EPA Awards ICF $75 Million Health Risk Assessment Contract

Rhea-AI Summary

ICF has been awarded a $75 million contract by the U.S. Environmental Protection Agency (EPA) to conduct human health and environmental risk assessments. This single-award, indefinite-delivery, indefinite-quantity (IDIQ) contract has a term of seven years and was awarded by EPA's Office of Research and Development in the first quarter of 2024.

ICF will leverage its expertise in health and environmental sciences, as well as its proprietary machine-learning software, Litstream®, to analyze chemical hazards and environmental stressors. The company will also develop new methods and models for future health analyses.

ICF has supported EPA's risk assessment programs for over 30 years and has evaluated over 2,200 chemicals since 2011. The company was previously awarded $33 million in task orders in the second half of 2023 for additional chemical risk assessment work.

Positive

• Award of a $75 million contract from the EPA.
• Seven-year term provides long-term revenue stability.
• Uses proprietary technology Litstream® for advanced data analysis.
• Past successful support to EPA, including risk evaluations of over 2,200 chemicals.
• Recent $33 million task orders awarded in the second half of 2023.
• Strong team of over 150 environmental health experts.

Negative

• Revenue from the contract is capped at $75 million over seven years, possibly limiting growth.
• Dependence on EPA contracts could pose a risk if government priorities or budget allocations change.
• Potential scrutiny and high-stakes nature of the work could lead to reputational risks.

Insights

Financial Analyst

ICF's recent $75 million contract award from the EPA signifies a substantial addition to its revenue stream over the next seven years. This contract enhances the stability and predictability of ICF's cash flows, given its long-term nature. Investors should note that the IDIQ (Indefinite Delivery, Indefinite Quantity) contract structure allows for flexibility in task orders while guaranteeing a ceiling amount. This flexibility can lead to potential future extensions or additional task orders, similar to the $33 million received in 2023.

ICF's historical performance in securing substantial government contracts and the proven success over the past 30 years in delivering value to the EPA instills confidence in the company's ability to effectively fulfill this contract. However, it's important to keep an eye on the execution risks and any shifts in federal funding priorities that may impact future awards. Long-term investors might view this positively as it strengthens ICF's positioning in the government consulting sector.

Environmental Scientist

ICF's role in this EPA contract involves the assessment of chemical hazards and environmental stressors, tasks highly dependent on scientific rigor and advanced technologies. The use of proprietary tools like Litstream® for systematic literature review demonstrates ICF's commitment to leveraging cutting-edge technology in their methodologies. This capability likely provides a competitive edge in securing high-profile contracts.

The focus on developing novel methods and models for health analyses, including cumulative impact assessments, is significant. This aligns with recent trends in environmental science where there's a shift towards understanding the broader, synergistic effects of multiple environmental stressors on human health. This strategic direction not only enhances ICF's service offerings but also responds to the increasing demand for comprehensive environmental health assessments, potentially opening further opportunities in both public and private sectors.

Market Research Analyst

The awarding of this contract to ICF reinforces its strong reputation in the environmental consulting market. The firm's long-standing relationship with the EPA and its demonstrated expertise in risk assessment provide a solid foundation for confidence among existing and potential clients. This contract may also position ICF to leverage its expertise in broader markets, including commercial sectors that require rigorous environmental health assessments.

It's important for investors to consider the broader implications of ICF’s involvement in projects that address environmental justice goals. With increasing regulatory focus on environmental justice, ICF's proactive stance could attract further contracts and partnerships aimed at addressing these priorities. The emphasis on community impact aligns with emerging market trends, especially in socially responsible investing (SRI) and environmental, social and governance (ESG) criteria, potentially making ICF an attractive option for ESG-focused investors.

Company Will Analyze Chemical Hazards and Environmental Stressors

RESTON, Va., May 28, 2024 /PRNewswire/ -- The U.S. Environmental Protection Agency (EPA) recently awarded a human health and environmental risk assessment contract to global consulting and technology services provider ICF (NASDAQ:ICFI). The single-award indefinite delivery, indefinite quantity (IDIQ) contract was awarded by EPA's Office of Research and Development in the first quarter of 2024. This recompete award has a ceiling value of $75 million and a term of seven years.

ICF will bring together industry-leading health and environmental expertise to deliver assessments of chemical hazards and other environmental stressors identified as national priorities to determine the impact they may have on people, communities and the environment. As part of this work, ICF will use cutting-edge technologies and data analysis tools, including Litstream®, their proprietary software that leverages machine learning, to conduct systematic literature review. ICF will also develop novel methods, guidelines and models for future health analyses, including cumulative impact assessments.

"For over 30 years, ICF has supported EPA's risk assessment programs, helping the agency develop a scientifically defensible understanding of the complex interrelationship between people and nature," said Jennifer Welham, ICF senior vice president for health, people and human services. "We look forward to continue providing research and data modeling and analysis tools to further protect human health and the environment, as well as help the agency meet their environmental justice goals."

Since 2011, ICF has supported EPA in evaluating over 2,200 chemicals for risks to human health and the environment. In the second half of 2023, ICF was awarded $33 million in task orders to perform additional chemical risk assessment work.

ICF uses the power of science to help clients make informed decisions and better protect public health. The company's over 150 environmental health experts—health and data scientists, toxicologists, epidemiologists, microbiologists, researchers, statisticians and more—identify, collect, manage, evaluate, model and interpret scientific data to produce broad-based analyses that stand up to intense scrutiny and establish a solid foundation for developing scientifically sound conclusions.

Read more about ICF's health 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

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SOURCE ICF

FAQ

What is the value of the contract awarded to ICF by the EPA?

The contract has a ceiling value of $75 million.

What is the duration of ICF's new contract with the EPA?

The contract term is seven years.

What technologies will ICF use for the EPA contract?

ICF will use its proprietary Litstream® software and other data analysis tools.

How many chemicals has ICF evaluated for the EPA since 2011?

ICF has evaluated over 2,200 chemicals.

What expertise does ICF bring to the EPA contract?

ICF has over 150 environmental health experts, including data scientists, toxicologists, and epidemiologists.