EPA's $51.5M Remediation Services Contract with CDM Federal Programs Corporation: A 13-Year Engagement

Contract Overview

Contract Amount: $51,461,242 ($51.5M)

Contractor: CDM Federal Programs Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2007-08-09

End Date: 2020-08-08

Contract Duration: 4,748 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REGION III RACS II

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $51.5 million to CDM FEDERAL PROGRAMS CORPORATION for work described as: REGION III RACS II Key points: 1. Significant long-term contract value of over $51 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of nearly 13 years raises questions about adaptability and ongoing value. 4. The Environmental sector is characterized by complex, long-term projects.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific task order details, but the long duration suggests potential for price creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which is generally positive for price discovery. However, the extended duration of the contract may have limited the impact of initial competition over time.

Taxpayer Impact: The long-term nature and cost-plus structure warrant scrutiny to ensure taxpayer funds are used efficiently and effectively for environmental remediation.

Public Impact

Ensures continued environmental remediation services for the EPA. Supports a large federal agency's mission in environmental protection. Provides long-term employment for the contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 13 years)
Cost-plus-fixed-fee pricing structure
Lack of specific task order details for granular analysis

Positive Signals

Full and open competition utilized
Contract supports critical environmental agency mission

Sector Analysis

This contract falls within the Environmental Services sector, which often involves complex, long-term projects requiring specialized expertise. Spending benchmarks vary widely based on the specific nature of remediation required.

Small Business Impact

The data indicates the primary contractor is CDM Federal Programs Corporation, and there is no explicit mention of small business participation. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the EPA to ensure performance standards are met and costs remain controlled. Regular reviews and performance evaluations are crucial for accountability.

Related Government Programs

Remediation Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Extended contract duration may indicate a lack of flexibility or evolving needs.
Cost-plus-fixed-fee structure can incentivize higher costs if not strictly managed.
Lack of small business participation noted in primary award.
Absence of specific task order details hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $51.5 million to CDM FEDERAL PROGRAMS CORPORATION. REGION III RACS II

Who is the contractor on this award?

The obligated recipient is CDM FEDERAL PROGRAMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.5 million.

What is the period of performance?

Start: 2007-08-09. End: 2020-08-08.

What specific environmental remediation services were provided under this contract, and how did their scope evolve over the 13-year period?

The contract was for Remediation Services (NAICS 562910). Without access to individual task orders, the precise nature of the services is unknown. However, such contracts typically involve assessment, cleanup, and monitoring of contaminated sites. The evolution would likely depend on the specific sites managed and the changing regulatory landscape over the contract's extensive lifespan.

Given the cost-plus-fixed-fee structure and long duration, what mechanisms were in place to mitigate potential cost overruns and ensure continued value for money?

Cost-plus-fixed-fee contracts require diligent oversight. The EPA likely employed contract officers and technical monitors to review costs, ensure work was necessary and efficient, and verify that the fixed fee remained appropriate. Regular performance reviews and audits would be standard practice to ensure value and control costs over such a long period.

How effectively did the full and open competition process translate into competitive pricing over the entire 13-year contract term?

While full and open competition at the outset is beneficial, its impact on pricing diminishes over a 13-year period. Initial competition sets the baseline, but subsequent task orders or modifications might not undergo the same level of competitive pressure. The EPA would need to ensure that any extensions or significant changes were re-competed or justified to maintain competitive pricing.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: PRR30610088

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 210, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $82,263,812

Exercised Options: $82,263,812

Current Obligation: $51,461,242

Actual Outlays: $203,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline