DoD Awards $64.8M Contract for Red Hill Fuel Facility Investigation and Remediation

Contract Overview

Contract Amount: $64,768,871 ($64.8M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-30

End Date: 2026-01-31

Contract Duration: 2,864 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Engineering Services

Official Description: IGF::OT::IGF CTO NO. N6274218F0126 X010 REQUEST FOR IMPLEMENTATION PLAN AND COST ESTIMATE FOR INVESTIGATION AND REMEDIATION OF RELEASES, AND GROUNDWATER PROTECTION AND EVALUATION FOR RED HILL BULK FUEL STORAGE FACILITY, JOINT BASE PEARL HARBOR-HICKAM (JBPHH), OAHU, HAWAII

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96820

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $64.8 million to AECOM TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF CTO NO. N6274218F0126 X010 REQUEST FOR IMPLEMENTATION PLAN AND COST ESTIMATE FOR INVESTIGATION AND REMEDIATION OF RELEASES, AND GROUNDWATER PROTECTION AND EVALUATION FOR RED HILL BULK FUEL STORAGE FACILITY, JOINT BASE PEARL HARBOR-HICKAM (JBPHH), OAHU, HAWAII Key points: 1. Significant investment in environmental remediation at a critical military installation. 2. AECOM Technical Services, Inc. secured the contract through full and open competition. 3. Potential long-term environmental and health risks associated with the Red Hill facility are being addressed. 4. The contract falls under Engineering Services, a sector often involving complex, high-value projects.

Value Assessment

Rating: questionable

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. The total award value is substantial, and the per-unit cost is difficult to assess without more granular data on specific remediation tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure allows for costs to exceed initial estimates, potentially impacting the final price.

Taxpayer Impact: Taxpayers are funding a critical environmental cleanup effort, with the potential for cost overruns due to the contract type.

Public Impact

Addresses environmental contamination concerns at a major naval base. Impacts local communities and ecosystems in Hawaii due to potential groundwater contamination. Ensures compliance with environmental regulations and protects public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type can lead to cost overruns.
Long duration of the contract (2018-2026) increases exposure to changing conditions and costs.
Potential for unforeseen environmental challenges at the Red Hill facility.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Addresses a critical environmental and safety issue for the Department of Defense.
Focus on investigation and remediation suggests a proactive approach to environmental stewardship.

Sector Analysis

This contract falls within the Engineering Services sector, which is characterized by complex projects requiring specialized expertise. Spending in this sector can vary widely based on project scope and duration, with environmental remediation often being a significant driver of costs.

Small Business Impact

The contract was awarded to AECOM Technical Services, Inc. and does not indicate any subcontracting to small businesses in the provided data. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of the Navy, part of the Department of Defense. Oversight would involve monitoring the contractor's progress, costs, and adherence to remediation plans to ensure accountability and effective use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Long contract duration increases risk exposure.
Complexity and scale of environmental remediation challenges.
Potential for unforeseen environmental impacts and remediation needs.
Dependence on contractor performance for successful remediation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.8 million to AECOM TECHNICAL SERVICES, INC.. IGF::OT::IGF CTO NO. N6274218F0126 X010 REQUEST FOR IMPLEMENTATION PLAN AND COST ESTIMATE FOR INVESTIGATION AND REMEDIATION OF RELEASES, AND GROUNDWATER PROTECTION AND EVALUATION FOR RED HILL BULK FUEL STORAGE FACILITY, JOINT BASE PEARL HARBOR-HICKAM (JBPHH), OAHU, HAWAII

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, 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 $64.8 million.

What is the period of performance?

Start: 2018-03-30. End: 2026-01-31.

What is the estimated total cost of the Red Hill fuel facility remediation, and how does this contract contribute to it?

This contract represents an initial award of $64.8 million for the investigation and remediation plan. The total cost for the entire Red Hill fuel facility remediation is likely to be significantly higher, potentially in the hundreds of millions or even billions, given the scale of the contamination and the complexity of the cleanup. This contract is a crucial step in defining and executing the necessary actions.

What are the primary environmental risks associated with the Red Hill facility that this contract aims to mitigate?

The primary risks involve the potential for fuel leaks from the bulk storage tanks to contaminate the surrounding soil and groundwater, including the aquifer that supplies drinking water to the region. This contamination poses significant health risks to the population and long-term environmental damage to Hawaii's unique ecosystem. This contract focuses on investigating the extent of releases and developing a plan to remediate existing contamination and protect groundwater.

How effective is the Cost Plus Award Fee contract structure in ensuring value for money for this complex environmental project?

The Cost Plus Award Fee structure aims to incentivize contractor performance by allowing for fee adjustments based on achieving specific performance goals. For complex environmental projects like Red Hill, where scope can be uncertain, it offers flexibility. However, it also carries a risk of higher costs if award criteria are not strictly managed or if the base cost estimates are inaccurate, potentially impacting overall value for taxpayers.

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: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $64,768,871

Exercised Options: $64,768,871

Current Obligation: $64,768,871

Actual Outlays: $8,896,367

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $23,073,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6274217D1800

IDV Type: IDC

Timeline