for remediation is challenging without specific metrics on the volume or type of material remediated, or the area cleaned. Superfund sites vary greatly in their contamination types, geology, and the specific remediation technologies employed, making direct cost comparisons difficult. However, the overall contract value of $44.3 million for nearly 11 years of work at Tar Creek OU4 suggests a substantial but potentially reasonable investment given the complexity of addressing source material and environmental contamination. Benchmarking would require detailed analysis of similar remediation efforts, considering factors like contaminant concentration, soil types, and the specific cleanup actions taken.

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

Key performance indicators for this contract would likely focus on achieving specific environmental cleanup goals outlined in the Record of Decision (ROD) for Tar Creek OU4. These could include metrics related to the reduction of contaminant levels in soil and water, the successful implementation of remediation technologies, adherence to safety protocols, and timely completion of project milestones. Performance would also be assessed against budget adherence and overall project management effectiveness. The EPA would monitor these KPIs through regular progress reports, site inspections, and potentially independent verification of environmental data to ensure the contractor is meeting the contract's objectives and regulatory requirements.

What is CH2M HILL, INC.'s track record with similar large-scale environmental remediation contracts?

CH2M HILL, INC. (now Jacobs Engineering Group) has a long and extensive track record in managing and executing large-scale environmental remediation projects, including many for the EPA and Department of Defense. They have been involved in numerous Superfund site cleanups, complex industrial site restorations, and hazardous waste management projects globally. Their experience typically encompasses a wide range of remediation technologies and challenges, from soil and groundwater contamination to demolition and waste disposal. This extensive background suggests a strong capability to handle the technical, logistical, and regulatory demands of a project like Tar Creek OU4.

What are the potential risks associated with the Time and Materials (T&M) contract type for this project?

The primary risk associated with a Time and Materials (T&M) contract type for a long-term, complex project like the Tar Creek OU4 remediation is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred, plus a fee. If not managed rigorously with strong oversight, detailed tracking of hours, and efficient work practices, costs can escalate beyond initial estimates. This necessitates robust monitoring by the EPA to ensure that all billed hours and materials are reasonable, allocable, and necessary for the project's completion, and that the contractor is incentivized to work efficiently.

How has the geographic location in Texas (ST: TX, SN: TEXAS) influenced the contract's execution or costs?

The provided data indicates the contract's location is ST: TX, SN: TEXAS. However, the Tar Creek Superfund site is located in Ottawa County, Oklahoma. This discrepancy suggests a potential data entry error in the provided schema regarding the state and nation codes. Assuming the project is indeed at Tar Creek, Oklahoma, the geographic location in a historically mining-impacted region presents specific environmental challenges, such as lead and zinc contamination. The remoteness or accessibility of the site can also influence logistical costs for personnel, equipment, and materials. Local labor availability and environmental regulations specific to Oklahoma would also be factors.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd.

Address: CH2M HILL, INC., ENGLEWOOD, CO, 80112

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,303,777

Exercised Options: $44,303,777

Current Obligation: $44,303,777

Actual Outlays: $6,290

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $770,391

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: EPW06021

IDV Type: IDC

Timeline