DoD awards $50M contract for Maui wildfire debris removal, highlighting critical disaster response capabilities

Contract Overview

Contract Amount: $50,147,143 ($50.1M)

Contractor: ECC Constructors LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-03

End Date: 2024-08-31

Contract Duration: 333 days

Daily Burn Rate: $150.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAUI WILDFIRES EMERGENCY DEBRIS MISSION: TEMPORARY DEBRIS STORAGE SITE

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $50.1 million to ECC CONSTRUCTORS LLC for work described as: MAUI WILDFIRES EMERGENCY DEBRIS MISSION: TEMPORARY DEBRIS STORAGE SITE Key points: 1. Contract addresses urgent need for debris management following devastating wildfires. 2. Focus on temporary storage solutions indicates a phased approach to recovery. 3. The firm-fixed-price structure aims to control costs for this emergency service. 4. Competition dynamics will be crucial for ensuring cost-effectiveness in a high-demand scenario. 5. Performance monitoring will be key to timely and efficient debris removal. 6. Geographic focus on Hawaii underscores the localized nature of the disaster response.

Value Assessment

Rating: good

The contract value of approximately $50 million for debris storage is substantial, reflecting the scale of the Maui wildfires. Benchmarking against similar large-scale disaster response contracts is challenging due to the unique circumstances and urgency. However, the firm-fixed-price nature suggests an attempt to establish clear cost expectations. Further analysis would require comparing unit costs for debris handling and storage against pre-disaster market rates or contracts for less urgent waste management services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this approach is generally expected to foster competitive pricing and encourage a wider range of solutions. The success of the competition in driving value will depend on the number and quality of proposals received and the evaluation criteria used.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive prices, preventing potential overcharges associated with limited or sole-source procurements.

Public Impact

Residents and businesses in Maui will benefit from the organized removal and storage of wildfire debris, facilitating rebuilding efforts. The contract provides essential services for managing hazardous and non-hazardous debris generated by the wildfires. Geographic impact is concentrated on the island of Maui, Hawaii, addressing immediate local needs. The contract supports the local workforce through potential subcontracting opportunities and direct employment in debris management operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of debris removal expands beyond initial estimates.
Logistical challenges in transporting and managing debris in a remote island environment.
Ensuring environmental compliance during debris storage and eventual disposal.
Contractor's capacity to scale operations rapidly to meet the demands of a disaster zone.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Clear performance period with defined start and end dates for the storage services.
Focus on a critical disaster response need, demonstrating government's commitment to recovery.

Sector Analysis

The contract falls within the broader waste management and disaster recovery sector. This sector is characterized by its responsiveness to emergencies and the need for specialized logistics and handling capabilities. The market size for disaster debris management can fluctuate significantly based on the frequency and severity of natural disasters. This specific contract addresses a critical need within the Hawaiian region, which is susceptible to natural events.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While this contract may not directly involve small business set-asides, the prime contractor, ECC Constructors LLC, may engage small businesses for subcontracting roles. The impact on the small business ecosystem will depend on the extent to which subcontracting opportunities are offered and utilized.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, a component of the Department of Defense. Accountability measures will be tied to the contract's performance standards and delivery schedules. Transparency is expected through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Emergency Management Agency (FEMA) Disaster Relief Funds
Army Corps of Engineers Civil Works Programs
Department of Transportation - Highway Debris Clearance
Environmental Protection Agency - Disaster Waste Management

Risk Flags

Potential for scope creep in debris volume.
Environmental risks associated with debris storage.
Logistical challenges in island-based operations.
Ensuring contractor's capacity for rapid deployment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.1 million to ECC CONSTRUCTORS LLC. MAUI WILDFIRES EMERGENCY DEBRIS MISSION: TEMPORARY DEBRIS STORAGE SITE

Who is the contractor on this award?

The obligated recipient is ECC CONSTRUCTORS 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 $50.1 million.

What is the period of performance?

Start: 2023-10-03. End: 2024-08-31.

What is ECC Constructors LLC's track record with large-scale disaster response contracts?

ECC Constructors LLC has a history of performing large-scale construction and engineering projects, often involving government contracts. While specific details on their past disaster response contracts are not immediately available in this dataset, their experience in complex projects suggests a capacity for managing significant logistical and operational challenges. Further investigation into their past performance on similar emergency response or debris management contracts would be necessary to fully assess their suitability and reliability for this critical mission in Maui. Reviewing past performance evaluations and any reported issues would provide a more comprehensive understanding of their capabilities.

How does the awarded amount compare to typical costs for temporary debris storage sites in similar disaster scenarios?

Determining a precise benchmark for temporary debris storage costs is complex due to the highly variable nature of disaster response. Factors such as site preparation, environmental controls, security, transportation logistics, and the duration of need significantly influence pricing. The $50.1 million awarded to ECC Constructors LLC for this mission reflects the substantial scale and urgency associated with the Maui wildfires. Without specific data on the volume of debris, the required site duration, and the geographical challenges of Maui, a direct cost-per-unit comparison is difficult. However, the firm-fixed-price nature of the contract aims to provide cost certainty for the government, suggesting that the pricing was deemed reasonable within the context of the emergency.

What are the primary risks associated with managing debris from wildfire events, and how does this contract address them?

Wildfire debris management presents several risks, including environmental hazards (e.g., asbestos, heavy metals), logistical complexities in remote or damaged areas, potential for secondary fires, and the sheer volume of material. This contract addresses these risks by focusing on establishing a temporary debris storage site, which is a crucial first step in an organized recovery. The firm-fixed-price structure helps mitigate financial risks for the government by setting a clear cost ceiling. However, risks related to environmental compliance during storage, efficient transportation, and the eventual disposal of debris remain. The contract's success will depend on robust oversight and the contractor's adherence to environmental regulations and safety protocols.

What is the expected timeline for debris removal and processing based on the contract duration?

The contract has a performance period from October 3, 2023, to August 31, 2024, spanning approximately 11 months. This duration suggests that the initial phase of debris management, specifically the establishment and operation of a temporary storage site, is planned to extend well into the following year. While the contract covers the storage aspect, the overall timeline for complete debris removal and processing from the affected areas will likely extend beyond this period and may involve subsequent contracts or phases. The current award focuses on providing the necessary infrastructure and services for the interim storage of collected debris.

How does this contract align with broader federal strategies for disaster preparedness and response?

This contract aligns with federal disaster response strategies by providing essential support for managing the aftermath of a major natural disaster. The Department of Defense's involvement, through the Army, highlights the federal government's role in augmenting state and local capabilities during catastrophic events. The focus on debris management is a critical component of the recovery process, enabling communities to begin rebuilding. By awarding this contract under full and open competition, the government seeks to ensure efficient resource allocation. This action supports the overarching goal of a coordinated and effective national response to large-scale emergencies.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY STE 301, BURLINGAME, CA, 94010

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,147,143

Exercised Options: $50,147,143

Current Obligation: $50,147,143

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912EK22D0004

IDV Type: IDC

Timeline