Superfund Response Action Contracts
(U.S.) Environmental Protection Agency, Washington, DC
May 93
U.S. DEPARTMENT OF COMMERCE
National Technical Information Service
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PB93-963292
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
Publication 9242.2-08FS
May 1993
&EPA
Superfund Response
Action Contracts
Office of Emergency and Remedial Response
Hazardous Site Control Division, 5203G
Quick Reference Fact Sheet
The Response Action Contracts (RACs) are the U.S. Environmental Protection Agency's (EPA) next generation of
contracts to provide professional architect/engineer services to support response planning and oversight of activities
under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA) as amended
by the Superfund Amendments and Reauthorization Act of 1986 (SARA). These contracts will be procured as the
Regions deplete the capacity of their existing Alternative Remedial Contracting Strategy (ARCS) contracts. The purpose
of this fact sheet is to provide general information about the RACs and inform the contracting community of the Agency1 s
contracting strategy,
SERVICES REQUIRED
Services required by the Response Action Contract
statement of work include:
site management;
remedial investigation and feasibility studies;
engineering services to design remedial actions;
engineering evaluation and cost analysis for non-
time critical removal actions;
construction management for implementing reme-
dial actions and non-time critical removal actions,
including issuing and managing subcontracts for
construction of the selected remedy and engineering
services in overseeing construction;
enforcement support, including oversight of reme-
dial investigations/feasibility studies, remedial de-
sign, and remedial action, and negotiation support;
and
other technical assistance, including community
relations, sampling and analysis support, and pre-
design investigations.
Services may also include technical and manage-
ment services supporting EPA* s coordination and over-
sightof remedial activities performed by aState.theU.S.
Army Corps of Engineers (USACF), or responsible
parties identified in enforcement actions.
SUPERFUND'S LONG-TERM
CONTRACTING STRATEGY
The procurement of Response Action Contracts
implements the remedial action component of the EPA's
Long-Term Contracting Strategy (OSWER Directive
9242.6-07FS). This strategy prescribes an integrated
"one program" approach to enforcement and site cleanup
and decentralizes contract management to the EPA Re-
gions to enhance program flexibility and improve con-
tract oversight and cost management. The Response
Action Contracts will supplement and eventually re-
place the Alternative Remedial Contracting Strategy
(ARCS) contracts. The RACs also will integrate en-
forcement oversight and non-time critical removal ac-
tions previously performed under the EPA's Technical
Enforcement Support (TES) and Emergency Response
Cleanup Services (ERCS) contracts, respectively. The
Agency expects to reduce handoffs, promote program
integration, and give the Regions flexibility to pursue
various enforcement options through this one program
approach. Award of two or three Response Action
Contracts in each Region is anticipated to provide flex-
ibility to respond to potential conflict of interest prob-
lems, and to enhance post-award competition based on
contractor performance.
CONTRACT STRUCTURE AND SIZE
The Agency envisions the award of two Cost Plus
Award Fee contracts in most Regions. The base period
of performance will be five years, with one five-year
option period, for a potential contract period often years.
The Response Action Contract statement of work has
two general categories of activities: Program Support
and Site Specific Activities. The Regions will use work
assignments to issue all work under the Response Action
Contracts.
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PROCUREMENT PROCESS
The RACs procurements will be conducted accord-
ing to Brooks Act procedures. Highlight 1 depicts the
major steps in the RAC procurement process. The RAC
procurement process will begin with the submittal of
Standard Forms 254 and 255 (SF254/255). The review
of the SF254/255 will be based on each firm's demon-
strated abilities. These abilities must include:
adequately staffing the contract with experienced,
trained personnel at the levels, disciplines and in the
quantities required to fully implement the statement
of work;
accessing resources outside the Region in a timely
and responsive manner;
assuring full implementation of the statement of
work over the potential duration of the contract
through the degree of Corporate presence in the
Region;
appropriately distributing work assignments and
accomplishing workload management among the
firm's offices and/or TEAM'S members in the most
effective and efficient manner practicable;
proposing key personnel with strong education,
technical experience, and management and/or fi-
nancial experience;
providing technical, management and administra-
tive support as it pertains to the delivery of Architect
and Engineering (A/E) services directly related to
the implementation of environmental regulations
(i.e., hazardous waste, air, water, wetlands, etc.);
and
effectively and efficiently utilizing resources to
control costs, balance program support costs to
contract costs, and balance the professional to tech-
nical labor mix.
