TRS offers the following broad categories of contracting options for In Situ Thermal Remediation (ISTR):
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.
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:
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.
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:
Additional variables for groundwater guarantees include:
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.
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 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.
Hank Mittelhauser, Ph.D
St.John-Mittelhauser & Associates