EPA's $68.4M Contract with CDM Federal Programs Corp for Environmental Services Under Full and Open Competition

Contract Overview

Contract Amount: $68,360,430 ($68.4M)

Contractor: CDM Federal Programs Corp

Awarding Agency: Environmental Protection Agency

Start Date: 2000-03-15

End Date: 2009-01-05

Contract Duration: 3,218 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $68.4 million to CDM FEDERAL PROGRAMS CORP for work described as: Key points: 1. Contract awarded for environmental services to CDM Federal Programs Corp. 2. Significant value of $68.4 million over its duration. 3. Procured under full and open competition, suggesting a competitive bidding process. 4. Contract type is Cost Plus Award Fee, which incentivizes performance. 5. The contract spanned nearly 9 years, indicating a long-term need.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can lead to higher costs if not managed effectively, as it allows for contractor profit and fees based on performance. Without specific benchmarks for similar environmental services contracts, it's difficult to definitively assess if $68.4 million over nearly 9 years represents optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to select the best value. This method suggests that multiple vendors had the opportunity to bid, potentially leading to a more favorable price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting efficiency and potentially lower costs through market forces, although the Cost Plus Award Fee structure requires careful oversight to ensure cost control.

Public Impact

Environmental protection services are crucial for public health and regulatory compliance. Long-term contracts can ensure continuity of essential government functions. The use of award fees suggests a focus on contractor performance and achieving specific environmental outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require robust oversight to prevent cost overruns.
The long duration of the contract could mask inefficiencies if not regularly reviewed.
Lack of specific performance metrics makes it hard to gauge true value for money.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract type incentivizes contractor performance through award fees.
The contract supported essential environmental services for the EPA.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental consulting and remediation. Spending in this sector is driven by regulatory requirements and the need for specialized expertise in areas like pollution control and environmental impact assessments.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Full and open competition does not inherently guarantee small business participation, and specific outreach or set-aside programs would be needed to ensure their involvement.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates strong government oversight to ensure that award fees are justified by performance and that costs remain reasonable. Regular reviews of contractor performance and expenditures are critical for accountability.

Related Government Programs

Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Lack of specific performance data makes value assessment difficult.
Long contract duration requires continuous oversight to ensure relevance and efficiency.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $68.4 million to CDM FEDERAL PROGRAMS CORP. See the official description on USAspending.

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 $68.4 million.

What is the period of performance?

Start: 2000-03-15. End: 2009-01-05.

How did the performance metrics and award fee structure effectively drive cost efficiency and superior environmental outcomes for the EPA?

The effectiveness of the award fee structure hinges on clearly defined performance metrics directly tied to desired environmental outcomes and cost control. Without access to the specific award criteria and the contractor's performance history against these metrics, it's challenging to ascertain if the structure truly optimized value or simply increased costs through fees without commensurate improvements in service delivery or environmental impact.

What were the key environmental challenges addressed by this contract, and how did the chosen procurement method ensure the best solution was selected?

This contract likely addressed a range of environmental challenges managed by the EPA, such as regulatory compliance support, site assessment, remediation oversight, or data management. Full and open competition allowed multiple firms to propose solutions, theoretically enabling the EPA to select the vendor offering the most suitable technical approach and best overall value, rather than being limited to a pre-selected group.

Considering the contract's duration and cost, what is the long-term impact on the EPA's budget and its ability to achieve its environmental mission?

A nearly nine-year contract valued at $68.4 million represents a significant, long-term commitment. While it ensured continuity of services, the Cost Plus Award Fee nature requires diligent management to prevent budget creep. The ultimate impact depends on whether the services rendered were essential, cost-effective over time, and demonstrably contributed to the EPA's core mission of protecting human health and the environment.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: CDM Smith Inc. (UEI: 055990261)

Address: 125 MAIDEN LANE, NEW YORK, NY, 90

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

Financial Breakdown

Contract Ceiling: $-3,379

Exercised Options: $24,446,858

Current Obligation: $68,360,430

Timeline