EPA awards $62.3M contract for environmental remediation and response services to Pacific Western Technologies

Contract Overview

Contract Amount: $62,346,524 ($62.3M)

Contractor: Pacific Western Technologies, Ltd.

Awarding Agency: Environmental Protection Agency

Start Date: 2006-01-13

End Date: 2021-01-12

Contract Duration: 5,478 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HELATH, WELFARE OR ENVIRONMENT, AND TO SUPPORT STATES AND COMMUNITIES IN PREPARING FOR RESPONSES TO RELEASES OR HAZARDOUS SUBSTANCES, AS WELL AS COUNTER TERRORISM.

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80215

State: Colorado Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $62.3 million to PACIFIC WESTERN TECHNOLOGIES, LTD. for work described as: PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HELATH, WELFARE OR ENVIRONMENT, AND TO SUPPORT STATES AND COM… Key points: 1. Contract provides critical support for environmental cleanup and public health protection. 2. Services encompass remedial response, enforcement oversight, and hazardous substance mitigation. 3. The contract duration spans over 15 years, indicating long-term program needs. 4. Awarded through full and open competition, suggesting a robust bidding process. 5. The contractor, Pacific Western Technologies, has a significant role in environmental services. 6. Funding supports states and communities in preparing for and responding to hazardous releases.

Value Assessment

Rating: good

The contract's value of $62.3 million over its 15-year duration suggests a substantial investment in environmental protection. Benchmarking against similar large-scale environmental remediation contracts is challenging due to the unique scope and duration. However, the cost-plus-fixed-fee (CPFF) pricing structure implies that while direct costs are reimbursed, the contractor's profit is fixed, which can incentivize efficiency. The total award amount appears reasonable given the complexity and long-term nature of the services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple potential bidders were considered and allowed to compete. While the specific number of bidders is not detailed, this procurement method generally fosters competitive pricing and encourages a wide range of qualified contractors to submit proposals. The competitive nature of the award process is a positive sign for price discovery and value for taxpayer money.

Taxpayer Impact: A competitive bidding process helps ensure that the government secures services at the best possible price, maximizing the value of taxpayer funds allocated to environmental protection and response efforts.

Public Impact

The public benefits from enhanced environmental safety and reduced health risks associated with hazardous substances. Services delivered include critical cleanup operations, oversight of enforcement actions, and emergency preparedness. The geographic impact is broad, supporting states and communities nationwide in managing environmental threats. Workforce implications include employment opportunities for environmental scientists, engineers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 15 years) could lead to cost overruns if not managed tightly.
Cost-plus-fixed-fee contracts can sometimes incentivize higher spending if cost controls are weak.
Reliance on a single contractor for such a critical and long-term service raises potential dependency risks.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The contractor has a long-standing contract, suggesting a track record of performance and reliability.
The contract's scope directly addresses public health and environmental safety, a high-priority government function.

Sector Analysis

The environmental remediation and technical services sector is a significant part of the government contracting landscape, driven by regulatory requirements and ongoing environmental challenges. This contract falls within the broader environmental consulting and engineering services market, which includes companies specializing in hazardous waste management, site cleanup, and regulatory compliance. Spending in this sector is often influenced by Superfund sites, disaster recovery efforts, and ongoing environmental monitoring mandates. Comparable spending benchmarks would typically involve analyzing other large, multi-year contracts awarded by agencies like the EPA or Department of Defense for similar environmental support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Pacific Western Technologies, Ltd. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem through this specific contract appears minimal, though the contractor may engage small businesses as subcontractors in their broader operations.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. As a cost-plus-fixed-fee contract, oversight would focus on ensuring that costs incurred are reasonable and allocable to the contract, and that the fixed fee is earned through satisfactory performance. The EPA's program offices and potentially its Office of Inspector General (OIG) would be involved in monitoring performance, compliance, and financial expenditures to ensure accountability and transparency.

