EPA awards $2.78M contract for Superfund site remediation support in West Virginia

Contract Overview

Contract Amount: $2,777,206 ($2.8M)

Contractor: Hydrogeologic, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2020-09-25

End Date: 2028-09-24

Contract Duration: 2,921 days

Daily Burn Rate: $951/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE SUPPORT AT THE JACKSON CERAMIX SUPERFUND SITE (SITE) OPERATIONAL UNITS (OUS) OU-1, OU-2, AND OU-3, INCLUDING TREATABILITY STUDY, FEASIBILITY STUDY, PROPOSED PLANS AND RECORDS OF DECISION (RODS), PREL

Place of Performance

Location: POINT PLEASANT, MASON County, WEST VIRGINIA, 25550

State: West Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.8 million to HYDROGEOLOGIC, INC. for work described as: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE SUPPORT AT THE JACKSON CERAMIX SUPERFUND SITE (SITE) OPERATIONAL UNITS (OUS) OU-1, OU-2, AND OU-3, INCLUDING TREATABILITY STUDY, FEASIBILITY STUDY, PROPOSED PLANS AND RECORDS OF DECISION (RODS), PREL Key points: 1. Contract focuses on critical Superfund site operational units, including treatability and feasibility studies. 2. Awarded to Hydrogeologic, Inc., a company with a track record in environmental services. 3. The contract duration extends over 8 years, indicating a long-term commitment to site cleanup. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. This award aligns with the EPA's ongoing efforts to address environmental contamination at Superfund sites.

Value Assessment

Rating: good

The contract value of $2.78 million over nearly 8 years for Superfund site remediation support appears reasonable given the scope of work. This includes complex tasks like treatability studies and feasibility studies, which are foundational to the Record of Decision (ROD) process. Benchmarking against similar EPA remediation contracts would provide a more precise value-for-money assessment, but the duration and complexity suggest a fair price point. The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to ensure costs remain controlled while achieving project milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders (no=3) suggests a healthy level of competition for this type of specialized environmental remediation service. This competitive environment is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds, ensuring that the significant investment in Superfund site cleanup is managed efficiently and effectively.

Public Impact

The primary beneficiaries are communities impacted by the Jackson Ceramix Superfund Site, with improved environmental conditions and reduced health risks. Services delivered include crucial studies (treatability, feasibility) and support for proposed plans and Records of Decision, directly advancing the cleanup process. The geographic impact is focused on the Jackson Ceramix Superfund Site in West Virginia. The contract supports specialized environmental science and engineering jobs, contributing to the skilled workforce in the remediation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require robust oversight to prevent cost overruns and ensure efficient resource utilization.
Long contract duration (nearly 8 years) necessitates ongoing performance monitoring to ensure sustained quality and adherence to project goals.
The specific nature of Superfund site remediation involves complex technical challenges and potential unforeseen conditions that could impact costs and timelines.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely yielded a fair price.
The contract supports critical environmental cleanup activities at a Superfund site, addressing long-term public health and environmental concerns.
The contractor, Hydrogeologic, Inc., is likely experienced in environmental consulting and remediation services, suggesting a capable awardee.

Sector Analysis

This contract falls within the Environmental Services sector, specifically focusing on hazardous waste remediation and Superfund site management. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and ongoing cleanup efforts at sites across the nation. Comparable spending benchmarks would involve analyzing other EPA contracts for similar Superfund site support, feasibility studies, and Record of Decision development, which are specialized and often long-term engagements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false) and the contractor is not a small business (ss=false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, the prime contractor may engage small businesses as subcontractors for specialized services, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract will be managed by the Environmental Protection Agency (EPA), the awarding agency. As a Cost Plus Fixed Fee contract, rigorous financial and performance oversight is crucial to ensure adherence to the fixed fee and manage the variable cost components. Transparency will be maintained through standard government contracting reporting mechanisms. The EPA's Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Superfund Program
Hazardous Waste Remediation
Environmental Consulting Services
Federal Remediation Services

Risk Flags

Potential for cost overruns due to the CPFF structure.
Risk of unforeseen technical challenges in Superfund site remediation.
Need for sustained contractor performance over an extended contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.8 million to HYDROGEOLOGIC, INC.. THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE SUPPORT AT THE JACKSON CERAMIX SUPERFUND SITE (SITE) OPERATIONAL UNITS (OUS) OU-1, OU-2, AND OU-3, INCLUDING TREATABILITY STUDY, FEASIBILITY STUDY, PROPOSED PLANS AND RECORDS OF DECISION (RODS), PREL

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 $2.8 million.

What is the period of performance?

Start: 2020-09-25. End: 2028-09-24.

What is the historical spending pattern for Hydrogeologic, Inc. with the EPA?

Analyzing Hydrogeologic, Inc.'s historical spending with the EPA requires access to federal procurement databases like FPDS or USASpending.org. Generally, a company's past performance with an agency is a key factor in contract awards. For this specific contract, the EPA likely reviewed Hydrogeologic's track record on similar environmental remediation projects, their ability to manage costs, and their compliance with previous contract terms. A review of their award history would reveal the frequency and value of previous EPA contracts, providing insight into their established relationship and performance level with the agency. Without direct access to that granular data, we infer 'good' performance based on the award itself, assuming a competitive process and due diligence by the EPA.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure is often used for research and development or complex services where the scope is not precisely defined at the outset. For taxpayers, the value for money hinges on effective EPA oversight. While the fixed fee incentivizes the contractor to control costs (as they don't profit from increased costs), it also requires diligent monitoring of allowable expenses. If the EPA effectively manages the cost ceiling and ensures all expenditures are necessary and reasonable, CPFF can yield good value. However, without robust oversight, there's a risk of inflated costs, diminishing the value proposition.

What are the key risks associated with long-term environmental remediation contracts like this one?

Long-term environmental remediation contracts, such as this 8-year task order, carry several key risks. Firstly, scope creep is a significant concern; as investigations proceed, unforeseen contamination or complexities may emerge, requiring contract modifications and potentially increasing costs beyond initial estimates. Secondly, contractor performance degradation over time is possible, necessitating continuous monitoring and quality assurance. Thirdly, regulatory changes or evolving scientific understanding of contaminants could necessitate adjustments to remediation strategies, impacting timelines and budgets. Finally, economic factors like inflation over an 8-year period can affect the cost of materials and labor, potentially straining a fixed-fee component if not adequately managed.

How does the 'full and open competition' impact the pricing and quality of services for this contract?

Awarding this contract under 'full and open competition' is a positive indicator for both pricing and quality. It means that all responsible sources were permitted to submit bids, fostering a competitive environment. This competition typically drives down prices as contractors vie for the award by offering their best terms. Furthermore, it encourages contractors to propose innovative and efficient solutions to win the contract, potentially leading to higher quality services. The fact that three bidders participated suggests sufficient market interest and a robust selection process, increasing the likelihood that the EPA secured competitive pricing and a technically sound proposal for the Superfund site remediation work.

What is the significance of the 'Remediation Services' NAICS code (562910) in understanding this contract?

The North American Industry Classification System (NAICS) code 562910, 'Remediation Services,' is highly significant as it precisely categorizes the core function of this contract. This code encompasses establishments primarily engaged in cleaning up sites contaminated with hazardous waste, including site remediation, soil remediation, and groundwater treatment. Understanding this code helps contextualize the contract within the broader environmental services industry, highlighting the specialized nature of the work. It signals that the contractor must possess expertise in environmental engineering, regulatory compliance, and project management specific to hazardous waste cleanup, differentiating it from general construction or environmental consulting.

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: 68HE0320R0012

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $3,802,626

Exercised Options: $3,802,626

Current Obligation: $2,777,206

Actual Outlays: $1,044,846

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0318D0006

IDV Type: IDC

Timeline