EPA awards $6.5M contract for groundwater remediation at Palermo Wellfield, with limited competition

Contract Overview

Contract Amount: $6,476,878 ($6.5M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2025-08-08

End Date: 2030-08-07

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: R10 PALERMO WELLFIELD OU2 GROUNDWATER REMEDIAL ACTION SITE-SPECIFIC CONTRACT

Place of Performance

Location: TUMWATER, THURSTON County, WASHINGTON, 98501

State: Washington Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $6.5 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: R10 PALERMO WELLFIELD OU2 GROUNDWATER REMEDIAL ACTION SITE-SPECIFIC CONTRACT Key points: 1. Contract value of $6.5M over 5 years suggests a moderate investment in environmental cleanup. 2. Sole-source award raises questions about potential cost efficiencies and market engagement. 3. Long contract duration (5 years) may indicate complex, long-term remediation needs. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Focus on groundwater remediation highlights critical environmental protection efforts. 6. Contract awarded to Paragon Professional Services LLC, a single entity.

Value Assessment

Rating: fair

The contract value of $6.5 million over five years averages to $1.3 million annually. Without comparable contracts for similar groundwater remediation projects at Superfund sites, it is difficult to definitively benchmark the value. However, the sole-source nature of the award means there was no direct price competition to establish a market-driven rate. The fixed-price contract type is generally favorable for cost control if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple potential bidders. This approach limits the opportunity for price discovery through competitive bidding and may result in higher costs than if multiple firms had vied for the work. The lack of competition raises concerns about whether the government secured the best possible price and value.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The sole-source award bypasses the typical process that drives down costs through bidding.

Public Impact

The primary beneficiaries are communities impacted by contaminated groundwater, with the Palermo Wellfield site specifically addressed. Services delivered include groundwater remediation, crucial for environmental cleanup and public health protection. The geographic impact is localized to the area surrounding the Palermo Wellfield. This contract supports specialized environmental remediation jobs within the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to sole-source justification.
Potential for contractor lock-in given the long-term nature of the contract.

Positive Signals

Fixed-price contract shifts risk to the contractor, potentially leading to better cost management.
Focus on a critical environmental issue (groundwater remediation) addresses a significant public need.
Contract duration aligns with the likely long-term nature of complex remediation projects.

Sector Analysis

The environmental remediation sector is a significant part of the government contracting landscape, particularly for agencies like the EPA responsible for Superfund sites and environmental cleanup. This contract falls within the remediation services sub-sector, which involves specialized technical expertise in addressing contaminated soil, water, and air. Market size for environmental remediation services is substantial, driven by regulatory requirements and ongoing cleanup efforts at various federal sites.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Paragon Professional Services LLC, a single entity, suggests that small business participation may be limited unless Paragon itself is a small business or actively plans to subcontract to them. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely fall under the Environmental Protection Agency's program management and contracting offices. The Inspector General's office may conduct audits or investigations into the contract's performance and financial aspects. Transparency is moderate, as contract details are publicly available, but the sole-source nature limits insight into the pre-award negotiation and justification process.

Related Government Programs

Superfund Remedial Action Contracts
Environmental Consulting Services
Groundwater Treatment Contracts
Hazardous Waste Management Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $6.5 million to PARAGON PROFESSIONAL SERVICES LLC. R10 PALERMO WELLFIELD OU2 GROUNDWATER REMEDIAL ACTION SITE-SPECIFIC CONTRACT

Who is the contractor on this award?

The obligated recipient is PARAGON PROFESSIONAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2025-08-08. End: 2030-08-07.

What is the track record of Paragon Professional Services LLC in performing similar environmental remediation contracts for the EPA or other federal agencies?

A review of federal procurement databases indicates that Paragon Professional Services LLC has been awarded contracts for environmental services. However, the extent and nature of their experience with large-scale groundwater remediation projects, particularly those comparable to the Palermo Wellfield OU2 site, require deeper investigation. Analyzing past performance evaluations, contract modifications, and the specific scope of work on previous EPA contracts would provide a clearer picture of their capabilities and reliability for this specific task. Without this detailed historical data, assessing their track record is speculative.

How does the estimated annual cost of $1.3 million compare to similar groundwater remediation projects managed by the EPA?

Benchmarking the annual cost of $1.3 million for this contract against similar EPA groundwater remediation projects is challenging without access to detailed cost data from comparable sites. Factors such as site complexity, contaminant types and concentrations, geographic location, and the specific remediation technologies employed significantly influence project costs. Given this contract was sole-sourced, direct comparison to competitively bid projects is difficult. A comprehensive analysis would involve identifying projects with similar technical scopes and durations, adjusting for regional economic differences, and examining the specific remediation approach outlined in the contract documents to assess value for money.

What specific risks are associated with the sole-source procurement method for this environmental remediation contract?

The primary risk associated with a sole-source procurement is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not achieve the most favorable pricing. Additionally, sole-sourcing can reduce transparency in the procurement process and may signal a lack of available qualified contractors or a failure to adequately plan for competition. For this contract, the risk is that taxpayers are paying more than necessary for the groundwater remediation services. There's also a risk that the chosen contractor may not be the most innovative or efficient provider available in the market.

What are the expected outcomes and effectiveness measures for the Palermo Wellfield OU2 groundwater remedial action?

The expected outcome of the Palermo Wellfield OU2 groundwater remedial action is the significant reduction or elimination of hazardous contaminants in the groundwater to levels that protect human health and the environment. Effectiveness will likely be measured by achieving specific cleanup standards defined in the Record of Decision (ROD) for the site. Key performance indicators would include the concentration of target contaminants in monitoring wells over time, the volume of contaminated groundwater treated or contained, and the overall restoration of groundwater quality to safe drinking water standards or other protective levels. Regular monitoring and reporting by the contractor, overseen by the EPA, will be crucial for assessing progress and confirming the effectiveness of the remediation efforts.

How has EPA's spending on groundwater remediation services trended over the past five fiscal years?

Analyzing EPA's spending on groundwater remediation services over the past five fiscal years would reveal trends in investment in this critical area. Such an analysis would likely show fluctuations based on the number of active Superfund sites, the progression of remedial actions, and overall budget allocations. An increasing trend might indicate a growing need for remediation or a strategic focus by the EPA, while a decreasing trend could suggest budget constraints or the completion of major projects. Understanding this historical spending context helps evaluate whether the current $6.5 million contract aligns with past investment levels and priorities for groundwater cleanup.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HE0725R0026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 IRON POINT CIR STE 220, FOLSOM, CA, 95630

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,458,876

Exercised Options: $11,458,876

Current Obligation: $6,476,878

Actual Outlays: $546,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline