DoD awards $50M contract for environmental cleanup at former Vieques Naval Training Range

Contract Overview

Contract Amount: $49,986,991 ($50.0M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-17

End Date: 2029-01-30

Contract Duration: 2,692 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CERCLA MUNITIONS RESPONSE SITES, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS, FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT, VIEQUES, PUERTO RICO

Place of Performance

Location: VIEQUES, VIEQUES County, PUERTO RICO, 00765

Plain-Language Summary

Department of Defense obligated $50.0 million to CH2M HILL, INC for work described as: CERCLA MUNITIONS RESPONSE SITES, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS, FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT, VIEQUES, PUERTO RICO Key points: 1. Contract focuses on environmental remediation and support services at a former military training site. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but requires careful oversight. 5. Services include munitions response, operations, program support, and community relations. 6. The duration of the delivery order extends through January 2029, indicating a long-term commitment to the site's cleanup.

Value Assessment

Rating: good

The contract value of approximately $50 million for a period spanning from 2021 to 2029 suggests a significant investment in environmental remediation. Benchmarking this against similar large-scale environmental cleanup contracts for former military sites is challenging without more specific data on the scope and complexity of the Vieques site. However, the CPAF contract type allows for performance incentives, which can lead to better value if managed effectively. The pricing will be heavily influenced by the actual costs incurred and the award fees earned based on performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders were likely invited to submit proposals. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and encourages contractors to offer their best value. The Navy's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for complex environmental services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage innovation among bidders.

Public Impact

The primary beneficiaries are the residents and environment of Vieques, Puerto Rico, through the cleanup of a former naval training range. Services delivered include addressing environmental contamination from munitions, supporting ongoing operations, and engaging with the local community. The geographic impact is concentrated on Vieques Island, addressing historical environmental liabilities. The contract supports a workforce of environmental scientists, engineers, technicians, and support staff, potentially creating local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure requires diligent oversight to ensure that award fees are justified by exceptional performance and not simply for meeting basic requirements.
Long-term environmental remediation projects can be subject to unforeseen complexities and cost overruns, necessitating robust risk management by the contractor and close monitoring by the agency.
The historical use of the site for munitions training implies potential for significant and complex contamination, which could impact the scope and cost of the cleanup over time.

Positive Signals

The award under full and open competition suggests that multiple capable contractors vied for this work, potentially leading to a more competitive price and higher quality service.
The contract's long duration (delivery order through 2029) indicates a sustained commitment to addressing the environmental issues at the Vieques site.
The inclusion of community relations services suggests an effort to involve and inform the local population about the cleanup process.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on environmental remediation and consulting. The market for environmental services, particularly for Department of Defense sites, is substantial, driven by regulatory requirements and the need to address legacy contamination from past military activities. Comparable spending benchmarks would involve looking at other large-scale CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) sites or military base cleanup contracts, which often involve multi-year efforts and significant financial commitments.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this particular delivery order. While the prime contractor, CH2M HILL, Inc., is a large entity, there may be subcontracting opportunities for small businesses within the scope of this contract. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the project, but it is not explicitly mandated as a set-aside in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, potentially through contracting officers' representatives (CORs) and technical monitors. The CPAF structure necessitates performance monitoring against defined criteria to justify award fees. Transparency regarding the cleanup progress and expenditures may be available through agency reports, public affairs releases, and potentially Inspector General investigations if issues arise. The Inspector General of the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

CERCLA Munitions Response
Environmental Remediation Services
Naval Facilities Engineering Command Contracts
Department of Defense Environmental Programs
Base Realignment and Closure (BRAC) Environmental Cleanup

Risk Flags

Potential for unforeseen environmental conditions impacting cost and schedule.
Complexity of munitions and chemical contamination requiring specialized remediation.
Long-term nature of environmental cleanup projects increases risk exposure.
Reliance on award fees requires robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to CH2M HILL, INC. CERCLA MUNITIONS RESPONSE SITES, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS, FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT, VIEQUES, PUERTO RICO

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 $50.0 million.

What is the period of performance?

Start: 2021-09-17. End: 2029-01-30.

What is the historical spending pattern for environmental services at the former Vieques Naval Training Range?

The provided data focuses on a single delivery order valued at approximately $50 million awarded in September 2021. To understand the historical spending pattern, one would need to examine previous contracts awarded for environmental services at the Vieques site, potentially under different contract vehicles or by different agencies. This would involve searching federal procurement databases for contracts related to the Vieques Naval Training Range prior to 2021. Factors such as the phase of cleanup (investigation, remediation, long-term monitoring), regulatory requirements, and the specific areas of concern would influence historical spending levels. Without access to that broader contract history, it's impossible to establish a comprehensive spending pattern.

How does the Cost Plus Award Fee (CPAF) structure typically impact contractor performance and costs in environmental remediation contracts?

The Cost Plus Award Fee (CPAF) contract structure allows the contractor to recover all allowable costs incurred, plus a base fee and an additional award fee. The award fee is determined by the government based on the contractor's performance against pre-defined criteria, often related to quality, timeliness, and cost control. For environmental remediation, CPAF can incentivize contractors to go beyond minimum requirements, achieve cost savings, and meet stringent environmental standards, as superior performance leads to higher fees. However, it also requires robust government oversight to ensure that award fees are objectively assessed and justified. If not managed carefully, the potential for higher fees could lead to increased overall costs compared to fixed-price contracts, but it offers flexibility for complex projects with uncertain outcomes.

What are the primary environmental risks associated with munitions response sites like the former Vieques Naval Training Range?

Munitions response sites, such as the former Vieques Naval Training Range, pose significant environmental risks primarily due to the presence of unexploded ordnance (UXO), discarded military munitions (DMM), and their chemical constituents. Risks include potential for accidental detonation, leading to injury or death. Chemically, munitions can leach heavy metals (like lead, mercury, arsenic) and explosives compounds (like TNT, RDX) into soil and groundwater, contaminating ecosystems and potentially impacting human health through drinking water or food chain exposure. The Vieques site, having been used for decades for extensive training, likely contains a wide variety of munitions types and associated contaminants, necessitating thorough site investigation and complex remediation strategies to mitigate these risks.

What is the typical duration and cost range for large-scale environmental cleanup contracts at former military installations?

Large-scale environmental cleanup contracts at former military installations, particularly those involving munitions response or extensive hazardous waste, typically span several years and can range from tens of millions to hundreds of millions of dollars, sometimes even billions for the most complex sites. The duration is often dictated by the scope of contamination, the complexity of remediation technologies required, regulatory timelines, and the phased approach to cleanup (e.g., investigation, feasibility studies, remedial design, remediation, long-term monitoring). The cost is highly variable, depending on factors like the size of the installation, the types and concentrations of contaminants, land use restrictions, and the chosen remediation methods. The $50 million for approximately 8 years for the Vieques delivery order appears to be within a reasonable range for a significant, long-term environmental remediation effort at a former military site.

What is the role of community relations in environmental cleanup projects at former military sites?

Community relations (CR) play a crucial role in environmental cleanup projects at former military sites, especially those with a history of public use or impact, like Vieques. The goal of CR is to inform affected communities about the cleanup process, potential risks, and progress, and to solicit their input and concerns. This involves activities such as public meetings, informational sessions, fact sheets, and establishing points of contact. Effective CR builds trust, addresses community anxieties, ensures that local perspectives are considered in decision-making, and fosters cooperation. For Vieques, engaging the local population is vital given the island's unique context and the long-term environmental legacy of the naval training range.

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: $49,986,991

Exercised Options: $49,986,991

Current Obligation: $49,986,991

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $13,599,140

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