EPA awards $5M for mine waste disposal at Cherokee County Superfund Site, with potential for future work

Contract Overview

Contract Amount: $5,037,202 ($5.0M)

Contractor: Williams Diversified Materials, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2024-09-26

End Date: 2026-12-31

Contract Duration: 826 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHEROKEE COUNTY - EARLY BIRD REPOSITORY SERVICES FOR DISPOSAL OF MINE WASTE AND RESIDENTIAL YARD SOILS LOCATED AT MULTIPLE OPERABLE UNITS WITHIN THE CHEROKEE COUNTY SUPERFUND SITE AND ADJACENT SITES.

Place of Performance

Location: GALENA, CHEROKEE County, KANSAS, 66739

State: Kansas Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $5.0 million to WILLIAMS DIVERSIFIED MATERIALS, INC. for work described as: CHEROKEE COUNTY - EARLY BIRD REPOSITORY SERVICES FOR DISPOSAL OF MINE WASTE AND RESIDENTIAL YARD SOILS LOCATED AT MULTIPLE OPERABLE UNITS WITHIN THE CHEROKEE COUNTY SUPERFUND SITE AND ADJACENT SITES. Key points: 1. Contract focuses on critical environmental remediation for mine waste and residential yard soils. 2. The firm fixed-price contract structure provides cost certainty for the government. 3. Limited competition raises questions about optimal pricing and potential for cost savings. 4. The contract duration of over two years suggests a significant scope of work. 5. Performance is located in Kansas, impacting local environmental conditions and potentially workforce. 6. This award is part of broader Superfund site cleanup efforts.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable remediation projects. The $5.04 million award for disposal services over approximately 2.5 years suggests a significant undertaking. However, the lack of competitive bidding makes it difficult to assess if the pricing represents a good value for money compared to what might have been achieved in a more open market. Further analysis of the contractor's historical performance and pricing on similar projects would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. While sole-source awards can be justified for specialized services or urgent needs, they typically result in less competitive pricing and potentially higher costs for the government. The absence of multiple bidders limits the government's ability to leverage market competition to drive down prices and ensure the most cost-effective solution.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential environmental services. Without a competitive bidding process, there is a reduced incentive for the contractor to offer the lowest possible cost.

Public Impact

Residents of Cherokee County, Kansas, will benefit from the cleanup of hazardous mine waste and contaminated soils. The services delivered include the safe disposal of mine waste and residential yard soils. The geographic impact is focused on the Cherokee County Superfund Site and adjacent areas in Kansas. The contract may have implications for local employment in environmental remediation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency in the bidding process makes it difficult to assess true value for money.
Contract duration and scope require careful monitoring to ensure efficient execution.

Positive Signals

Addresses critical environmental remediation needs at a Superfund site.
Firm fixed-price contract provides budget certainty.
Contractor is tasked with a vital service for public health and environmental safety.

Sector Analysis

Environmental remediation services, particularly those related to Superfund sites, represent a specialized and critical sector within the broader environmental services industry. This contract for mine waste and soil disposal falls under hazardous waste management and site cleanup. The market for such services is often driven by regulatory requirements and government funding for environmental restoration. Comparable spending benchmarks are difficult to establish without specific project details, but Superfund site cleanups can involve substantial investments over extended periods.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of mine waste disposal and the sole-source award, it is unlikely that subcontracting opportunities for small businesses will be a primary focus unless specifically mandated or pursued by the prime contractor. The impact on the small business ecosystem for this particular award appears minimal.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency (EPA) contracting officers and technical representatives. The EPA's Office of Inspector General (OIG) may conduct audits or investigations into the contract's performance and financial management. Transparency is dependent on the EPA's public reporting practices regarding contract awards and performance.

Related Government Programs

Superfund Site Remediation
Hazardous Waste Management
Environmental Cleanup Services
Mine Reclamation

Risk Flags

Sole-source award
Potential for cost overruns
Schedule delay risk
Environmental compliance risk

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $5.0 million to WILLIAMS DIVERSIFIED MATERIALS, INC.. CHEROKEE COUNTY - EARLY BIRD REPOSITORY SERVICES FOR DISPOSAL OF MINE WASTE AND RESIDENTIAL YARD SOILS LOCATED AT MULTIPLE OPERABLE UNITS WITHIN THE CHEROKEE COUNTY SUPERFUND SITE AND ADJACENT SITES.

Who is the contractor on this award?

The obligated recipient is WILLIAMS DIVERSIFIED MATERIALS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-12-31.

What is the track record of Williams Diversified Materials, Inc. on similar EPA contracts?

Williams Diversified Materials, Inc. has a history of performing environmental services, including waste management and remediation. To fully assess their track record for this specific contract, a detailed review of their past performance on EPA projects, particularly those involving mine waste and Superfund sites, would be necessary. This would include examining contract completion timeliness, quality of work, adherence to safety protocols, and any past performance issues or disputes. Information on their experience with firm fixed-price contracts of this magnitude and duration would also be relevant for evaluating their capability to deliver on the current award effectively and efficiently.

How does the pricing of this contract compare to similar remediation services?

Direct price comparison for this contract is challenging due to its sole-source nature and the specific environmental conditions at the Cherokee County Superfund Site. Typically, sole-source awards do not benefit from the price reductions typically achieved through competitive bidding. To benchmark the value, one would need to identify comparable remediation projects (e.g., similar volume and type of waste, similar geographic location, similar regulatory requirements) that were awarded competitively. Analyzing the contractor's proposed costs against industry standards for labor, equipment, and disposal fees, adjusted for site-specific complexities, would also provide insights. Without such comparisons, it's difficult to definitively state whether the $5.04 million represents optimal value.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond initial estimates, despite the firm fixed-price structure. Schedule delays could occur due to unforeseen site conditions, weather, or logistical challenges in waste transportation and disposal. Given the sole-source award, there's a risk of suboptimal pricing and reduced incentive for the contractor to achieve maximum efficiency. Reputational risk for the EPA could arise if the remediation is not performed to satisfactory environmental standards. Ensuring robust oversight and clear communication channels with the contractor will be crucial to mitigating these risks.

How effective is the EPA in managing sole-source contracts for environmental remediation?

The EPA's effectiveness in managing sole-source contracts for environmental remediation can vary. While sole-source awards are sometimes necessary due to unique requirements or limited contractor availability, they inherently reduce the government's leverage in price negotiation. The EPA employs contracting officers and technical experts to oversee these contracts, ensuring that the awarded price is 'fair and reasonable' based on available data. However, the absence of competition means that the potential for achieving the lowest possible cost is diminished. The agency's success hinges on thorough pre-award market research, robust negotiation strategies, and diligent post-award performance monitoring to ensure project objectives are met within the awarded budget.

What is the historical spending pattern for mine waste disposal at this Superfund site?

Historical spending data specifically for mine waste disposal at the Cherokee County Superfund Site prior to this award would provide crucial context. Analyzing past contracts, their values, durations, and the scope of work performed would help establish a baseline for current expenditures. Understanding if this $5.04 million award represents an increase, decrease, or consistent level of spending compared to previous efforts is important for assessing the long-term financial commitment to the site's cleanup. Without access to this historical data, it is difficult to evaluate the current award in the context of the overall remediation program's financial trajectory.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HE0724R0024

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2903 MILITARY AVE, BAXTER SPRINGS, KS, 66713

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,631,560

Exercised Options: $5,037,202

Current Obligation: $5,037,202

Actual Outlays: $190,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0724D0009

IDV Type: IDC

Timeline