Pay for Performance Case Study - Success for Both Sides

In recent years, market forces have driven the cost of environmental investigations, remediation and consulting services lower and lower.  This trend coupled with cases of unsuccessful or prolonged clean up on contaminated sites, have influenced responsible parties and State agencies to engage in competitive pay-for-performance (PFP) contracts with environmental engineering firms.   These contracts are focused on obtaining specific clean up goals in an expedient manner.  Although they often present a considerable risk to the environmental firm, success can be profitable and an important building-block in establishing a strong and valuable relationship with the client.          

This case study demonstrates success on an ongoing PFP project through the use of proven remediation strategies and an understanding of site conditions from extensive professional experience in the geographical area of the site.  An aggressively priced technical proposal was submitted to secure the competitively bid PFP contract.  The contract was the first of its kind awarded by this branch of the State agency. 

The project consists of a site heavily impacted with petroleum contamination from historic releases from former underground storage tanks (USTs). The USTs were removed by the State agency and hydrogeologic investigations were performed under their orphaned tank program.  Private potable wells are located within 150 feet of the contamination.  Following years of investigations and monitoring events, the State assembled a Site Data Package and issued a Request for Proposal under a Pay-for-Performance Remediation Services contract.  The contract was awarded in 2008 and remediation was implemented.  The clean up goal has been reached for all but one chemical of concern and, as of the date of this submittal, the project’s 75% milestone goal has been achieved and 90% of the bid price has been invoiced.