Navy awards $19.3M contract for environmental remediation at Pearl Harbor, highlighting long-term cleanup needs

Contract Overview

Contract Amount: $19,289,988 ($19.3M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-01

End Date: 2026-01-29

Contract Duration: 973 days

Daily Burn Rate: $19.8K/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. N6274223F0142, REMEDIATION OF RELEASES AND GROUNDWATER PROTECTION AND EVALUATION FOR RH BULK FUEL STORAGE FACILITY, JBPHH

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 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. N6274223F0142, REMEDIATION OF RELEASES AND GROUNDWATER PROTECTION AND EVALUATION FOR RH BULK FUEL STORAGE FACILITY, JBPHH Key points: 1. Contract addresses critical environmental cleanup for fuel storage facilities, indicating ongoing environmental stewardship responsibilities. 2. AECOM Technical Services, Inc. secured this award, suggesting established capabilities in complex environmental engineering. 3. The contract's duration of nearly 1000 days points to the scale and complexity of the remediation tasks. 4. Performance is situated in Hawaii, a region with unique environmental challenges and significant military infrastructure. 5. The cost-plus-fixed-fee structure allows for flexibility in addressing unforeseen remediation challenges while managing contractor profit. 6. This award falls under engineering services, a broad category supporting various federal infrastructure and operational needs.

Value Assessment

Rating: good

The contract value of $19.3 million for environmental remediation over approximately 32 months appears reasonable given the scope of work involving fuel storage facilities. While specific benchmarks for this exact type of remediation are difficult to ascertain without more granular data, the fixed-fee component suggests a controlled profit margin for the contractor. The Navy's investment reflects a commitment to addressing environmental liabilities associated with its operational footprint.

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 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 competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of contractors to offer their services, leading to potentially more innovative and cost-effective solutions.

Public Impact

The primary beneficiaries are the U.S. Navy and the surrounding environment of Pearl Harbor, Hawaii, through the remediation of hazardous substances. Services delivered include the remediation of releases, groundwater protection, and evaluation for a bulk fuel storage facility. The geographic impact is localized to Joint Base Pearl Harbor-Hickam (JBPHH) in Hawaii, addressing specific environmental concerns at this critical naval installation. This contract supports specialized environmental engineering and remediation workforces, potentially creating or sustaining jobs in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee contract type can sometimes lead to cost overruns if not meticulously managed, especially in complex remediation projects with unknown variables.
Long-term environmental remediation projects can be subject to shifting regulatory requirements or unforeseen site conditions that may impact cost and schedule.
Reliance on a single contractor for a multi-year, complex project necessitates strong government oversight to ensure performance and adherence to contract terms.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing and good value.
The contract addresses a critical environmental need for the Navy, demonstrating proactive management of operational impacts.
The fixed-fee component provides a degree of cost certainty for the government, capping contractor profit.
The contractor, AECOM Technical Services, Inc., likely possesses specialized expertise required for this complex environmental task.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The federal government is a significant consumer of these services, particularly for infrastructure projects, facility maintenance, and environmental compliance. Spending in this sector often supports national security, public works, and environmental protection initiatives. Comparable spending benchmarks would typically involve other large-scale environmental remediation contracts awarded by agencies like the EPA or DoD.

Small Business Impact

This contract was not set aside for small businesses and was awarded to AECOM Technical Services, Inc., a large business. There is no indication of specific subcontracting requirements for small businesses within the provided data. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they may be involved as subcontractors if AECOM chooses to engage them.

Oversight & Accountability

Oversight for this contract will be managed by the Naval Facilities Engineering Systems Command (NAVFAC) Pacific. As a cost-plus-fixed-fee contract, rigorous monitoring of costs, progress, and performance will be essential. The contract's duration and complexity suggest regular reporting requirements and site inspections. While specific Inspector General (IG) involvement isn't detailed, the Department of Defense IG typically has jurisdiction over such contracts, ensuring accountability and investigating potential fraud, waste, or abuse.

Related Government Programs

Environmental Remediation Services
Naval Facilities Engineering
Bulk Fuel Storage Facility Maintenance
Groundwater Protection Programs
Department of Defense Environmental Compliance

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Complexity of environmental remediation requiring specialized expertise.
Need for stringent government oversight due to CPFF contract type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 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. N6274223F0142, REMEDIATION OF RELEASES AND GROUNDWATER PROTECTION AND EVALUATION FOR RH BULK FUEL STORAGE FACILITY, 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 $19.3 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-01-29.

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

AECOM Technical Services, Inc. has a significant history of performing environmental remediation and engineering services for various government agencies, including the Department of the Navy. They have been involved in numerous projects addressing hazardous waste, contaminated site cleanup, and compliance with environmental regulations at military installations. Their portfolio often includes complex projects similar to the one at JBPHH, involving fuel storage facilities and groundwater remediation. Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide further insight into their capability to successfully execute this current award.

How does the awarded amount of $19.3 million compare to similar environmental remediation contracts for fuel storage facilities at naval bases?

Comparing the $19.3 million award requires context regarding the specific scope, duration, and complexity of the remediation. Environmental remediation projects, especially those involving bulk fuel storage facilities and groundwater contamination, can vary widely in cost. Factors such as the extent of contamination, the types of contaminants, the remediation technologies required, and the duration of the cleanup effort significantly influence the total contract value. Without detailed data on comparable contracts (e.g., size of the facility, volume of contamination, specific remediation techniques), it's challenging to definitively benchmark this award. However, for a multi-year effort addressing significant environmental liabilities at a major naval installation, this figure appears within a plausible range for such specialized services.

What are the primary environmental risks being addressed by this contract, and what are the potential long-term implications if not remediated?

This contract primarily addresses the risks associated with releases from the RH Bulk Fuel Storage Facility, which could lead to soil and groundwater contamination. Potential long-term implications of unaddressed contamination include the migration of hazardous substances into surrounding soil and water bodies, posing risks to ecological health and potentially impacting drinking water sources. Furthermore, failure to remediate could result in ongoing environmental liabilities for the Navy, potential regulatory fines, and long-term damage to the reputation and environmental stewardship of the installation. Effective remediation is crucial for restoring the site's environmental integrity and ensuring compliance with federal and state environmental laws.

What is the significance of the 'Cost Plus Fixed Fee' (CPFF) contract type for this environmental remediation project?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex services where the extent or duration of the work cannot be precisely determined in advance. In this case, environmental remediation projects frequently encounter unforeseen site conditions or require adaptive strategies. The 'Cost Plus' portion means the contractor is reimbursed for allowable costs incurred, while the 'Fixed Fee' represents a predetermined profit amount, not directly tied to the final cost. This structure incentivizes the contractor to control costs to some extent, as their profit is fixed, but it also requires robust government oversight to ensure costs are reasonable and allocable. It provides flexibility to adapt to evolving remediation needs while managing contractor profit.

How does this contract fit into the broader context of environmental management and cleanup efforts at Department of Defense facilities nationwide?

This contract is representative of the significant and ongoing investment the Department of Defense (DoD) makes in environmental management and cleanup across its global installations. Military operations, particularly those involving extensive infrastructure like fuel storage, historically have environmental impacts that require long-term remediation. Contracts like this one are essential for fulfilling the DoD's legal and ethical obligations to address these impacts, protect natural resources, and ensure compliance with environmental regulations. It reflects a broader trend within the DoD to prioritize environmental stewardship, invest in sustainable practices, and manage legacy environmental liabilities effectively.

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: $19,289,988

Exercised Options: $19,289,988

Current Obligation: $19,289,988

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $7,799,391

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