EPA awards $5.26M for Drinking Water Optimization Program technical support to Process Applications, Inc

Contract Overview

Contract Amount: $5,260,729 ($5.3M)

Contractor: Process Applications, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2021-05-04

End Date: 2026-10-30

Contract Duration: 2,005 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TECHNICAL SUPPORT FOR DRINKING WATER OPTIMIZATION PROGRAM

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $5.3 million to PROCESS APPLICATIONS, INC. for work described as: TECHNICAL SUPPORT FOR DRINKING WATER OPTIMIZATION PROGRAM Key points: 1. Contract awarded for technical support to a critical environmental program. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (5 years) requires ongoing monitoring for value. 4. Engineering services sector often sees significant government spending.

Value Assessment

Rating: questionable

The contract value of $5.26M over approximately 5 years suggests a moderate annual spend. Without specific benchmarks for similar technical support contracts in environmental programs, it's difficult to definitively assess pricing, but the lack of competition is a concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $5.26M contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Ensures continued support for the Drinking Water Optimization Program, vital for public health. Potential for higher costs due to sole-source award impacts taxpayer funds. Long-term contract may not reflect current market rates for services. Lack of transparency in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Supports critical environmental program
Firm Fixed Price contract type

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government infrastructure and environmental initiatives. Spending in this sector can vary widely based on project scope and agency needs.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract term.

Related Government Programs

Engineering Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated costs due to lack of bidding.
Long contract duration may not reflect current market value.
Limited transparency in procurement.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $5.3 million to PROCESS APPLICATIONS, INC.. TECHNICAL SUPPORT FOR DRINKING WATER OPTIMIZATION PROGRAM

Who is the contractor on this award?

The obligated recipient is PROCESS APPLICATIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2021-05-04. End: 2026-10-30.

What is the justification for the sole-source award, and was any market research conducted to confirm the necessity of this approach?

The justification for a sole-source award typically involves a unique capability or circumstance where only one vendor can meet the requirement. Without further details, it's unclear if extensive market research was performed to validate this necessity. Agencies should document such research to ensure fair and efficient use of taxpayer funds.

How will the EPA ensure cost-effectiveness and value for money given the lack of competitive bidding over the contract's five-year term?

The EPA can ensure cost-effectiveness through robust contract management, including regular performance reviews, benchmarking against similar services if possible, and negotiating favorable terms within the fixed-price structure. Clear performance metrics and deliverables are essential to hold the contractor accountable and justify the expenditure.

What are the specific deliverables and performance metrics tied to this contract to measure the success of the Drinking Water Optimization Program support?

Specific deliverables would likely include technical reports, program analysis, strategic recommendations, and potentially training or guidance documents. Performance metrics should focus on the impact of the support on the program's efficiency, effectiveness, and achievement of its public health goals, such as improved water quality or optimized treatment processes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 68HERC21R0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2627 REDWING RD STE 340, FORT COLLINS, CO, 80526

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

Financial Breakdown

Contract Ceiling: $7,183,532

Exercised Options: $6,447,244

Current Obligation: $5,260,729

Actual Outlays: $4,483,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline