Navy awards $45.6M contract for drinking water monitoring at Red Hill, Hawaii

Contract Overview

Contract Amount: $45,643,201 ($45.6M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2027-07-31

Contract Duration: 1,216 days

Daily Burn Rate: $37.5K/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. N6274224F0139, EXTENDED DRINKING WATER MONITORING, RED HILL DRINKING WATER, JOINT BASE PEARL HARBOR-HICKAM, OAHU, HAWAII.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 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. N6274224F0139, EXTENDED DRINKING WATER MONITORING, RED HILL DRINKING WATER, JOINT BASE PEARL HARBOR-HICKAM, OAHU, HAWAII. Key points: 1. Contract addresses critical environmental and public health needs at a key naval facility. 2. AECOM Technical Services, Inc. selected for specialized engineering and monitoring services. 3. Full and open competition suggests a robust bidding process. 4. Contract duration extends over three years, indicating a sustained requirement. 5. Focus on drinking water quality highlights a significant public health and safety concern. 6. Geographic concentration in Hawaii points to specific regional environmental challenges.

Value Assessment

Rating: good

The contract value of $45.6 million for extended drinking water monitoring over approximately three years appears reasonable given the critical nature of the service and the specialized expertise required. Benchmarking against similar environmental monitoring contracts for large federal facilities is challenging without more granular data on scope and duration. However, the fixed-fee component suggests a degree of cost control, while the cost-plus aspect allows for flexibility in addressing unforeseen monitoring needs. The total value is within the expected range for comprehensive, long-term environmental compliance services at a major military installation.

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 approach typically fosters a competitive environment, driving innovation and potentially leading to more favorable pricing for the government. The specific number of bidders is not provided, but the designation suggests a broad solicitation process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can lead to better value and cost savings through competitive pricing.

Public Impact

Residents and personnel at Joint Base Pearl Harbor-Hickam benefit from enhanced drinking water safety. Services include critical monitoring and analysis to ensure compliance with environmental regulations. The geographic impact is localized to Oahu, Hawaii, specifically addressing concerns at the Red Hill facility. The contract supports specialized technical roles within the engineering and environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the cost-plus fixed-fee structure if not managed diligently.
Dependence on a single contractor for a critical, long-term service raises concerns about continuity if performance issues arise.

Positive Signals

Contract addresses a high-priority environmental and public health issue.
Selection through full and open competition suggests a competitive process leading to a qualified awardee.
Long-term duration allows for consistent and sustained monitoring efforts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on environmental consulting and monitoring. The market for such services is substantial, driven by increasing regulatory requirements and the need for specialized expertise in areas like water quality and environmental remediation. Federal agencies, particularly the Department of Defense, are significant clients for these services due to the extensive infrastructure and environmental responsibilities they manage. Comparable spending benchmarks would involve looking at other large-scale environmental compliance and monitoring contracts awarded to engineering firms by federal agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless AECOM Technical Services, Inc. voluntarily engages small businesses as subcontractors for specific components of the work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Facilities Engineering Systems Command (NAVFAC) Pacific, the contracting activity. Accountability measures are inherent in the cost-plus fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through the contract award process and public availability of contract data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Critical Infrastructure Monitoring
Public Health Risk
Environmental Compliance
Long-Term Service Requirement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 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. N6274224F0139, EXTENDED DRINKING WATER MONITORING, RED HILL DRINKING WATER, JOINT BASE PEARL HARBOR-HICKAM, OAHU, 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 $45.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-07-31.

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

AECOM Technical Services, Inc. has a significant history of performing work for the Department of Defense and other federal agencies, including extensive experience in environmental consulting, engineering, and infrastructure support. Their portfolio often includes large-scale projects involving environmental compliance, water management, and site remediation. While specific details on past performance for drinking water monitoring at naval facilities are not provided in this data snippet, AECOM's general capabilities suggest they are well-equipped for such tasks. A deeper dive into their contract history with NAVFAC and other Navy commands would reveal specific project successes, challenges, and client feedback relevant to assessing their suitability for this particular contract.

How does the $45.6 million contract value compare to similar drinking water monitoring efforts at other large federal installations?

Direct comparison of the $45.6 million contract value for drinking water monitoring is difficult without knowing the precise scope, duration, and specific services included at other installations. However, for a multi-year contract covering comprehensive monitoring, analysis, reporting, and potentially remediation support at a large, complex facility like Joint Base Pearl Harbor-Hickam, this figure appears within a reasonable range. Large federal installations often face significant environmental challenges and stringent regulatory requirements, necessitating substantial investment in water quality assurance. Contracts for similar services at other major bases or federal sites could range from several million to tens of millions of dollars annually, depending on the scale and complexity of the water systems and the associated environmental risks.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns due to the cost-plus fixed-fee structure, where actual costs might exceed initial estimates, and performance risks, such as the contractor failing to meet monitoring standards or deadlines, which could impact public health and regulatory compliance. Mitigation strategies likely involve robust oversight from NAVFAC, detailed performance metrics, regular progress reviews, and strict adherence to reporting requirements. The fixed-fee component provides some cost certainty, while the contractor's selection through full and open competition suggests a focus on qualified bidders with proven capabilities. Contingency planning for unforeseen environmental conditions or analytical challenges would also be a key mitigation factor.

How effective is the cost-plus fixed-fee (CPFF) contract type for ensuring value for money in environmental monitoring services?

The Cost-Plus Fixed Fee (CPFF) contract type aims to balance flexibility with cost control for services where the scope may not be fully defined at the outset or is subject to change. For environmental monitoring, where unforeseen conditions or evolving regulatory requirements can occur, CPFF allows the contractor to incur necessary costs while providing a fixed fee for their overhead and profit. This can be effective in ensuring that all necessary monitoring and analysis are performed without the contractor being penalized for legitimate cost increases. However, it also places a greater burden on the government to meticulously track and audit costs to prevent overruns and ensure that the fixed fee remains appropriate for the work performed. Value for money is achieved when the contractor is incentivized to perform efficiently while meeting all technical requirements.

What is the historical spending trend for drinking water monitoring and related environmental services at Naval Facilities Engineering Systems Command Pacific?

Historical spending data for drinking water monitoring and related environmental services at NAVFAC Pacific is not directly available in the provided snippet. However, given the ongoing environmental concerns and operational needs at major naval installations in the Pacific, it is reasonable to assume consistent and significant investment in these areas. Factors such as the age of infrastructure, regulatory changes, and specific environmental incidents (like the Red Hill fuel spill) would influence spending levels. Trends likely show an increasing focus on water quality and environmental compliance over time, driven by heightened public awareness and stricter environmental protection mandates. Detailed analysis would require access to NAVFAC's historical contract databases and budget allocations.

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: $45,643,201

Exercised Options: $45,643,201

Current Obligation: $45,643,201

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $19,000,571

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