EPA Awards $23.3M for Puerto Rico Groundwater Contamination Remediation
Contract Overview
Contract Amount: $23,309,118 ($23.3M)
Contractor: Hydrogeologic, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2023-10-01
End Date: 2028-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RES CIDRA GROUNDWATER CONTAMINATION SITE RA (RAMALLO SOILS / GW PLUME)
Place of Performance
Location: CIDRA, CIDRA County, PUERTO RICO, 00739
Plain-Language Summary
Environmental Protection Agency obligated $23.3 million to HYDROGEOLOGIC, INC. for work described as: RES CIDRA GROUNDWATER CONTAMINATION SITE RA (RAMALLO SOILS / GW PLUME) Key points: 1. Contract awarded to Hydrogeologic, Inc. for remediation services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 5 years, indicating a long-term commitment to the site. 4. The contract is for remediation services, addressing environmental contamination.
Value Assessment
Rating: fair
The contract value of $23.3 million over 5 years is substantial for a remediation project. Benchmarking against similar large-scale environmental cleanup contracts is difficult without more specific cost breakdowns, but the price appears within a reasonable range for complex hydrogeologic work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a firm-fixed-price contract further incentivizes the contractor to manage costs effectively.
Taxpayer Impact: Taxpayers are funding a critical environmental cleanup effort, aiming to mitigate long-term health and ecological risks associated with groundwater contamination.
Public Impact
Protects public health by addressing contaminated drinking water sources. Restores environmental quality in the affected region of Puerto Rico. Supports long-term economic stability by removing environmental liabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns if not closely managed.
- Potential for scope creep in complex remediation projects.
- Dependence on a single contractor for an extended period.
Positive Signals
- Competitive award process likely secured a fair price.
- Firm-fixed-price contract provides cost certainty.
- Addresses a significant environmental hazard.
Sector Analysis
This contract falls within the environmental consulting and remediation sector. Spending in this area is driven by regulatory requirements and the need to address legacy pollution. Benchmarks for similar large-scale remediation projects vary widely based on site complexity and scope.
Small Business Impact
The data indicates the contract was not awarded to small businesses (ss: false, sb: false). This suggests the scale and complexity of the remediation project likely favored larger, specialized firms.
Oversight & Accountability
The Environmental Protection Agency (EPA) is both the contracting and funding agency, indicating direct oversight. The firm-fixed-price contract structure provides some cost control, but ongoing monitoring of performance and adherence to scope will be crucial for accountability.
Related Government Programs
- Remediation Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Long contract duration increases risk of unforeseen issues.
- Complexity of groundwater contamination can lead to scope creep.
- Lack of small business participation.
- Potential for environmental incidents during remediation.
Tags
remediation-services, environmental-protection-agency, pr, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $23.3 million to HYDROGEOLOGIC, INC.. RES CIDRA GROUNDWATER CONTAMINATION SITE RA (RAMALLO SOILS / GW PLUME)
Who is the contractor on this award?
The obligated recipient is HYDROGEOLOGIC, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2023-10-01. End: 2028-09-30.
What specific remediation technologies will be employed, and how do their costs compare to alternative methods?
The specific remediation technologies are not detailed in the provided data. A thorough review of the contract's statement of work and technical proposals would be necessary to identify the chosen methods. Comparing costs would require analyzing the contractor's proposed solutions against industry standards and alternative remediation approaches for similar groundwater contamination scenarios.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
Key performance indicators are likely tied to achieving specific water quality standards, meeting project milestones within the defined schedule, and adhering to environmental regulations. Success will be measured by the contractor's ability to effectively contain and remediate the groundwater plume, as documented through regular monitoring reports and independent verification by the EPA.
What is the potential for cost escalation or contract modifications given the 5-year duration and complexity of groundwater remediation?
There is always a potential for cost escalation or modifications in long-term, complex environmental projects due to unforeseen site conditions or changes in regulatory requirements. The firm-fixed-price structure aims to mitigate this, but the EPA will need robust oversight to manage scope changes and ensure that any modifications are fully justified and cost-effective.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 68HE0223R0010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11107 SUNSET HILLS RD STE 400, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,315,147
Exercised Options: $23,309,118
Current Obligation: $23,309,118
Actual Outlays: $16,122,134
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 68HERH19D0010
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2024-12-13
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