DoD awards $223M contract for Maui wildfire debris removal and hazardous material monitoring

Contract Overview

Contract Amount: $223,203,944 ($223.2M)

Contractor: HUI Huliau Technology Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-27

End Date: 2026-02-25

Contract Duration: 729 days

Daily Burn Rate: $306.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY RESPONSE-MAUI WILDFIRE - PERFORM SAMPLING AND MONITORING FOR HAZARDOUS MATERIALS, MANAGEMENT OF STORMWATER, REMOVAL OF FIRE-RELATED DEBRIS, AND COMPLETION OF REQUIRED PLANS AND REPORTS FOR 131 COMMERCIAL AND 9 PUBLIC TAX MAP KEYS.

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $223.2 million to HUI HULIAU TECHNOLOGY SERVICES LLC for work described as: EMERGENCY RESPONSE-MAUI WILDFIRE - PERFORM SAMPLING AND MONITORING FOR HAZARDOUS MATERIALS, MANAGEMENT OF STORMWATER, REMOVAL OF FIRE-RELATED DEBRIS, AND COMPLETION OF REQUIRED PLANS AND REPORTS FOR 131 COMMERCIAL AND 9 PUBLIC TAX MAP KEYS. Key points: 1. Contract focuses on critical post-disaster recovery services including hazardous material sampling, stormwater management, and debris removal. 2. The award to Hui Huliau Technology Services LLC addresses immediate needs following the devastating Maui wildfires. 3. The contract duration of 729 days indicates a significant, long-term commitment to the recovery effort. 4. The firm-fixed-price structure aims to provide cost certainty for the government. 5. This contract represents a substantial federal investment in environmental remediation and public safety in Hawaii. 6. The scope includes 131 commercial and 9 public tax map keys, highlighting the widespread impact of the disaster.

Value Assessment

Rating: good

The contract value of $223.2 million for a 729-day period for comprehensive debris removal and hazardous material monitoring appears reasonable given the scale and complexity of the Maui wildfire disaster. While direct comparisons are difficult due to the unique nature of disaster response contracts, the pricing is likely benchmarked against similar large-scale environmental remediation efforts. The firm-fixed-price contract type suggests that the contractor has assessed the risks and costs associated with the scope of work, providing a degree of cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Army identified Hui Huliau Technology Services LLC as the only responsible source capable of meeting the government's needs. This approach is often employed in urgent situations or when a specific contractor possesses unique capabilities or existing knowledge of the affected area. The lack of open competition means that alternative pricing and service models were not explored through a bidding process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as the benefit of competitive bidding, which typically drives down prices, is absent. However, in emergency situations, the speed and certainty of award may outweigh potential cost savings from competition.

Public Impact

Residents and businesses in Maui affected by the wildfires will benefit from the removal of hazardous materials and debris, facilitating rebuilding efforts. The contract ensures the safe and efficient management of stormwater and the removal of fire-related debris, mitigating further environmental damage. The geographic impact is concentrated in Hawaii, specifically addressing the areas affected by the Maui wildfires. The contract supports local workforce needs through potential subcontracting and direct employment opportunities for debris removal and monitoring services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Complexity of disaster recovery can lead to unforeseen cost increases.
Ensuring thorough environmental monitoring and compliance is critical.

Positive Signals

Addresses urgent post-disaster needs for public safety and environmental protection.
Contractor selected for specific capabilities relevant to the disaster.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the Environmental Remediation and Waste Management sector, a critical area for government spending, especially following natural disasters. The market for such services is characterized by specialized firms capable of handling hazardous materials and large-scale debris removal. Federal spending in this sector often involves significant investments in disaster recovery, infrastructure repair, and environmental compliance. Comparable benchmarks would include other large-scale disaster response contracts awarded by agencies like FEMA or the Army Corps of Engineers.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award was sole-source and the prime contractor is Hui Huliau Technology Services LLC. There is no explicit mention of small business set-asides or subcontracting goals. This could limit opportunities for small businesses to participate in this large-scale recovery effort, although the prime contractor may engage small businesses for specific tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific contract officers and technical representatives monitoring performance and compliance. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified services within the agreed-upon budget. Transparency will depend on the agency's reporting practices regarding disaster recovery contracts and any Inspector General involvement.

Related Government Programs

FEMA Disaster Relief Fund
Army Corps of Engineers Civil Works Programs
Environmental Protection Agency (EPA) Superfund Program
Department of the Interior - Natural Resource Damage Assessment

Risk Flags

Sole-source award may limit cost-effectiveness.
Potential for unforeseen environmental hazards.
Logistical challenges in remote or disaster-affected areas.
Ensuring contractor compliance with all environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $223.2 million to HUI HULIAU TECHNOLOGY SERVICES LLC. EMERGENCY RESPONSE-MAUI WILDFIRE - PERFORM SAMPLING AND MONITORING FOR HAZARDOUS MATERIALS, MANAGEMENT OF STORMWATER, REMOVAL OF FIRE-RELATED DEBRIS, AND COMPLETION OF REQUIRED PLANS AND REPORTS FOR 131 COMMERCIAL AND 9 PUBLIC TAX MAP KEYS.

Who is the contractor on this award?

The obligated recipient is HUI HULIAU TECHNOLOGY SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $223.2 million.

What is the period of performance?

Start: 2024-02-27. End: 2026-02-25.

What is the track record of Hui Huliau Technology Services LLC in handling large-scale disaster recovery contracts?

Information regarding Hui Huliau Technology Services LLC's specific track record in handling large-scale disaster recovery contracts of this magnitude is not readily available in the provided data. As a sole-source award, the justification for selecting this contractor likely hinges on specific capabilities or prior performance that may not be publicly detailed. Further investigation into the contractor's past performance with government agencies, particularly in environmental remediation and emergency response, would be necessary to fully assess their suitability and experience for this critical mission. Understanding their history with similar scopes of work, client satisfaction, and adherence to timelines and budgets would provide valuable context for this award.

How does the cost of this contract compare to similar disaster recovery efforts in other regions?

Direct cost comparisons for disaster recovery contracts are challenging due to the highly variable nature of such events, including the scale of destruction, specific environmental hazards, and logistical complexities. This $223.2 million contract for Maui wildfire recovery covers a broad range of services over 729 days. Benchmarking would require identifying contracts with similar scopes (hazardous material removal, debris management, environmental monitoring) in comparable disaster scenarios, such as major wildfires or hurricanes. Factors like labor costs, material availability, and regulatory requirements in different regions significantly influence pricing. Without specific comparable contract data, it is difficult to definitively state whether this contract's cost is higher or lower than similar efforts.

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

The primary risks associated with this contract include unforeseen environmental hazards discovered during debris removal, potential delays due to weather or logistical challenges, and the possibility of cost overruns despite the firm-fixed-price structure if scope creep occurs or unexpected remediation needs arise. Mitigation strategies likely involve thorough pre-assessment of hazardous materials, detailed planning for debris removal operations, robust project management by the Army, and contingency planning for unforeseen issues. The contractor's expertise in hazardous material handling and environmental services is a key factor in mitigating technical risks. Clear communication channels and regular progress reporting are also crucial for managing risks effectively.

What is the expected effectiveness of the services provided under this contract in supporting Maui's long-term recovery?

The services provided under this contract are expected to be highly effective in supporting Maui's long-term recovery by addressing critical immediate needs. The removal of hazardous materials and fire-related debris is essential for public health and safety, enabling residents and businesses to begin rebuilding. Proper stormwater management will prevent further environmental degradation. By completing required plans and reports, the contract ensures that the recovery process is documented and compliant with regulations, laying the groundwork for sustainable rebuilding efforts. The comprehensive nature of the services aims to mitigate immediate risks and facilitate a smoother transition to long-term reconstruction.

What are the historical spending patterns for similar environmental remediation and debris removal contracts by the Department of the Army?

Historical spending patterns for the Department of the Army on environmental remediation and debris removal contracts, particularly those related to disaster response, can vary significantly year to year based on the occurrence and severity of natural disasters. The Army Corps of Engineers, often tasked with such missions, manages a substantial portfolio of environmental and recovery contracts. While specific aggregate data for 'remediation services' (NAICS 562910) is not provided, historical spending on large-scale disaster recovery efforts following events like hurricanes Katrina, Maria, or Harvey demonstrates the potential for multi-million dollar contracts. These patterns indicate a readiness to deploy significant resources when catastrophic events occur, with contract values often reflecting the scale of the damage and the duration of the recovery effort.

What oversight mechanisms are in place to ensure the proper execution and accountability of this contract?

Oversight for this contract is primarily the responsibility of the Department of the Army, which awarded the contract. This typically involves a Contracting Officer's Representative (COR) or Technical Monitor who oversees the contractor's performance, ensures adherence to contract terms, and approves payments. Given the scale and nature of the work, there may also be involvement from environmental specialists and safety officers. The firm-fixed-price contract structure itself provides a level of accountability by fixing the total cost. Furthermore, the Inspector General's office of the Department of Defense may conduct audits or investigations to ensure proper use of funds and compliance with regulations, enhancing transparency and accountability.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9128A24R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85-876 FARRINGTON HWY, WAIANAE, HI, 96792

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $223,203,944

Exercised Options: $223,203,944

Current Obligation: $223,203,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline