CDM Federal Programs Corp awarded $109.6M for Superfund site cleanup across NY, NJ, PR, and USVI

Contract Overview

Contract Amount: $109,562,407 ($109.6M)

Contractor: CDM Federal Programs Corp

Awarding Agency: Environmental Protection Agency

Start Date: 2008-12-22

End Date: 2020-12-21

Contract Duration: 4,382 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO PERFORM REMEDIAL ENVIRONMENTAL CLEAN UP OF SUPERFUND SITE IN NEW YORK, NEW JERSEY, PUERTO RICO AND THE VIRGIN ISLANDS.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10005

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $109.6 million to CDM FEDERAL PROGRAMS CORP for work described as: TO PERFORM REMEDIAL ENVIRONMENTAL CLEAN UP OF SUPERFUND SITE IN NEW YORK, NEW JERSEY, PUERTO RICO AND THE VIRGIN ISLANDS. Key points: 1. Contract value represents a significant investment in environmental remediation. 2. Full and open competition suggests a robust bidding process. 3. The contract duration of over 12 years indicates a long-term commitment to site cleanup. 4. The broad geographic scope covers multiple states and territories, requiring extensive logistical coordination. 5. The cost-plus-fixed-fee structure incentivizes efficient cost management while ensuring contractor compensation. 6. Remediation services are critical for public health and environmental protection.

Value Assessment

Rating: good

The contract value of $109.6 million for a 12-year environmental cleanup project appears reasonable given the scope and duration. Benchmarking against similar large-scale Superfund site remediation contracts would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure is common for complex projects where costs are difficult to predict, but it requires careful oversight to ensure efficiency and prevent cost overruns. The fixed fee component provides a degree of cost certainty for the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a competitive environment for this type of remediation work. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The agency's selection of CDM Federal Programs Corp from these bids implies they offered the best value based on technical merit and price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive marketplace, driving down prices and encouraging innovation among contractors. This ensures that taxpayer dollars are used efficiently for essential environmental services.

Public Impact

Residents and ecosystems in New York, New Jersey, Puerto Rico, and the U.S. Virgin Islands will benefit from the cleanup of hazardous Superfund sites. The contract delivers critical environmental remediation services, addressing long-standing pollution issues. The geographic impact is significant, covering multiple jurisdictions with diverse environmental challenges. The project likely supports a specialized workforce in environmental science, engineering, and hazardous waste management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) may present challenges in adapting to evolving environmental regulations or technologies.
Cost-plus-fixed-fee contracts require diligent oversight to manage potential cost escalations.
The broad geographic scope could lead to logistical complexities and increased administrative overhead.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
CDM Federal Programs Corp's experience in federal contracts suggests a level of established capability.
The contract addresses critical environmental protection needs, aligning with EPA's core mission.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This industry is driven by regulatory compliance, public health concerns, and corporate environmental responsibility. The market size for environmental remediation is substantial, with significant government spending allocated to cleaning up legacy pollution sites like Superfund locations. This contract represents a significant portion of spending within the remediation services category for the EPA.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements in the provided data, large federal contracts often include provisions for small business participation. The prime contractor, CDM Federal Programs Corp, may engage small businesses for specialized services, contributing to the small business ecosystem. Further review of the contract details would be needed to confirm subcontracting plans and their impact.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Oversight mechanisms likely include regular progress reports, site inspections, and financial reviews to ensure compliance with contract terms and environmental standards. The Inspector General's office within the EPA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is typically maintained through public reporting on Superfund site progress.

Related Government Programs

Superfund Program
Hazardous Waste Management
Environmental Consulting Services
Federal Remediation Contracts
Environmental Cleanup Projects

Risk Flags

Long contract duration may increase risk of unforeseen challenges.
Cost-plus-fixed-fee structure requires diligent oversight to control costs.
Broad geographic scope could lead to logistical complexities.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $109.6 million to CDM FEDERAL PROGRAMS CORP. TO PERFORM REMEDIAL ENVIRONMENTAL CLEAN UP OF SUPERFUND SITE IN NEW YORK, NEW JERSEY, PUERTO RICO AND THE VIRGIN ISLANDS.

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $109.6 million.

What is the period of performance?

