EPA awards $33.6M contract for contaminated soil remediation at Cove Transfer Station

Contract Overview

Contract Amount: $33,626,699 ($33.6M)

Contractor: Arrowhead Contracting, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2023-02-06

End Date: 2027-01-24

Contract Duration: 1,448 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT THROUGH AMRCS FOR RESPONSE ACTIVITIES TO ADDRESS CONTAMINATED SOIL REMOVAL AND DISPOSAL AT THE COVE TRANSFER STATION (CTS) COMPLEX

Place of Performance

Location: RED VALLEY, APACHE County, ARIZONA, 86544

State: Arizona Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $33.6 million to ARROWHEAD CONTRACTING, LLC for work described as: CONTRACT THROUGH AMRCS FOR RESPONSE ACTIVITIES TO ADDRESS CONTAMINATED SOIL REMOVAL AND DISPOSAL AT THE COVE TRANSFER STATION (CTS) COMPLEX Key points: 1. Contract focuses on critical environmental cleanup, addressing potential public health and ecological risks. 2. Full and open competition suggests a robust market for remediation services, potentially driving competitive pricing. 3. The contract duration of nearly four years indicates a significant, long-term environmental challenge. 4. Fixed-price contract type shifts performance risk to the contractor, incentivizing efficient completion. 5. Geographic focus on Arizona highlights regional environmental needs. 6. Contractor Arrowhead Contracting, LLC, will be responsible for soil removal and disposal activities.

Value Assessment

Rating: good

The contract value of $33.6 million for remediation services over approximately four years appears reasonable given the scope of work involving contaminated soil removal and disposal. Benchmarking against similar large-scale environmental cleanup contracts would provide further context, but the fixed-price nature suggests an effort to control costs. The number of bids received (3) indicates some level of competition, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was generally open, there might have been specific reasons for excluding certain sources. With three bidders, the competition level is moderate, suggesting that while multiple firms were considered, the pool might not have been as broad as in a purely unrestricted full and open competition. This level of competition can still lead to fair pricing but may not always achieve the absolute lowest cost.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a fair price, but there may be opportunities for even greater cost savings if a wider range of qualified bidders could have been engaged.

Public Impact

The primary beneficiaries are the residents and environment of Arizona, with the cleanup mitigating potential health and ecological hazards. Services delivered include the critical removal and disposal of contaminated soil, preventing further environmental degradation. The geographic impact is localized to the Cove Transfer Station (CTS) Complex in Arizona. This contract supports specialized environmental remediation jobs within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen contamination complexities arise, despite the firm fixed-price structure.
Ensuring proper disposal methods are followed to prevent secondary environmental contamination.
Monitoring contractor performance to ensure adherence to remediation standards and timelines.

Positive Signals

Firm fixed-price contract type aligns incentives for efficient project completion.
The contract duration allows for thorough remediation of a potentially complex site.
Awarded by the Environmental Protection Agency, a key agency for environmental oversight.

Sector Analysis

The environmental remediation services sector is a critical component of the broader environmental services industry, addressing legacy pollution and ongoing environmental challenges. This contract falls within the hazardous waste management and site remediation sub-sector. The market for these services is driven by regulatory requirements and the need to clean up contaminated sites, often involving significant investment. Comparable spending benchmarks would depend on the specific type and scale of contamination, but contracts of this magnitude are typical for Superfund sites or large industrial cleanup operations.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the prime contractor, Arrowhead Contracting, LLC, may be a small business, the contract itself was not specifically designated for small business set-aside. This means that larger firms could compete, and subcontracting opportunities for small businesses would depend on the prime contractor's strategy rather than a contractual requirement.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Environmental Protection Agency (EPA), the awarding agency. The EPA has established procedures for monitoring contractor performance, ensuring compliance with environmental regulations, and verifying the proper execution of remediation activities. Transparency is facilitated through contract award databases and potentially through public reporting on the cleanup progress. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Superfund Program
RCRA Corrective Action
Brownfields Program
Hazardous Waste Management

Risk Flags

Potential for unforeseen contamination complexities
Ensuring long-term effectiveness of remediation
Contractor performance and schedule adherence

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $33.6 million to ARROWHEAD CONTRACTING, LLC. CONTRACT THROUGH AMRCS FOR RESPONSE ACTIVITIES TO ADDRESS CONTAMINATED SOIL REMOVAL AND DISPOSAL AT THE COVE TRANSFER STATION (CTS) COMPLEX

Who is the contractor on this award?

The obligated recipient is ARROWHEAD CONTRACTING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2023-02-06. End: 2027-01-24.

What is the track record of Arrowhead Contracting, LLC in handling similar environmental remediation projects?

Assessing the track record of Arrowhead Contracting, LLC is crucial for understanding their capability to successfully execute this $33.6 million contract. A review of their past performance, particularly on projects involving contaminated soil removal and disposal at transfer station complexes or similar industrial sites, would be informative. Key indicators include project completion times, adherence to budget, safety records, and client satisfaction. Information on previous EPA contracts or awards from other environmental agencies would provide direct evidence of their experience. Without specific data on past projects, it's difficult to definitively assess their preparedness, but the award itself suggests they met the agency's minimum qualifications.

How does the awarded price compare to similar remediation contracts in Arizona or the broader Southwest region?

To benchmark the value for money, the awarded price of $33.6 million needs to be compared against similar environmental remediation contracts. Factors such as the volume and type of contaminants, the complexity of the site, regulatory requirements, and the duration of the cleanup are critical for a fair comparison. Contracts for soil removal and disposal at large industrial sites or former military bases in the Southwest could serve as relevant benchmarks. If this contract's per-unit cost (e.g., per cubic yard of soil remediated) is significantly higher or lower than comparable projects, it would warrant further investigation into the reasons behind the discrepancy, such as unique site challenges or market conditions.

What are the primary risks associated with this specific remediation project at the Cove Transfer Station?

The primary risks associated with this remediation project include the potential for encountering unforeseen contamination that exceeds initial estimates, leading to scope creep and cost overruns, despite the firm fixed-price contract. There's also a risk of inadequate containment or disposal methods, which could lead to secondary environmental pollution or health hazards. Performance risks include delays in the remediation schedule due to logistical challenges, weather, or contractor performance issues. Furthermore, ensuring the long-term effectiveness of the remediation and preventing future contamination at the site are ongoing concerns that extend beyond the contract period.

How effective are EPA's oversight mechanisms in ensuring the successful completion of this contract?

The EPA typically employs robust oversight mechanisms for environmental remediation contracts. These often include regular site inspections, progress reviews, performance evaluations, and adherence to strict reporting requirements. The agency's technical experts monitor the contractor's adherence to the work plan, safety protocols, and environmental standards. For a contract of this magnitude and duration, a dedicated project manager and technical team are usually assigned to ensure accountability and address any issues promptly. The effectiveness hinges on the diligence of the EPA's oversight team and the clarity of the contract's performance standards.

What has been the historical spending trend for environmental remediation services by the EPA in recent years?

Historical spending trends for environmental remediation services by the EPA generally reflect ongoing efforts to address legacy contamination under programs like Superfund and RCRA. Spending in this area tends to be substantial and relatively consistent, driven by regulatory mandates and the long-term nature of environmental cleanup. Fluctuations may occur based on the number of new sites identified, the complexity of existing sites requiring remediation, and annual budget appropriations. Analyzing EPA's budget documents and contract databases over the past 5-10 years would reveal trends in the total amount obligated for remediation services, potentially highlighting any significant increases or decreases in investment in this sector.

What are the implications of the 'Full and Open Competition After Exclusion of Sources' award type for cost efficiency?

The 'Full and Open Competition After Exclusion of Sources' award type suggests that while the competition was intended to be broad, certain potential bidders were excluded for specific, documented reasons. This exclusion could potentially limit the number of highly competitive bids received compared to a completely unrestricted 'full and open' competition. While three bidders indicate a degree of market engagement, the exclusion might have inadvertently reduced the pressure on pricing. Therefore, while the competition likely yielded a fair price, it may not have achieved the absolute lowest possible cost that could have resulted from a wider, unrestricted bidding process. The justification for the exclusion would be key to understanding its impact.

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

Solicitation ID: 68HE0922R0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8900 INDIAN CREEK PKWY STE 415, OVERLAND PARK, KS, 66210

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,626,699

Exercised Options: $33,626,699

Current Obligation: $33,626,699

Actual Outlays: $32,936,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 68HE0921D0003

IDV Type: IDC

Timeline