EPA Awards $2.2M Contract for Hazardous Substance Removal at New Jersey Site

Contract Overview

Contract Amount: $2,196,000 ($2.2M)

Contractor: Kemron Environmental Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-02-17

End Date: 2027-01-26

Contract Duration: 1,439 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONDUCT REMOVAL ACTIVITIES AT THE COMPOUNDERS INC. SITE, IN HOWELL (FARMINGDALE), NEW JERSEY TO MITIGATE HAZARDOUS SUBSTANCES IN DRUMS AND OTHER CONTAINERS ABANDONED AT THE SITE.

Place of Performance

Location: FARMINGDALE, MONMOUTH County, NEW JERSEY, 07727

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.2 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: CONDUCT REMOVAL ACTIVITIES AT THE COMPOUNDERS INC. SITE, IN HOWELL (FARMINGDALE), NEW JERSEY TO MITIGATE HAZARDOUS SUBSTANCES IN DRUMS AND OTHER CONTAINERS ABANDONED AT THE SITE. Key points: 1. Contract focuses on mitigating hazardous substances in abandoned containers. 2. KEMRON Environmental Services, Inc. is the awarded contractor. 3. The contract falls under Remediation Services within NAICS code 562910. 4. This action addresses environmental risks and potential public health concerns.

Value Assessment

Rating: good

The contract value of $2,196,000 for remediation services appears reasonable given the scope of work involving hazardous substance removal. Benchmarking against similar EPA remediation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition, potentially leading to higher costs.

Taxpayer Impact: Taxpayer funds are being used to address environmental contamination, mitigating potential long-term cleanup costs and health risks.

Public Impact

Protects local community and environment from hazardous materials. Ensures compliance with environmental regulations. Addresses legacy contamination issues at the Compounders Inc. site. Supports the remediation of abandoned hazardous substances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact cost-effectiveness.
Long duration of contract (nearly 4 years) could lead to cost overruns if not managed tightly.

Positive Signals

Addresses critical environmental hazard.
Awarded to a specialized environmental services company.

Sector Analysis

Environmental remediation services are crucial for addressing hazardous waste sites. Spending in this sector is driven by regulatory requirements and the need to mitigate environmental risks, with costs varying significantly based on site complexity and cleanup scope.

Small Business Impact

The contract was awarded to KEMRON Environmental Services, Inc., which is not indicated as a small business. There is no explicit mention of small business participation goals or subcontracting requirements in the provided data.

Oversight & Accountability

The Environmental Protection Agency (EPA) is both the contracting and funding agency, suggesting direct oversight. The contract's duration and 'Time and Materials' type warrant close monitoring to ensure cost control and adherence to scope.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Limited competition may lead to suboptimal pricing.
Long contract duration increases risk of cost escalation.
Potential for scope creep in remediation projects.
Reliance on 'Time and Materials' pricing model.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.2 million to KEMRON ENVIRONMENTAL SERVICES, INC.. CONDUCT REMOVAL ACTIVITIES AT THE COMPOUNDERS INC. SITE, IN HOWELL (FARMINGDALE), NEW JERSEY TO MITIGATE HAZARDOUS SUBSTANCES IN DRUMS AND OTHER CONTAINERS ABANDONED AT THE SITE.

Who is the contractor on this award?

The obligated recipient is KEMRON ENVIRONMENTAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-02-17. End: 2027-01-26.

What specific hazardous substances are present at the site, and what is the estimated volume or concentration requiring removal?

The provided data does not specify the exact hazardous substances or their quantities. However, the contract's purpose is to 'MITIGATE HAZARDOUS SUBSTANCES IN DRUMS AND OTHER CONTAINERS ABANDONED AT THE SITE.' A detailed site assessment report would contain this information, crucial for understanding the full scope and risk.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process ensure fair pricing compared to unrestricted full and open competition?

This procurement method allows multiple bidders but excludes certain sources, often due to specific capabilities or prior work. While it aims for competition, the exclusion can limit the bidder pool, potentially reducing competitive pressure on pricing compared to a truly unrestricted process. The EPA likely justified this exclusion based on specific site needs or contractor qualifications.

What mechanisms are in place to manage the 'Time and Materials' contract type and prevent cost overruns over its nearly four-year duration?

Effective management of Time and Materials (T&M) contracts requires robust oversight, including detailed tracking of labor hours and material costs, regular progress reviews, and clear definition of contract ceiling limits. The EPA must implement stringent monitoring protocols and potentially task orders with fixed-price components to control costs and ensure value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1359-A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,196,000

Exercised Options: $2,196,000

Current Obligation: $2,196,000

Actual Outlays: $2,018,023

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0220D0003

IDV Type: IDC

Timeline