EPA Awards $65.2M for Environmental Remediation Services to HDR, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $65,195,358 ($65.2M)
Contractor: Henningson, Durham & Richardson, P.C
Awarding Agency: Environmental Protection Agency
Start Date: 2009-03-05
End Date: 2021-03-04
Contract Duration: 4,382 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PROFESSIONAL ARCHITECT-ENGINEER, TECHNICAL AND MANAGEMENT SERVICES IN SUPPORT OF REMEDIAL RESPONSES, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES 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 OR HAZARDOUS SUBSTANCES UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980 (CERCLA) AND THE SUPERFUND AMENDMENTS AND REAUTHORIZATION ACT OF 1986 (SARA).
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10018
State: New York Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $65.2 million to HENNINGSON, DURHAM & RICHARDSON, P.C for work described as: PROFESSIONAL ARCHITECT-ENGINEER, TECHNICAL AND MANAGEMENT SERVICES IN SUPPORT OF REMEDIAL RESPONSES, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES TO HELP ADDRESS AND/OR MITIGATE ENDANGERMENT TO THE PUBLIC HEALTH, WELFARE OR ENVIRONMENT, AND TO SUPPORT STATES AND… Key points: 1. Contract awarded to Henningson, Durham & Richardson, P.C. (HDR) for critical environmental remediation and oversight services. 2. The contract spans over 12 years, indicating a long-term need for these specialized services. 3. Services support CERCLA and SARA, addressing public health and environmental endangerment. 4. The award was made under full and open competition, suggesting a robust market for these services.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar large-scale environmental remediation contracts is necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple qualified firms likely competed. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for essential environmental protection and public health initiatives, addressing long-term liabilities and risks associated with hazardous substances.
Public Impact
Protects public health and the environment by addressing hazardous substance releases. Supports state and community efforts in managing environmental emergencies. Ensures compliance with federal environmental laws like CERCLA and SARA. Contributes to the cleanup and mitigation of environmental contamination.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12 years) may present risks if project needs or technologies change significantly.
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
- Potential for scope creep given the broad nature of 'technical and management services'.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Supports critical environmental protection mandates.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically environmental consulting and remediation. Spending in this area is driven by regulatory requirements and the need to address legacy environmental issues.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's long duration and cost-plus nature necessitate robust oversight from the EPA to ensure cost control, performance, and adherence to environmental regulations.
Related Government Programs
- Remediation Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Long contract duration
- Cost Plus Fixed Fee contract type
- Potential for scope creep
- Complexity of environmental remediation projects
Tags
remediation-services, environmental-protection-agency, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $65.2 million to HENNINGSON, DURHAM & RICHARDSON, P.C. PROFESSIONAL ARCHITECT-ENGINEER, TECHNICAL AND MANAGEMENT SERVICES IN SUPPORT OF REMEDIAL RESPONSES, ENFORCEMENT OVERSIGHT AND NON-TIME CRITICAL REMOVAL ACTIVITIES 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 OR HAZARDOUS SUBSTANCES UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980 (CERCLA) AND THE SUPERFUND AMENDMENTS AND REAUTHORIZATION
Who is the contractor on this award?
The obligated recipient is HENNINGSON, DURHAM & RICHARDSON, P.C.
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $65.2 million.
What is the period of performance?
Start: 2009-03-05. End: 2021-03-04.
What is the typical cost structure for similar long-term environmental remediation contracts, and how does this contract's fixed fee compare?
Long-term environmental remediation contracts often utilize Cost Plus Fixed Fee (CPFF) or similar cost-reimbursement structures due to the inherent uncertainties in cleanup projects. Benchmarking the fixed fee requires detailed analysis of the scope of work, estimated direct costs, and profit margins typical for firms of HDR's size and expertise in the environmental sector. Without specific cost breakdowns, a precise comparison is difficult, but the $65.2M over 12 years suggests an average annual value of approximately $5.4M.
What are the key performance indicators (KPIs) used to measure the effectiveness of HDR's services under this contract?
Effectiveness is likely measured through adherence to project timelines, achievement of environmental cleanup standards, compliance with regulatory requirements (CERCLA, SARA), successful mitigation of public health and environmental risks, and accurate reporting. The EPA would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) goals and conduct regular performance reviews to ensure HDR meets contractual obligations and delivers the intended environmental protection outcomes.
What is the potential risk of cost escalation given the 12-year duration and CPFF contract type?
The primary risk of cost escalation stems from the CPFF structure and the extended duration. Unforeseen site conditions, changes in regulatory requirements, or inefficient project management can lead to increased costs. The fixed fee component provides some cost control, but the government bears the direct costs. Robust EPA oversight, clear task order definitions, and proactive risk management are crucial to mitigate these escalation risks over the contract's lifecycle.
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: HDR, Inc (UEI: 068668805)
Address: 500 7TH AVE, NEW YORK, NY, 10018
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $80,189,324
Exercised Options: $69,943,426
Current Obligation: $65,195,358
Actual Outlays: $0
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-03-05
Current End Date: 2021-03-04
Potential End Date: 2021-03-04 00:00:00
Last Modified: 2022-02-17
Other Environmental Protection Agency Contracts
- Remedial Action Contract 2 — $383.3M (CH2M Hill, Inc)
- A&E Services — $309.2M (Sultrac, JV)
- Federal Contract — $181.4M (Weston Solutions Inc)
- Central Data Exchange (CDX) Support Services — $160.9M (CGI Federal Inc.)
- 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 — $145.9M (CDM Federal Programs Corporation)