EPA Awards $38.6M for Velsicol Downgradient Vertical Barrier Wall in Michigan

Contract Overview

Contract Amount: $38,568,686 ($38.6M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2024-09-30

End Date: 2027-03-29

Contract Duration: 910 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VELSICOL DOWNGRADIENT VERTICAL BARRIER WALL IN ST. LOUIS, MI.

Place of Performance

Location: SAINT LOUIS, GRATIOT County, MICHIGAN, 48880

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $38.6 million to AECOM TECHNICAL SERVICES, INC. for work described as: VELSICOL DOWNGRADIENT VERTICAL BARRIER WALL IN ST. LOUIS, MI. Key points: 1. Contract awarded to AECOM Technical Services, Inc. for environmental remediation. 2. The project addresses the Velsicol site in St. Louis, Michigan. 3. Full and open competition was utilized for this contract. 4. The contract duration is 910 days, ending March 2027. 5. This is a delivery order under a larger contract.

Value Assessment

Rating: good

The contract value of $38.6 million for a 910-day remediation project appears reasonable given the scope. Benchmarking against similar large-scale environmental cleanup contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.

Taxpayer Impact: Taxpayer funds are being used for environmental cleanup, which is a necessary public service. Competitive bidding aims to ensure these funds are used efficiently.

Public Impact

Protects local environment and public health by addressing contamination. Supports economic activity through remediation efforts and contractor employment. Ensures compliance with environmental regulations. Addresses long-standing environmental concerns at the Velsicol site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex remediation projects.
Contract duration may be subject to delays.
Small business participation not indicated.

Positive Signals

Awarded through full and open competition.
Addresses a critical environmental remediation need.
Clear project scope and defined end date.

Sector Analysis

Environmental remediation services are crucial for addressing legacy pollution and ensuring public safety. Spending in this sector can vary significantly based on the scale and complexity of contamination sites.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the prime contractor will subcontract.

Oversight & Accountability

The Environmental Protection Agency (EPA) is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts, including performance monitoring and financial reviews, should be in place.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns in complex environmental remediation.
Contract duration is lengthy, increasing exposure to unforeseen issues.
No explicit mention of small business subcontracting goals.
Dependence on a single prime contractor for a critical task.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $38.6 million to AECOM TECHNICAL SERVICES, INC.. VELSICOL DOWNGRADIENT VERTICAL BARRIER WALL IN ST. LOUIS, MI.

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL 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 $38.6 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-29.

What is the historical cost performance of AECOM Technical Services, Inc. on similar EPA remediation contracts?

Assessing AECOM's past performance on comparable EPA remediation projects is crucial for evaluating the value and risk associated with this new contract. Reviewing their track record for meeting deadlines, staying within budget, and the quality of their work on similar sites will provide insights into their reliability and efficiency. This historical data can inform whether the current pricing is competitive and if potential cost overruns are a significant concern.

What specific environmental risks does the Velsicol downgradient vertical barrier wall aim to mitigate, and what is the potential impact of failure?

The vertical barrier wall is likely designed to contain or prevent the migration of hazardous substances from the Velsicol site into surrounding soil and groundwater. Failure could lead to widespread environmental contamination, posing significant risks to ecosystems, local water supplies, and public health. Understanding the specific contaminants and the potential pathways of exposure is key to assessing the criticality of this project and the effectiveness of the chosen mitigation strategy.

How effectively does the 'full and open competition' process ensure cost-effectiveness for complex environmental remediation projects of this scale?

Full and open competition is generally effective in driving down costs by fostering a competitive bidding environment. However, for highly specialized and complex projects like large-scale environmental remediation, the effectiveness can be influenced by the number of qualified bidders and the clarity of the scope. While it promotes price discovery, ensuring that the lowest bid also represents the best value in terms of technical capability and long-term performance is paramount for taxpayer protection.

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: 68HE0524R0013

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $38,568,686

Exercised Options: $38,568,686

Current Obligation: $38,568,686

Actual Outlays: $35,741,326

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $28,665,089

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0001

IDV Type: IDC

Timeline