EPA awards $3.7M for Velsicol Burn Pit Superfund Site remediation, focusing on OU2 RI

Contract Overview

Contract Amount: $3,728,696 ($3.7M)

Contractor: Jacobs Engineering Group Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2025-09-30

End Date: 2029-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VELSICOL BURN PIT SUPERFUND SITE: REGION 5,SFGLAES), SEMD, JACOBS (68HE0523D0003), OU2 RI TO

Place of Performance

Location: SAINT LOUIS, GRATIOT County, MICHIGAN, 48880

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $3.7 million to JACOBS ENGINEERING GROUP INC. for work described as: VELSICOL BURN PIT SUPERFUND SITE: REGION 5,SFGLAES), SEMD, JACOBS (68HE0523D0003), OU2 RI TO Key points: 1. Contract value represents a significant investment in environmental cleanup. 2. Competition dynamics suggest a potentially competitive bidding process for this environmental service. 3. Performance risks are inherent in complex Superfund site remediation projects. 4. This contract aligns with the EPA's ongoing efforts to address hazardous waste sites. 5. The remediation services sector is critical for environmental protection and public health.

Value Assessment

Rating: good

The contract value of $3.73 million for remediation services appears reasonable for a Superfund site cleanup phase. Benchmarking against similar, complex environmental remediation contracts is challenging due to site-specific variables, but the firm-fixed-price structure suggests cost control. The scope, focusing on Operable Unit 2 Remedial Investigation, indicates a defined phase of work, which aids in assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders was not provided, but the designation suggests a robust process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that federal funds are used efficiently for environmental cleanup.

Public Impact

The primary beneficiaries are communities impacted by the Velsicol Burn Pit Superfund Site, with improved environmental conditions. Services delivered include crucial remedial investigation activities to understand and plan for site cleanup. The geographic impact is localized to the St. Louis, Michigan area. Workforce implications include employment opportunities for environmental scientists, engineers, and remediation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of Superfund site remediation can lead to unforeseen costs and delays.
Potential for environmental conditions to be more severe than initially assessed.
Coordination with multiple stakeholders and regulatory bodies can be challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
EPA's established processes for Superfund site management.

Sector Analysis

The environmental remediation services sector is a significant part of the broader environmental industry, driven by regulatory mandates like Superfund. This contract falls within the hazardous waste remediation sub-sector, which requires specialized expertise. Comparable spending benchmarks are highly variable, depending on the scale and complexity of the contamination at each site.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While Jacobs Engineering Group Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors on this project, contributing to the broader small business ecosystem in environmental services.

Oversight & Accountability

Oversight is provided by the Environmental Protection Agency (EPA) through its established Superfund program management and contract administration processes. Accountability measures are built into the contract's performance requirements and delivery schedules. Transparency is facilitated through public dockets and EPA reporting on Superfund site progress.

Related Government Programs

Superfund Program
Hazardous Waste Site Remediation
Environmental Consulting Services
Remedial Action Contracts

Risk Flags

Potential for cost overruns due to site complexity
Schedule delays impacting cleanup timeline
Effectiveness of long-term remediation strategy

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $3.7 million to JACOBS ENGINEERING GROUP INC.. VELSICOL BURN PIT SUPERFUND SITE: REGION 5,SFGLAES), SEMD, JACOBS (68HE0523D0003), OU2 RI TO

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2025-09-30. End: 2029-09-29.

What is the historical spending by the EPA on the Velsicol Burn Pit Superfund Site?

Historical spending data specifically for the Velsicol Burn Pit Superfund Site is not directly available in the provided data snippet. However, the current award of $3.73 million for Operable Unit 2 Remedial Investigation (OU2 RI) suggests a significant, multi-year investment typical for Superfund sites. Superfund projects often involve substantial funding over many years, encompassing site assessment, remedial design, and long-term cleanup actions. To ascertain historical spending, one would need to consult EPA's Superfund financial management systems or specific site documentation, which would detail previous contracts and expenditures related to this site's various operable units and cleanup phases.

How does the cost of this contract compare to similar Superfund site remediation efforts?

Direct cost comparison is difficult without detailed project scope and site-specific conditions. However, a $3.73 million contract for a Remedial Investigation (RI) phase, as indicated for OU2, is within the expected range for such complex environmental assessments. Superfund RIs involve extensive field sampling, laboratory analysis, risk assessments, and data interpretation. The cost is influenced by factors like the type and extent of contamination, site accessibility, and regulatory requirements. Larger, more complex sites or those requiring extensive field work can easily incur multi-million dollar costs for investigation phases alone. This contract's firm-fixed-price nature suggests a defined budget for this specific scope.

What are the primary risks associated with this specific contract and the Velsicol Burn Pit site?

The primary risks associated with this contract revolve around the inherent complexities of Superfund site remediation. These include potential for unforeseen site conditions (e.g., discovering additional contamination or encountering unexpected geological challenges) that could lead to scope changes and cost overruns, despite the firm-fixed-price structure. Schedule delays are also a risk, stemming from permitting issues, contractor performance, or stakeholder coordination challenges. Furthermore, the long-term effectiveness of the chosen remediation strategy, while not directly part of the RI phase, is a broader program risk. The Velsicol Burn Pit site itself has a history of chemical manufacturing, implying potential for persistent and hazardous contaminants requiring careful management.

What is the track record of Jacobs Engineering Group Inc. in performing similar environmental remediation contracts for the EPA?

Jacobs Engineering Group Inc. has a substantial track record of performing environmental consulting and remediation services for government agencies, including the EPA. They are a major player in the engineering and construction sector, frequently awarded large-scale contracts for complex projects. Their experience likely encompasses numerous Superfund sites, hazardous waste management, and environmental restoration projects. While specific performance details for this exact contract are not yet available as it's an award, Jacobs' general profile suggests they possess the technical expertise and capacity to handle such environmental remediation work. Past performance evaluations on similar EPA contracts would provide a more granular assessment.

How does the current contract award fit into the overall cleanup strategy for the Velsicol Burn Pit Superfund Site?

This contract, valued at $3.73 million and awarded to Jacobs Engineering Group Inc., specifically addresses the Operable Unit 2 Remedial Investigation (OU2 RI) for the Velsicol Burn Pit Superfund Site. The Remedial Investigation phase is a critical early step in the Superfund process. Its purpose is to gather data to characterize the nature and extent of contamination, assess risks to human health and the environment, and evaluate potential cleanup alternatives. Therefore, this award represents a foundational component of the site's overall cleanup strategy, providing the necessary technical information to inform subsequent decisions regarding remedial design and implementation for OU2.

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: 68HE0525R0026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 N GLEBE RD STE 500, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $5,201,821

Exercised Options: $5,201,821

Current Obligation: $3,728,696

Actual Outlays: $71,963

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0523D0003

IDV Type: IDC

Timeline