EPA's $18.7M Remediation Services Contract with Weston Solutions Inc. delivered performance-based services over 8 years

Contract Overview

Contract Amount: $18,669,840 ($18.7M)

Contractor: Weston Solutions Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2006-09-28

End Date: 2014-10-10

Contract Duration: 2,934 days

Daily Burn Rate: $6.4K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PERFORMANCE BASED SERVICES

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55801

State: Minnesota Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $18.7 million to WESTON SOLUTIONS INC for work described as: PERFORMANCE BASED SERVICES Key points: 1. Contract focused on performance-based remediation services, aligning payment with successful outcomes. 2. The contract utilized a Time and Materials pricing structure, which can pose risks if not closely managed. 3. With a duration of nearly 8 years, this represents a significant, long-term commitment for environmental cleanup. 4. The award was a delivery order under a larger contract, suggesting a phased or modular approach to services. 5. The contract was awarded to a single vendor, raising questions about the extent of competition. 6. The North American Industry Classification System (NAICS) code 562910 indicates a focus on hazardous waste treatment and disposal.

Value Assessment

Rating: fair

The contract's value of $18.7 million over approximately 8 years for remediation services is substantial. Without specific benchmarks for comparable remediation projects in Minnesota or nationally, assessing value for money is challenging. The Time and Materials pricing structure, while common for complex environmental work, requires diligent oversight to prevent cost overruns and ensure efficiency. Comparing the per-diem rates or unit costs for specific remediation tasks against industry standards would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a 'DELIVERY ORDER' with 'no' (number of offers) as 2. This suggests it was not a full and open competition for this specific delivery order, but rather a task order issued under an existing contract vehicle. The competition level for the original contract vehicle is not specified, but the low number of offers for this order implies limited competition for this particular task.

Taxpayer Impact: Limited competition for individual delivery orders can potentially lead to higher prices for taxpayers compared to a fully competed scenario, as the government may have less leverage in negotiations.

Public Impact

The primary beneficiaries are likely communities and ecosystems impacted by environmental contamination, receiving cleanup services. Services delivered include remediation of hazardous waste sites, contributing to environmental protection and public health. The contract's performance period spanned from late 2006 to late 2014, indicating long-term environmental management. Geographic impact is specified as Minnesota (ST: MN, SN: MINNESOTA), focusing cleanup efforts within the state. Workforce implications include employment for environmental scientists, engineers, technicians, and laborers involved in remediation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure can lead to cost overruns if not managed effectively.
Limited competition indicated by the number of offers (2) for this delivery order may impact price competitiveness.
Long contract duration (nearly 8 years) requires sustained oversight to ensure ongoing performance and value.
The specific nature of remediation services can involve unforeseen complexities and risks.

Positive Signals

Contract is performance-based, suggesting a focus on achieving defined outcomes.
Awarded to Weston Solutions Inc., a company with experience in environmental services.
The contract addresses critical environmental remediation needs, contributing to public and environmental health.
Specific geographic focus on Minnesota allows for targeted environmental cleanup efforts.

Sector Analysis

The environmental remediation sector involves companies specializing in the cleanup of contaminated sites, including hazardous waste management, site assessment, and restoration. This contract falls within the broader environmental services industry, which is driven by regulatory compliance, public health concerns, and corporate environmental responsibility. Market size for environmental remediation services is significant, influenced by Superfund sites, industrial cleanup mandates, and ongoing environmental monitoring. This contract represents a specific instance of federal spending within this sector, supporting the EPA's mission.

Small Business Impact

The data indicates that small business set-aside (ss) and subcontracting (sb) were both false for this contract. This means the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting goals mandated within the provided details. Consequently, the direct impact on the small business ecosystem through this specific contract is likely minimal, with opportunities primarily going to larger, established firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency (EPA), which awarded the contract. As a performance-based contract, oversight would focus on monitoring the contractor's progress against defined performance standards and deliverables. Transparency is generally facilitated through contract award databases and reporting requirements. 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 Actions
Brownfields Program
Federal Facility Cleanup Program

Risk Flags

Time and Materials Pricing
Limited Competition for Delivery Order

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $18.7 million to WESTON SOLUTIONS INC. PERFORMANCE BASED SERVICES

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2006-09-28. End: 2014-10-10.

