EPA Spends $309M on A&E Remediation Services via Full and Open Competition

Contract Overview

Contract Amount: $309,188,889 ($309.2M)

Contractor: Sultrac, JV

Awarding Agency: Environmental Protection Agency

Start Date: 2006-06-29

End Date: 2021-06-28

Contract Duration: 5,478 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: A&E SERVICES

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60606

State: Illinois Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $309.2 million to SULTRAC, JV for work described as: A&E SERVICES Key points: 1. Significant investment of $309M in A&E services for environmental remediation. 2. Competition was full and open after exclusion of sources, suggesting a robust process. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The sector involves critical environmental protection and remediation efforts.

Value Assessment

Rating: good

The contract value of $309M over 15 years is substantial. Benchmarking against similar large-scale environmental remediation contracts would be necessary for a precise value assessment, but the duration and scope suggest a significant undertaking.

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'. This indicates that while some sources may have been initially excluded, the final award was made through a competitive process, likely ensuring fair market pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received fair value for the services rendered, despite the high total contract value.

Public Impact

Supports critical environmental cleanup efforts across the nation. Ensures compliance with environmental regulations and protection of public health. The long duration of the contract indicates a sustained need for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Long contract duration (15 years) may not reflect current market efficiencies.
Exclusion of sources prior to full and open competition warrants understanding.

Positive Signals

Full and open competition generally leads to better pricing.
Contract addresses essential environmental protection needs.
Multiple awards (5) suggest a broad base of capability.

Sector Analysis

The A&E services sector, particularly for environmental remediation, is crucial for public health and regulatory compliance. Spending benchmarks vary widely based on project scope and complexity, but $309M over 15 years for a national agency like the EPA indicates a significant, long-term commitment to environmental stewardship.

Small Business Impact

The data indicates that small businesses were not primary awardees for this specific contract, as the awardee is SULTRAC, JV. Further analysis would be needed to determine if small business subcontracting opportunities were included or utilized.

Oversight & Accountability

The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Environmental Protection Agency to ensure cost control, performance, and adherence to contract terms. Tracking performance metrics and managing contractor incentives are key accountability measures.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns in CPFF contracts.
Long contract duration may not be optimal in a rapidly evolving field.
Need for detailed understanding of 'exclusion of sources' rationale.
Lack of explicit small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $309.2 million to SULTRAC, JV. A&E SERVICES

Who is the contractor on this award?

The obligated recipient is SULTRAC, JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $309.2 million.

What is the period of performance?

Start: 2006-06-29. End: 2021-06-28.

What specific environmental remediation services were procured under this contract, and how do they align with the EPA's strategic goals?

The contract, NAICS code 562910, covers Remediation Services. These likely include a range of activities such as hazardous waste site cleanup, soil and groundwater remediation, and demolition of contaminated structures. The EPA's strategic goals often involve addressing legacy pollution, protecting vulnerable communities from environmental hazards, and ensuring compliance with environmental laws like CERCLA (Superfund). This contract would directly support these objectives by funding the necessary technical expertise and labor for cleanup operations.

What was the rationale for excluding certain sources before the 'full and open competition' phase, and did this exclusion impact the final pricing?

The exclusion of sources prior to the 'full and open competition' phase typically occurs when specific capabilities, security clearances, or past performance are required that only a subset of potential contractors possess. The rationale is often to ensure that the competition is meaningful and involves only qualified bidders. While this can sometimes limit the pool, the subsequent 'full and open' phase suggests that among the qualified bidders, robust competition was achieved, likely mitigating significant negative impacts on price discovery.

How effectively did the Cost Plus Fixed Fee structure incentivize cost efficiency given the 15-year duration and $309M value?

Cost Plus Fixed Fee (CPFF) contracts aim to control costs by providing a fixed fee to the contractor regardless of the final cost, incentivizing them to manage expenses efficiently to maximize their profit margin. However, for long-duration, high-value contracts like this, the effectiveness hinges on the EPA's oversight. Robust monitoring of costs, clear performance metrics, and well-defined scope are crucial. Without strong oversight, CPFF can sometimes lead to scope creep or less aggressive cost management compared to fixed-price contracts.

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: PRR50510037

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 200 E RANDOLPH ST STE 4700, CHICAGO, IL, 60601

Business Categories: Category Business, Emerging Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $312,319,213

Exercised Options: $312,319,213

Current Obligation: $309,188,889

Actual Outlays: $-17,313

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline