STG LLC awarded $35.2M EPA contract for environmental services, spanning over 5 years

Contract Overview

Contract Amount: $35,262,110 ($35.3M)

Contractor: STG LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2001-01-15

End Date: 2006-03-31

Contract Duration: 1,901 days

Daily Burn Rate: $18.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20460

State: District of Columbia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $35.3 million to STG LLC for work described as: Key points: 1. Contract value appears reasonable given the extensive duration and scope of environmental services. 2. Limited competition dynamics may have influenced final pricing. 3. Long contract duration presents potential for cost overruns or scope creep. 4. Performance context is critical to assess value delivered over the contract's lifespan. 5. This contract positions STG LLC as a key provider for EPA environmental support. 6. The cost-plus award fee structure incentivizes performance but requires robust oversight.

Value Assessment

Rating: fair

The contract's total value of $35.2 million over approximately 5 years suggests an average annual spend of around $7 million. Benchmarking this against similar large-scale environmental service contracts awarded by the EPA or other federal agencies would be necessary for a definitive value assessment. The cost-plus award fee (CPAF) structure means the final price is influenced by performance, making direct price comparisons challenging without detailed performance metrics. However, the duration and the nature of environmental services often command significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (NAF) justification, indicating a sole-source procurement. This means only one vendor, STG LLC, was solicited. While NAF awards can be justified for specialized services or urgent needs, they inherently limit price discovery and potentially lead to higher costs compared to fully competed contracts. The absence of multiple bidders means there was no direct competitive pressure to drive down the price.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, potentially resulting in a higher overall cost for the services rendered.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving critical environmental support services. Services likely include a range of environmental consulting, technical assistance, and program support. The contract's geographic impact is likely national, supporting EPA's nationwide environmental initiatives. Workforce implications include employment opportunities for environmental scientists, engineers, and support staff within STG LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Long contract duration (over 5 years) increases risk of cost escalation and scope creep.
Cost-plus award fee structure requires diligent oversight to ensure fair pricing and prevent overcharging.
Lack of transparency in NAF justifications can obscure the true necessity of sole-sourcing.
Contract performance data is not readily available to assess the value for money achieved.

Positive Signals

STG LLC has secured a significant contract, indicating a level of trust and capability recognized by the EPA.
The CPAF structure, if managed well, can incentivize high-quality performance and efficient service delivery.
The long duration allows for continuity of essential environmental services, ensuring ongoing support for EPA missions.
The contract supports specialized environmental expertise, contributing to the government's capacity in this critical field.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental consulting and support. The federal government is a major consumer of such services to meet regulatory requirements, manage environmental programs, and address complex ecological challenges. The market for environmental services is substantial, with numerous firms competing for federal contracts. However, specialized niches or existing relationships can lead to sole-source awards, as seen here.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. As this was a sole-source award, it is unlikely that small business participation was a primary consideration during the solicitation phase, unless mandated by specific exceptions or prior agreements. Further investigation would be needed to determine if STG LLC has any subcontracting obligations to small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers at the Environmental Protection Agency. The Cost-Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to justify award fees. Transparency regarding performance metrics and fee determination is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

EPA Environmental Consulting Services
Federal Environmental Remediation Contracts
Scientific and Technical Support Services
Government-wide Acquisition Contracts (GWACs) for professional services

Risk Flags

Sole-source award may limit price competition.
Long contract duration increases risk.
Cost-plus structure requires diligent oversight.
Lack of detailed performance data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $35.3 million to STG LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is STG LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.3 million.

What is the period of performance?

Start: 2001-01-15. End: 2006-03-31.

What specific environmental services does STG LLC provide under this contract?

The provided data does not specify the exact environmental services rendered by STG LLC. However, given the agency (Environmental Protection Agency) and the contract type (environmental services), typical services could include environmental assessments, regulatory compliance support, hazardous waste management consulting, pollution prevention planning, technical assistance for environmental programs, and data analysis related to environmental monitoring. The 'NOT AVAILABLE FOR COMPETITION' status might suggest highly specialized or unique services that STG LLC is uniquely positioned to provide, or perhaps services tied to ongoing, long-term projects where continuity is paramount.

How does the $35.2 million contract value compare to similar EPA environmental service contracts?

Direct comparison of the $35.2 million total contract value is difficult without knowing the specific services and duration. However, the contract spans approximately 5 years (1901 days), equating to an average annual value of roughly $7 million. The EPA frequently awards large contracts for environmental services, often in the tens or hundreds of millions of dollars, particularly for large-scale remediation, research, or comprehensive program support. The sole-source nature of this award means its value cannot be benchmarked against competitive bids, making it harder to assess if it represents optimal value for money compared to what might have been achieved through open competition.

What are the primary risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with this sole-source contract include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. Without competition, there is less incentive for the contractor to innovate or operate with maximum efficiency. The long duration (over 5 years) increases the risk of cost overruns due to unforeseen circumstances, changes in market conditions, or scope creep. Furthermore, the 'NOT AVAILABLE FOR COMPETITION' justification itself can be a risk if it was not adequately substantiated, potentially indicating a failure in procurement planning or an undue reliance on a single vendor. Robust oversight is essential to mitigate these risks.

What does the Cost Plus Award Fee (CPAF) structure imply for contractor performance and government oversight?

The Cost Plus Award Fee (CPAF) structure means STG LLC is reimbursed for its allowable costs plus a base fee, with the potential for an additional award fee based on performance against pre-defined criteria. This structure incentivizes the contractor to meet or exceed performance expectations to earn the award fee. For the government, it necessitates rigorous performance monitoring, objective evaluation of criteria, and clear communication of expectations. Effective oversight is crucial to ensure that award fees are justified and that the total cost remains reasonable for the level of performance achieved. It requires a proactive approach from the contracting officer and program managers.

What is the historical spending pattern with STG LLC for the EPA, if any?

The provided data indicates this contract was awarded on January 15, 2001, and expired on March 31, 2006, with a duration of 1901 days (over 5 years) and a total value of $35,262,110.07. This suggests a significant, long-term engagement between STG LLC and the EPA. Without access to historical contract databases, it's impossible to detail all past spending patterns. However, the existence of such a substantial contract implies STG LLC has likely held other contracts with the EPA or other federal agencies, demonstrating a track record in providing environmental services. The 'NOT AVAILABLE FOR COMPETITION' status for this award might suggest a continuation or expansion of services previously provided by STG LLC.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 11250 WAPLES MILL RD # 40, FAIRFAX, VA, 11

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Timeline