EPA awards $46.9M remediation contract to Kemron/Arrowhead JV for Southside Chattanooga Lead Site

Contract Overview

Contract Amount: $46,884,573 ($46.9M)

Contractor: Kemron/Arrowhead JV, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $128.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RES TASK ORDER - SOUTHSIDE CHATTANOOGA LEAD SITE

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37407

State: Tennessee Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $46.9 million to KEMRON/ARROWHEAD JV, LLC for work described as: RES TASK ORDER - SOUTHSIDE CHATTANOOGA LEAD SITE Key points: 1. Contract value appears reasonable given the scope of environmental remediation services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of one year with potential for extensions indicates ongoing need. 4. Fixed-price contract type shifts risk to the contractor. 5. The contract aligns with EPA's mission to protect human health and the environment. 6. Remediation services are critical for addressing legacy environmental contamination.

Value Assessment

Rating: good

The contract value of approximately $46.9 million for a one-year base period seems within a reasonable range for complex environmental remediation projects of this nature. Benchmarking against similar EPA Superfund or RCRA site cleanups would provide a more precise value-for-money assessment. The firm-fixed-price structure is appropriate for well-defined scopes, encouraging contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bids suggests a healthy level of competition for this significant remediation project. This competitive environment is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for environmental cleanup at the Southside Chattanooga Lead Site.

Public Impact

Residents and the environment in Southside Chattanooga will benefit from the cleanup of the lead site. The contract will deliver critical environmental remediation services, addressing potential health hazards. The geographic impact is focused on the Southside Chattanooga area in Tennessee. The contract is expected to support specialized jobs in environmental engineering and remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Ensuring contractor compliance with all environmental regulations and safety protocols.

Positive Signals

Firm-fixed-price contract transfers cost risk to the contractor.
Full and open competition likely resulted in competitive pricing.
Contract duration allows for phased remediation efforts.

Sector Analysis

Environmental remediation is a specialized sector within the broader environmental services industry. This contract falls under remediation services, which involves cleaning up contaminated sites. The market for environmental remediation is driven by regulatory requirements, legacy industrial activity, and government initiatives to address environmental hazards. Comparable spending benchmarks would typically be found within EPA's Superfund program or similar state-led cleanup efforts.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans for small businesses. Given the specialized nature and scale of the work, it is possible that larger firms or joint ventures are better positioned to compete. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will likely be provided by the Environmental Protection Agency (EPA) contracting officers and technical representatives. The contract's firm-fixed-price nature provides a degree of accountability for cost control. Transparency regarding the remediation process and outcomes will be important for public trust and stakeholder engagement.

Related Government Programs

EPA Superfund Program
RCRA Corrective Action
Hazardous Waste Management
Site Remediation Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring strict adherence to environmental regulations and safety standards.
Managing community and stakeholder expectations during remediation.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $46.9 million to KEMRON/ARROWHEAD JV, LLC. RES TASK ORDER - SOUTHSIDE CHATTANOOGA LEAD SITE

Who is the contractor on this award?

The obligated recipient is KEMRON/ARROWHEAD JV, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.9 million.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending by the EPA on environmental remediation in Tennessee?

Historical spending by the EPA on environmental remediation in Tennessee can be substantial, particularly concerning sites managed under the Superfund program or RCRA. While specific aggregate data for Tennessee alone is not readily available in this context, the EPA's national budget for Superfund site cleanups often runs into billions of dollars annually. These funds cover site investigation, feasibility studies, remedial design, and actual cleanup activities. Contracts like the one awarded to Kemron/Arrowhead JV are crucial components of this spending, directly funding the physical cleanup of contaminated land and water. Analyzing past expenditures in Tennessee would reveal trends in remediation technologies used, average contract durations, and the types of contaminants most frequently addressed, providing a baseline for evaluating the current contract's scope and cost.

How does the per-unit cost of this remediation contract compare to similar projects?

Determining a precise 'per-unit cost' for environmental remediation is challenging due to the highly variable nature of contamination, site conditions, and the specific cleanup technologies employed. Unlike manufactured goods, remediation costs are not easily standardized. However, comparisons can be made based on factors like the volume of contaminated material treated, the area remediated, or the complexity of the contaminants. For the Southside Chattanooga Lead Site, without detailed technical specifications of the remediation scope, a direct per-unit cost comparison is difficult. Generally, remediation of lead contamination can be costly, involving excavation, stabilization, or containment. Benchmarking against other EPA-awarded contracts for similar lead-contaminated sites, considering factors like soil type, depth of contamination, and proximity to sensitive receptors, would be necessary for a meaningful comparison of value.

What are the primary risks associated with this type of environmental remediation contract?

Several primary risks are associated with environmental remediation contracts. Firstly, unforeseen site conditions (e.g., discovering deeper or more widespread contamination than initially assessed, encountering unexpected geological formations, or hazardous underground utilities) can lead to significant cost overruns and schedule delays, even with a firm-fixed-price contract if change orders are necessary. Secondly, regulatory risks exist, as environmental standards or permitting requirements could change during the contract period. Thirdly, health and safety risks for workers on-site are paramount, requiring stringent protocols and monitoring. Fourthly, community relations and stakeholder engagement can pose risks if not managed effectively, potentially leading to public opposition or legal challenges. Finally, contractor performance risk, including potential quality issues or failure to meet cleanup standards, must be managed through robust oversight.

What is Kemron/Arrowhead JV's track record with the EPA on similar remediation projects?

Assessing Kemron/Arrowhead JV's specific track record with the EPA on similar remediation projects requires accessing contract databases and performance evaluations. As a joint venture, its performance would depend on the capabilities and past performance of both Kemron and Arrowhead individually, as well as their collaborative experience. Generally, for a joint venture to be awarded a significant contract like this under full and open competition, they would need to demonstrate relevant experience, technical expertise, financial capacity, and a history of successful project completion. The EPA typically maintains contractor performance assessment reporting system (CPARS) data, which would provide insights into past performance, including timeliness, cost control, and quality of work on previous contracts. Without direct access to this specific performance data, it's assumed the JV met the EPA's pre-qualification criteria for this award.

How does the $46.9 million award compare to the EPA's overall budget for site remediation?

The $46.9 million award represents a specific allocation for the Southside Chattanooga Lead Site remediation. The EPA's overall budget for site remediation, primarily managed through programs like Superfund and RCRA, is significantly larger, often amounting to billions of dollars annually. For instance, the Superfund program alone typically receives hundreds of millions to over a billion dollars per year in appropriations, funding hundreds of cleanup projects nationwide. Therefore, this single contract, while substantial in absolute terms, is one of many investments the EPA makes to address environmental contamination across the country. Its proportion relative to the total remediation budget highlights the agency's distributed approach to tackling environmental liabilities.

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: 68HE0425R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kemron Environmental Services, Inc.

Address: 1359A ELLSWORTH INDUSTRIAL BLVD, ATLANTA, GA, 30318

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,874,224

Exercised Options: $46,884,573

Current Obligation: $46,884,573

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HERH19D0012

IDV Type: IDC

Timeline