EPA Awards ICF $75 Million Environmental Support BPA

Rhea-AI Summary

The U.S. Environmental Protection Agency (EPA) Office of Water (OW) has awarded ICF (NASDAQ:ICFI) a single-award blanket purchase agreement (BPA) with a ceiling value of $75 million and a term of five years. ICF will provide environmental, economic, regulatory, and evaluation services to support EPA's critical water programs.

ICF's economists and environmental assessors will study and quantify the environmental and health effects, benefits, costs, and economic impacts of OW's regulatory actions. The company will leverage cloud computing and data analytics to perform analyses more efficiently, aiming to reduce pollutants in U.S. waters, improve drinking water quality, and reduce exposure to toxics and emerging contaminants in water.

ICF has been supporting EPA's water regulations since 2018 and recently provided regulatory support in developing the first-ever nationwide, legally enforceable drinking water standards for per- and polyfluoroalkyl substances (PFAS).

Positive

• Awarded $75 million BPA by EPA Office of Water
• Five-year contract term (one-year base plus four one-year options)
• Continuation of existing relationship with EPA since 2018
• Opportunity to leverage cloud computing and data analytics for efficient analysis

Negative

• None.

Insights

Environmental Policy Analyst

The EPA's $75 million BPA award to ICF for environmental support is a significant win, reinforcing the company's position in the government consulting sector. This five-year contract demonstrates ICF's strong relationship with the EPA and expertise in water-related environmental issues. The scope of work, including economic, regulatory and evaluation services, aligns well with ICF's core competencies. Their involvement in critical areas like reducing water pollutants and improving drinking water quality positions them at the forefront of addressing pressing environmental challenges. The mention of ICF's role in developing PFAS drinking water standards highlights their impact on significant public health initiatives. This contract not only provides a stable revenue stream but also enhances ICF's reputation in environmental consulting, potentially leading to future opportunities in both public and private sectors.

Financial Analyst

This $75 million BPA represents a substantial contract for ICF, providing a steady revenue stream over the next five years. With a market cap of $3.13 billion, this contract alone accounts for about 2.4% of ICF's current market value, which is significant for a single government contract. The recompete nature of the BPA suggests ICF has successfully delivered on previous EPA contracts, indicating strong client satisfaction and the potential for future renewals. ICF's focus on leveraging cloud computing and data analytics for more efficient analyses demonstrates their commitment to technological advancement, which could lead to improved margins and competitiveness. While the contract's annual value ($15 million if evenly distributed) may not dramatically alter ICF's overall financial picture, it provides a solid foundation for growth and showcases the company's strong positioning in the lucrative government consulting market.

Company Will Provide Economic, Regulatory and Evaluation Services

RESTON, Va., Oct. 1, 2024 /PRNewswire/ -- The U.S. Environmental Protection Agency (EPA) Office of Water (OW) recently awarded a single-award blanket purchase agreement (BPA) to global consulting and technology services provider ICF (NASDAQ:ICFI) to provide environmental, economic, regulatory and evaluation services to the agency's critical water programs. The recompete BPA has a ceiling value of $75 million and a term of five years, including a one-year base and four one-year option periods. 

ICF's economists and environmental assessors will study and quantify the environmental and health effects, benefits, costs and economic impacts of OW's regulatory actions. In addition, the company will leverage cloud computing and data analytics to perform analyses more efficiently. 

Together this work will help reduce pollutants in U.S. waters, improve drinking water quality, reduce exposure to toxics and emerging contaminants in water, and more. 

"Since 2018, ICF has supported EPA's water regulations to ensure they are scientifically sound, economically achievable, legally defensible and can withstand scrutiny," said Jennifer Welham, ICF senior vice president for health, people and human services. "We look forward to continuing our support to OW as they evaluate their next round of regulatory actions to further improve the safety of our nation's drinking water, watersheds and aquatic ecosystems."

ICF provided regulatory support to EPA in developing the first-ever nationwide, legally enforceable drinking water standards to protect communities from per- and polyfluoroalkyl substances (PFAS), commonly known as "forever chemicals," in their drinking water. The final rule was issued by the agency in April 2024.

For over 50 years, ICF's environmental experts—economists, policy analysts, health and data scientists, researchers, statisticians and more—have worked with scientific and economic data to produce broad-based analyses that stand up to intense scrutiny and establish a solid foundation for developing evidence-based conclusions. A leader in data modernization, the company combines deep domain expertise with emerging technologies, advanced analytics and human-centered practices to deliver programs that accelerate mission outcomes and maximize impact.

Read more about ICF's health, economic and financial analysis and risk assessment services.

About ICF
ICF is a global consulting and technology services company with approximately 9,000 employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at icf.com.

Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with U.S. federal government agencies; our ability to acquire and successfully integrate businesses; and various risks and uncertainties related to health epidemics, pandemics, and similar outbreaks. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements that are included in the "Risk Factors" section of our securities filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.

Contact: Lauren Dyke, lauren.dyke@ICF.com, +1.571.373.5577

View original content to download multimedia:https://www.prnewswire.com/news-releases/epa-awards-icf-75-million-environmental-support-bpa-302264608.html

SOURCE ICF

FAQ

What is the value and duration of the BPA awarded to ICF by the EPA?

The BPA awarded to ICF by the EPA has a ceiling value of $75 million and a term of five years, including a one-year base and four one-year option periods.

What services will ICF (ICFI) provide to the EPA under this agreement?

ICF will provide environmental, economic, regulatory, and evaluation services to support the EPA's critical water programs, including studying and quantifying environmental and health effects, benefits, costs, and economic impacts of regulatory actions.

How has ICF previously supported the EPA in water regulations?

Since 2018, ICF has supported EPA's water regulations, ensuring they are scientifically sound, economically achievable, and legally defensible. Recently, ICF provided regulatory support in developing the first nationwide drinking water standards for PFAS.

What technologies will ICF use to support the EPA's Office of Water?

ICF will leverage cloud computing and data analytics to perform analyses more efficiently in support of the EPA's Office of Water programs.