Start: 2008-12-22. End: 2020-12-21.

What is CDM Federal Programs Corp's track record with similar large-scale environmental remediation contracts?

CDM Federal Programs Corp has a significant history of performing large-scale environmental remediation and consulting services for federal agencies, including the EPA. They have been involved in numerous Superfund site cleanups and other complex environmental projects across the United States. Their experience often includes managing multiple task orders, diverse remediation technologies, and extensive stakeholder coordination. Analyzing their past performance on contracts of similar size, scope, and duration would reveal their ability to manage complex projects, adhere to budgets, and meet performance requirements. Past performance evaluations and contract close-out reports for their previous federal contracts would provide valuable insights into their reliability and effectiveness in delivering environmental cleanup solutions.

How does the $109.6 million contract value compare to other Superfund site cleanups of similar complexity and duration?

The $109.6 million contract value for a 12-year Superfund site cleanup is substantial, reflecting the complexity and long-term nature of environmental remediation. To benchmark this value, one would compare it to other EPA contracts for Superfund sites involving similar types of contaminants (e.g., hazardous waste, industrial chemicals), geographic scale (multiple states/territories), and remediation technologies (e.g., excavation, in-situ treatment, containment). Contracts with similar durations and scopes can range from tens of millions to hundreds of millions of dollars, depending on the specific site conditions and cleanup goals. The cost-plus-fixed-fee structure also influences the total expenditure. A detailed analysis would involve examining the cost per year or cost per acre/volume remediated for comparable projects to assess if this contract represents a fair and reasonable price for the services rendered.

What are the primary risks associated with a 12-year environmental remediation contract, and how are they mitigated?

The primary risks associated with a 12-year environmental remediation contract include: 1) Unforeseen site conditions: Discovering additional contamination or encountering unexpected geological challenges can increase costs and extend timelines. Mitigation involves thorough site investigations and contingency planning. 2) Regulatory changes: Evolving environmental regulations could necessitate changes in cleanup methods or standards. Mitigation includes building flexibility into the contract and staying abreast of regulatory developments. 3) Technological obsolescence: Newer, more efficient remediation technologies might emerge during the contract period. Mitigation involves periodic reviews of technology options. 4) Contractor performance issues: The long duration increases the risk of performance degradation. Mitigation involves robust contract management, performance monitoring, and clear deliverables. 5) Cost overruns: Especially with CPFF contracts, managing costs over such a long period is challenging. Mitigation requires stringent financial oversight, audits, and value engineering.

How effective has the EPA been in managing long-term Superfund remediation contracts like this one?

The EPA has a long history of managing complex, multi-year Superfund remediation contracts. Their effectiveness is generally considered good, though challenges exist. The agency employs program managers, technical experts, and contracting officers to oversee these projects. Success is often measured by the number of sites cleaned up, the reduction in environmental risks, and the timely completion of remediation activities within budget. However, Superfund cleanups are inherently complex and can face delays due to litigation, funding issues, or technical difficulties. The EPA utilizes various oversight tools, including Independent Government Cost Estimates (IGCEs), regular progress reviews, and performance metrics, to ensure contractor accountability and project success. Inspector General reports and Government Accountability Office (GAO) audits provide external assessments of EPA's contract management effectiveness.

What has been the historical spending trend for environmental remediation services by the EPA?

The EPA's spending on environmental remediation services, particularly through the Superfund program, has been substantial and relatively consistent over the years, though subject to appropriations and administration priorities. Historically, the Superfund program has received significant funding, with annual allocations often in the range of $1 billion to $1.5 billion, a portion of which is dedicated to site-specific cleanup contracts. Spending fluctuates based on the number of active cleanup sites, the complexity of the work required, and the phase of remediation (investigation, design, construction, long-term monitoring). While specific figures vary annually, the overall trend indicates a sustained commitment to addressing hazardous waste sites, making environmental remediation a core and significant expenditure category for the EPA.

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: PRHQ0710525

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDM Federal Programs Corporation

Address: 125 MAIDEN LN 5 FL, NEW YORK, NY, 10038

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $135,543,171

Exercised Options: $116,425,620

Current Obligation: $109,562,407

Actual Outlays: $-79,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline