EPA awards $2.2M contract for hazardous waste disposal at New Age Renewable Energy site

Contract Overview

Contract Amount: $2,200,000 ($2.2M)

Contractor: Kemron Environmental Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2025-09-26

End Date: 2027-01-26

Contract Duration: 487 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROVIDE MITIGATION CONTRACTING ACTIVITIES AT THE NEW AGE RENEWABLE ENERGY LLC SITE, IN ROMULUS UNDER SITE ID A2BU TO STABILIZE, SECURE AND DISPOSE OF HAZARDOUS WASTE CONSISTING OF FLAMMABLE LIQUIDS INCLUDING ALCOHOL-BASED HAND SANITIZER IN ACCORDANCE

Place of Performance

Location: ROMULUS, SENECA County, NEW YORK, 14541

State: New York Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.2 million to KEMRON ENVIRONMENTAL SERVICES, INC. for work described as: PROVIDE MITIGATION CONTRACTING ACTIVITIES AT THE NEW AGE RENEWABLE ENERGY LLC SITE, IN ROMULUS UNDER SITE ID A2BU TO STABILIZE, SECURE AND DISPOSE OF HAZARDOUS WASTE CONSISTING OF FLAMMABLE LIQUIDS INCLUDING ALCOHOL-BASED HAND SANITIZER IN ACCORDANCE Key points: 1. Contract focuses on stabilizing, securing, and disposing of flammable liquids, including alcohol-based hand sanitizer. 2. The remediation services are critical for environmental protection and public safety at the Romulus site. 3. This contract is a delivery order under a larger indefinite-delivery contract, indicating ongoing needs. 4. The duration of 487 days suggests a significant scope of work for waste management. 5. The contract type is Time and Materials, which can pose cost control challenges if not closely monitored.

Value Assessment

Rating: fair

The contract value of $2.2 million for hazardous waste disposal over approximately 16 months appears reasonable given the scope of stabilizing, securing, and disposing of flammable liquids. However, without specific details on the volume and type of waste, a precise benchmark is difficult. The Time and Materials pricing structure necessitates careful oversight to ensure cost-effectiveness and prevent scope creep. Comparing this to similar large-scale hazardous waste remediation projects would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to specialized capabilities or prior performance. The exact number of bidders and the rationale for exclusion are not detailed, making it challenging to fully assess the competitive landscape. This limited competition could potentially impact price discovery compared to a truly open solicitation.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price that a broader, unrestricted competition might have yielded. However, if the exclusion was based on necessary specialized expertise, it could ensure effective and safe execution, mitigating long-term environmental liabilities.

Public Impact

The primary beneficiaries are the environment and the local community in Romulus, Michigan, through the safe removal of hazardous waste. Services delivered include stabilization, securing, and disposal of flammable liquids, preventing potential environmental contamination and safety hazards. The geographic impact is localized to the New Age Renewable Energy LLC site in Romulus, Michigan. This contract supports specialized environmental remediation jobs within the waste management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it reimburses labor hours and material costs directly.
The 'exclusion of sources' in the competition process warrants further investigation to ensure fair market access and optimal pricing.
Lack of specific details on the volume and exact nature of hazardous waste makes it difficult to benchmark the cost-effectiveness of the $2.2 million award.

Positive Signals

The contract addresses a critical environmental need for hazardous waste disposal, mitigating potential risks.
The Environmental Protection Agency (EPA) is overseeing the contract, suggesting a focus on regulatory compliance and environmental stewardship.
The contract duration of nearly two years indicates a commitment to thorough remediation.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, a critical component of the broader environmental services industry. This sector involves the cleanup of contaminated sites, hazardous waste management, and pollution control. The market is driven by regulatory requirements, industrial activity, and a growing emphasis on sustainability. Comparable spending benchmarks for hazardous waste disposal can vary significantly based on the complexity, volume, and type of contaminants, as well as the geographic location and specific remediation techniques employed.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and there is no indication of specific subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor, KEMRON ENVIRONMENTAL SERVICES, INC., voluntarily engages small businesses for specialized services or supplies. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Environmental Protection Agency (EPA), which has established oversight mechanisms for environmental remediation contracts. Accountability is expected through adherence to the contract terms, performance standards, and regulatory compliance. Transparency is facilitated by public contract databases, though specific details on daily operations and cost breakdowns may be limited. The EPA's Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

EPA Superfund Program
RCRA Hazardous Waste Management
Defense Environmental Remediation Services
Department of Energy Environmental Cleanup

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may impact price discovery.
Lack of detailed waste characterization hinders cost-effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.2 million to KEMRON ENVIRONMENTAL SERVICES, INC.. PROVIDE MITIGATION CONTRACTING ACTIVITIES AT THE NEW AGE RENEWABLE ENERGY LLC SITE, IN ROMULUS UNDER SITE ID A2BU TO STABILIZE, SECURE AND DISPOSE OF HAZARDOUS WASTE CONSISTING OF FLAMMABLE LIQUIDS INCLUDING ALCOHOL-BASED HAND SANITIZER IN ACCORDANCE

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: 2025-09-26. End: 2027-01-26.

What is the specific nature and volume of the hazardous waste being managed under this contract?

The provided data indicates the hazardous waste consists of 'flammable liquids including alcohol-based hand sanitizer.' However, the specific volumes, concentrations, and precise chemical compositions are not detailed in the summary. This information is crucial for a comprehensive understanding of the remediation challenge and for accurately benchmarking the contract's cost-effectiveness. Without these specifics, it's difficult to determine if the $2.2 million award is commensurate with the scope of work.

How does the $2.2 million cost compare to similar hazardous waste disposal contracts managed by the EPA?

Benchmarking this $2.2 million contract requires comparison with similar EPA hazardous waste disposal or remediation projects. Factors such as the type and volume of waste, the complexity of stabilization and disposal, and the contract duration significantly influence costs. For instance, contracts involving highly toxic or radioactive materials would naturally be more expensive. The Time and Materials (T&M) pricing structure also adds variability. A detailed analysis would involve comparing the cost per unit of waste treated or per cubic yard remediated against historical EPA data for projects with comparable contaminants and scope.

What are the potential risks associated with a Time and Materials (T&M) contract for hazardous waste disposal?

The primary risk with a T&M contract for hazardous waste disposal is the potential for cost overruns. Since the contractor is reimbursed for actual labor hours and material costs, there is less incentive for efficiency compared to a fixed-price contract. If the scope of work expands, or if the work takes longer than anticipated due to unforeseen complexities or contractor inefficiencies, the total cost can escalate beyond initial estimates. Robust oversight, detailed tracking of hours and materials, and clear task definitions are essential to mitigate these risks and ensure value for taxpayers.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract's competition level?

This contract type suggests that the solicitation was initially intended for full and open competition, but specific sources were later excluded. The reasons for exclusion are not provided but could range from a lack of necessary specialized capabilities, failure to meet pre-qualification criteria, or other factors deemed critical by the agency. While it implies some level of competition, the exclusion of potential bidders limits the breadth of market participation. This could potentially result in a higher price than if all capable sources had been allowed to bid, but it may also ensure that the selected contractor possesses the precise expertise required for this specialized task.

What is KEMRON ENVIRONMENTAL SERVICES, INC.'s track record with similar EPA hazardous waste contracts?

Information regarding KEMRON ENVIRONMENTAL SERVICES, INC.'s specific track record with similar EPA hazardous waste contracts is not provided in the summary data. A thorough assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on comparable projects. Understanding their experience with flammable liquids, stabilization techniques, and disposal regulations is crucial for evaluating their capability and the potential risks associated with this contract. Their performance on this current contract will be a key indicator for future engagements.

What are the historical spending patterns for hazardous waste remediation services by the EPA?

Historical spending patterns for hazardous waste remediation by the EPA are substantial, driven by mandates like Superfund and RCRA. The EPA consistently allocates significant funds annually towards cleaning up contaminated sites, managing hazardous waste, and ensuring compliance. Spending can fluctuate based on the number of new sites identified, the complexity of existing cleanups, and legislative appropriations. Analyzing historical data would reveal trends in contract values, types of services procured (e.g., site assessment, containment, disposal), and the average duration and cost of remediation projects, providing context for the current $2.2 million award.

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: $2,200,000

Exercised Options: $2,200,000

Current Obligation: $2,200,000

Actual Outlays: $134,403

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