Four Options for Working with TRS Group

TRS offers the following broad categories of contracting options for In Situ Thermal Remediation (ISTR):

  1. Standard Fixed Price Remediation (SFPR)
  2. Guaranteed Fixed Price Remediation (GFPR)
  3. 100% Money-Back Guaranteed Remediation (MBGR)
  4. Time and Materials Remediation (TMR)

Generally, SFPR or TMR provide the lowest cost options. GFPR or MBGR are usually applied after a firm cleanup goal has been negotiated with regulators. Regardless of which method of contracting is used, TRS highly recommends checking references. Details of each contracting option follow.

1. Standard Fixed Price Remediation

Using Standard Fixed Price Remediation contracting, TRS bills a fixed price for the completion of a set series of project tasks. Typically, these tasks are design, electrode materials and equipment mobilization, system installation and start-up, system operation, and demobilization and final reporting. SFPR is also the price basis for most of our preliminary budget estimates. For each remediation, TRS develops an estimate of the amount of electrical energy, in kilowatt-hours, that will be required to reach the remediation goal. This estimate is referred to as the "Design Remediation Energy," which is strongly influenced by:

  • Remediation volume, usually measured in cubic yards
  • Vapor/liquid equilibrium of the contaminants of concern (COCs)
  • Reduction of COCs desired
  • Soil total organic carbon content (TOC)
  • Presence of low volatility hydrocarbons, such as oil or grease

Under an SFPR contract TRS will continue operations until reaching the remediation goal or inputting the remediation design energy, whichever occurs first. Based on our experience, TRS reaches the goal prior to inputting the design energy about 85% of the time. If desired, the client can request TRS continue operations for a fixed weekly fee.

Further, SFPR contracting aligns goals; that is, the faster TRS completes the project, the more the client saves in energy and project management costs.

2. Guaranteed Fixed Price Remediation

GFPR contracting is usually most applicable when a specific numerical cleanup goal has been negotiated with regulators. This goal is normally site-specific and has a risk-based component stipulating that no further ISTR will be required upon achieving the goal. Because GFPR transfers risk from the property owner to TRS, these contracts result in higher pricing.

TRS offers guarantees based on reductions of soil or groundwater contaminant concentrations, which may have additional cost implications. Variables for soil guarantees include:

  • How you measure remediation success (e.g., every sample must meet the goal, a sample average must meet the goal, 95% UCL, etc.)
  • Retainage percentage to enforce the guarantee
  • Scope split (i.e., identifying the party responsible for paying for vapor treatment, confirmatory sampling and energy)

Additional variables for groundwater guarantees include:

  • Contaminant distribution outside of the treatment volume
  • Proximity of the sampling locations to the periphery of the treatment volume
  • Groundwater velocity

3. 100% Money-Back Guaranteed Remediation

MBGR contracting is applicable when specific numerical cleanup goals have been negotiated with regulators. Because MBGR transfers all risk from the property owner to TRS, these contracts result in higher project pricing, which depends on site-specific details.

The MBGR includes a repayment phase, if the goals are not met. A predicted operating time is defined in the TRS proposal. Repayment begins if your goals have not been met before the end of the third month after the operating time has been consumed. Repayment is made at a rate of 5% of the contract amount per month until TRS meets your goals or until all money has been refunded. Repayment is made from the escrow account until that account is exhausted; thereafter, TRS issues a check each month.

4. Time and Materials Remediation

A time and materials remediation contract consists of either a TRS Group or client's master services agreement and subsequent task orders that contain the following items:

  • The TRS Group proposal, which serves as the description of the project
  • Scope of work split between the two parties
  • Compensation agreement based on TRS current labor rates
  • Schedule
  • Specific terms and conditions

The task order is authorization for work to commence, with the schedule as the guideline for completion of services, including any intermediate milestones and phase submittals. TRS Group bills the client monthly and provides relevant supporting documentation until completing the agreed upon goals and objectives.

"TRS has historically provided excellent service, resolving issues quickly in a cooperative manner while offering better pricing than other companies providing in-situ thermal treatment."

Hank Mittelhauser, Ph.D
St.John-Mittelhauser & Associates

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