Those firms determined to be qualified based on SF
254/255 evaluation will be requested to submit a man-
ager.iint plan snd may be requested to submit a response
scenario. These submissions will be used by the Agency
to discriminate further between the technical qualifica-
tions of the firms. Areas to be considered by the Agency
in the evaluation of management plans include:
project organization and support,
management control systems,
project/work assignment management, and
* mobilization.
Highlight 1
RAC Procurement Process
ceo
Announcement
period
Firms prepare
SF 254/255S
EPA evaluates
SF254/255S
and selects
most qualified
firms (shortlist)
Shortlisted firms
prepare
management plans
EPA evaluates
management
plans, holds
Interrogatories,
and selects
most qualified
firms
Requested
firms prepare
cost proposals
Cost proposal
audits and
cost analysis
Contract
negotiations
and WCAO
review of
contract
Contractor
mobilization
CBD
Announcement
RFP Issued
Preproposal
Conference
RFP Amendment
Issued
Firms submit
SF254/255S
EPA Requests
Management Plans
Firms Submit
Management Plans
EPA Requests
Cost Proposals
Firms Submit
Cost Proposals
Initiate Contract
Negotiations with
Selected Firms
Contract Award
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Agency review of response scenarios will be based
on each firm's demonstrated abilities. These abilities
must include:
understanding of EPA programs, regulations, re-
quirements, and policies pertaining to accelerating
site ranking, in vesligation, and design and construc-
tion activities atsites requiring activities pursuant to
the statement of work;
coordinating technical and management strategies
in an effective manner in addressing the scenario;
applying innovative approaches and methodologies
in addressing the scenario; and
applying cost and time saving approaches to imple-
menting an overall response strategy at the site
described in the scenario.
Concurrently with submission of management plans
and response scenarios, firms will be required to submit
corporate standard operating procedures (SOPs) for:
conflict of interest (COI),
quality assurance,
confidential business information (CBI),
health and safety, and
analytical services deli very.
The firms determined to be most highly technically
qualified based on the management plan evaluation will
be requested to submit cost proposals. After conducting
cost proposal review and audits, the EPA will negotiate
and award contracts to the selected firms.
Because of the complex nature of the statement of
work and detailed instructions for the preparation of
SF254/255, a formal Request for Proposals (RFP) will
be issued. Firms interested in receiving the RFP should
submit their requests in writing to the following address.
Ms. Jewel Carter, Contracting Officer
Office of Acquisition Management
U.S. Environmental Protection Agency
401 M Street, S.W. - Mail Code PM-2I4F
Washington, DC 20460
202-260-9057
PROCUREMENT SCHEDULE
The Response Action Contracts will supplement
and eventually replace the ARCS contracts. The RACs
also will include enforcement oversight activities previ-
ously provided under the TES contracts and non-time
critical removal actions previously provided under the
ERCS contracts. The Regions will procure RACs as mcy
deplete the capacity of their ARCS contracts. The first
round of RACs procurements will begin during 1993.
Additional Response Action Contracts will be procured
periodically as Regional needs arise.
PREPROPOSAL CONFERENCE
The Agency plans to hold prcproposal conferences
for the RAC solicitations. Specific Regional preproposal
conference schedules will be included in the Commerce
Business Daily (CBD) announcement for the Regional
RAC solicitation. Registration is required to attend the
conferencc(s). To register, please write to the contract-
ing office listed in the solicitation or call the number
indicated in the CBD announcement or Region-specific
conference brochure.
The prcproposal conference format will consist of a
presentation by EPA on the Response Action Contract
solicitation. Firms may submit written questions prior to
or during this presentation. The Agency will respond to
selected questions at the conference. Following the
conference, the Agency will issue an amendment to the
solicitation. The amendment will answer all written
questions submitted at the conference and all questions
mailed to the contracting officer as directed in the RFP,
and will clarify any ambiguities brought to the Agency's
attention through written questions.
PERFORMANCE (AWARD) FEE PLAN
This plan describes how the base and performance
fee provisions of the Response Action Contracts will be
administered.
Base Fee: The base fee is a fixed amount that will
be paid to the contractor on a provisional basis as work
progresses. The base fee compensates the contractor for
risk. The base fee will not vary with performance,
provided the work is rated at or above "satisfactory."
The contractor will include amounts for base fee on
monthly vouchers in accordance with "Guide for Prepa-
ration of Contractor'sClaim for Reimbursement of Costs
and Fees under Cost Plus Award Fee (CPAF) Type
Contracts," EPA 1900-34A. At the completion of indi-
vidual work assignments, a Work Assignment Comple-
tion Report will be prepared rating the contractor's
overall performance for the work assignment. If the
rating is "satisfactory " or better, the contractor will retain
the base fee; however, if the rating is "unsatisfactory",
the base fee will be relumed to the government.
