EPA awards $46M+ for Portland Harbor Superfund remedial design, with competition ensuring value

Contract Overview

Contract Amount: $46,022,653 ($46.0M)

Contractor: CDM Federal Programs Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2020-05-27

End Date: 2028-09-27

Contract Duration: 3,045 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: R10 DES - PORTLAND HARBOR SUPERFUND SITE REMEDIAL DESIGN SERVICES

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $46.0 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: R10 DES - PORTLAND HARBOR SUPERFUND SITE REMEDIAL DESIGN SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of over 8 years indicates a long-term commitment to the Superfund site remediation. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to control costs. 4. The agency's self-performance on this contract may offer insights into internal capabilities versus external contracting. 5. The focus on Remedial Design Services highlights a critical early phase in the Superfund cleanup process.

Value Assessment

Rating: good

The contract value of over $46 million for remedial design services at a Superfund site is substantial. Benchmarking against similar large-scale environmental remediation design contracts is necessary for a precise value-for-money assessment. However, the competitive award process suggests that the pricing was likely vetted against market rates. The CPFF structure, while common for complex projects, necessitates robust oversight to ensure costs remain reasonable and fixed fees are justified by the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the designation implies a robust bidding process.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the residents and environment of Portland, Oregon, through the cleanup of the Superfund site. The contract delivers essential remedial design services, a crucial step in planning and executing the cleanup. The geographic impact is focused on the Portland Harbor area, a designated Superfund site. While direct workforce implications are not detailed, the contract supports specialized environmental engineering and consulting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs if not closely monitored, as the fixed fee is earned regardless of the actual costs incurred.
The long contract duration (over 8 years) increases the risk of scope creep or unforeseen challenges impacting the total cost and timeline.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness beyond the design phase.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contract is with CDM Federal Programs Corporation, a known entity in federal environmental services, potentially indicating a track record of performance.
The focus on remedial design is a critical and necessary step for addressing a complex Superfund site, indicating progress in environmental cleanup efforts.

Sector Analysis

The environmental remediation services sector is a significant part of the broader engineering and construction industry, driven by regulatory requirements like Superfund. Spending in this area is often project-specific and tied to long-term cleanup efforts at contaminated sites. This contract fits within the EPA's mandate to address hazardous waste sites, with remedial design being a foundational element before physical cleanup begins. Comparable spending benchmarks would typically be assessed against other large Superfund site remedial design contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, CDM Federal Programs Corporation, would determine any subcontracting opportunities based on their own business strategy and the project's needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA), specifically the program office responsible for Superfund sites. The Inspector General's office of the EPA would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency would be enhanced through public reporting on Superfund site progress and contract awards, though specific performance metrics and detailed cost breakdowns may be less accessible.

Related Government Programs

Superfund Remedial Action Contracts
Environmental Consulting Services
Hazardous Waste Site Cleanup

Risk Flags

Cost Plus Fixed Fee pricing structure requires diligent oversight to prevent cost overruns.
Long contract duration increases exposure to unforeseen risks and potential scope creep.
Performance metrics are not detailed, making objective assessment of contractor efficiency challenging.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $46.0 million to CDM FEDERAL PROGRAMS CORPORATION. R10 DES - PORTLAND HARBOR SUPERFUND SITE REMEDIAL DESIGN SERVICES

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2020-05-27. End: 2028-09-27.

What is the track record of CDM Federal Programs Corporation with the EPA on similar Superfund projects?

CDM Federal Programs Corporation has a significant history of working with the EPA and other federal agencies on environmental projects, including Superfund sites. They are a well-established contractor in this space, often involved in remedial design, remedial action, and site operations and maintenance. While specific project performance data for this exact contract is not detailed here, their consistent presence in the federal environmental contracting arena suggests a level of established capability and experience. Further analysis would involve reviewing past performance evaluations, contract close-out reports, and any documented issues or successes on prior EPA contracts to fully assess their track record relevant to this specific award.

How does the awarded amount compare to the estimated cost for similar remedial design services at other Superfund sites?

Directly comparing the $46 million award to other Superfund remedial design contracts requires access to a database of similar projects with detailed cost breakdowns and scope definitions. Superfund sites vary significantly in complexity, size, and the nature of contamination, making direct comparisons challenging. However, remedial design is a critical, often lengthy, phase that can represent a substantial portion of a site's overall cleanup budget. The EPA typically uses competitive bidding to ensure fair pricing. Without specific benchmark data on comparable projects, it's difficult to definitively state if this award is high or low, but the full and open competition suggests it reflects market conditions for such extensive work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for remedial design?

The primary risks with a CPFF contract for remedial design revolve around cost control and potential for contractor inefficiency. While the fixed fee provides the contractor with a target profit, the 'cost plus' portion means the government pays the actual allowable costs incurred. If not rigorously monitored, this structure can incentivize contractors to incur higher costs, as their fee is earned on top of these costs. For remedial design, risks include underestimating the complexity of the site, leading to cost overruns, or scope creep where additional design work is added without adequate adjustments to the fee or schedule. Robust oversight, detailed cost accounting, and clear definition of work are crucial to mitigate these risks.

How effective is the EPA's oversight for long-term remedial design contracts like this one?

The EPA employs a multi-layered oversight approach for long-term contracts, including those for remedial design. This typically involves contract officers, technical monitors, and potentially the EPA's Inspector General. Oversight focuses on ensuring compliance with contract terms, monitoring progress against milestones, reviewing cost submissions, and verifying the quality of deliverables. For CPFF contracts, oversight is particularly critical to scrutinize incurred costs and ensure they are reasonable and allocable to the contract. The effectiveness can vary based on agency resources, the expertise of the oversight team, and the transparency of contractor reporting. Publicly available data on Superfund site progress and EPA performance reports can offer insights into the general effectiveness of their oversight mechanisms.

What is the historical spending trend for remedial design services at the Portland Harbor Superfund site prior to this award?

Historical spending data specifically for remedial design services at the Portland Harbor Superfund site prior to this $46 million award would require a detailed review of EPA's historical contract databases and financial records. Superfund sites often undergo multiple phases, including investigation, feasibility studies, remedial design, and remedial action, each potentially involving separate contracts. It's common for remedial design to be a significant investment following extensive site investigations. Without access to that specific historical data, it's presumed that previous phases incurred costs, and this award represents a substantial commitment to the design phase, likely building upon prior site characterization work.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HE0719R0034

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10560 ARROWHEAD DR STE 500, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $51,262,492

Exercised Options: $46,998,309

Current Obligation: $46,022,653

Actual Outlays: $26,313,498

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $7,125,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0318D0003

IDV Type: IDC

Timeline