BLACK & VEATCH CORPORATION awarded $87.5M EPA contract over 10 years for environmental services

Contract Overview

Contract Amount: $87,531,818 ($87.5M)

Contractor: Black & Veatch Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 1999-12-15

End Date: 2009-12-15

Contract Duration: 3,653 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: ALPHARETTA, FULTON County, GEORGIA, 30004

State: Georgia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $87.5 million to BLACK & VEATCH CORPORATION for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Award Fee, incentivizes performance but requires careful oversight. 3. A 10-year duration indicates a long-term need for these environmental services. 4. The contract was awarded to a single entity, BLACK & VEATCH CORPORATION. 5. The contract was awarded by the Environmental Protection Agency (EPA). 6. The contract was awarded under the 'GA' (Georgia) state code.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can lead to costs exceeding initial estimates if not managed tightly. Benchmarking this specific $87.5 million over 10 years against similar long-term EPA environmental service contracts is challenging without more granular data on the scope of work. However, the extended duration suggests a significant and ongoing need, potentially justifying the investment if performance metrics are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bids (no: 2) suggests a moderate level of competition for this specific contract.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices through a bidding process.

Public Impact

The primary beneficiaries are likely the Environmental Protection Agency and the public through improved environmental services. Services delivered would pertain to environmental protection and remediation efforts within the EPA's purview. The geographic impact is indicated as Georgia (GA), suggesting services were focused in that region. The contract likely supported a workforce of environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize cost overruns if award criteria are not strictly defined and monitored.
The long 10-year duration may present risks if environmental needs or technological solutions change significantly over time.
Limited competition (2 bidders) might suggest a specialized market, potentially impacting long-term cost-effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Cost Plus Award Fee structure, if managed well, can drive high performance and quality.
The long-term nature of the contract suggests a stable and reliable provider for critical environmental services.

Sector Analysis

This contract falls within the environmental consulting and services sector, a critical area for government agencies like the EPA. The market for environmental services is substantial, encompassing remediation, compliance, monitoring, and engineering. This contract represents a significant investment by the EPA in ensuring environmental quality and regulatory adherence, likely within a specific geographic focus.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses (sb: false). Therefore, the primary contractor, BLACK & VEATCH CORPORATION, is likely a large business. Subcontracting opportunities for small businesses may exist, but this would depend on the contractor's subcontracting plan and the nature of the services required.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates robust oversight from the EPA to ensure that costs are reasonable and that award fees are justified by performance. Transparency would be enhanced by public reporting of performance metrics and awarded fees. Inspector General jurisdiction would apply to investigate potential fraud, waste, or abuse.

Related Government Programs

EPA Environmental Services Contracts
Environmental Consulting Services
Cost-Plus Contracts
Long-Term Government Contracts

Risk Flags

Long contract duration may pose risks due to potential changes in environmental regulations or technology.
Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
Limited competition (2 bidders) could potentially impact price competitiveness over the contract's life.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $87.5 million to BLACK & VEATCH CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BLACK & VEATCH CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $87.5 million.

What is the period of performance?

Start: 1999-12-15. End: 2009-12-15.

What specific environmental services were provided under this contract?

While the data provided does not detail the specific services, contracts of this nature with the EPA typically encompass a broad range of environmental support. This could include environmental assessments, site investigations, remediation design and oversight, compliance monitoring, hazardous waste management, pollution control engineering, and technical assistance related to environmental regulations. The 'GA' designation suggests these services were likely concentrated within the state of Georgia, potentially addressing regional environmental challenges or EPA initiatives in that area.

How does the $87.5 million cost compare to similar EPA contracts over a 10-year period?

Directly comparing the $87.5 million total award value over 10 years ($8.75 million annually) to similar EPA contracts requires access to a comprehensive database of historical EPA procurements with detailed scope of work. Environmental services vary widely in cost based on complexity, location, and specific requirements (e.g., superfund site remediation vs. routine compliance monitoring). However, for a 10-year engagement, this figure suggests a substantial, ongoing program rather than a small, short-term project. Without more specific service details, a precise benchmark is difficult, but it represents a significant commitment by the EPA.

What are the primary risks associated with a Cost Plus Award Fee contract of this duration?

The primary risks with a Cost Plus Award Fee (CPAF) contract, especially one spanning 10 years, revolve around cost control and performance alignment. For the government, the risk is that costs could escalate beyond initial projections if the award fee criteria are not sufficiently stringent or if contractor performance is not meticulously monitored. The contractor faces the risk of not achieving the performance targets necessary to earn the full award fee. Over a decade, there's also the risk of technological obsolescence or shifts in environmental priorities, which could make the contracted services less relevant or efficient if the contract isn't adaptable.

What was the track record of BLACK & VEATCH CORPORATION with the EPA prior to this award?

The provided data does not include information on BLACK & VEATCH CORPORATION's prior contract history with the EPA. A thorough analysis would require searching federal procurement databases (like FPDS or USASpending) for previous awards to this contractor from the EPA. This would help assess their past performance, reliability, and experience in delivering similar environmental services, providing context for the $87.5 million award.

How does the competition level (2 bidders) impact the value for taxpayers?

A competition level of two bidders suggests a moderately competitive environment. While more bidders generally lead to greater price pressure and potentially better value, two bidders still provide a basis for comparison and negotiation. If these two bidders were highly qualified and submitted competitive proposals, the value for taxpayers could still be considered good. However, a lower number of bidders can sometimes indicate barriers to entry, specialized requirements, or a concentrated market, which might limit the ultimate price reduction achievable compared to a scenario with numerous competitors.

What are the implications of the 'GA' state code on this contract?

The 'GA' state code likely signifies that the contract's primary place of performance or the geographic focus of the environmental services was within the state of Georgia. This could relate to specific EPA initiatives, regional environmental concerns, or the location of facilities managed or regulated by the EPA within Georgia. It implies that the benefits of the contract, such as job creation or service delivery, would be most directly felt within that state.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1145 SANCTUARY PKWY # 475, ALPHARETTA, GA, 30004

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $82,856,494

Exercised Options: $147,836,893

Current Obligation: $87,531,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline