EPA's $145.8M Remedial Action Contract for Region 8 supported environmental cleanup and disaster response over 15 years

Contract Overview

Contract Amount: $145,863,709 ($145.9M)

Contractor: CDM Federal Programs Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2005-10-01

End Date: 2020-11-24

Contract Duration: 5,533 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS REMEDIAL ACTION CONTRACT 2 FULL SERVICE (RAC 2 FS) FOR EPA'S REGION 8 PROVIDES PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL, AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES UNDER CERCLA, AS AMENDED BY SARA; AND THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT PURSUANT TO THE FEDERAL RESPONSE PLAN (FRP) AND OTHER LAWS TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HEALTH, WELFARE OR ENVIRONMENT, AND TO SUPPORT STATES AND COMMUNITIES IN PREPARING FOR RESPONSES TO RELEASES OF HAZARDOUS SUBSTANCES, AS WELL AS COUNTER-TERRORISM.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $145.9 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: THIS REMEDIAL ACTION CONTRACT 2 FULL SERVICE (RAC 2 FS) FOR EPA'S REGION 8 PROVIDES PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL, AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES UNDER CERCLA, AS AMENDED BY SARA; … Key points: 1. Contract provided comprehensive support for environmental remediation and disaster response activities, indicating a broad scope of services. 2. The contract's long duration (over 15 years) suggests a sustained need for these specialized services within EPA Region 8. 3. Services encompassed remedial response, enforcement oversight, and non-time-critical removal activities, highlighting critical environmental protection functions. 4. The contract's structure as a Cost Plus Fixed Fee (CPFF) allows for flexibility but requires careful oversight to manage costs. 5. The use of a definitive contract indicates a specific, long-term requirement rather than a series of smaller, ad-hoc needs. 6. The contract supported activities under CERCLA and the Stafford Act, demonstrating its role in both routine environmental cleanup and emergency response.

Value Assessment

Rating: good

The total award amount of $145.8 million over approximately 15 years suggests a significant investment in environmental services. Benchmarking this against similar large-scale, long-term remedial action contracts would provide a clearer picture of value. The CPFF structure, while common for complex services, necessitates robust cost tracking and justification to ensure fair pricing and prevent cost overruns. Without specific comparable contract data, it's difficult to definitively assess if the pricing was optimal, but the duration and scope imply a substantial, ongoing need that was met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it was competed suggests a competitive marketplace for these types of environmental remediation and technical services. The number of bidders (4) is a reasonable number for a complex, large-scale contract, suggesting sufficient competition to drive price discovery and service quality.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are communities within EPA Region 8 impacted by hazardous substance releases or requiring disaster response assistance. Services delivered include critical environmental cleanup, monitoring, and technical support to mitigate public health and environmental risks. The geographic impact is focused on EPA Region 8, which covers Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. The contract supports the EPA's mission to protect human health and the environment, contributing to safer communities and ecosystems. Workforce implications include employment for technical experts, engineers, scientists, and project managers involved in environmental services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fixed fee if not properly managed.
The long duration of the contract (over 15 years) may indicate a lack of smaller, more agile contract vehicles for specific needs.
Potential for scope creep in complex environmental projects requires diligent oversight to control costs and maintain focus.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract addresses critical environmental protection and disaster response needs, aligning with core government functions.
The broad scope of services indicates a comprehensive approach to managing environmental challenges within the region.

Sector Analysis

The environmental services sector is characterized by a mix of large, established firms and smaller specialized companies. This contract falls within the remediation services sub-sector, which is driven by regulatory compliance (like CERCLA) and emergency response needs. The market size for environmental consulting and remediation services is substantial, with significant government spending driven by federal mandates. This contract represents a significant portion of EPA's spending in Region 8 for these specific services over its lifespan.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor, CDM Federal Programs Corporation, is likely a large business, the contract may have provided subcontracting opportunities for small businesses. Analysis of subcontracting reports would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the Environmental Protection Agency (EPA), specifically within Region 8. As a Cost Plus Fixed Fee contract, rigorous financial oversight, progress reporting, and performance reviews would be essential to ensure accountability and prevent cost overruns. The Federal Acquisition Regulation (FAR) provides the framework for such oversight, and the contract likely included specific reporting requirements and audit rights for the government.

Related Government Programs

Superfund Remedial Program
Emergency Response Programs
Environmental Consulting Services
Disaster Recovery Contracts
Architect-Engineer Services

Risk Flags

Cost Overrun Potential (CPFF structure)
Schedule Delay Risk (complex environmental work)
Performance Quality Risk (technical services)
Long-term Contract Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $145.9 million to CDM FEDERAL PROGRAMS CORPORATION. THIS REMEDIAL ACTION CONTRACT 2 FULL SERVICE (RAC 2 FS) FOR EPA'S REGION 8 PROVIDES PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL, AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES UNDER CERCLA, AS AMENDED BY SARA; AND THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT PURSUANT TO THE FEDERAL RESPONSE PLAN (FRP) AND OTHER LAWS TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HEALTH, WELFARE OR ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $145.9 million.

What is the period of performance?

Start: 2005-10-01. End: 2020-11-24.

What was the contractor's track record prior to and during this contract?

CDM Federal Programs Corporation (now part of AECOM) has a long history of providing environmental, engineering, and construction services to government agencies, including the EPA. Their track record generally includes managing large-scale, complex environmental projects. For this specific contract, performance would have been evaluated by the EPA based on adherence to project timelines, budget management, quality of technical services, and compliance with regulatory requirements. While specific performance reviews are not publicly detailed in the provided data, the contract's renewal and long duration suggest satisfactory performance. However, like any large contract, there could have been instances of performance issues or disputes that were resolved through contract modifications or negotiations.

How does the total contract value compare to similar EPA remediation contracts?

The total award of approximately $145.8 million over 15 years equates to an average annual value of roughly $9.7 million. This figure is substantial but needs to be contextualized within the scope and complexity of EPA's Superfund and disaster response activities in Region 8. Large, comprehensive remedial action contracts can range from tens to hundreds of millions of dollars, depending on the number and scale of sites, the types of remediation required, and the duration. Without direct comparisons to contracts of identical scope and duration within the same EPA region or for similar types of environmental hazards, it's challenging to definitively benchmark this value. However, the sustained funding over a long period indicates it was a significant and necessary program for the EPA.

What were the primary risks associated with this contract and how were they managed?

Key risks for this contract included potential cost overruns due to the unpredictable nature of environmental remediation (e.g., encountering unforeseen contamination), schedule delays caused by technical challenges or regulatory hurdles, and performance risks related to the quality of technical services. The Cost Plus Fixed Fee (CPFF) structure itself carries a risk of contractor incentive to increase costs. Risk management would have involved robust project planning, detailed cost estimation, contingency planning, regular progress monitoring, independent technical reviews, and strong contract administration by the EPA. The long duration also presented risks related to changing environmental regulations or technological advancements, requiring flexibility and adaptive management.

How effective was this contract in achieving EPA's environmental protection goals in Region 8?

The effectiveness of this contract is directly tied to the EPA's success in addressing environmental hazards and responding to disasters within Region 8. By providing essential technical, engineering, and management services, the contract enabled the EPA to execute its mandates under CERCLA and the Stafford Act. This likely resulted in the cleanup of contaminated sites, mitigation of environmental threats, and support for communities affected by disasters. Quantifying effectiveness would require analyzing specific site remediation outcomes, reduction in environmental risks, and successful disaster response operations supported by the contract. The sustained need and long-term nature of the contract suggest it was instrumental in achieving these goals.

What were historical spending patterns for similar remediation services by EPA Region 8?

Historical spending patterns for EPA Region 8 on remediation services would likely show a consistent need for such contracts, driven by the presence of numerous Superfund sites and the region's susceptibility to natural disasters. Prior to this RAC 2 FS contract, EPA would have utilized other contract vehicles, potentially including older Remedial Action Contracts (RACs), task orders under broader environmental services contracts, or specific emergency response contracts. The trend would likely indicate a significant and ongoing allocation of resources towards environmental cleanup and preparedness. The evolution from previous contract structures to this comprehensive RAC 2 FS suggests a move towards consolidating and streamlining these essential services.

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

Solicitation ID: PRHQ0410886

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1331 17TH STREET, DENVER, CO, 80202

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $373,726,412

Exercised Options: $294,185,649

Current Obligation: $145,863,709

Actual Outlays: $868,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline