Navy Awards $154M Contract for PFAS Remediation at Red Hill, Hawaii

Contract Overview

Contract Amount: $15,399,090 ($15.4M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-28

End Date: 2029-12-31

Contract Duration: 2,317 days

Daily Burn Rate: $6.6K/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. N6274223F0178, ER,N SUPPORT AND CERCLA ACTIVITIES FOR PFAS RELEASES, RED HILL, JBPHH, AIEA, HAWAII

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 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. N6274223F0178, ER,N SUPPORT AND CERCLA ACTIVITIES FOR PFAS RELEASES, RED HILL, JBPHH, AIEA, HAWAII Key points: 1. Significant investment in environmental cleanup for a critical military installation. 2. AECOM Technical Services, Inc. secured the contract, indicating established capabilities in the sector. 3. Potential for long-term environmental and health risks associated with PFAS contamination. 4. Spending aligns with broader federal efforts to address PFAS contamination across military sites.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific task order details, but the overall value suggests a substantial effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayers are funding critical environmental remediation to address hazardous substance releases, aiming to mitigate long-term environmental damage and public health risks.

Public Impact

Addresses significant environmental contamination (PFAS) at a major naval base. Impacts the local community and environment in Hawaii due to potential long-term health effects of PFAS. Demonstrates federal commitment to environmental stewardship and compliance with regulations like CERCLA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
PFAS contamination poses long-term environmental and health risks.
Long contract duration increases exposure to changing regulations and technologies.

Positive Signals

Full and open competition likely ensured competitive pricing.
Addresses a critical environmental and safety need.
Contract awarded to a company with demonstrated technical expertise.

Sector Analysis

This contract falls within Engineering Services, a sector crucial for infrastructure development and environmental management. Federal spending in this area is often driven by regulatory compliance and national security needs.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The long duration and complexity of PFAS remediation will require diligent monitoring to ensure cost-effectiveness and adherence to environmental standards.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract structure.
Long contract duration (over 6 years).
Complexity and uncertainty of PFAS remediation.
Potential for environmental and health impacts if remediation is delayed or ineffective.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 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. N6274223F0178, ER,N SUPPORT AND CERCLA ACTIVITIES FOR PFAS RELEASES, RED HILL, JBPHH, AIEA, 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 $15.4 million.

What is the period of performance?

Start: 2023-08-28. End: 2029-12-31.

What is the estimated total cost of PFAS remediation at Red Hill, and how does this contract contribute to that overall effort?

This $154 million contract represents a significant portion of the estimated total cost for PFAS remediation at Red Hill. The full scope and cost of addressing PFAS contamination at such a large facility are complex and may involve multiple phases and contracts over several years. This award focuses on support and CERCLA activities, indicating it's a key component of a larger, ongoing environmental cleanup program.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this environmental remediation project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for environmental remediation is the potential for cost escalation. While the fixed fee provides a profit margin, the government bears the risk of increased costs for labor, materials, and other direct expenses. This necessitates robust oversight to ensure efficiency and prevent unnecessary spending, especially given the uncertainties inherent in complex cleanup operations like PFAS remediation.

How effective is the full and open competition method in ensuring value for money for complex environmental cleanup contracts like this one?

Full and open competition is generally effective in promoting value for money by fostering a competitive environment that drives down prices and encourages innovative solutions. For complex environmental cleanup, it allows multiple qualified firms to bid, potentially leading to better technical approaches and cost proposals. However, the effectiveness also depends on the clarity of the solicitation and the government's ability to evaluate proposals comprehensively, balancing technical merit with price.

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: $15,399,090

Exercised Options: $15,399,090

Current Obligation: $15,399,090

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,603,972

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