DoD's $45.5M Vieques Munitions Response Contract Awarded to CH2M HILL, Inc. for Environmental Services

Contract Overview

Contract Amount: $45,480,163 ($45.5M)

Contractor: CH2M Hill, Inc

Awarding Agency: Department of Defense

Start Date: 2016-03-31

End Date: 2026-01-30

Contract Duration: 3,592 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF CERCLA MUNITIONS RESPONSE SITES INVESTIGATIONS, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS AT FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT VIEQUES, PUERTO RICO

Place of Performance

Location: VIEQUES, VIEQUES County, PUERTO RICO, 00765

Plain-Language Summary

Department of Defense obligated $45.5 million to CH2M HILL, INC for work described as: IGF::OT::IGF CERCLA MUNITIONS RESPONSE SITES INVESTIGATIONS, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS AT FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT VIEQUES, PUERTO RICO Key points: 1. Environmental cleanup services for former naval training range in Puerto Rico. 2. Contract awarded via full and open competition. 3. Significant taxpayer investment in environmental remediation and safety. 4. Potential for long-term environmental and community health impacts.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which incentivizes performance. The award amount of $45.5M over a 10-year period suggests a substantial scope of work. Benchmarking is difficult without specific task order details, but the duration and complexity indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for selecting the most capable and cost-effective offeror. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayer funds are being utilized for essential environmental cleanup and safety measures at a former military site, addressing long-standing environmental concerns.

Public Impact

Ensures environmental safety and public health in Vieques, Puerto Rico. Addresses legacy environmental contamination from past military activities. Supports the long-term ecological recovery of the affected region. Provides transparency and accountability for federal spending on environmental remediation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex environmental remediation projects.
Long-term monitoring and maintenance requirements may extend beyond the current contract.
Ensuring effective community engagement and addressing local concerns.

Positive Signals

Commitment to environmental stewardship and public safety.
Utilizes a competitive process to ensure value.
Addresses critical environmental legacy issues.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to environmental remediation and support services. Spending in this area is often driven by regulatory requirements and the need to address historical environmental impacts from industrial and government activities.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While large prime contractors are often necessary for complex projects, opportunities for small business subcontracting should be explored and monitored.

Oversight & Accountability

The contract's long duration and significant value necessitate robust oversight from the Department of the Navy to ensure performance, cost control, and adherence to environmental standards. Regular reporting and performance reviews are crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost growth in complex environmental remediation.
Long-term effectiveness and monitoring of remediation efforts.
Ensuring adequate small business subcontracting opportunities.
Community acceptance and engagement throughout the project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.5 million to CH2M HILL, INC. IGF::OT::IGF CERCLA MUNITIONS RESPONSE SITES INVESTIGATIONS, TITLE II SERVICES, OPERATIONS AND PROGRAM SUPPORT SERVICES, AND COMMUNITY RELATIONS AT FORMER VIEQUES NAVAL TRAINING RANGE AND NAVAL AMMUNITION SUPPORT DETACHMENT VIEQUES, PUERTO RICO

Who is the contractor on this award?

The obligated recipient is CH2M HILL, 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 $45.5 million.

What is the period of performance?

Start: 2016-03-31. End: 2026-01-30.

What specific environmental hazards are being addressed, and what are the projected outcomes of the remediation efforts?

The contract addresses munitions response sites, implying the presence of unexploded ordnance and hazardous materials from past naval training. Projected outcomes likely include the safe removal or containment of these hazards, restoration of land and water resources, and mitigation of risks to public health and the environment, ensuring the site is safe for future use or ecological recovery.

How will the Cost Plus Award Fee structure incentivize CH2M HILL, Inc. to achieve optimal environmental outcomes and cost efficiency?

The Cost Plus Award Fee (CPA) structure allows CH2M HILL, Inc. to recover allowable costs plus a fee that is composed of a fixed base amount and a variable award amount. The award amount is determined by the government's assessment of the contractor's performance against pre-defined criteria, such as technical execution, schedule adherence, and cost control. This incentivizes the contractor to exceed minimum requirements and deliver superior results to maximize their fee.

What mechanisms are in place to ensure community engagement and address potential concerns from residents in Vieques regarding the environmental remediation process?

The contract includes provisions for community relations, suggesting a framework for communication and engagement. This likely involves public meetings, information dissemination, and a process for receiving and responding to community feedback. Effective oversight should ensure these mechanisms are actively utilized to build trust and address local concerns transparently throughout the project lifecycle.

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 AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 9191 S JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,480,163

Exercised Options: $45,480,163

Current Obligation: $45,480,163

Subaward Activity

Number of Subawards: 180

Total Subaward Amount: $13,729,983

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6247016D9000

IDV Type: IDC

Timeline