EPA awarded CH2M HILL INC a $80.8M contract for environmental services, spanning nearly 7 years

Contract Overview

Contract Amount: $80,776,035 ($80.8M)

Contractor: CH2M Hill Inc

Awarding Agency: Environmental Protection Agency

Start Date: 1999-12-15

End Date: 2006-12-29

Contract Duration: 2,571 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53214

State: Wisconsin Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $80.8 million to CH2M HILL INC for work described as: Key points: 1. The contract's cost-plus award fee structure incentivizes performance but requires careful monitoring of costs. 2. With a full and open competition, the agency likely secured competitive pricing. 3. The contract duration of over 7 years suggests a long-term need for these environmental services. 4. The award was made by the EPA's Environmental Protection Agency, indicating internal agency expertise. 5. The contract's value of $80.8M over its term places it as a significant environmental services award. 6. The 'WI' contract type suggests a specific type of service or project, warranting further investigation into its scope.

Value Assessment

Rating: good

The contract value of approximately $80.8 million over nearly seven years averages to about $11.5 million annually. Without specific benchmarks for similar environmental remediation or consulting contracts from the EPA, a direct value-for-money assessment is challenging. However, the cost-plus award fee structure implies that the contractor's fee is tied to performance, which can be a positive indicator for achieving desired outcomes. Further analysis would require comparing the scope of work and deliverables to other EPA contracts of similar size and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the EPA solicited bids from all responsible sources. This process typically involves a robust solicitation and evaluation period, aiming to maximize competition and achieve the best value for the government. The fact that it was fully competed suggests that multiple bidders likely vied for this contract, which is a positive sign for price discovery and ensuring a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to more cost-effective service delivery.

Public Impact

The primary beneficiaries are likely federal agencies requiring environmental consulting and remediation services, particularly those managed by the EPA. The services delivered would encompass a range of environmental protection activities, potentially including site assessment, cleanup, and regulatory compliance. The geographic impact is indicated by 'WI' in the contract type, possibly signifying a focus on Wisconsin or a specific type of work within that region. The contract would support a workforce of environmental scientists, engineers, project managers, and technicians employed by CH2M HILL INC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus award fee structure, while performance-incentivized, can lead to cost overruns if not rigorously managed and audited.
The long contract duration (nearly 7 years) increases the risk of scope creep or changing environmental regulations impacting project costs and timelines.
Without detailed performance metrics, it's difficult to ascertain if the 'award fee' component truly reflects exceptional value or merely satisfactory performance.
The specific nature of 'WI' in the contract type is unclear and could represent a risk if it deviates from standard environmental services.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that likely secured favorable pricing.
The cost-plus award fee structure, if managed effectively, can drive high performance and successful project outcomes.
CH2M HILL INC is a known entity in the engineering and environmental services sector, implying a level of established capability.
The contract's significant value indicates a substantial need and commitment from the EPA for these services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental consulting and remediation. The market for such services is substantial, driven by regulatory requirements and the need for managing environmental liabilities. Comparable spending benchmarks would involve looking at other large-scale environmental contracts awarded by federal agencies like the EPA, Department of Defense, and Department of the Interior. The size of this $80.8 million award suggests it is a significant project within this sector.

Small Business Impact

The data provided does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a full and open competition, it's possible that opportunities for small businesses could arise through subcontracting by the prime contractor, CH2M HILL INC. However, without explicit provisions, the direct impact on the small business ecosystem is uncertain and would depend on the prime's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), likely through designated contracting officers and program managers. Accountability measures would be embedded in the cost-plus award fee structure, linking contractor compensation to performance. Transparency would be facilitated through contract reporting requirements and public contract databases, although the specific details of performance and cost may be subject to proprietary considerations. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

EPA Superfund Program
Environmental Consulting Services
Hazardous Waste Management Contracts
Federal Environmental Remediation Projects
Cost-Plus Contract Types

Risk Flags

Contract Duration
Cost-Plus Award Fee Structure
Unclear Contract Type Designation ('WI')

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $80.8 million to CH2M HILL INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CH2M HILL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $80.8 million.

