Navy Awards $35M Contract for Environmental Services at Red Hill, Hawaii to AECOM Technical Services
Contract Overview
Contract Amount: $35,090,390 ($35.1M)
Contractor: AECOM Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2028-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CONTRACT NO. N62742-23-D-1802, CLEAN VI FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274223F0139 ENV SVCS, EMERGENCY RESPONSE SVCS AND TESTING IN SUPPORT OF 2023 ACO, RED HILL, JBPHH
Place of Performance
Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $35.1 million to AECOM TECHNICAL SERVICES, INC. for work described as: CONTRACT NO. N62742-23-D-1802, CLEAN VI FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274223F0139 ENV SVCS, EMERGENCY RESPONSE SVCS AND TESTING IN SUPPORT OF 2023 ACO, RED HILL, JBPHH Key points: 1. Contract awarded for critical environmental services at a sensitive military installation. 2. AECOM Technical Services, Inc. secured the contract through full and open competition. 3. The contract duration spans five years, indicating a long-term need for these services. 4. Potential risks include environmental incidents and the complexity of emergency response.
Value Assessment
Rating: good
The contract value of $35.1 million over five years for environmental services appears reasonable given the scope and location. Benchmarking against similar emergency response and environmental testing contracts for military facilities suggests this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and ensures the best value is obtained. The use of Cost Plus Fixed Fee (CPFF) allows for flexibility while maintaining cost control.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential environmental services.
Public Impact
Ensures environmental safety and compliance at a critical naval facility. Supports emergency response capabilities for potential environmental incidents. Provides essential testing services to monitor environmental conditions. Contributes to the operational readiness of Naval Facilities Engineering Systems Command Pacific.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Environmental risks associated with Red Hill fuel storage.
- Potential for unforeseen emergency response costs.
- Dependency on a single contractor for critical services.
Positive Signals
- Strong competition likely led to a fair price.
- Long-term contract ensures continuity of essential services.
- Experienced contractor selected for a complex task.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on environmental consulting and emergency response. Spending in this area is often driven by regulatory compliance and operational needs at government facilities, with benchmarks varying based on the scale and complexity of environmental challenges.
Small Business Impact
The contract was awarded to AECOM Technical Services, Inc., a large business. There is no indication of small business participation in this specific delivery order, which is common for large, complex prime contracts.
Oversight & Accountability
The Department of the Navy, through the Naval Facilities Engineering Systems Command, is responsible for oversight. The contract's duration and scope suggest ongoing monitoring and performance management are in place to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Environmental contamination risks at Red Hill.
- Potential for unforeseen emergency situations requiring significant resources.
- Contractor performance in a high-stakes environment.
- Long-term reliance on a single provider.
Tags
engineering-services, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.1 million to AECOM TECHNICAL SERVICES, INC.. CONTRACT NO. N62742-23-D-1802, CLEAN VI FOR NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND PACIFIC, PEARL HARBOR, HAWAII CTO NO. N6274223F0139 ENV SVCS, EMERGENCY RESPONSE SVCS AND TESTING IN SUPPORT OF 2023 ACO, RED HILL, 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 $35.1 million.
What is the period of performance?
Start: 2023-09-28. End: 2028-09-30.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how are overhead and profit margins assessed?
The Cost Plus Fixed Fee (CPFF) structure involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. Detailed cost breakdowns are typically negotiated and subject to audit. The fixed fee is established upfront and does not change, incentivizing the contractor to control costs while performing the work within the agreed scope.
What are the key performance indicators (KPIs) used to evaluate AECOM's performance in emergency response and environmental testing?
Key performance indicators likely include response times for emergency events, accuracy and timeliness of test results, adherence to environmental regulations, and overall effectiveness in mitigating environmental hazards. Performance metrics are crucial for ensuring the contractor meets the stringent requirements of supporting naval facilities and maintaining environmental safety standards.
How does the government ensure cost reasonableness and prevent potential cost overruns given the CPFF contract type and the nature of emergency response services?
Cost reasonableness is ensured through detailed audits of contractor expenses, comparison with industry benchmarks, and negotiation of the fixed fee. For emergency response, contingency planning and pre-negotiated rates for surge capacity can help manage costs. Robust oversight by the contracting officer and technical representatives is vital to monitor expenditures and scope adherence.
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 FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 300 S GRAND AVE SUITE 900, 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: $35,090,390
Exercised Options: $35,090,390
Current Obligation: $35,090,390
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $19,268,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6274223D1802
IDV Type: IDC
Timeline
Start Date: 2023-09-28
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-06-25
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