Naval Facilities Engineering Command awards $38.8M contract for Red Hill drinking water monitoring in Hawaii

Contract Overview

Contract Amount: $38,790,594 ($38.8M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-08

End Date: 2025-05-31

Contract Duration: 1,910 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CONTRACT NO. N62742-17-D-1800, CLEAN V FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274222F0122, A LONG TERM MONITORING, THE RED HILL DRINKING WATER, JBPHH

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96820

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to AECOM TECHNICAL SERVICES, INC. for work described as: CONTRACT NO. N62742-17-D-1800, CLEAN V FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274222F0122, A LONG TERM MONITORING, THE RED HILL DRINKING WATER, JBPHH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Long-term monitoring of the Red Hill drinking water is critical for environmental and public health. 4. The contract duration extends over five years, indicating a sustained need for these services. 5. The geographic focus on Pearl Harbor, Hawaii, highlights a specific regional environmental concern. 6. AECOM Technical Services, Inc. is the contractor, with a track record to be further analyzed.

Value Assessment

Rating: good

The contract value of $38.8 million over approximately five years for long-term monitoring of a critical drinking water system appears reasonable given the scope and duration. Benchmarking against similar environmental monitoring contracts for large military installations would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for performance-based adjustments, potentially leading to better value if the contractor meets or exceeds performance expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The open competition suggests the government sought the best available solution and price from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are the residents and military personnel at Joint Base Pearl Harbor-Hickam (JBPHH) who rely on the drinking water. The services delivered include long-term monitoring of the Red Hill drinking water system, crucial for ensuring its safety and compliance. The geographic impact is localized to Pearl Harbor, Hawaii, specifically addressing concerns related to the Red Hill fuel storage facility. This contract supports environmental protection and public health within a significant military installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance targets are not met efficiently.
Long-term nature of the contract requires ongoing vigilance to ensure continued value and performance.
Dependence on a single contractor for a critical environmental monitoring service.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Cost Plus Award Fee structure incentivizes contractor performance and potentially higher quality outcomes.
Long-term monitoring approach ensures sustained attention to a critical environmental issue.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on environmental consulting and monitoring. The market for such services is robust, driven by regulatory compliance and the need for specialized expertise in managing complex environmental challenges, particularly at large industrial and military sites. Comparable spending benchmarks would involve other long-term environmental monitoring contracts for critical infrastructure or hazardous material sites.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the primary contract was likely awarded to a large business, and any subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the services required. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Systems Command (NAVFAC) Pacific. Accountability measures are built into the Cost Plus Award Fee structure, which links a portion of the contractor's fee to performance metrics. Transparency is generally maintained through contract reporting requirements, though specific details of performance evaluations may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Drinking Water Quality Monitoring
Naval Facilities Engineering Command Contracts
Department of Defense Environmental Programs
Red Hill Bulk Fuel Storage Facility Response

Risk Flags

Environmental Contamination Risk
Long-term Monitoring Dependency
Cost Uncertainty in CPAF Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to AECOM TECHNICAL SERVICES, INC.. CONTRACT NO. N62742-17-D-1800, CLEAN V FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274222F0122, A LONG TERM MONITORING, THE RED HILL DRINKING WATER, JBPHH

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 $38.8 million.

What is the period of performance?

Start: 2020-03-08. End: 2025-05-31.

What is the historical spending by the Department of the Navy on environmental monitoring services similar to this contract?

Historical spending by the Department of the Navy on environmental monitoring services is substantial, reflecting the vast number of facilities and ongoing environmental challenges. While specific figures for 'similar' contracts are difficult to isolate without detailed categorization, the Navy consistently allocates significant funds towards environmental compliance, remediation, and monitoring across its global installations. For instance, in fiscal years prior to 2020, the Navy's environmental program funding often ran into the hundreds of millions of dollars annually, encompassing a wide range of activities including water quality, hazardous waste management, and site cleanup. This particular contract, valued at approximately $38.8 million over five years, represents a focused investment in a critical, high-profile environmental issue at a single, major installation. Analyzing broader trends in Navy environmental spending can provide context for the scale and importance of this specific award.

How does the Cost Plus Award Fee (CPAF) structure for this contract compare to other environmental monitoring contracts?

The Cost Plus Award Fee (CPAF) structure is a common contracting method used by the government when the exact costs are uncertain but performance can be measured. For environmental monitoring contracts, CPAF is often employed because the scope of work can evolve based on monitoring results and unforeseen environmental conditions. Compared to fixed-price contracts, CPAF offers flexibility but requires robust oversight to manage costs and ensure the award fee is justified by performance. Other contracts might use Cost Plus Incentive Fee (CPIF) or Cost Plus Fixed Fee (CPFF), each with different risk and incentive profiles. The 'award' component in CPAF allows the government to incentivize superior performance by offering a higher fee, which can be beneficial for critical services like drinking water monitoring where quality is paramount. However, it necessitates clear performance metrics and diligent evaluation by the contracting officer.

What are the key performance indicators (KPIs) likely used to determine the award fee for AECOM Technical Services, Inc. on this contract?

For a long-term drinking water monitoring contract like N62742-17-D-1800, key performance indicators (KPIs) for determining the award fee would likely focus on several critical areas. These would include the accuracy and timeliness of sample collection and laboratory analysis, adherence to established protocols and regulatory standards (e.g., EPA Safe Drinking Water Act), and the quality and clarity of reporting. Furthermore, KPIs might assess the contractor's responsiveness to any identified issues or anomalies in the water quality, their proactive identification of potential risks, and their overall management of the monitoring program. Effective communication with the Naval Facilities Engineering Command (NAVFAC) and adherence to project schedules would also be crucial. The government would evaluate AECOM's performance against these predefined metrics to determine the extent of the award fee earned.

What is the potential risk associated with the long-term monitoring of the Red Hill drinking water system?

The long-term monitoring of the Red Hill drinking water system carries significant risks, primarily stemming from the historical contamination associated with the adjacent fuel storage facility. Potential risks include the ongoing migration of contaminants into the groundwater, which could necessitate more intensive and costly remediation efforts than initially planned. There's also the risk of undetected leaks or failures in the monitoring system itself, leading to gaps in data and potentially delayed detection of contamination. Public health risks are paramount; any failure to accurately monitor or report on water quality could have severe consequences for the health of residents and military personnel. Furthermore, regulatory changes or evolving scientific understanding of contaminant behavior could require adjustments to the monitoring strategy, potentially increasing costs and complexity. The sheer scale and complexity of the Red Hill site present inherent environmental and operational risks.

How does this contract fit into the broader context of environmental management at Joint Base Pearl Harbor-Hickam (JBPHH)?

This contract is a critical component of the broader environmental management strategy at Joint Base Pearl Harbor-Hickam (JBPHH), specifically addressing the long-term implications of the Red Hill Bulk Fuel Storage Facility. The facility's historical leaks have led to widespread contamination concerns, necessitating continuous and rigorous monitoring of the surrounding environment, particularly the drinking water aquifer. This contract ensures that the Navy has sustained, expert support to track the extent and impact of any contamination, verify the effectiveness of remediation efforts (if any are ongoing or planned), and ensure compliance with federal and state environmental regulations. It represents a commitment to ongoing stewardship and risk management for a significant environmental liability, complementing other potential environmental programs at JBPHH related to hazardous waste, stormwater management, and ecosystem protection.

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

Parent Company: AECOM

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: $38,790,594

Exercised Options: $38,790,594

Current Obligation: $38,790,594

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $15,604,581

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