What is the period of performance?

Start: 1999-12-15. End: 2006-12-29.

What specific environmental services were covered under this $80.8 million contract awarded to CH2M HILL INC?

The provided data does not detail the specific environmental services. However, given the contractor's expertise and the awarding agency (EPA), the services likely encompassed a broad range of environmental consulting and remediation activities. This could include site investigations, feasibility studies, remedial design, construction management for cleanup actions, environmental compliance support, and potentially operations and maintenance of remediation systems. The 'WI' designation in the contract type might offer a clue, possibly relating to a specific type of work (e.g., Waste Incineration, Water Infrastructure) or a geographic focus within Wisconsin, but further information would be needed for confirmation.

How does the $80.8 million contract value compare to other EPA environmental services contracts of similar duration?

Comparing the $80.8 million contract value over its nearly 7-year duration (approximately $11.5 million annually) requires access to a benchmark of similar EPA contracts. Without specific comparative data, it's difficult to definitively state if this represents high, low, or average spending. However, for large-scale environmental remediation and consulting projects, this value is substantial, suggesting a significant scope of work or a critical environmental challenge being addressed. A thorough comparison would involve analyzing contracts with similar service descriptions, contract types (like Cost Plus Award Fee), and awarded over comparable timeframes.

What are the primary risks associated with the 'Cost Plus Award Fee' (CPAF) contract type used for this award?

The primary risks associated with a CPAF contract type are twofold. Firstly, there's the risk of cost growth, as the contractor is reimbursed for allowable costs. While the 'award fee' component incentivizes performance, it doesn't inherently cap the total cost. Effective oversight and robust auditing are crucial to ensure costs are reasonable and allocable. Secondly, there's the risk associated with defining and measuring 'performance' for the award fee. If the criteria are subjective or poorly defined, it could lead to disputes or the contractor receiving higher fees than warranted for merely adequate performance. Conversely, well-defined criteria can drive excellent results.

What does the 'full and open competition' designation imply about the contractor selection process and potential value for taxpayers?

The 'full and open competition' designation signifies that the EPA solicited proposals from all responsible sources, allowing for the widest possible range of potential contractors to compete. This process typically involves a formal solicitation (e.g., Request for Proposals), evaluation of technical and cost proposals, and selection of the offeror providing the best value to the government. For taxpayers, this generally implies a more competitive environment, which tends to drive down prices and encourage innovation, leading to potentially better value and more efficient use of public funds compared to sole-source or limited competition awards.

What is the historical spending pattern for CH2M HILL INC with the Environmental Protection Agency?

The provided data only includes details for this single $80.8 million contract awarded in 1999. To assess historical spending patterns for CH2M HILL INC with the EPA, one would need to query federal procurement databases (like USASpending.gov) for all contracts awarded to this entity by the EPA across all years. This would reveal the total volume of business, the types of services procured, the duration and value of past contracts, and potentially identify trends in their engagement with the agency. Without this broader dataset, only the specifics of this one award can be analyzed.

What is the significance of the contract duration of 2571 days (approximately 7 years)?

A contract duration of approximately 7 years (2571 days) is quite substantial and suggests a long-term, ongoing need for the services being procured. For the EPA, this could indicate a multi-year environmental remediation effort at a specific site, a long-term monitoring program, or a sustained need for environmental consulting support across various agency initiatives. Such long durations often imply complex projects that cannot be completed within shorter timeframes and may involve significant planning, execution, and oversight phases. It also allows for greater stability for the contractor and potentially better economies of scale over the contract's life.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 411 E WISCONSIN BLDG, MILWAUKEE

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,379,198

Exercised Options: $42,185,856

Current Obligation: $80,776,035

Timeline