Performance Fee: The performance fee affords the
contractor an opportunity to earn additional fee com-
mensurate with the achievement of optimum perfor-
mance based upon an evaluation by the Regional Perfor-
mance Evaluation Board. The performance fee is to
motivate the contractor to provide excellence in perfor-
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mancc of all contract activities. RACs performance fees
will be earned and payable for completed work assign-
ments receiving a rating of "exceeds expectations" or
"outstanding."
PROGRAM SUPPORT (MANAGEMENT)
The Agency has structured the Program Support
(management) component of the Response Action Con-
tracts to include: mobilization, equipment (non-site
specific), ongoing technical support, ongoing adminis-
trative support, and contract close out. The Regions will
periodically issue and negotiate work assignments for
these activities. Mobilization and contract close out arc
one-time activities; other Program Support activities
will be ongoing over the period of theconlract. The work
assignment for mobilization and initial work assign-
ments for ongoing program support activities will be
negotiated during contract negotiations prior to award.
This approach provides the Regions the flexibility to
monitor and control the Program Support costs associ-
ated with the Response Action Contracts and complies
with the Agency's goal to minimize Program Support
costs in Response Action Contracts.
TERM-FORM AND COMPLETION-FORM
WORK ASSIGNMENTS
The Federal Acquisition Regulations (FAR) de-
scribe two forms of cost reimbursement contracts
completion form and term form. The Response Action
Contracts combine term and completion form under one
contract structure through provisions that permit the
issuance of term-form and/or completion-form work
assignments at the Agency's discretion.
The "term form" describes the scope of work in
general terms. It obligates the contractor to devote a
specified level of effort for a stated time period and is
often called "level of effort" (LOE). The obligation of
the contractor is to provide a specified number of hours
on a "best effort" basis during an agreed-upon time
period. The contractor is not obligated to deliver an end
productonly todeliverquality hours. Many Superfund
contracts are term-form contracts.
For those work assignments that cannot be priced
with any certainty, a term-form (LOE) work assignment
will be issued stipulating a specified number of labor
hours. The contractor will submit a work plan describing
the technical approach to the work, a detailed cost
estimate, and delivery schedule. To ease work plan
negotiations, during contract negotiations the Agency
will establish labor rates, escalation factors, overhead,
G&A, and any other costs that can be predetermined.
These rates will become part of ihe Response Action
Contract for use in work plan costing. These costs.
besides any other costs unique to the work assignment,
will be negotiated into an estimated cost and lee for the
work assignment.
The. "completion form" describes the scope of work
by stathg a definite goal or target and specifying an end
product. This form of contract normally requires the
contractor to complete and deliver the specified product
(e.g., a remedial design) within the estimated cost of the
contract as a condition for payment of fees. If the
contractor cannot complete the product within the stated
estimated cost, the government may elect to provide the
contractor additional funds tocomplete the work without
providing any additional fee. There arc also provisions
in the contract for "changes" in the scope which may
entitle the contractor to more fee. The basic premise is
that the contractor is paid a fee for the job. If the job docs
not change but the contractor overruns the estimated
cost, the fee is still for the job and does not change. This
approach gives the contractor incentive to complete the
job within the estimated cost.
For work assignments that lend themselves to a
performance lypeof specification and can be priced with
some, but not complete, certainty, a completion-form
work assignment will be issued. Completion-form work
assignments will be negotiated and established using the
same process as term-form work assignments (described
above). If the contractor cannot complete the work
assignment within the estimated cost ~ad r^ns out of
money, the government can provide funds to complete
the job but will pay no additional fee. If changes to the
scope of work occur during the conduct of performance,
the contractor can claim a "change" which the Govern-
ment may or may not negotiate to include a change in the
fee.
The Response Action Contracts contain a base quan-
tity for the term-form (level of effort) compon ent of the
contract and a dollar ceiling for the completion-form
component of the contract. The Regions will determine
Ihe distribution of work between the two forms for their
specific contracts. When the base quantity and/or dollar
ceiling is exhausted, the Region will execute a series of
contract modifications as needed to increase contract
quantities or dollars. Term-form contract increases are
in the form of hours that raise the base quantity. Comple-
tion-form increases are in the form of dollars that raise
the completion-form ceiling.
FOR FURTHER INFORMATION CALL:
Design and Construction Management Branch
U.S. Environmental Protection Agency
401 M Street. S.W. - Mail Code 5203G
Washington, DC 20460
703-603-8830
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