What was the specific nature of the remediation services provided under this contract?

The contract, awarded under NAICS code 562910 (Remediation Services), focused on addressing environmental contamination. While the exact sites and contaminants are not detailed in the provided data, such services typically involve the assessment, containment, cleanup, and disposal of hazardous and non-hazardous waste materials. This could include soil and groundwater remediation, demolition of contaminated structures, and long-term monitoring to ensure environmental safety and compliance with regulatory standards. The performance-based nature suggests that payments were tied to the successful completion of specific cleanup objectives and milestones.

How does the Time and Materials (T&M) pricing structure compare to other contract types for environmental remediation?

Time and Materials (T&M) contracts are often used for services where the scope of work is not clearly defined at the outset or is expected to evolve, which is common in environmental remediation due to site complexities. Unlike fixed-price contracts, T&M pays the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and equipment. While offering flexibility, T&M contracts carry a higher risk of cost overruns if not managed diligently. Agencies often prefer firm-fixed-price or cost-plus-fixed-fee contracts when the scope is well-defined to ensure better cost certainty for taxpayers. Robust oversight and detailed reporting are crucial for T&M contracts to control costs.

What are the potential risks associated with a long-term contract (nearly 8 years) for remediation services?

Long-term contracts, such as this 8-year engagement, present several risks. Firstly, the cost of services can escalate over time due to inflation, changes in labor rates, and material costs, especially under a Time and Materials structure. Secondly, maintaining consistent performance quality over an extended period requires continuous oversight and adaptation to evolving environmental regulations or site conditions. There's also a risk of contractor complacency or a decline in innovation if not incentivized properly. Furthermore, the government's needs or priorities might shift over such a long duration, potentially leading to contract modifications or disputes if the original scope becomes misaligned with current requirements.

What does the limited competition (2 offers) for this delivery order imply for cost-effectiveness?

A limited number of offers, such as the two indicated for this delivery order, generally suggests reduced competition. When fewer companies bid on a contract or task order, the government may have less leverage to negotiate favorable pricing. This can potentially lead to higher costs for taxpayers compared to scenarios with multiple competing bids, where providers are incentivized to offer more competitive rates to win the contract. While the original contract vehicle might have had broader competition, individual task orders with limited bids warrant scrutiny to ensure fair pricing and value for money.

How does the $18.7 million total value compare to typical federal spending on environmental remediation?

The $18.7 million awarded over approximately eight years for remediation services in Minnesota is a significant sum, but federal spending on environmental remediation is vast and multifaceted. The EPA alone manages billions of dollars annually through programs like Superfund, RCRA, and others, addressing thousands of contaminated sites nationwide. This contract represents a portion of that larger federal effort. To contextualize its value, it would need to be compared against the average cost per site, the complexity of the remediation required, and the specific outcomes achieved, rather than just the total dollar amount in isolation. It appears to be a substantial, but not extraordinary, investment for a multi-year, performance-based remediation effort.

What is the track record of Weston Solutions Inc. in federal environmental remediation contracts?

Weston Solutions Inc. is a well-established environmental services firm with a significant history of performing work for federal agencies, including the EPA, Department of Defense, and others. They have been involved in numerous large-scale remediation projects across the country, often handling complex environmental challenges. Their track record generally includes experience with Superfund sites, hazardous waste management, and infrastructure-related environmental services. While specific performance metrics for all past contracts are not publicly detailed, their continued awards from federal agencies suggest a generally satisfactory performance history and capability in meeting federal environmental remediation requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Contractor Details

Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)

Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,669,840

Exercised Options: $18,669,840

Current Obligation: $18,669,840

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: EPS50604

IDV Type: IDC

Timeline