EPA's $68.8M Remediation Services Contract with EA Engineering Faces Scrutiny Over Long Duration and Cost Structure

Contract Overview

Contract Amount: $68,771,865 ($68.8M)

Contractor: EA Engineering, Science, and Technology, Inc., PBC

Awarding Agency: Environmental Protection Agency

Start Date: 2007-06-21

End Date: 2020-06-20

Contract Duration: 4,748 days

Daily Burn Rate: $14.5K/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: RESPONSE ACTION CONTRACT II

Place of Performance

Location: HUNT VALLEY, BALTIMORE County, MARYLAND, 21031

State: Maryland Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $68.8 million to EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC for work described as: RESPONSE ACTION CONTRACT II Key points: 1. The contract spans over 12 years, raising questions about sustained need and potential for cost overruns. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost escalation, posing a risk to taxpayer value. 4. Remediation services are critical for environmental protection, but efficiency and cost-effectiveness are paramount.

Value Assessment

Rating: questionable

The contract's duration of nearly 13 years and CPFF structure make direct pricing comparisons difficult. Without detailed cost breakdowns, assessing value against similar remediation contracts is challenging.

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 a competitive process but with specific source limitations. This method can impact price discovery if the pool of eligible bidders is restricted.

Taxpayer Impact: The long duration and CPFF contract type raise concerns about potential inefficiencies and the ultimate cost to taxpayers for environmental remediation services.

Public Impact

Long-term environmental cleanup projects are essential but require vigilant oversight to ensure cost control. The extended period of this contract may indicate complex or ongoing environmental challenges requiring sustained effort. Taxpayers expect efficient use of funds, especially in contracts with flexible cost structures like CPFF.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration
Cost Plus Fixed Fee structure
Lack of clear performance metrics in provided data

Positive Signals

Full and open competition was utilized
Contract addresses critical environmental needs

Sector Analysis

The Environmental Protection Agency (EPA) frequently contracts for remediation services to address pollution and environmental hazards. Spending benchmarks for such services vary widely based on project scope and complexity, but long-term contracts warrant close examination for cost-effectiveness.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's extensive duration necessitates robust oversight from the EPA to ensure performance standards are met and costs remain controlled. Accountability mechanisms should be clearly defined and actively monitored.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Extended contract duration (nearly 13 years)
Cost Plus Fixed Fee (CPFF) contract type
Potential for reduced competition due to 'exclusion of sources'
Lack of transparency on specific deliverables and performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $68.8 million to EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC. RESPONSE ACTION CONTRACT II

Who is the contractor on this award?

The obligated recipient is EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $68.8 million.

What is the period of performance?

Start: 2007-06-21. End: 2020-06-20.

What specific environmental remediation tasks were performed under this contract, and how did their complexity justify the long duration and CPFF structure?

The contract was for Remediation Services (NAICS 562910). The complexity of environmental remediation can vary significantly, involving site assessment, containment, cleanup, and long-term monitoring. A CPFF structure is often used for projects with uncertain scope or high risk, where defining a fixed price upfront is difficult. However, it requires stringent oversight to prevent cost overruns and ensure the work remains necessary and efficient throughout its extended period.

How did the 'exclusion of sources' in the competition process impact the final contract price and overall value for taxpayers?

While 'full and open competition after exclusion of sources' implies a competitive process, the exclusion of certain sources could limit the number of potential bidders. This limitation might reduce competitive pressure, potentially leading to a higher price than if all qualified sources were allowed to compete. The impact on value depends on the justification for the exclusion and the competitiveness among the remaining eligible bidders.

What mechanisms were in place to ensure cost control and prevent scope creep within the Cost Plus Fixed Fee structure over nearly 13 years?

Effective cost control in a CPFF contract, especially over a long duration, relies on detailed work scopes, regular progress reviews, robust auditing, and clear performance metrics. The agency must actively manage the contract, ensuring that costs incurred are reasonable, allocable, and allowable, and that the fixed fee remains appropriate for the services rendered. Without specific oversight reports, it's difficult to assess the effectiveness of these mechanisms.

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: 11019 MC CORMICK RD STE 400, HUNT VALLEY, MD, 21031

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $80,974,314

Exercised Options: $80,974,314

Current Obligation: $68,771,865

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline