EPA's $59.5M Remediation Services Contract Awarded to Hydrogeologic, Inc. for Region III

Contract Overview

Contract Amount: $59,543,434 ($59.5M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2007-07-01

End Date: 2020-06-27

Contract Duration: 4,745 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RACS II REGION III CONTRACT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $59.5 million to HYDROGEOLOGIC, INC. for work described as: RACS II REGION III CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long contract duration of over 12 years indicates a significant, ongoing need for services. 3. Cost-plus-fixed-fee contract type may incentivize cost control by the contractor. 4. The contract falls under Remediation Services, a critical area for environmental protection. 5. Awarded by the Environmental Protection Agency (EPA), a key federal environmental regulator. 6. The contract's value of nearly $60 million over its lifespan warrants scrutiny for value for money.

Value Assessment

Rating: good

The contract's total value of $59.5 million over 12 years averages approximately $4.96 million annually. Without specific benchmarks for similar large-scale remediation contracts in EPA Region III, a precise value-for-money assessment is challenging. However, the cost-plus-fixed-fee structure, if managed effectively, can provide a reasonable balance between contractor incentive and cost control. Further analysis would require comparing the scope of work and deliverables to other EPA remediation contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initially there might have been exclusions, the final award was made through a competitive process open to all eligible bidders. The presence of 6 bids suggests a healthy level of competition, which typically leads to better pricing and service offerings for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price and quality of services compared to a sole-source or limited competition scenario.

Public Impact

This contract directly benefits the Environmental Protection Agency by ensuring the availability of specialized remediation services. Services delivered under this contract are crucial for addressing environmental contamination and protecting public health in EPA Region III. The geographic impact is focused on EPA Region III, which covers Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and the District of Columbia. The contract supports a workforce skilled in hydrogeology and environmental remediation, contributing to specialized job creation in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not closely monitored.
Cost-plus-fixed-fee contracts can sometimes lead to less incentive for extreme cost efficiency compared to fixed-price contracts.
The 'after exclusion of sources' clause warrants understanding the initial exclusions to ensure no potential bidders were unfairly barred.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract type (Cost Plus Fixed Fee) can provide cost certainty for the government once the fixed fee is established.
The contractor, Hydrogeologic, Inc., has a track record with the EPA, suggesting familiarity with agency requirements.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental services industry. This contract falls under the NAICS code 562910 (Remediation Services), which includes establishments primarily engaged in cleaning up sites contaminated with pollution or other hazardous materials. The federal government, particularly agencies like the EPA, is a major client in this sector, awarding substantial contracts for Superfund sites, hazardous waste management, and other environmental cleanup operations. Spending in this sector is driven by regulatory requirements and the need to address legacy environmental issues.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Hydrogeologic, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA) contracting officers and program managers. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics and oversight reports are not always publicly accessible.

Related Government Programs

Superfund Remedial Action Contracts
Environmental Consulting Services
Hazardous Waste Management Contracts
EPA Region III Environmental Programs

Risk Flags

Long contract duration may increase exposure to scope creep or changing environmental regulations.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs effectively.
Potential for contractor performance issues on complex remediation projects.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $59.5 million to HYDROGEOLOGIC, INC.. RACS II REGION III CONTRACT

Who is the contractor on this award?

The obligated recipient is HYDROGEOLOGIC, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $59.5 million.

What is the period of performance?

Start: 2007-07-01. End: 2020-06-27.

What is the historical spending pattern for Remediation Services contracts awarded by the EPA in Region III?

Analyzing historical spending for Remediation Services in EPA Region III requires access to detailed contract databases beyond the provided data. However, general trends indicate consistent federal investment in environmental cleanup due to regulatory mandates and the presence of numerous contaminated sites. The EPA's Superfund program, a major driver of remediation spending, has seen fluctuating but significant budget allocations over the years. Contracts like RACS II REGION III CONTRACT are indicative of the ongoing need for these services, suggesting a sustained level of spending in this category, though specific year-over-year figures for Region III would need further investigation.

How does the per-contract value of this award compare to other similar EPA remediation contracts?

The total award value of $59.5 million over approximately 12 years, averaging around $4.96 million annually, places this contract in the mid-to-large range for environmental remediation. Without specific data on comparable contracts (e.g., scope, duration, specific services), a direct benchmark is difficult. However, EPA remediation contracts, especially those under programs like Superfund, can range from a few million to hundreds of millions of dollars. The 'RACS II' designation suggests it's part of a larger framework contract, implying other similar awards exist. The value appears reasonable for a multi-year, comprehensive remediation services contract in a major EPA region.

What is Hydrogeologic, Inc.'s track record with the EPA and other federal agencies?

Hydrogeologic, Inc. has a documented history of working with the EPA and other federal agencies on environmental projects. Publicly available contract data indicates multiple awards to the company for services including hydrogeological studies, site assessments, and remediation support. Their involvement in contracts like RACS II suggests a proven capability and familiarity with EPA's contracting processes and environmental regulations. A deeper dive into their contract performance history, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their track record.

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

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for environmental remediation contracts include adherence to project timelines, budget management, quality of deliverables (e.g., site assessments, remediation plans), compliance with environmental regulations, and effectiveness of the remediation actions taken. For a Cost Plus Fixed Fee contract, monitoring the contractor's ability to manage costs within the anticipated range, while achieving the fixed fee objectives, is crucial. The EPA contracting officer would be responsible for monitoring these KPIs and ensuring contract compliance.

What is the risk profile associated with this type of cost-plus-fixed-fee remediation contract?

Cost-plus-fixed-fee (CPFF) contracts carry inherent risks, primarily related to cost control. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' portion means the government pays the actual allowable costs incurred by the contractor. The risk for the government is that these costs could exceed initial estimates, potentially leading to a higher overall contract price than anticipated. Effective oversight, detailed cost tracking, and robust auditing are essential to mitigate this risk. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable.

How does the competition level (6 bidders) impact the potential for cost savings for the EPA?

A competition level of 6 bidders is generally considered healthy and suggests that the contract requirements were well-defined and accessible to multiple qualified firms. Higher competition typically leads to more competitive pricing as contractors vie for the award. This increased number of bids provides the EPA with a stronger basis for evaluating offers and negotiating favorable terms. It reduces the likelihood of paying a premium due to limited market interest and increases the probability of selecting a contractor offering the best value, thereby enhancing potential cost savings for the taxpayer.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: PRR30610086

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 HERNDON PKWY STE 900, HERNDON, VA, 20170

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $117,507,307

Exercised Options: $117,507,307

Current Obligation: $59,543,434

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline