Navy awards $66.7M contract for comprehensive environmental action, including investigation and groundwater protection in Hawaii

Contract Overview

Contract Amount: $66,734,347 ($66.7M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-18

End Date: 2027-09-30

Contract Duration: 2,112 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN V) NAVFACENGCOM PACIFIC, PH, HI INVESTIGATION, MODELING OF RELEASES, AND GROUNDWATER PROTECTION

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96820

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $66.7 million to AECOM TECHNICAL SERVICES, INC. for work described as: COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN V) NAVFACENGCOM PACIFIC, PH, HI INVESTIGATION, MODELING OF RELEASES, AND GROUNDWATER PROTECTION Key points: 1. Contract focuses on critical environmental services, addressing potential contamination and protection measures. 2. AECOM Technical Services, Inc. secured the award, indicating a strong performance record or competitive advantage. 3. The contract duration of over 5 years suggests a long-term commitment to environmental stewardship. 4. Geographic focus on Hawaii highlights specific regional environmental challenges and needs. 5. The cost-plus award fee structure incentivizes contractor performance while managing costs. 6. This award falls under engineering services, a broad category with significant federal investment.

Value Assessment

Rating: good

The contract's value of $66.7 million over approximately 5 years represents a significant investment in environmental services. Benchmarking against similar long-term environmental remediation and protection contracts is challenging without more specific service details. However, the cost-plus award fee structure suggests an effort to balance cost control with performance incentives, which can be effective in complex service contracts. The award amount appears reasonable for the scope of work described, which includes investigation, modeling, and protection measures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the full and open nature suggests a robust competition that likely drove down costs and improved the quality of proposed solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective and technically sound environmental solutions for the Navy.

Public Impact

The primary beneficiaries are the Department of the Navy and the environment of Hawaii, ensuring compliance with regulations and protection of natural resources. Services include investigation of environmental conditions, modeling of potential releases, and implementation of groundwater protection strategies. The geographic impact is concentrated in Hawaii, addressing specific environmental concerns unique to the islands. While not explicitly stated, such contracts can indirectly support local economies through employment opportunities for environmental scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus award fee contracts if not managed diligently.
Complexity of environmental investigations and remediation can lead to unforeseen challenges and scope adjustments.
Long contract duration may require ongoing monitoring to ensure continued alignment with evolving environmental regulations and best practices.

Positive Signals

Full and open competition suggests a strong likelihood of receiving competitive pricing and high-quality technical solutions.
The cost-plus award fee structure incentivizes contractor performance and efficiency.
Focus on long-term environmental action indicates a commitment to sustainable practices and regulatory compliance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing a wide range of professional services. The federal government is a major consumer of engineering services, particularly for infrastructure, defense, and environmental projects. The market for environmental consulting and remediation services is substantial, driven by regulatory requirements and a growing emphasis on sustainability. This contract represents a significant portion of spending within a specialized niche of environmental engineering focused on naval installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, AECOM Technical Services, Inc., is likely a large business. While there is no direct small business set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent of small business participation will depend on the specific subcontracting plan negotiated for this contract.

Oversight & Accountability

Oversight for this contract will be provided by the Department of the Navy, likely through the Naval Facilities Engineering Command (NAVFAC). The cost-plus award fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is typically maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General, especially if performance or cost issues arise.

Related Government Programs

Environmental Remediation Services
Environmental Consulting Services
Base Realignment and Closure (BRAC) Environmental Programs
Defense Environmental Programs
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost growth in CPAF contracts.
Complexity of environmental investigations may lead to scope changes.
Long-term nature requires sustained oversight.
Geographic isolation of Hawaii may impact logistics and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.7 million to AECOM TECHNICAL SERVICES, INC.. COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN V) NAVFACENGCOM PACIFIC, PH, HI INVESTIGATION, MODELING OF RELEASES, AND GROUNDWATER PROTECTION

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 $66.7 million.

What is the period of performance?

Start: 2021-12-18. End: 2027-09-30.

What is AECOM Technical Services, Inc.'s track record with similar environmental contracts for the Department of Defense?

AECOM Technical Services, Inc. has a substantial history of performing environmental services for the Department of Defense and other federal agencies. They have been involved in numerous large-scale environmental remediation, compliance, and consulting projects across various military branches and installations. Their portfolio often includes site investigations, hazardous waste management, groundwater monitoring, and compliance support. Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide further insight into their capabilities and reliability for this specific Navy contract.

How does the $66.7 million value compare to other long-term environmental action contracts awarded by the Navy?

The $66.7 million value for a contract spanning over five years for comprehensive environmental action in Hawaii is substantial. To benchmark effectively, one would need to compare it against similar contracts awarded by the Navy or other DoD components for environmental investigation, modeling, and groundwater protection at large installations. Factors like geographic location (Hawaii's higher cost of living and logistics), the specific scope of work (e.g., complexity of contamination, scale of modeling required), and the contract type (Cost Plus Award Fee) influence the overall value. Without direct comparisons of contracts with identical scopes and durations, it's difficult to definitively state if this represents a premium or a standard cost, but it signifies a significant commitment to environmental management.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for environmental services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for environmental services revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections if not managed meticulously, as the contractor is reimbursed for allowable costs. The 'award fee' component introduces subjectivity in performance evaluation; if criteria are not clearly defined or objectively measured, it can lead to disputes or dissatisfaction. For the contractor, the risk lies in not meeting the performance targets required to earn the maximum award fee, potentially impacting profitability. Effective oversight and clearly defined performance metrics are crucial to mitigate these risks.

How effective are environmental action contracts like this in ensuring long-term environmental protection for naval installations?

Contracts like this are designed to be effective by providing dedicated resources and expertise for long-term environmental management. By engaging specialized firms, the Navy can ensure compliance with stringent environmental regulations, proactively identify and address potential contamination, and implement protective measures for sensitive ecosystems like groundwater. The long duration allows for sustained monitoring, adaptive management strategies, and the development of comprehensive solutions. However, effectiveness also hinges on robust government oversight, clear performance objectives, and the contractor's commitment to best practices and innovation throughout the contract period.

What has been the historical spending trend for environmental services by the Department of the Navy in Hawaii?

Historical spending trends for environmental services by the Department of the Navy in Hawaii would likely show a consistent and significant investment, driven by the extensive naval presence and the unique environmental sensitivities of the islands. Factors such as legacy contamination from past activities, ongoing operational impacts, and stringent state and federal regulations contribute to sustained demand for these services. Analyzing past contract awards, including their values, durations, and scopes, would reveal patterns in spending and highlight areas of focus, such as groundwater protection or hazardous waste management, providing context for the current $66.7 million award.

What specific environmental challenges in Hawaii does this contract aim to address?

This contract, "COMPREHENSIVE LONG-TERM ENVIRONMENTAL ACTION NAVY (CLEAN V)," specifically targets environmental challenges within the Pacific region, with a focus on Hawaii. While the provided data doesn't detail the exact issues, typical environmental concerns for naval installations in Hawaii include potential contamination from historical operations (e.g., fuel spills, ordnance), management of hazardous materials, protection of vital groundwater resources (which are often limited and critical for island ecosystems and populations), and compliance with state and federal environmental regulations. The contract's scope of investigation, modeling, and groundwater protection suggests a proactive approach to managing these risks.

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: $66,734,347

Exercised Options: $66,734,347

Current Obligation: $66,734,347

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $30,011,878

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