Navy's $12.8M PMO Support Contract for CLEAN Program Awarded to CH2M HILL, Inc

Contract Overview

Contract Amount: $12,810,604 ($12.8M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-27

End Date: 2027-03-31

Contract Duration: 2,254 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT FOR COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN) CONTRACT.

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23462

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to CH2M HILL, INC for work described as: PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT FOR COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN) CONTRACT. Key points: 1. The contract focuses on program management for the Navy's environmental action initiatives. 2. CH2M HILL, Inc. is the sole awardee for this specific delivery order. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The sector is Engineering Services, crucial for environmental remediation and management.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable and aligned with performance objectives. Benchmarking against similar large-scale environmental program management contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific award mechanism (delivery order) implies it might be part of a larger IDIQ, where initial competition was broad but this specific order's pricing is negotiated.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the Cost Plus Award Fee structure necessitates oversight to prevent cost overruns.

Public Impact

Environmental cleanup efforts are critical for public health and ecological balance. Long-term environmental action contracts ensure sustained progress in remediation. Effective program management is key to achieving the Navy's environmental goals efficiently. Transparency in spending on environmental programs builds public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires diligent oversight.
Potential for scope creep in long-term environmental projects.
Reliance on a single contractor for this delivery order.

Positive Signals

Awarded under full and open competition.
Focus on critical environmental action.
Performance-based incentives in contract type.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for government environmental initiatives. Spending in this area is often substantial due to the complexity and long-term nature of environmental remediation and management projects.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this particular delivery order. Further investigation into the prime contractor's small business utilization plan would be necessary.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates robust oversight from the Department of the Navy to ensure performance targets are met and costs are controlled. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Award Fee (CPAF) can lead to higher costs if not managed tightly.
Long duration (2021-2027) increases risk of changing requirements or economic fluctuations.
Potential for contractor lock-in if performance is satisfactory but competition is limited on follow-on work.
Environmental projects can face unforeseen complexities and cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to CH2M HILL, INC. PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT FOR COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN) CONTRACT.

Who is the contractor on this award?

The obligated recipient is CH2M HILL, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2021-01-27. End: 2027-03-31.

How does the performance of CH2M HILL, Inc. on this contract compare to industry benchmarks for environmental program management, and how are award fees being determined?

Assessing CH2M HILL's performance against industry benchmarks requires access to detailed performance metrics and award fee documentation. The Cost Plus Award Fee structure implies that award fees are tied to specific, measurable performance objectives outlined in the contract. A review of these objectives and the contractor's achievement against them is necessary to determine if the award fees are justified and if the overall value proposition is strong.

What are the primary environmental risks being addressed by this contract, and what mitigation strategies are in place?

The primary environmental risks are likely related to the remediation of contaminated sites, pollution prevention, and compliance with environmental regulations. Mitigation strategies would typically involve detailed site assessments, risk management plans, implementation of best available technologies for cleanup, and continuous monitoring to ensure no further environmental degradation occurs. The effectiveness of these strategies depends on the thoroughness of the PMO's oversight and the contractor's execution.

To what extent does the current spending on this contract align with the projected long-term environmental goals of the Navy's CLEAN program?

Alignment of current spending with long-term goals requires a review of the program's baseline budget, phased objectives, and the contractor's progress reports. The $12.8 million figure represents a portion of the total anticipated cost over the contract's duration. Regular financial reviews and progress assessments by the Navy PMO are essential to ensure that expenditures are contributing effectively to achieving the overarching environmental cleanup and management objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,810,604

Exercised Options: $12,810,604

Current Obligation: $12,810,604

Actual Outlays: $382,512

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $468,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247021D0007

IDV Type: IDC

Timeline