EPA awards $2.9M for Moses Lake wellfield cleanup, with AEEC, LLC managing remediation services

Contract Overview

Contract Amount: $2,945,838 ($2.9M)

Contractor: Aeec, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2021-11-04

End Date: 2026-05-03

Contract Duration: 1,641 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: R10 ESO: MOSES LAKE WELLFIELD CONTAMINATION SITE REMEDIAL ACTIVITIES

Place of Performance

Location: MOSES LAKE, GRANT County, WASHINGTON, 98837

State: Washington Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.9 million to AEEC, LLC for work described as: R10 ESO: MOSES LAKE WELLFIELD CONTAMINATION SITE REMEDIAL ACTIVITIES Key points: 1. Contract value appears reasonable given the scope of environmental remediation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include unforeseen site conditions common in environmental cleanup. 4. The contract duration extends over several years, allowing for phased remediation. 5. This contract falls within the environmental services sector, focusing on site remediation. 6. The use of Time and Materials pricing may introduce cost variability.

Value Assessment

Rating: good

The contract value of approximately $2.9 million for remedial activities at the Moses Lake wellfield appears to be within a reasonable range for environmental cleanup projects of this nature. Benchmarking against similar EPA-funded Superfund or RCRA site cleanups would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, compared to fixed-price contracts. However, for complex remediation where the full scope of work is not entirely predictable, T&M can be appropriate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, certain sources were initially excluded before the final award. The presence of 5 bidders suggests a healthy level of competition. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers, potentially leading to better value.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers, as it encourages multiple firms to offer their best pricing and technical solutions, likely resulting in a more cost-effective outcome for the cleanup effort.

Public Impact

The primary beneficiaries are the residents and environment of Moses Lake, Washington, through the cleanup of contaminated groundwater. The services delivered include critical remedial activities to address wellfield contamination. The geographic impact is localized to the Moses Lake wellfield area in Washington State. Workforce implications include employment opportunities for environmental scientists, engineers, and remediation technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently monitored.
Potential for unforeseen site conditions requiring additional work and funding.
The exclusion of sources in the competition, even if justified, warrants scrutiny to ensure fairness and optimal competition.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration allows for sustained effort in remediation.
The contractor, AEEC, LLC, is tasked with a critical environmental protection mission.

Sector Analysis

This contract falls within the Environmental Services sector, specifically focusing on site remediation. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and historical contamination. Comparable spending benchmarks would involve looking at other EPA-funded cleanup actions under Superfund or RCRA programs, as well as state-level environmental projects. The NAICS code 562910 (Remediation Services) confirms its placement in this industry.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Therefore, the direct impact on the small business ecosystem is unclear from this information alone. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has a history of engaging with small business partners.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), the awarding agency. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract databases like FPDS. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Water Quality Protection Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Unforeseen site conditions common in environmental remediation.
Need for robust oversight of contractor performance and costs.
Complexity of groundwater contamination remediation.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.9 million to AEEC, LLC. R10 ESO: MOSES LAKE WELLFIELD CONTAMINATION SITE REMEDIAL ACTIVITIES

Who is the contractor on this award?

The obligated recipient is AEEC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2021-11-04. End: 2026-05-03.

What is AEEC, LLC's track record with the EPA on similar environmental remediation contracts?

A review of AEEC, LLC's contract history with the EPA would be necessary to assess their performance on similar environmental remediation projects. This would involve examining past contract values, durations, performance evaluations, and any instances of disputes or contract modifications. Understanding their experience with the specific types of contaminants and remediation techniques relevant to the Moses Lake wellfield would provide insight into their capability and reliability for this current contract. Without specific historical data, it's difficult to definitively assess their track record beyond the information provided for this single award.

How does the awarded amount compare to the estimated cost or initial solicitation value?

The provided data shows an awarded amount of $2,945,837.66. To assess if this represents good value, it would be crucial to compare this figure against the initial estimated cost or solicitation value for the 'R10 ESO: MOSES LAKE WELLFIELD CONTAMINATION SITE REMEDIAL ACTIVITIES' contract. If the awarded amount is significantly lower than estimates, it suggests successful cost negotiation or competitive pricing. Conversely, if it's higher, it might indicate adjustments during the procurement process or potentially less competitive bidding than anticipated. This comparison is key to understanding the initial budget expectations versus the final financial commitment.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this remediation contract?

The primary risk associated with a Time and Materials (T&M) pricing structure for environmental remediation is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If the scope of work is not well-defined, or if unforeseen site conditions arise, the contractor may incur more hours and use more materials than initially anticipated, leading to a higher final cost. Effective oversight, detailed work breakdown structures, and clear definitions of 'time' and 'materials' are crucial to mitigate these risks and ensure the government receives fair value.

What specific remediation technologies or methods are anticipated under this contract?

The provided data does not specify the exact remediation technologies or methods to be employed at the Moses Lake wellfield contamination site. Remedial activities for groundwater contamination can vary widely and may include techniques such as pump-and-treat systems, in-situ chemical oxidation (ISCO), bioremediation, soil vapor extraction, or containment barriers. The specific approach would depend on the nature of the contaminants, geological conditions, and regulatory requirements. A detailed work plan or the contract statement of work would typically outline these anticipated methods.

How does the competition level (5 bidders) impact the overall cost-effectiveness for taxpayers?

Having five bidders for this contract generally indicates a healthy level of competition, which is favorable for taxpayers. Increased competition typically drives down prices as contractors vie for the award by offering more competitive bids. It also encourages innovation and efficiency, as firms seek to differentiate themselves not only on price but also on technical approach and past performance. While five bidders is a good number, the specific nature of the bids received (e.g., price spread, technical proposals) would provide a more nuanced understanding of how effectively competition translated into cost savings for this particular contract.

What is the historical spending trend for environmental remediation services by the EPA?

Historical spending by the EPA on environmental remediation services is substantial and has been a consistent part of the agency's budget for decades, primarily driven by programs like Superfund and RCRA. Annual outlays can fluctuate based on the number and scale of sites undergoing cleanup, legislative appropriations, and national priorities. Examining EPA's historical budget documents and contract spending reports would reveal trends in remediation expenditures, identifying peak spending periods and the average cost of similar remediation projects over time. This context helps in evaluating whether the $2.9M for Moses Lake is in line with historical investment patterns.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11710 PLAZA AMERICA DR STE 125, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,945,838

Exercised Options: $2,945,838

Current Obligation: $2,945,838

Actual Outlays: $2,569,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 68HE0118D0019

IDV Type: IDC

Timeline