Related Government Programs

Superfund Program
Emergency Response
Hazardous Waste Management
Environmental Compliance
State and Local Assistance Programs

Risk Flags

Long contract duration may increase risk of cost overruns.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs.
Potential for contractor performance issues over an extended period.
Lack of explicit small business subcontracting goals noted.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $62.3 million to PACIFIC WESTERN TECHNOLOGIES, LTD.. PROFESSIONAL ARCHITECT/ENGINEER, TECHNICAL AND MANAGEMENT SERVICES TO SUPPORT REMEDIAL RESPONSE, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HELATH, WELFARE OR ENVIRONMENT, AND TO SUPPORT STATES AND COMMUNITIES IN PREPARING FOR RESPONSES TO RELEASES OR HAZARDOUS SUBSTANCES, AS WELL AS COUNTER TERRORISM.

Who is the contractor on this award?

The obligated recipient is PACIFIC WESTERN TECHNOLOGIES, LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $62.3 million.

What is the period of performance?

Start: 2006-01-13. End: 2021-01-12.

What is the historical spending trend for this specific contract or similar services provided by Pacific Western Technologies to the EPA?

Analyzing historical spending for this specific contract requires access to detailed award data over its entire duration (2006-2021). Given the $62.3 million total award and a duration of over 15 years, the average annual spending would be approximately $4 million. Without granular data on task orders or annual expenditures, it's difficult to ascertain spending trends (e.g., increasing, decreasing, or stable). However, the consistent funding over a long period suggests a sustained need for these services. For comparison, other large EPA environmental support contracts can range from tens to hundreds of millions of dollars annually, depending on the scope and number of sites managed.

How does the pricing structure (Cost Plus Fixed Fee) compare to other environmental remediation contracts awarded by the EPA?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, long-term environmental services where the scope may evolve, and direct costs are difficult to predict precisely. This structure reimburses the contractor for allowable costs and pays a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility but requires robust oversight to control costs. Other EPA contracts might use fixed-price for well-defined tasks or Cost Plus Incentive Fee (CPIF) to incentivize performance targets. The suitability of CPFF depends on the predictability of the work; for extensive remediation and response, it's often a pragmatic choice, though it necessitates strong government cost-reimbursement controls.

What are the key performance indicators (KPIs) used to evaluate Pacific Western Technologies' performance under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for environmental remediation and technical services contracts include adherence to project timelines, quality of technical reports and analyses, effectiveness of cleanup actions, compliance with environmental regulations, safety performance (e.g., incident rates), and responsiveness to EPA directives. For a contract supporting remedial response and enforcement oversight, KPIs would likely focus on the successful mitigation of environmental hazards, timely completion of site assessments, accuracy of cost reporting, and overall contribution to achieving environmental protection goals. The EPA's contract officers and technical representatives would monitor these metrics throughout the contract's life.

What is the potential risk associated with the long duration of this contract (over 15 years)?

The primary risk associated with a contract spanning over 15 years is the potential for cost escalation beyond initial estimates due to unforeseen circumstances, inflation, or changes in regulatory requirements. There's also a risk of contractor performance degradation over time or a lack of incentive to innovate if the fixed fee remains static. Furthermore, long-term reliance on a single contractor can reduce flexibility and potentially lead to vendor lock-in. Effective risk mitigation involves regular performance reviews, contract modifications for scope changes, robust cost tracking, and potentially incorporating mechanisms for periodic price adjustments or performance-based incentives.

How does this contract contribute to the EPA's overall mission and strategic goals?

This contract directly supports the EPA's core mission of protecting human health and the environment. By providing essential technical and management services for remedial response and enforcement oversight, it enables the agency to address contaminated sites, mitigate environmental risks, and ensure compliance with environmental laws. The support for states and communities in preparing for and responding to hazardous substance releases enhances national resilience and preparedness. Ultimately, this contract is a critical tool for the EPA to fulfill its statutory obligations and achieve its strategic objectives related to environmental cleanup, pollution prevention, and public health safeguarding.

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: PRHQ0411611

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 605 PARFET ST STE 200, LAKEWOOD, CO, 80215

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $62,346,524

Exercised Options: $62,346,524

Current Obligation: $62,346,524

Actual Outlays: $19,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline