EPA awards $15.6M contract for Omaha lead remediation, highlighting environmental cleanup needs

Contract Overview

Contract Amount: $15,663,138 ($15.7M)

Contractor: Coastal Environmental Group Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2007-03-21

End Date: 2010-06-05

Contract Duration: 1,172 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEAD REMEDIATION OF RESIDENTIAL PROPERTIES IN OMAHA, NE

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68108

State: Nebraska Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $15.7 million to COASTAL ENVIRONMENTAL GROUP INC. for work described as: LEAD REMEDIATION OF RESIDENTIAL PROPERTIES IN OMAHA, NE Key points: 1. Contract addresses critical environmental health issue of lead contamination in residential properties. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Contract duration of over three years indicates a substantial scope of work. 5. Geographic focus on Omaha, Nebraska, targets a specific community's environmental challenges. 6. The award to Coastal Environmental Group Inc. signifies a significant player in environmental remediation services.

Value Assessment

Rating: good

The contract value of $15.6 million for lead remediation services appears reasonable given the scope and duration. While specific benchmarks for lead remediation projects in Omaha are not readily available, the fixed-price nature of the contract suggests an effort to control costs. Comparing this to similar large-scale environmental cleanup contracts would provide further context on value for money. The number of bids received (9) also suggests a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded. With 9 bidders, the competition level appears robust, which generally benefits price discovery and can lead to more favorable pricing for the government. The exclusion of sources warrants further investigation to understand its impact on the competitive landscape and potential cost implications.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure taxpayer dollars are used efficiently by driving down prices. The exclusion of certain sources, however, could potentially limit the most competitive offers.

Public Impact

Residents of Omaha, Nebraska, benefit from reduced exposure to hazardous lead contamination in their homes. Improved public health outcomes are expected due to the removal of lead-based hazards. The remediation services contribute to the revitalization and safety of residential neighborhoods. Local environmental services sector may see indirect benefits through subcontracting or related work. The project addresses a critical environmental justice concern by targeting residential properties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen remediation challenges arise, despite fixed-price structure.
Effectiveness of remediation in diverse housing stock requires careful monitoring.
Ensuring long-term durability of remediation efforts is crucial.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Focus on residential properties addresses a direct public health need.

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry, driven by regulatory compliance and public health concerns. This contract falls within the remediation services sub-sector, which includes activities like hazardous waste removal and site cleanup. The market for such services is influenced by government regulations, infrastructure needs, and the prevalence of environmental hazards. Comparable spending benchmarks would typically be found within EPA's historical data for similar lead abatement or environmental cleanup projects.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, the prime contractor, Coastal Environmental Group Inc., may engage small businesses for subcontracting opportunities to fulfill the contract requirements. The extent of small business participation would depend on the specific needs of the remediation work and the company's subcontracting strategy.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Oversight mechanisms would likely include regular progress reports, site inspections, and performance reviews to ensure the contractor meets the contract's technical requirements and timelines. Accountability is maintained through the contract's terms and conditions, including payment schedules tied to performance. Transparency is generally facilitated through public contract databases, though specific project details might be limited.

Related Government Programs

EPA Superfund Program
HUD Lead Hazard Control and Healthy Homes Program
State and Local Environmental Health Initiatives

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring compliance with all environmental regulations during remediation.
Contractor's ability to manage a project of this scale and complexity.
Effectiveness of public communication and community engagement during remediation.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $15.7 million to COASTAL ENVIRONMENTAL GROUP INC.. LEAD REMEDIATION OF RESIDENTIAL PROPERTIES IN OMAHA, NE

Who is the contractor on this award?

The obligated recipient is COASTAL ENVIRONMENTAL 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 $15.7 million.

What is the period of performance?

Start: 2007-03-21. End: 2010-06-05.

What is the track record of Coastal Environmental Group Inc. in handling large-scale lead remediation projects?

Coastal Environmental Group Inc. has a history of involvement in environmental services, including remediation. To assess their track record specifically for large-scale lead remediation, a review of their past performance on similar federal, state, and local contracts would be necessary. This would involve examining project scope, complexity, adherence to timelines, budget performance, and client satisfaction. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) could provide insights into their past performance, including any awards, penalties, or disputes related to environmental remediation projects.

How does the $15.6 million contract value compare to similar lead remediation projects in other urban areas?

Benchmarking the $15.6 million contract value requires comparing it to similar lead remediation projects in other urban areas, considering factors like the number of properties addressed, the extent of contamination, and the scope of work (e.g., abatement, soil removal, encapsulation). Without specific details on the number of residential properties or the severity of lead contamination in Omaha for this contract, a direct comparison is challenging. However, large-scale urban environmental remediation projects can range from millions to tens of millions of dollars. The EPA's historical contract data and reports from similar agencies (e.g., HUD's lead hazard control programs) could offer comparative data points for similar-sized cities or projects.

What are the primary risks associated with this lead remediation contract, and how are they being mitigated?

Primary risks include unforeseen site conditions (e.g., higher-than-expected lead levels, asbestos, underground utilities), potential environmental impacts during remediation, contractor performance issues, and cost overruns despite the fixed-price structure. Mitigation strategies likely involve thorough site assessments prior to work, strict adherence to environmental protection protocols during remediation, robust project management and oversight by the EPA, and clear performance metrics within the contract. The fixed-price nature itself is a risk mitigation tool for the government, shifting some cost uncertainty to the contractor.

How effective has the EPA been in managing similar environmental remediation contracts in the past?

The EPA has a long history of managing complex environmental remediation contracts, particularly through programs like Superfund. Their effectiveness is generally assessed through program outcomes, such as the successful cleanup of contaminated sites and the improvement of public health. While specific contract-level performance data is often proprietary, the agency's overall track record in addressing national environmental challenges suggests a capacity for effective contract management. Oversight mechanisms, including Inspector General reports and program evaluations, provide ongoing assessments of EPA's management practices.

What is the historical spending trend for lead remediation services by the EPA or similar agencies?

Historical spending on lead remediation services by the EPA and other federal agencies like HUD has been substantial, driven by the recognition of lead poisoning as a significant public health threat, particularly to children. Funding often supports programs aimed at identifying and abating lead-based paint hazards in older housing stock. Annual spending can fluctuate based on appropriations, specific program initiatives, and the identification of high-priority remediation areas. Examining budget documents and historical contract awards from agencies involved in housing and environmental health can reveal trends in investment in lead remediation.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: PRR70710074

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1A CHICAGO AVE, BAY SHORE, NY, 02

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,689,691

Exercised Options: $15,663,138

Current Obligation: $15,663,138

Timeline